Global systems Flashcards
(29 cards)
What are global systems?
Systems that operate across international borders and connect places economically, politically and socially
What is included in global systems? (5)
International trade
production
financial flows
labour markets
global governance institutions
What is included in international trade & investment?
Patterns of trade.
Trade agreements
Foreign Direct investment
How are patterns of trade involved in global systems?
Historically dominated by trade, but now includes emerging powers.
Trade is increasingly inter-regional
LICs often trade in primary goods, HICs give manufactured goods
How are trade agreements involved in global systems?
Bilateral & multilateral agreements.
Promote free trade
Can cause trade diversion and increase dependency
How are FDIs involved in global systems?
Investment by TNCs or governments elsewhere.
Benefits: job creation, technology
Risks: Exploitations, env damage, tax avoidance
What are global production networks GPNs?
Products designed, sourced, manufactured, assembled and sold in different countries.
Apple Iphone. Designed in the US, components from korea/japan, assembled in China
What are the positives of TNCs? (3)
Employment and skills transfer.
infrastructure investment.
Integration into global economy
What are the negatives of TNCs? (4)
Exploitation of labour.
Pollution and environmental damage.
Profit repatriation (money leaves).
Undermining of local businesses.
What are the main institutions for global financial systems?
IMF - stabilises global economy, lends to countries in crisis.
WB - funds development projects
WTO - regulates global trade, promotes free trade
What are the criticisms of the global institutions?
Western dominance. (US and EU have the most power).
Conditional loads that impose austerity.
Focus on free market reforms –> can increase inequality
What is included in labour mobility?
People migrate for better work and income opportunities.
Remittances/
Skilled workers move from LICs to HICs (Brain drain)
What is brain drain?
Skilled workers move from LICs to HICs
What are the impacts of flows of labour for the source country?
Remittances, reduced unemployment.
Loss of skilled workers, ageing population
What are the impacts of flows of labour for the host country?
Fills labour shortages, cultural diversity.
Pressure on housing, services, integration challenges
What model displays unequal power relations in global systems?
Core-Periphery model
What is displayed as ‘core’ countries in the core-periphery model?
HICs control capital (money), technology, Institutions.
What is displayed as ‘periphery’ countries in the core-periphery model?
LICs provide raw materials, labour and markets
What does the core-periphery model reinforce about LICs?
Reinforces dependency and underdevelopment in LICs
How does access to trade differ from HICs to LICs?
HICs often control terms of trade.
LICs face tariffs and lack infrastructure
What does fairtrade intend to do for unequal power relations?
Fair trade aim to address the imbalance
What are some examples of governance mechanisms?
UN agencies (WHO)
Trade bodies (WTO)
Environmental agreements (paris agreement)
Multinational treaties (antarctic treaty)
What do governance mechanisms aim to do?
Manage global risks (pandemics, climate change).
Coordinate economic stability.
Promote sustainable development
What are the four types of interdependene?
Economic, political, social, environmental
