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Flashcards in Global Systems and Global Governace Deck (259)
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1
Q

Globalisation-What?

A

The increasing connections between places and people across the planet, established through trade, politics and cultural exchanges, and is helped by technology and transport

2
Q

Types of Globalisation

A

There are 4 different types of Globalisation:

  • Economic Globalisation
  • Political Globalisation
  • Social Globalisation
  • Cultural Globalisation
3
Q

Economic Globalisation-What?

A

Countries are connected to each other due to financial reasons

4
Q

Political Globalisation-What?

A

Countries are connected to each other for political reasons

5
Q

Social Globalisation-What?

A

Countries are connected to each other by the actions of people eg: an American eats a Banana from Ecuador

6
Q

Cultural Globalisation-What?

A

Countries are connected to each other by sharing cultures

7
Q

Interconnected-What?

A

The ways that geographical phenomena are connected to each other

8
Q

How can things be connected to each other?

A
  • Environmental Processes
  • The Movement of People
  • Flows of trade and investment
  • The Purchase of Goods and Services
  • Cultural Influences
  • The Exchange of ideas and Information
  • Political Power
  • International Agreements
9
Q

No Globalisation-What?

A

If everyone stayed in their own country and didn’t interact in any way with other countries

10
Q

Total Globalisation-What?

A

If everyone interacted freely, all countries would be fully integrated into the global economy, forming a single society

11
Q

The Real world is?

A

Between No Globalisation and Total Globalisation

12
Q

The Main Dimensions of Globalisation

A

There are 4 main dimensions of Globalisation:

  • Information, Technology and Capital
  • Products and Labour
  • Services and Marketing
  • Production, Distribution and Consumption
13
Q

Examples of Information, Technology and Capital

A
  • Cheap, reliable and near instantaneous communication between all ports
  • Electronic Money flow
  • NIC’s proving services to HIC’s (Outsourcing)
  • The Internet
14
Q

Examples of Products and Labour

A
  • People move around the world for employment
  • High speed rain and international airports
  • Cheap global transport
  • Tourists travelling further to reach more exotic destinations
15
Q

Examples of Services and Marketing

A
  • TNC’s use the same adverts around the world
  • Global Brands
  • Globalised Marketing
  • Services follows flows of information, people and products
16
Q

Examples of Production, Distribution and Consumption

A
  • TNC’s dictate where their products are made

- Peoples are distributed around the world to meet the demands of HIC consumers

17
Q

How to Measure Globalisation

A

To measure globalisation, the KOF scale is used

18
Q

KOF Scale-What

A

An index that was introduced in 2002 and is calculated for each country, with 100 being the most globalised

19
Q

KOF Scales-Aspects Percentage-Economic

A

36% of a countries score on the KOF scale is due to economical reasons

20
Q

KOF Scales-Aspects Percentage-Social

A

38% of a countries score on the KOF scale is due to social reasons

21
Q

KOF Scales-Aspects Percentage-Political

A

26% of a countries score on the KOF scale is due to political reasons

22
Q

KOF index-Categories-Economic

A
  • Trade (% of GDP)
  • Hidden Import Barriers
  • Capital Account Restrictions
  • Mean Tariff Tax
  • Foreign Direct Investment (% of GDP)
  • Trade in Newspapers
  • Taxes on International Trade
  • Transfers
  • Trade in books
  • Portfolio Investment
23
Q

KOF index-Categories-Social

A
  • TV (per 1000)
  • Number of IKEA’s
  • Telephone Traffic
  • Internet Users (per 1000)
  • Foreign born population
  • International Tourism
  • Number of McDonalds
  • Income payments to foreign nationals
  • International Letters
24
Q

KOF index-Categories-Political

A
  • Membership of International Organisations
  • International Treaties
  • Participation in UN Security Council
  • Embassies in Countries
25
Q

KOF Scale-Positives

A

+Way to measure globalisation
+Range of categories/factors
+Covers all aspects of globalisation
+Constantly updated-Countries can move up and down

26
Q

KOF Scale-Negatives

A
  • IKEA and McDonalds are western companies
  • Westernised approach to globalisation
  • To be a member of the UN Security Council , you have to be invited
  • Location based-Some countries cannot enter some groups/agreements
  • Data measuring problems
27
Q

Case Study-Globalisation is Good Film-Taiwan- 30 years ago

A
  • Poorer than many African Nations
  • Malnourished
  • No natural resources
28
Q

Case Study-Globalisation is Good Film-Taiwan-Now?

A
  • No poverty
  • 10x higher raises than 40 years ago
  • Very wealthy
29
Q

Case Study-Globalisation is Good Film-Taiwan-Early factory features

A
  • 24 hour shifts
  • Dangerous Equipment
  • Sweatshop like conditions
30
Q

Case Study-Globalisation is Good Film-Taiwan-Arguments for Sweatshops

A
  • Cheap goods are made

- People get jobs

31
Q

Case Study-Globalisation is Good Film-Taiwan-Key to their success

A
  • Competition in Markets
  • Innovation
  • Government support
  • Global Success
  • Market Deregulation
  • Locals are trained
32
Q

Case Study-Globalisation is Good Film-Taiwan-Americanisation

A
  • Very democratic society
  • Western cultures and companies are in Taiwan
  • People take American concepts are creating a local variation of it
33
Q

Case Study-Globalisation is Good Film-Vietnam

A
  • Lots of Sweatshops
  • Child labour rates has dropped
  • Regulations on sweatshops
  • In 50 years, Vietnam’s economy has doubled
  • Absolute poverty rate halved
34
Q

Case Study-Globalisation is Good Film-Vietnam-Positives of Sweatshops

A
  • Long term investment
  • People have jobs
  • Regularly paided
  • Employees get benefits
  • Economy stimulated
35
Q

Case Study-Globalisation is Good Film-Vietnam-Negatives of Sweatshops

A
  • People migrate to work there-Problems in local area

- Job competition

36
Q

Case Study-Globalisation is Good Film-Kenya-Why is it Poor

A
  • Restrictions
  • Need licence to start business, need money to get licence
  • 1 in 3 live in absolute poverty
  • No land ownership
  • No services
37
Q

Case Study-Globalisation is Good Film-Kenya-Successes

A
  • Mobile phone industry means more are connected
  • Cheap clothes market
  • Flower exports to Europe
38
Q

Factors that accelerate globalisation

A

There are 5 key factors which accelerate the globalisation process:

  • New Technologies
  • Global Financial Systems
  • Improved Transport
  • International Security
  • Trade Agreements
39
Q

Factors that accelerate globalisation-New Technologies

A
  • Information can be shared quickly with billions on sites like Facebook and Twitter
  • Mobile phones help connect people, markets and trade
  • GPS allows people to see where they are
40
Q

Factors that accelerate globalisation-Global Financial Services

A
  • World Bank provides loans
  • Countries can “Bail out” different countries
  • 2007 collapse of US housing market lead to a period where banks no longer wanted to lend money- Lead to 2008 Global Financial Crisis
41
Q

Factors that accelerate globalisation-Transport Systems

A
  • More accessible world-Global transport network for people and goods
  • Creates new treats-Quick transport of disease
42
Q

Factors that accelerate globalisation-International Security

A
  • Open Borders-Reduced security measures e.g.: Countries In the Schengen Area
  • Technology-Cyber Attacks and leaks of information
43
Q

Factors that accelerate globalisation-Trade Agreements

A
  • Countries can pick who they trade with
  • World Trade Organisation overseas 97% of trade and ensures trade agreements are followed
  • The W.T.O agreement is over 26,000 pages long-World trade is very complex
44
Q

Global Network-What?

A

The links between different countries of the world

45
Q

Network-What?

A

An illustration or model which shows how different places are located and connected

46
Q

Nodes-What?

A

The points on a network map

47
Q

Flows-What?

A

The connections between nodes

48
Q

Global Hub-What?

A

A well connected node e.g.: A world city

49
Q

The Shrinking World-What?

A

Distant places start to feel closer and take less time to reach due to technological advancements. This is sometimes referred to as the Time-Space compression

50
Q

The Main Causes of The Shrinking World-Telephones

A

Telephones replaced a 3 week boat trip to talk to someone in another country. This laid the ground for TNC’s to operate in different countries

51
Q

The Main Causes of The Shrinking World-Air Travel

A

Faster planes with greater capacity have allowed mass air travel

52
Q

The Main Causes of The Shrinking World-Internet

A

Large amounts of data can be moved across cyberspace and allows office staff to work from home

53
Q

The Main Causes of The Shrinking World-GIS/GPS

A

GPS, now called GIS is 24 satellites in orbit. GIS’s can collect, analyse and manage satellite data

54
Q

Containerisation-What?

A

the development of standardized metal containers for cargo which can be transhipped between train, lorry and ship carriers. Revolutionized haulage by reducing transhipment times and replacing large numbers of labourers with crane technology

55
Q

Containerisation by Numbers

A
  • There are 17 million shipping containers in the world. At any one time, between 5 and 6 million are in transit on ships
  • Containers make around 200 million trips a year
  • Ships operate 24 hours a day for about 280 days a year
  • Shipping is responsible for 18-30% of all of the worlds nitrogen oxide pollution
  • Shipping is responsible for 9% of all the world’s sulphur oxide pollution
  • 85% of the pollution is in the northern hemisphere
  • Shipping is responsible for 3.5% to 4% of all climate change emissions
56
Q

Containerisation-Which kind of products

A

Containerisation only occurs on secondary products

57
Q

Containerisation-Advantages

A

+Improves efficiency of transport
+Opens far away markets
+Increases the speed of international trade
+Helps develop emerging economies

58
Q

Trade Bloc-What?

A

A trade bloc is where a set of countries trade freely with each other with few, if any barriers. Countries outside this area that wish to trade anywhere within the bloc has to pay an agreed tariff

59
Q

Trade Bloc-Examples

A
  • European Union (EU)
  • Association of Southeast Asia Nations (ASEAN)
  • North American Free Trade Agreement (NAFTA)
  • Organisation of Petroleum Exporting Countries (OPEC)
  • Mercado Comun del Sud (Common Market of the South) (MERCOSUR)
60
Q

Levels of Integration

A

There are 4 different levels of integration of Trade Blocs

  • Preferential Trade Area
  • Free Trade Area
  • Custom Union
  • Common Union
61
Q

Levels of Integration-Preferential Trade Area

A

When countries within a geographical region agree to reduce and eliminate tariff barriers on selective goods imported from other member of the area

62
Q

Levels of Integration-Free Trade Area

A

When two or more countries in a region agree to reduce or eliminate barriers to trade on all goods coming from other members

63
Q

Levels of Integration-Custom Union

A

A customs union involves the removal of tariff barriers between members, plus the acceptance of a common external tariff against non members. This means that members may negotiate as a single bloc with 3rd parties, such as another bloc. E:G: EU negotiating with MERCOSUR

64
Q

Levels of Integration-Common Union

A

A “Common Market” is the first significant step towards full economic integration and occurs when member countries trade freely in all economic resources. This means that all barriers to trade in goods, services, capital and labour are removed

65
Q

Trade Blocs-Advantages

A

+Poorer countries get treated well-Richer countries can bail them out
+Single Currency- Stability, travel more easily and trade with others easily
+Policies-Everyone is on the same page
+Untariffed Goods
+Grants to fund initiatives in member states to help the country develop
+Free Border e.g.: Schengen Area
+Easy to import goods and services

66
Q

Trade Blocs-Disadvantages

A
  • Single Currency-If currency is devalued and collapse, this causes a crisis in many countries eg: Eurozone Crisis
  • Free Borders mean that anyone can come in without being checked
  • Bigger countries have to pay into the union, smaller countries don’t have to
67
Q

World Bank-What?

A

Organisation of 188 countries who work to promote financial cooperation between countries to reduce poverty. This is normally in through the promotion of trade and high employment

68
Q

United Nations-What?

A

Known as the “Guardian of International Peace, Security and Human Rights”. It promotes the development of poorer nations through work with the IMF and the World Bank

69
Q

World Trade Organisation-What?

A

Deals in the rules of trade between countries ensuring trade flows freely

70
Q

International Monetary Fund-What?

A

It is an important source of financial and technical assistance to developing countries, It’s main aim is to reduce poverty

71
Q

TNC-What?

A

A global company which operates in more than one country. Headquarters are often in MEDC’s with factories in LEDC’s where workers are cheaper

72
Q

Advantages of Globalisation

A
\+TNC 's invest in LEDC countries -Creates jobs for locals
\+Lets us experience New cultures
\+Raises awareness to local causes
\+Can lift people out of poverty
\+Can make the world rich
\+Creates trade with countries
\+Improves economy
\+Multiplier Effect occurs in reality
73
Q

Disadvantages of Globalisation

A
  • Money earned by TNC ‘s go to their Headquarters, not the country where the factory is
  • Creates unregulated TNC factories
  • Creates market competition between local and international business
  • Local businesses may close
  • Can make LEDC countries poorer
  • Local traditions are eroded
  • Countries can isolate themselves to prevent globalisation
  • Corruption
74
Q

Inequality -What?

A

The unequal distribution of resources (power, wealth income) and opportunities (health, education, employment)

75
Q

Global Inequality -Who owns what?

A

According to a report from Oxfam, 62 people own the same as half the world

76
Q

Global Inequality -How can it occur

A

Global Inequality can occur within countries as well as between countries. Inequality can occur on the grounds of

  • Gender
  • Religion
  • Social Class
  • Racial Groups
  • Location
77
Q

Global Inequality Case Study -Uganda -Location

A

Uganda is a landlocked country in East Africa

78
Q

Global Inequality Case Study -Uganda -Should Uganda be poor?

A

Uganda should not be poor as it is green and fertile and has plenty of resources such as copper and cobalt. However, due to Civil War and HIV/AID, the country has been damaged

79
Q

Global Inequality Case Study -Uganda -How many life in Poverty?

A

Nearly a third of the population live below the poverty line and the average life expectancy is 59 years

80
Q

Global Inequality Case Study -Uganda -Poverty

A

Poverty is greatest in rural areas, particularly in the north, where the majority of the population are farmers

81
Q

Global Inequality Case Study -Uganda -Colonialism

A

When Uganda was in the British Empire, the British East Africa Company strongly influenced the countries exports. Low value crops were exported

82
Q

Global Inequality Case Study -Uganda -Fish

A

Fish is a traditional food staple for Ugandans living in the shore of Lake Victoria. Hkwever, this is unsustainable due to overfishing and the predatory Nile Perch which has Caused stocks of fish to be reduced to near extinction. This has caused fish factories to close

83
Q

Global Inequality Case Study -Uganda -Telephone

A

A “Village Phone” system has been set up in rural areas . This offers loans for people wanting to start up a mobile phone business. This is an emerging business in Uganda, and can help the country develop and bring people out of poverty

84
Q

Trade -What?

A

The action of buying and selling goods and services

85
Q

Why do we trade?

A
  • Each country has specific resources
  • Resources are unevenly distributed
  • What one country has, another needs
86
Q

What is indicated about trade?

A
  • LIC countries need to export large values of primary products in order to purchase manufacturer goods
  • Prices of these goods are higher than raw goods
  • HIC countries import primary goods, manufacturer them and export them to produce a profit
  • HIC countries dictate the terms of trade
87
Q

Terms of Trade -What?

A

The cost of goods that a country has to import, compared with the price at which they can sell the goods they export

88
Q

Trade Deficit -What?

A

When a country imports more than they export

89
Q

Trade Surplus -What?

A

When a country exports more than they import

90
Q

What is Trade So uneven

A

S.H.E.E.P

91
Q

S.H.E.E.P?

A
Social
Historical
Environmental
Economical
Political
92
Q

Factors that lead to uneven trade -Social

A
  • Poverty
  • Diseases
  • Civil war in countries
93
Q

Factors that lead to uneven trade -Historical

A
  • Colonialism

- The country’s history

94
Q

Factors that lead to uneven trade -Environmental

A
  • Landscape
  • Climate
  • Natural Resources
  • Natural Disasters
95
Q

Factors that lead to uneven trade -Economical

A
  • Technology
  • GDP
  • Country’s Wealth
96
Q

Factors that lead to uneven trade -Political

A
  • Trade Blocs
  • Trade Embargoes
  • International Relationships
97
Q

World Trade Models -Wallerstein

A

-HIC countries give high profit goods to LEDC countries, and receive cheap labour and raw materials from LEDC countries

98
Q

World Trade Models -Wallerstein-The role of NIC ‘s

A
  • NIC countries (Known as Semi Periphery Countries) get goods from HIC’s and receive Labour and materials from LEDC countries
  • They also give goods to LEDC countries, and give HIC countries material and labour
99
Q

World Trade Models -Frank (Pre Wallerstein)

A
Core countries (Normally MEDC countries) give goods to Periphery Countries (Normally LEDC countries). 
Periphery Countries give labour and material to Core countries
100
Q

World Trade Models -Roston

A

Roston’s Modernisation Theory used stages, which over time a country goes through

101
Q

World Trade Models -Roston-Stages -One

A

A countries works with primary goods, normally these are LIC countries

102
Q

World Trade Models -Roston-Stages -Two

A

A country in this stage works with secondary goods. These are normally LIC countries

103
Q

World Trade Models -Roston-Stages -Three

A

A country works with both secondary and tertiary goods. These countries are normally NEE countries. To reach this stage and higher, a country needs Foreign Direct Investment, normally by a TNC

104
Q

World Trade Models -Roston-Stages -Four

A

Countries at this stage work with tertiary goods as well as primary and secondary. These are normally HIC countries

105
Q

World Trade Models -Roston-Stages -Five

A

Countries at this stage work with quarterly goods as well as primary,secondary and tertiary goods. These countries are always HIC countries

106
Q

Primary Goods -What?

A

Raw materials

107
Q

Secondary Goods -What?

A

Manufacturing and assembly goods

108
Q

Tertiary Goods -What?

A

Services

109
Q

Quarterly Goods -What?

A

IT and technology services

110
Q

Changes to World Exports

A
  • Asian countries import and export less to USA
  • Exports to China has increased
  • USA import and export less
  • China import and export more
111
Q

Changes to World Exports-Reasons for

A
  • Outsourcing
  • Cheaper to produce in some countries than others
  • Increase in technology and Transport
  • Globalisation
112
Q

Foreign Direct Investment -Types

A

There are two types of Foreign Direct Investment:

  • Greenfield Investment
  • Brownfield Investment
113
Q

Foreign Direct Investment -Types-Greenfield Investment

A

A country builds factories in new countries

114
Q

Foreign Direct Investment -Types-Brownfield Investment

A

A company develops through the acquisition and mergers of other companies

115
Q

Economy of Scale -What?

A

Producing a narrower range of goods and services means that a country can produce in higher volumes and at a cheaper cost per item

116
Q

Product Dumping -What?

A

The exporting of goods at a price that is lower than the foreign market than the price of the product domestically

117
Q

Protectionism and Tariffs -What?

A

A country may protect important domestic industries by imposing additional taxes on imported goods and/or encouraging exports

118
Q

Comparative Advantage -What?

A

A country specialises in producing goods that can be produced efficiently and at the lowest opportunity cost

119
Q

Over Specialism -What?

A

If demand falls or if the same goods can be produced more cheaply overseas, then production needs to shift to other products. Specialised production centres tend to be less able to diversify

120
Q

Fewer Domestic Monopolies -What?

A

Domestic prices may be kept high when a single firm controls a large proportion of the domestic market. Imports from overseas competitors help to lessen this effect

121
Q

Decline of Local Industries-What?

A

New home grown industries may find it difficult to grow and become established when faced with existing foreign competition, where costs are lower

122
Q

Purchasing Power-What?

A

Increasing trade results in increased competition that lowers prices and allows consumers to be able to buy more for their money

123
Q

De-Skilling-What?

A

Traditional skills and crafts may be lost when production technology replaces manpower, so called “Screwdriver Jobs” may dominate

124
Q

Increased Employment-What?

A

Increased production for export is likely to result in hob creation and due to the multiplier effect, further jobs will be created

125
Q

Transfer of Technology-What?

A

Application of new technologies is incentivised as this may lead to design improvements and cost savings, as well as supporting innovation and enterprise

126
Q

Labour Intensive Industries-What?

A

The biggest cost for most industries is labour, this is particular true for consumer manufacturing industries. By squeezing this cost, even if working conditions are compromised, profits can be maximised

127
Q

Advantages of International Trade

A
  • Economy of Scale
  • Comparative Advantage
  • Fewer Domestic Monopolies
  • Purchasing Power
  • Increased Employment
  • Transfer of Technology
128
Q

Disadvantages of International Trade

A
  • Product Dumping
  • Protectionism and Tariffs
  • Over Specialism
  • Decline of Local Industries
  • De-Skilling
  • Labour Intensive Industries
129
Q

International Trade-Case Study-Songxia-What Product?

A

In Songxia, China, 1/2 a billion umbrellas are made a year in more than 1200 factories

130
Q

International Trade-Case Study-Songxia-Transport Links

A

Songxia has very good road connection to other cities were umbrellas are exported. This gives them access to the domestic and international market

131
Q

International Trade-Case Study-Songxia-Cheap Production Costs

A

People get jobs making umbrellas, even if they have to work long unsocial hours

132
Q

International Trade-Case Study-Songxia-Government Support

A

Tax incentives for producers of umbrellas, as well as preferential treatment for all parts of the supply trade

133
Q

International Trade-Case Study-Songxia-Songxia Umbrella Industrial Park

A

This industrial park strengthens local businesses and raises brand awareness domestically and internationally

134
Q

International Trade-Case Study-Coal Mining in Zambia-What Happened?

A

11 African workers were shot by Chinese mangers during a protest about working conditions. This lead to the Zambian Government to seize the mine due to the poor health and safety conditions

135
Q

International Trade-Case Study-Coal Mining in Zambia-Tax

A

The Chinese owners avoided tax by lying about how much coal they produced

136
Q

International Trade-Case Study-Chinese Steel-Effects on Market

A

Cheap Chinese steel caused European plants to close

137
Q

International Trade-Case Study-Chinese Steel-Price

A

The price is too competitive It should be sold at a rate below the cost to make it

138
Q

International Trade-Case Study-Tata Steel, Port Talbot-What Happened?

A

Tata Steel wanted to sell its UK businesses, this lead to calls for the UK the nationalise the steel industry. The Chinese government wanted to help, but in 2015, the EU imposed dumping laws for steel imports from China. Brexit put more doubt into who, if anyone would buy the plant. Fortunately, they found a buyer

139
Q

International Trade-Case Study-Banana Wars-Causes

A
  • A six year trade quarrel between the USA and the EU
  • USA filed a complain to the WTO about the EU’s scheme giving banana producers from the colonies in the Caribbean special access to the EU market with free trade rules
  • The USA won and the EU had to change its policy
140
Q

International Trade-Case Study-Banana Wars-EU deal with Caribbean

A
  • Each Caribbean country has a quota of bananas that they can sell to the EU tariff free, so they can develop quickly without the need for aid
  • This annoys TNC’s in Central America, as they have to pay tariffs to export to the EU
141
Q

International Trade-Case Study-Banana Wars-What did the USA do in response?

A

-The USA enforced a 100% tariff on all products from the EU

142
Q

International Trade-Case Study-Banana Wars-Why did the USA care?

A
  • Its economy was in debt
  • Could not allow any forms of European Protectionism
  • Pressured by TNC’s (Del Monte) that dominate the banana industry
143
Q

International Trade-Case Study-Banana Wars-What was Threatened?

A
  • The Banana Wars threaten the idea of Free Trade
  • Threatened EU Exports
  • Threatened the whole Caribbean economy, as Bananas are vital for them to grow and develop
144
Q

The Issues with Banana Production-Environmental

A
  • Open Sewer System

- Toxic chemicals sprayed in plants

145
Q

The Issues with Banana Production-Social

A
  • No workers union
  • Poor living conditions
  • Health affected
  • No one to support workers
  • No Job security
  • No Wage increases
  • Come into contact with chemicals
146
Q

Who owns the Banana Market?-2002

A
  • 70% is owned by TNC

- Caribbean markets share is small

147
Q

Who owns the Banana Market?-2013

A
  • 44% is owned by TNC’s
  • Non TNC’s are more Fairtrade than the TNC’s
  • Banana production is fairer than in 2013
148
Q

Fairtrade-What?

A

A value-based organisation and trademark that aims to tackle injustices of the globalised economy. Fairtrade aims to pay farmers a guaranteed minimum price, offer fair terms of trade and make payment of an additional development premium for reinvestment

149
Q

Fairtrade-Aim

A

The aim of Fairtrade is to raise awareness of trade injustices and imbalances of power in the conventional trade structures and to advocate or change policies to favour equal trade

150
Q

Fairtrade-Who does it Benefit?

A

This benefits the workers-makes people aware of their poor conditions

151
Q

Fairtrade-Timeline

A

Late 1940’s-First Fairtrade products sold in USA
Late 1950’s-First Fairtrade products sold in Europe
1969-Firsy “World Shop” that sells Fairtrade products open in the Netherlands
1973-First Fairtrade coffee sold
Late 1980’s-Fairtrade products are labelled, consumer awareness has increased, TNC influence has decreased

152
Q

Fairtrade Case Study-El Guabo Banana Producers-Ecuador

A

El Guabo Banana Producers are one of the largest producers of Fairtrade Bananas. The use of Fairtrade has benefited the company

153
Q

Fairtrade Case Study-El Guabo Banana Producers-Ecuador-Economic Benefits

A
  • Stabilised incomes and improvements to living conditions
  • Guaranteed fair wage and long term supply contract, including access to new markets
  • Producers able to raise additional capital for reinvestment
  • Migrant labourerers help to buy their own land
154
Q

Fairtrade Case Study-El Guabo Banana Producers-Ecuador-Social Benefits

A
  • Health care benefits to families of cooperatives
  • Provision of education and medical supplies
  • Affiliation with social security system
  • Support for the poorest groups
  • Improved education provision
  • Marginalised groups helped to find employment
155
Q

Transnational Corporation (TNC)-What?

A

A company that operates in more than one country

156
Q

Transnational Corporation-Characteristics

A
  • Has a global network/reach
  • Large number of staff
  • Large turnover
  • Global Brand present in many markets
  • Involved with many different products/sectors
157
Q

Assembly Industries-What?

A

Manufacturing operations that take the products of many different industries and put them together to make finished goods

158
Q

Parent Company-What?

A

The original business that a TNC has developed around, and whose directors still make decisions that affect the company as a whole

159
Q

Branch Plant-What?

A

A factory built in a country by a TNC which has its headquarters elsewhere

160
Q

Glocalisation-What?

A

The local sourcing of parts in places where TNC assemble their products close to their target markets. This also allows the customisation of products to local tastes, customs or laws

161
Q

Consumption-What?

A

The purchase and use of commodities as well as services

162
Q

Tertiary Sector-What?

A

AKA The Service Sector. Consists of businesses that produce no physical products

163
Q

Reasons for Growth of TNC-What?

A
  • Cheap Labour
  • Mergers and Takeovers
  • Flexible Workforce
  • Availability of Funding for Expansion
  • Fewer Environmental Restrictions
  • Globalised Transport Network
  • Technological Differences
  • Governmental Encouragement
  • Cheap Land
164
Q

Cheap Labour-What?

A

Lower wage demands from LIC’s and also from the unemployed in HIC’s, means that labour is cheap

165
Q

Mergers and Takeovers-What?

A

Allows big businesses to buy out smaller competitors or increase their market share-which could lead to a monopoly

166
Q

Flexible Workforce-What?

A

Willingness to travel to jobs overseas or to be retrained in situ

167
Q

Availability of Funding for Expansion-What?

A

TNC’s from emerging economies have heavily invested overseas to increase their portfolios

168
Q

Fewer Environmental Restrictions-What?

A

Environmental controls may either be less or weakly enforced in some countries

169
Q

Globalised Transport Network-What?

A

Containerisation has revolutionised the movement of goods by creating a standard transport product that can be handled anywhere in the world

170
Q

Technological Developments-What?

A

Refrigeration allows perishable fruit and vegetables from LIC’s to be transported to HIC Markets

171
Q

Governmental Encouragement-What?

A

Financial incentives such as tax breaks

172
Q

Cheap Land-What?

A

Areas suffering from effects of deindustrialisation will sell land for factory production at a reduced rate

173
Q

Horizontal Integration-What?

A

Improving links between different firms in the same stage of production

174
Q

What does Horizontal Integration allow?

A

This allows a small number of firms to own a large share in the market

175
Q

Vertical Integration-What?

A

An industry where one company either owns or controls multiple stages in the production and distribution chain

176
Q

What does Vertical Integration give a company?

A

Economic advantages over their rivals

177
Q

Advantages of TNC- Host Country

A
  • Increases Employment
  • Improves Skill levels
  • Socio-Economic Multiplier effect
  • Foreign currency is brought in, improving the balance of payment
178
Q

Disadvantages of TNC-Host Country

A
  • Profits go to Home country
  • Low Skilled Jobs
  • Non Local Managers are brought in
  • Can only be short term
  • Negative Multiplier effect
179
Q

Advantages of TNC-Parent Country

A
  • Overseas Investment
  • Adds to countries income
  • High skilled Jobs
  • Wider share of markets
180
Q

Disadvantages of TNC-Parent Country

A
  • Workforce may have to relocate
  • TNC’s do not pay full tax
  • Can cause global recession and market crashes
181
Q

TNC Case Study-Coca Cola

A
  • Every day, 1.9 billion products made by Coca Cola are consumed
  • The world 3rd most valuable brand
  • Grown due to marketing, investment and worldwide acquisitions
  • Over 20 different brands, generate over $45 billion and year in revenue and sales in nearly 200 countries
182
Q

TNC Case Study-Coca Cola-Social Impacts-Positive

A

+Training and education programs to create empowerment of 5 million female entrepreneurs by 2020
+The Coca Cola Foundation awards grants to companies that focus on development and sustainability
+Massive Employment Opportunities in related industries

183
Q

TNC Case Study-Coca Cola-Social Impacts-Negative

A
  • Harsh Working conditions in some bottling plants
  • Millions have been spend to deny the links between Coca Cola and Obesity
  • Workers are encouraged to abandon union membership in some LIC’s like Guatemala
  • Coca Cola funded a research institution that recommended people consume sports and soft drinks
184
Q

TNC Case Study-Coca Cola-Economic Impacts-Positives

A

+Franchises mean that many local bottlers profile from sale, supports local businesses
+Investment in New plants and Research and Development Labs in developing Markets like Asia and North Africa
+Investments in new markets create economic boom in the market

185
Q

TNC Case Study-Coca Cola-Economic Impacts-Negatives

A
  • Long hours worked for little pay
  • Majority of Profits return to shareholders in USA
  • Bottle plants are vulnerable to the effects of decision of Atlanta (Where the Company is based)
186
Q

TNC Case Study-Coca Cola-Environmental Impacts-Positives

A

+Uses marketing to increase awareness of recycling
+Creates sustainable agriculture schemes (e.g: Rainwater Harvesting System in China)
+Replenishes the water it uses by funding local water projects

187
Q

TNC Case Study-Coca Cola-Environmental Impacts-Negatives

A
  • Exhaustion of local water supplies (in 2012, they used more water than 25% of the world population)
  • Water Pollution, as seen in Kerla, India
  • Pesticide residue identified in some Coca Cola products
188
Q

Global Governance-What?

A

Groups of the world coming together to set institutions, laws, treaties, rules and norms on how to tackle issues that are common to all countries and cannot be dealt with by any one particular country

189
Q

Actors in Managing Global Affairs

A
  • Nation States
  • TNC’s
  • International and National Organisations
190
Q

Reactive-What?

A

Reacting to an event after in happened

191
Q

Proactive-What?

A

creating or controlling a situation rather than just responding to it after it has happened.

192
Q

National Governments-Reactive Response

A

Legislate and invest, to implement international initiatives, laws, targets or agreements

193
Q

National Governments-Reactive Response-Example

A

The UK government’s recent support for renewable energy sources, to reduce dependence on fossil fuels and climate changing emission is, in part a response to new EU laws on dirty power stations

194
Q

National Governments-Proactive Response

A

Lobby for and contribute to international discussions, votes and decisions

195
Q

National Governments-Proactive Response-Example

A

Some national governments have more influence than others on the UN Security Council. China, France, Russia, the UK and the USA are all permanent members of the group and often take leadership roles in conflict resolution

196
Q

TNC’s-Reactive Response

A

Compensate and adopt new codes of conduct or working practices imposed by legislation or socio-economic pressure

197
Q

TNC’s-Reactive Response-Example

A

In the wake of the collapse of the 8 storey factory in Bangladesh, Primark paid compensation and provided emergency aid to the victims of the disaster

198
Q

TNC’s-Proactive Response

A

Sponsor and support the work of NGO’s and international organisations

199
Q

TNC’s-Proactive Response-Example

A

Tobacco companies and others sponsor anti-smoking NGO’s in LIC’s, to publicise the health risks of smoking, thereby protection themselves from the sort of law suits seen in the HIC’s

200
Q

International Organisations-Reactive Response

A

Respond to global events to offer advice to national governments and publishes the work of NGO’s already on the ground

201
Q

International Organisations-Reactive Response-Example

A

The World Health Organisation was late to offer guidance on how to contain the Ebola Virus in the early stages of the epidemic

202
Q

International Organisations-Proactive Responses

A

Sponsor, facilitate and publish international issues and agreements to address them

203
Q

International Organisations-Proactive Responses-Example

A

IN 2013, the UNI Global Union sponsored and created a legally binding document to protect the working conditions of the garment industry in Bangladesh

204
Q

The Two Schools of thought in Global Politics are

A
  • Liberalism

- Realism

205
Q

What do Liberalists do?

A
  • Emphasis broad ties among states
  • Decrease military power
  • Developed in 1970 as realism was seen as outdated
  • Want to increase globalisation, international trade
  • Believe that Power Politics can not longer decide matters
206
Q

What do Realists do?

A
  • The state is the main actor in domestic and international affairs
  • The State makes important decisions, but other players decide how the State operates
  • The State only works to increase their power over other states-Power States Outlast Weak States
207
Q

Tragedy of the Commons-What?

A

What an individual benefits from overusing a resource, but the whole community pays for the use and don’t benefit in the long term

208
Q

Why is it important to protect the global commons?-Globalisation

A

Due to Globalisation, increased population growth and other reasons, the commons are being damaged. The world is becoming urbanised

209
Q

Why is it important to protect the global commons?-Climate Patterns

A

Shifts in climate patterns in the world can be caused by changes in the global commons

210
Q

Case Study-Antarctica-Location

A
  • A continent on the South Pole of the Earth
  • At 60 degrees south
  • Surrounded bu Southern, Indian, Atlantic and Pacific Oceans
  • Made of 8 million KMsquared of land in 2 blocks beneath 14 million KMsquared of Ice, which is 4KM thick in places
  • 99% is covered in Sheet ice
  • Coastline in fringed with Ice Shelves, with the Ross Ice Shelf, and the Ronne Ice Shelf being the two largest
211
Q

Case Study-Antarctica-Climate

A
  • The coldest, windiest and driest continent
  • Average temps of -49 degrees, lowest at -89 degrees
  • Average wind speed is 50MPH, can reach 200MPH
  • Very low precipitation
  • Thick Ice Sheets due to the accumulation of small inputs of snow and frost which exceed melting rates over very long periods of time
  • Known as a “Polar Dessert”
212
Q

Case Study-Antarctica-Physical Geography

A
  • Most is mountainous, rocky and covered in glacial ice
  • Ice free areas are due to local factors
  • Has Nunataks
  • Divided in Greater and Lesser Antarctica by Transarctic Mountains
  • Highest point is Mount Vinson at 4892M
  • Marine conditions support diverse ecosystem
  • Coast is warmer than centre
213
Q

Nunatak-What?

A

A nunatak is an exposed, often rocky element of a ridge, mountain, or peak not covered with ice or snow within (or at the edge of) an ice field or glacier. They are also called glacial islands

214
Q

Case Study-Antarctica- Antarctic Convergence Zone

A

In this zone, North flowing waters from Antarctica meet warmer south flowing waters. This zone is between 32KM to 48KM wide and varies according to latitude and season. Cold water sinks beneath warmer waters causing upwelling currents. Leads to high marine productivity, due to the conditions

215
Q

Case Study-Antarctica- Antarctic Circumpolar Current

A

-The largest global surface current, it flows eastwards, driven by westernly winds and is also known as the West Wind Drift. This blocks warmer waters from traveling south towards the Antarctic

216
Q

Life in Antarctica

A

The majority of life is marine based, as the climate in the sea is not as harsh as on the land. Organisms are more likely to thrive in the marine conditions

217
Q

The Importance of Krill

A

Krill is very important food source in the Antarctica. It is eaten by a lot of animals in the food chain. It is

218
Q

Krill and the Baleen Whale

A

Krill is very important to the Baleen Whale as it is their only food source

219
Q

Case Study-Antarctica-Human Geography

A

Antarctica is the only continent with no permanent human l habitation. There are however, permanent human settlements, where scientists and support staff live for part of the year on a rotating basis

220
Q

The Main Bases on Antarctica

A
  • Amundsen-Scott (USA)
  • McMurdo (USA)
  • Davis (Australia)
221
Q

Threat-What?

A

A statement of an intention to inflict pain, injury, damage or other hostile action on someone or something. It can also be a person or thing likely to cause damage or danger

222
Q

Threats to Antarctica

A

There are 4 main threats to Antarctica:

  • Whaling and Fishing
  • Climate Change
  • Mineral Extraction
  • Tourism
223
Q

Threats to Antarctica-Whaling and Fishing-What?

A

The declining number of Whales and Fish in the seas of the Arctic

224
Q

Threats to Antarctica-Whaling and Fishing-What is the Fishing Threat

A
  • Only Large Scale operation in Antarctica
  • Potential over Fishing of species
  • Effects on the food chain
  • Habitats Destroyed
  • Non target species are killed by fishing equipment
  • Overfishing of Krill
  • Some countries have unauthorised fisheries
225
Q

Threats to Antarctica-Whaling and Fishing-Key Evidence

A
  • Began in the early 1900’s and grew very quickly
  • In 1910, Antarctica provided 50% of the World’s Catch
  • 1991-The Convention on the Conservation of Antarctic Marine Living Resources imposes Catch Limits
  • Krill Numbers has dropped by 80% since the 1970’s-Caused by less Sea Ice
226
Q

Threats to Antarctica-Whaling and Fishing-What does the Threat impact on?

A
  • Fish
  • Whales
  • Krill
227
Q

Threats to Antarctica-Whaling and Fishing-IWC- What?

A

IWC stands for International Whaling Commission

228
Q

Threats to Antarctica-Whaling and Fishing-IWC-Aim

A

Aims to Conserve the Whales of the world

229
Q

Threats to Antarctica-Climate Change-What is the Threat?

A
  • Rising of Temperatures by 3 degrees
  • Melting of snow ice-Increased Colonisation of Plants
  • Disruption of Penguins Colonies have Changed
  • Krill number have declined-Associated with reduced Sea Ice Cover
230
Q

Threats to Antarctica-Climate Change-Why has the Threat Arisen?

A

The threat has arisen due to a rise in Carbon Emissions, due to:

  • Globalisation
  • Trade
  • Transport
231
Q

Threats to Antarctica-Climate Change-Which area is Most Threatened by Climate Change?

A

The Antarctic Peninsula is most threated. The southern Ocean temperature has risen by 1 degree since 1955

232
Q

Threats to Antarctica-Climate Change-What dies the Threat impact on?

A
  • Penguins-Their numbers are declining
  • Whales-They rely on Krill
  • Krill-Their numbers are declining
233
Q

Threats to Antarctica-Climate Change-Trade and Globalisation

A

International Trade, and particular International Transport increases the Climate Budget, which helps contribute to Climate Change

234
Q

Threats to Antarctica-Mineral Extraction-What is the Threat?

A

Mining for minerals on the Continent

235
Q

Threats to Antarctica-Mineral Extraction-Why has the Threat Arisen?

A

-Future Demand for the resources of Antarctica

236
Q

Threats to Antarctica-Mineral Extraction-The Minerals of Antarctica

A
  • Silver
  • Gold
  • Cobalt
  • Copper
  • Chromium
  • Iron
  • Molybdenum
  • Manganese
  • Nickel
  • Lead
  • Titanium
  • Uranium
  • Zinc
237
Q

Threats to Antarctica-Mineral Extraction-What Will Happen in 2048?

A

In 2048, the Current agreement on mineral extraction ends. If an agreement is not decided by then, it becomes “Open Season” on mineral extraction, potentially bringing Commercial Mining to the Continent for the first time

238
Q

Threats to Antarctica-Tourism-What is the Threat?

A
  • The continent is under pressure as the result of the shrinking world
  • Modern Transport makes it quicker to get there
  • Damage caused by Tourists:
  • Rubbish
  • Pollution
  • “Everyday Pollution”
  • Waste from Ships
239
Q

Threats to Antarctica-Tourism-Main Reasons for Growth in Tourism

A
  • Bucket list destination
  • 37000 arrivals to Antarctica in 2014
  • Peaked at 46000 in 2007
  • Attracted to scenery and Wildlife
  • Due to the Antarctic Treaty, only 100 people are allowed onshore at one time-to protect the environment
240
Q

Threats to Antarctica-Antarctic Treaty-What?

A

Introduced in 1961, it is designed to protect and conserve the environment, plant and animal life on Antarctica

241
Q

Threats to Antarctica-Tourism-Who does this Threat Impact?

A
  • Wildlife
  • Landscape
  • Scientists-Can’t observe the environment
  • Tourists-Environment is damaged, they can’t go
242
Q

Threats to Antarctica-Tourism-Arguments for

A
  • Economic benefits to tour companies

- People gain joyful experiences

243
Q

Threats to Antarctica-Tourism-Arguments Against

A
  • Pollution
  • Disturbs Wildlife
  • Oils spills from ships-Kill Martine Life
  • Could Introduce non-native species
  • Plants are Destroyed
244
Q

Management of Antarctica-Antarctic Threaty System

A
  • Created due to the lack of sovereignty over the region

- Signed in 1959 by 12 nations, with 52 countries having signed up since then then

245
Q

Management of Antarctica-Antarctic Threaty System -Goals

A
  • peace
  • Corporation
  • Science
  • Prevents Military Tests
  • Prevents other claims to continent
  • Only permits Science activities that are supervised
246
Q

Management of Antarctica -Protocol on Environmental Protection

A
  • Created in 1991
  • Bans all mineral resource activity
  • Promotes monitoring in order to minimise the impacts of human activity
247
Q

Management of Antarctica -Flora and Fauna

A
  • Prevents removal of native flora and Fauna
  • Prohibits non native species
  • Identifies and designates specially protected species
248
Q

Management of Antarctica -waste Management

A
  • Identifies type of waste that have been removed
  • Establish rules for the storage and disposal of waste
  • Planning for the removal of waste
249
Q

Management of Antarctica -Marine Pollution

A
  • Restricts the use of heavy fuel oil
  • Prohibits the discharge of oil and garbage in Antarctic Treaty Area
  • Creates rules of what can be discharged
250
Q

Management of Antarctica -Protected Areas

A

-Specific areas of interest are identified and Protected

251
Q

Management of Antarctica -NGO -Antarctic and Southern Ocean Coalition

A

This NGO designates marine protected areas and Marine Reserves. These create areas for scientists to study climate change

252
Q

Management of Antarctica -NGO -Oceanites

A

-This NGO does penguin counting to see how climate changes effects them

253
Q

Management of Antarctica -NGO -Greenpeace

A

This NGO intervenes with environmental causes and applies pressure to change policies that will benefit the environment

254
Q

Common -What?

A

A shared resource or area

255
Q

Global Common -What?

A

These are resources,domains or areas that lie outside the political reach of one nation

256
Q

The 4 Global Commons

A
  • The seas
  • The Atmosphere
  • Antarctica
  • Outer Space
257
Q

The Unofficial 5th Common

A

The Internet

258
Q

The Common Heritage of Mankind -What?

A

Defined territorial areas and elements of humanity common heritage should be helped trust for future generations and be protected from explotation

259
Q

The Common Heritage of Mankind -principals

A
  • Some localities belong to all humanity
  • the resources there belong to all of humanity
  • We must take into consideration future generations
  • And the needs of developing countries