Global Systems and Governance

Question 1

The flow of globalisation

Answer 1

The roots of globalisation lie in international trade and the increasing accessibility of markets, which open up to the wider global community.
The increased flow of capital, labour and investment have been both a cause and an ongoing consequence of the globalisation process.

Question 2

Globalisation

Answer 2

The way it is defined reflects whoever is writing it (economists, geographers etc.)
The process by which places and environments become more interconnected, interdependent in real time as part of a shrinking world.

Question 3

Shrinking world

Answer 3

Time-space convergence has led to extensive networks of people and places. ICT enables interactions by providing affordable instantaneous connectivity. Over time network connections have become faster and more inclusive of all people in society not just privileged groups

Question 4

Economic globalisation

Answer 4

Growth of TNCs has accelerated cross-border exchanges of raw materials, components, finished manufactured goods, shares etc.
ICT supports the growth of complex spatial divisions of labour for firms
The internet has allowed extensive networks of consumption to develop

Question 5

Political globalisation

Answer 5

G7/8 and G20 groups meet regularly to discuss global concerns such as the global economy and the environment
World Bank, IMF, WTO harmonise national economies

Question 6

Social globalisation

Answer 6

International migration has created extensive family networks that cross national borders
Global improvement sin education and health can be seen over time, with rising life expectancy and literacy
Social interconnectivity has grown over time due to the speed of universal connections such as mobile phones, email and social media

Question 7

Cultural globalisation

Answer 7

Successful western cultural traits have come to dominate in some nations - sometimes called the Americanisation or McDonaldisation of tastes and fashion
Glocalisation is amore complex outcome that takes place as old local cultures merge and mould with globalising influences e.g. music/art

Question 8

Flows of globalisation - services

Answer 8

Advancing technology means they can serve the needs of customers worldwide.
High-level (prevalent in NY, London etc.) - to businesses - finance, investment, advertising
Low-level - banking, travel, call centres

Question 9

Flows of globalisation - products

Answer 9

Transaction costs have been reduced by the improvements in flows of data and the ease with which capital can be transferred to pay for transactions.
Transport and time costs have reduced (containerisation)
Protectionist barriers have reduced global trade

Question 10

Flows of globalisation - information

Answer 10

Governed by the movement of people and the speed of data and communication transfers
Transfer of cultural ideas, language, industrial technology, design and business management support

Question 11

Flows of globalisation - capital

Answer 11

Aid and remittance payments
Foreign direct investment - mainly by TNCs into the physical capital or assets of foreign enterprise
Repatriation of profits by TNCs back to home country

Question 12

Flows of globalisation - labour

Answer 12

Some restrictions on immigration, however, still been a massive rise in the numbers of migrants, mainly to seek better employment opportunities.
Developing countries → developed countries
A lot of movement is short distance within the same region. NA, Europe and Gulf countries attract migrants from further afield.
Brain drain - skilled workers from a poorer country leave to seek better employment.

Question 13

Global marketing

Answer 13

The process of promoting, advertising and selling products. When a company becomes a global marketer, it views the world as one single market and creates products that fit the various regional markets. It will usually develop a recognisable brand and employ one marketing strategy to advertise products to customers around the world.
Generates EoS

Question 14

International Division of Labour

Answer 14

The spatial distribution of different stages of economic activities across the globe, where countries specialize in producing goods or services based on their comparative advantages, resource availability, or economic development levels.

Question 15

Impact of globalisation of international division of labour

Answer 15

Globalisation has created a new international DoL with two main groups:
- Highly skilled/paid, decision-making, research and managerial occupation which are more developed countries and assembly occupation in developing countries

Question 16

Changes to the international division of labour - NEEs

Answer 16

Original NEEs were ‘tiger economies’ Singapore, Hong Kong, South Korea, Taiwan.
Then went to BRIC economies and now MINT countries. Countries move away from NEE classification by developing their own industrial and commercial bases and their own TNCs

Question 17

Global shift of production

Answer 17

1954 - around 95% of manufacturing was concentrated in Western Europe, NA, and Japan
Products were also consumed in the country of origin
FDI by TNCs into developing countries has changed this
Lower land values and labour costs and government incentives led to relocation of production-side businesses
Global shift from developed countries to lower wage economies of manufacturing

Question 18

Consequences of global shift in production

Answer 18

Deindustrialisation in richer countries
1983-2013 employment in secondary sector ↓ 30% in UK
50% of manufacturing jobs are in developing world

Question 19

Location choices for businesses in globalisation

Answer 19

Places with high-skilled/educated workers
Limited government regulation or deregulation initiatives
Opportunities to build factories and access to hi-tech capital

Question 20

Ebbs and flows in car production - USA

Answer 20

Since 1994, Ford have relocated much of their component assembly to maquiladora plants in Mexico due to cheaper production costs and non-tariff barriers that are part of NAFTA
At the same time Toyota have invested in new plants and technology , revitalising the industry

Question 21

Ebbs and flows in car production - UK

Answer 21

Lost a lot of car industry in 1980s
Investment from Japanese companies, Honda, Nissan, Toyota. The UK is now one of the most productive car manufacturers in Europe
Investment from TNCs such as Tata who bought Jaguar Land Rover from Ford in 2008
2019 - Honda closed down its factory in Swindon

Question 22

Global shift of distribution and consumption

Answer 22

Consumption still lies predominantly in the developed world.
Manufactured in NEEs are largely exported and sold to Europe, NA, Japan
Dyson, UK based company; manufacturers + assembles products in Malaysia and sells products in the UK and other parts of Europe

Question 23

Changing patterns of distribution and consumption

Answer 23

As NEEs develop, their populations are becoming more affluent and starting to demand similar consumer products to those being exported from their own countries
It is likely that in the future their will be a definitive shift from west to east

Question 24

Forecasted changing patterns of distribution and consumption

Answer 24

Fastest growing trade route will be India → China
Western finance companies have potential to benefit from trade in services to Asia-Pacific

Question 25

The service industry

Answer 25

High level services have concentrated in certain places different from old centres of manufacturing Decentralisation of low-level services to developing world Call centre UK → India, Middle East, southern Africa where employment costs are ↓ 10-20%

Question 26

Factors in globalisation - gov. support

Answer 26

↑ exports is a goal for most gov.s UK gov. have UK Trade and Investment department who offer support and advice on all aspects of trade to encourage businesses

Question 27

Factors in globalisation - financial

Answer 27

Trade has been hindered by problems in exchanging finance and exchange rate concerns Deregulation of financial markets allowed arrangements for the removal or relaxing of barriers to move finance High-speed electronic trading systems means financial transactions can be quick and secure

Question 28

Factors in globalisation - transport

Answer 28

↑ size and speed of aircraft Low-cost airlines Standardised containers Computerised logistics systems High speed rail systems

Question 29

Factors in globalisation - security

Answer 29

World Customs Organisation protects against terrorism and smuggling However increases costs and create delays for the shipment of goods

Question 30

EU

Answer 30

1993 The European Union (EU) is a political and economic union of 27 European countries that work together on a wide range of issues, including trade, security, environmental policy, and citizens' rights.

Question 31

Aims of EU

Answer 31

Economic cooperation – Free trade and a single market. Peace and stability – Especially after WWII. Mobility and freedom – Citizens can live, work, and study in any member state. Shared policies – Environment, agriculture, consumer protection, and more. Common foreign policy – Some coordination on diplomacy and security

Question 32

Successes of EU

Answer 32

Benefits of free trade for major exporters like Germany Support - Poland received €100bil funding 2014-20 Strong global influence ↑ Mobility of labour Support particular sectors of a national economy (CAP in EU) Share tech advancements ↑ Education and healthcare standards Democracy, human rights

Question 33

Drawbacks of EU

Answer 33

Loss of sovereignty - many UK citizens felt EU laws overruled British law and can't negotiate own trade deals CAP leads to overproduction Free movement of labour has led to brain drain, leaving countries like Romania with aging populations and skill shortages Pressure to adopt central legislation - Bosman ruling Trade diversion

Question 34

World Bank - roles and criticisms

Answer 34

Provides loans to developing countries for capital programmes. Official goal is reduction of poverty. Achieves these aims but Criticised for environmental damage, dependency of countries on loans, western influence + power imbalance

Question 35

IMF

Answer 35

188 countries working to raise global monetary co-operation, secure financial stability, facilitate international trade. Success in economic stabilisation and co-operation but Loans come with imposition of austerity measures and loss of sovereignty

Question 36

WTO

Answer 36

Deals with rules of trade between countries, deals with disputes between countries. Promotes free trade but Favouritism towards wealthier nations and trade liberalisation can harm developing economies

Question 37

Positive effects of flows of labour

Answer 37

Reduces unemployment Reduces geographical inequality between workers Addresses skill gaps Multiculturalism Remittances benefit home countries

Question 38

Negative effects of flows of labour

Answer 38

Brain drain Unemployment in developed countries if there is outsourcing Greater risk of pandemics

Question 39

Outsourcing

Answer 39

Taking manufacturing or service jobs from HICs and having them undertaken by organisations in a LIC/NEE

Question 40

Positives of outsourcing

Answer 40

Provides jobs and investment in one country

Question 41

Negatives of outsourcing

Answer 41

Structural unemployment from deindustrialisation

Question 42

Globalisation impact on inequality

Answer 42

Reducing global inequality through the transfer of capital and income (communication and transport is condensing the development continuum) BUT Increasing inequality within countries as richer members of society cope better with changes in jobs and technologies (UK 1980s - outsourcing meant loss of jobs for secondary sector workers, but London had opportunities with high-level service sector jobs - Gini coefficient

Question 43

Geopolitical issues and globalisation

Answer 43

Argument that globalisation will lead to greater stability and decrease likelihood of conflict between nations. BUT Conflict can be caused by shortages of food, water and energy - Malthusian Trap - planet can never cope with consistently growing population Rapid communications can hasten spread of civil conflicts within countries Trade can be used as a weapon in conflict

Question 44

Arab Spring

Answer 44

Globalisation contributed to the Arab Spring in 2010 - Spread of information + ideas on social media - became tools for organising protests, and exposure to global norms such as democracy and human rights - Economic inequality - globalisation bringing about income inequality and youth unemployment in area fuelled dissatisfaction

Question 45

Patterns of international trade

Answer 45

2022 - $25t in trade compared to $6t in 2000 China and the USA are the largest exporters of goods

Question 46

Advantages of international trade

Answer 46

Specialisation in comparative advantage Economies of scale Fewer domestic monopolies as there is overseas competition Transfer of technology Increased employment

Question 47

Disadvantages of international trade

Answer 47

Over-specialisation leads to risk Decline of emerging industries De-skilling as production technology replaces manpower Exploitive industries Dumping Protectionism and tariffs

Question 48

Fair trade

Answer 48

Promoting ethical production by ensuring fair wages, safe working conditions, and environmental sustainability for farmers and workers in developing countries. It combats exploitation, supports communities, and encourages responsible consumerism through certified products like coffee, chocolate, and textiles, fostering a more equitable global trade system

Question 49

G20

Answer 49

Forum of 19 countries + EU which aim to bring together major economies 85% of global trade

Question 50

G77 + China

Answer 50

Group of economies aiming to promote the collective interests of developing countries with economic + technological collaboration and narrowing the wealth gap China is not part of the group but is involved heavily in discussions due to its influence in developing countries

Question 51

China in Africa

Answer 51

China is Africa's largest trader: China imports raw materials + exports machinery + electronics China is involved in infrastructure development such as Mombasa-Nairobi railway Provides significant loans China contributes to UN peacekeeping missions in Africa

Question 52

Criticisms of China's role in Africa

Answer 52

Debt trap diplomacy - concerns about debt sustainability and China's bargaining power if countries are unable to repay loans Economic dependence

Question 53

SDT

Answer 53

Special + differential treatment Implemented by the WTO Gives developing countries have more favourable trade terms, such as: - ↓ trade barriers - longer time to implement trade barriers - technical assistance - preferential market access

Question 54

Generalised system of preferences

Answer 54

Example of SDT Allows developing countries to export certain goods to developed countries at lower tariffs and free trade

Question 55

Problems of SDTs

Answer 55

Over-reliance on scheme may discourage diversification of industries (as preference is only on some goods) or domestic development in some countries

Question 56

Ethical investment

Answer 56

Money + financial resources are allocated in a way that prioritises environmental + social sustainability e.g. aligning with UN's SDGs, green energy, corporate social responsibility, investment in ethical businesses

Question 57

Facts about TNCs

Answer 57

Over 60,000 TNCs Employ 45mil people 75% of trade

Question 58

Why do TNCs operate around the world

Answer 58

Escape trade tariffs Lowest cost location for their production Reach foreign markets more effectively Exploit natural resources available in foreign activities

Question 59

Primary sector TNCs

Answer 59

e.g. Royal Dutch Shell, BP Production near source of unexploited resource - usually in developing countries New technology (e.g. fracking) means some can now be in HICs

Question 60

Secondary sector TNCs

Answer 60

e.g. Toyota, Volkswagen Manufacturing in developing countries -especially south (east) Asia: - low labour costs - investment in education - strong work ethic and little regulation Car manufacturers locate in USA in EU to gain access to markets

Question 61

Tertiary sector TNCs

Answer 61

e.g. BT More 'footloose' - will locate in areas with: - low labour costs - good education - proximity to markets - language also important

Question 62

Quaternary sector TNCs

Answer 62

e.g. GlaxoSmithKline Footloose, tend to be located in centres of knowledge development (e.g. universities)

Question 63

Social benefits of globalisation

Answer 63

TED - Chinese workers not that worried about poor conditions as they come from worse rural areas and see the opportunity to work for TNCs as positive and chance to grow Transfer of ideas and traditions

Question 64

Social negatives of globalisation

Answer 64

Poor conditions for workers in LICs Chinese workers coming to the city want opportunity to learn - too little investment in education Worker alienation Foreign cultures (i.e. Westernisation) is ↑ cultural homogenisation (but there is 'glocalisation')

Question 65

Economic positives of globalisation

Answer 65

Lower prices, more choice TNCs have access to more markets Economies of scale Foreign competition may weaken domestic monopolies Greater innovation Access to cheaper raw materials

Question 66

Economic negatives of globalisation

Answer 66

Vulnerability to economic shocks Free trade can hinder industries in developing countries Still some protectionism Worker exploitation Diseconomies of Scale

Question 67

Environmental positives of globalisation

Answer 67

↑ awareness

Question 68

Environmental negatives of globalisation

Answer 68

More transportation - ↑ emissions Depletion of non-renewables TNCs outsourcing production to less environmentally regulated countries IMF-enforced spending cuts to many countries' environmental spending

Question 69

Global governance

Answer 69

The way in which global affairs affecting the whole world are managed through norms, laws, regulations + institutions As the world becomes more interdependent, global governance is increasingly important for achieving sustainable development across all nations

Question 70

Recent international issues

Answer 70

Reduction of poverty Financial instability - GFC Human rights violations - modern slavery Trade and investment inequalities - emergency aid for LICs is low Reducing environmental issues - climate change - Paris Agreement Civil conflict / terrorism - Arab Spring + 9/11

Question 71

Need for global governance

Answer 71

Food shortages - governance needed to regulate food production Changing demographics - ↑ in migration + ease of migration TNCs - global companies have more power over capital and resources than some governments Conflict + terrorism - cross-border intelligence, arms trading etc. Shortage of resources - governance needed to regulate resource management + trade (deforestation)

Question 72

Key players in global governance

Answer 72

National governments Regional trading blocs Coordinating groups of countries (G8) International regulators (IMF) International development agencies (UN) NGOs TNCs

Question 73

United Nations

Answer 73

International organisation designed to make the enforcement of international law, security, economic development, social progress + human rights easier for countries (advisory, no jurisdiction) - 193 countries - HQ in NY

Question 74

Positives of the UN

Answer 74

Maintaining international peace and stability Promoting cooperation between states and international development

Question 75

Negatives of the UN

Answer 75

Some have argued that certain UN actions have actually exacerbated inequalities and injustices e.g. peacekeeping causing countries to be reliant on international aid

Question 76

Millennium Development Goals

Answer 76

2000 Anti-poverty

Question 77

Sustainable Development Goals

Answer 77

2015 17 goals focussing on development disaster risk reduction, climate change, and global sustainable development However, market-driven solutions + corporate partnerships can marginalise smaller local, or indigenous communities

Question 78

International action on climate change

Answer 78

COP 29 - Baku Climate change is considered to be outside the political reach of any one nation UN Framework Convention on Climate Change (UNFCCC) is the body responsible for overseeing negotiations on reducing greenhouse gas emissions between nations Pairs Agreement was the first legally-biding climate deal was struck Main aim to keep global temperatures below ↑ 1.5C However, there has to be negotiations which take many years - Paris Agreement started in 2020 US leaving twice under Trump

Question 79

Common land

Answer 79

Common land is land which is owned by one or many person(s) but over which other people have certain traditional rights, such as to allow their livestock to graze, or collect firewood

Question 80

Global commons

Answer 80

Resource domains or areas that lie outside the political reach of any one nation. Intl. law recognises 4: the High Seas, the atmosphere, Antarctica, Outer Space. There is also cyberspace but this is not recognised

Question 81

Pressure on the global commons

Answer 81

Historically, access to resources in the global commons has been difficult (with the exception of fishing and whaling) but technological advancements and increasingly scarce resources has put pressure on the global commons to provide extra resources. These changes mean that the concept of common heritage is being put under pressure

Question 82

The Tragedy of the Commons and examples

Answer 82

Is a phrase used to refer to the conflict for resources between individual interests and the common good Common access resources are likely to be over-exploited. If individuals act in their own self-interest, this will be contrary to the interest of the whole group, because the resource will become depleted. High seas- overfishing Atmosphere - pollution Antarctica - loss of wilderness Outer space - space debris

Question 83

Legal issues and institutional framework

Answer 83

The UN is currently the only universal and inclusive multi-lateral forum. They have to ensure the coordination, cooperation and coherence required in intl. policy-making if the benefits of the global commons are to be assured for all. However, naturally, frameworks have been described as 'complex and fractured'. Many of the older agreements do not fully consider the environmental impacts of human activities

Question 84

Belt and Road Initiative

Answer 84

Leads to debt-trap diplomacy as China lends large sums for infrastructure in developing countries If countries can't repay, China can demand control over assets e.g. Borrowing for Nairobi-Mombasa Railway - Kenya struggled with debt and there were worries about a Chinese takeover of Mombasa port, sparking concerns over sovereignty