Topic 1 - Globalisation + global governance Flashcards
Dimensions of globalisation
Flows of information + tech
Reliable/fast communication between all areas of the world enables info to be shared at unprecedented levels
Technology ignores politics when connecting people, and it runs on systems controlled by a few companies, like google/apple
Dimensions of globalisation
Flows of services
Services follow flows of capital, info,
people and products
Most services originate in HDEs as they move away from manufacturing
Dimensions of globalisation
Global marketing
Globalised markets use international strategies to deliver inter-continental imagery/messages
Global products rely on global brand identities
Dimensions of globalisation
Flows of capital
Refers to the movement of money for investment, trade or business production
HDEs invest in LDEs to take advantage of their cheap labour costs
Capital flows have started increasing ever since 1990 when LDEs began to invest
Dimensions of globalisation
Flows of products
HDEs: High skilled manufactured goods
NEEs: Low skilled manufactured goods
LDE: Cheap low skill raw materials
Freer trade encouraged growth of product flows
Increased transport created efficiency in product movement
Dimensions of globalisation
Flows of labour
Tend to be from rural to urban areas in a country, and from HDEs to LDEs on a global scale
People tend to move for employment reasons, eg economic migrants and TNCs moving between offices
Factors of globalisation
New technology
Rapid increase in technology, eg phones, laptops and IT systems
Phones are essential in LDEs, helping connect people markets and trade
Factors of globalisation
Global finance systems
Systems that consist of banks and transfers of wealth between regions as well as internationally
Some argue the financial crisis was caused by collapse in US house prices, a negative of globalisation in finance
Factors of globalisation
Transport systems
Systems that consists of sources, modes of transport and destinations
Allows the movement of people and goods across vast distances
Things like disease (corona) can equally be moved rapidly
Factors of globalisation
Security
The protection of companies, governments and regions
In 2016 11 million legal documents were leaked exposing wrong doing on a global scale
Factors of globalisation
Trade agreements
Global trade systems prevent countries favouring one country’s imports over another
WTO regulates 97% of world trade, providing a platform for negotiations
Social factors affected by globalisation
Positives
Globalisation has helped bring people together
More availability in technology helped connect people and places globally
Migration led to a spread of cultures globally
Social factors affected by globalisation
Negatives
TNC factory workers are mistreated and poorly paid leading to physical and mental illnesses
LDEs cannot afford most tech, which is the main way people are more socially connected
Political factors affected by globalisation
Positives
Helped create peace, greater political incorporation reduces likelihood of war
Trade blocs increase foreign competition, reducing prices for its own population
Political factors affected by globalisation
Negatives
Globalisation takes advantage of LDEs as they cannot access trade markets due to high tariffs set by blocs
EU and MF can control laws as part of their political interdependence
Economic factors affected by globalisation
Positives
Rapid development in NEEs like China helped increase standard of living in relatively short periods of time
TNCs provide vast amounts of jobs improving many economies
Economic factors affected by globalisation
Negatives
Bad pay from TNCs, some Apple workers receive less than £1 a day, unjust as they cannot support themselves
Cultural factors affected by globalisation
Positives
Increased transport makes travel easier, easier to experience new culture
Media allows cultures to be expressed globally, preventing them from dying out.
Cultural factors affected by globalisation
Negatives
Led to erosion of culture and increase in Americanism
Countries like America and the UK dominate with their culture on media, leaving little room for LDEs to express theirs
Define interdependence
Where two or more countries rely on each other through economic, political and environmental methods.
Unequal flows of people
3 causes, explain two
Family reunification, economic migration..)
Family reunification: family joining member who has moved away for work after a period of time.
Economic migration: moving to countries with few jobs to a country abundant with jobs.
Refugees from conflict/natural disaster
Unequal flows of people
3 benefits to the world
(LDE growth, job gaps, migrant well-being)
Migrants send back remittances back home, helping LDEs grow.
Migrants work for low wage jobs native citizens do not want to do.
Migrants can escape war, disaster increasing chances of better quality of life.
Unequal flows of people
Inequalities
Brain drain: an exodus of highly educated people from one country to another looking for better quality work.
Helps host country as workers pay tax and can additionally introduce new cultures.
Creates inequality between origin and host country, origin country’s economy may suffer at the expense of the host country’s economy growing.
Unequal flows of people
Conflicr
Can lead to social conflict. As migrants work for less. companies may depress wages for entire workforce including locals. Creating conflict between migrants and locals
Unequal flows of people
Injustice
Migrants are often exploited and mistreated
Eg kafala system
Unequal flows of capital
How have they changed
After 2008 crisis flows remained primarily between HDES.
China began investing into LDEs, slightly manipulating the flow.
LDEs have little to invest, less control over the flow,
Capital from TNCs flow from LDE to HDE
Define FDI
Foreign direct investment: When a company invests in a LDE to increase its profit margin.
TNCs are the main users of FDI.
Unequal flows of capital
Inequalities
Foreign aid can create dependency within a country, their government has little incentive to develop its own country.
Inequality between HDEs and LDEs grows as LDE economy does not develop.
Unequal flows of capital
Conflict
Foreign aid can fund conflict if it finds its way to armed groups.
FDI can create conflict between local and foreign companies as local companies can’t compete with foreign price + efficiency.