Human Geography - Global Systems and Governance

globalisation

a process by which national economies, societies and cultures have become increasingly interconnected through the global network of trade, communication, transportation and immigration 

social globalisation

• International immigration has created global family networks and multi-ethnic societies 

• Global improvements in education and health eg rising world life expectancy 

• Social interconnectivity eg phones, internet

economic globalisation

• Growth of TNCS

• Informations and communications technology - growth of complex spatial divisions of labour and more international economy 

• Online purchasing eg amazon 

cultural globalisation

• Domination of western cultural traits eg americanisation and mcdonaldisation of tastes and fashion 

• Glocalisation and hybridisation - merging of old local cultures with global influences

• Circulation of ideas and information eg 24hr reporting and social media

political globalisation

• Growth of trading blocs eg NAFTA helps markets grow 

• Global concerns eg free trade and global response to natural disasters

• The World Bank, IMF, and WTO work internationally to harmonise national economies

shrinking world theory

Due to globalisation making world and us more accessible, interconnected and interdependent

periphery areas

These areas are poorer and may experience exploitation, economic leakage and out migration. For the purpose of this section we will consider LDE’s in Africa, Central Asia and parts of Latin America to be the periphery.

capital

Can take many forms but for the purpose of this section we will refer to capital as money.

core areas

These are economically important and attract investment, capital and people. For the purpose of this section we will consider HDE’s like the US, Canada, Western Europe and Japan to be the core areas.

foreign direct investment

Investment mainly made by TNC’s (or occasionally governments), based on one country, into the physical capital or assets of foreign enterprises.

repatriation of profits

TNCs operating in foreign countries will normally send any profits made back to the TNC headquarters. This repatriation of profits is sometimes known as economic leakage. These flows usually return to companies based in richer countries.

different flows

capital, labour, products, services, information

just in time technology

• greater efficiency in the supply chain for manufacturers ensuring that the correct supply of components arrives when they are needed and costs are cut by reducing the quantities of goods and materials held in stock

trade bloc

An agreement between states, regions, or countries, to reduce barriers to trade between the participating regions. The most well known trade bloc is NAFTA(North American Free Trade Agreement), between the United States, Canada, and Mexico. Some opponents of trade blocs believe that such agreements are detrimental to global free trade.

free trade

International business not restrained by government interference or regulation, such as duties (tax on imports/exports) 

NAFTA

North American Free Trade Agreement – Canada, USA, Mexico – 1994, links 450 million people, member economies generate $20.8 trillion, tariffs eliminated

interdependence

• Mutual dependence at global level

• Importing and exporting of goods and services highly contributes to global interdependence

International Monetary Fund

• Oversees the global financial system

• Offers financial and technical assistance to its members

• Only provides loans if it will prevent a global economic crisis- the international ‘lender of last resort’

World Bank

• Promotes economic development in developing countries 

• Provides long-term investment loans for development projects with the aim of reducing poverty 

The World Trade Organisation

Deals with global rules of trade between nations, global institution responsible for facilitating international trade

bilateral agreements

an agreement on trade or aid that is negotiated between two countries or two groups of countries 

multilateral agreements

an agreement negotiated between more than two countries or groups of countries at the same time

TNCs

a transnational corporation. An organisation that owns or controls goods and services in more than one country. It will often have its headquarters in one country and its production branches in another country.

multiplier effect

a form of positive feedback where an initial investment creates more investment, both social and economic.

out-sourcing

a TNC sub-contracts an ‘overseas’ company to produce goods or services on its behalf

offshoring

refers to the manufacture or assembly of a product in a developing country using components produced in a developed country.

demographic dividend

occurs when there are fewer dependent children and elderly with relative more productive adults in a population