global systems and governance

what is globalisation

the process of becoming more globally connected. It is the movement of people, knowledge, ideas, goods and money across national borders

how are countries connected

economically, politically, socially and culturally

examples of economic globalisation

TNCs, trade blocs, sources of income, global transactions

examples of political globalisation

trade deals/blocs, deregulation, international organisations

examples of cultural globalisation

media sources, international travel, westernisation

examples of social globalisation

international immigration, social networks, global NGOs

what are TNCs

TNCs trade products internationally using outsourcing and offshoring to lower costs

what do trade blocs create

economic integration between states and promote development

what is deregulation

removing state regulations/policies which allows markets to grow internationally

what are the flows in globalisation

flows in capital, labour, products, services and information (mcpig)

define flows of capital

the movement of money for the purpose of investment, trade or business production

define flows of labour

the movement of people who move to work in another country

define flows of products

flows of physical goods from country to another

define flows of services

‘footloose industries’

-can be located anywhere without constraints from resources

-can be produced in a different country to where they are received

define flows of information

any type of information flowing from one place to another

what are the flows of capital

• 4 main regions

  1. core regions- wealthier developed countries

  2. periphery regions- less wealthy, developing countries

  3. International monetary fund (IMF)- ‘aims to foster global monetary cooperation’

  4. The world bank- a group of global institution that give out​ ​loans​ ​for development or relief

what are the flows of labour

• Migration

• international labour flows is 3-4% of world’s population are int. migrants

• 14.1% of high income country populations are made up of international migrants, whereas only ​1.6% of low income country populations ​are made up of international migrants

labour flows in asia

• ​63 million people ​moved to a different area of Asia in 2017,

• largest flows from South Asia to West Asia; 5 million migrated from ​India​, ​Pakistan ​and ​Bangladesh to ​Qatar​, ​Saudi Arabia​, ​the UAE ​and ​Bahrain​.

• better job prospects​

labour flows in europe

• 41 million moved to other areas within Europe in 2017

• Germany holds the largest amount of European migrants​. ​

• majority of German immigrants have moved from Eastern European ​countries such as ​Poland (​1.9 million living in Germany)

• UK has the second highest amount of European migrants within the EU, with ​700,000 from Poland and 500,000 from Ireland​

labour flows in africa

• 19 million people move within African countries

• costs a lot to move from LICs

• largest migrant populations are South Africa (around 4000), Côte d'Ivoire (around 2200), and Nigeria (1200).

• South Africa and Nigeria are the ​wealthiest African countries ​(GDP),with the highest labour flows.

what initially caused the flows of capital

deregulation of the world financial markets, BIG BANG in the UK (1986 Thatcher)

what did deregulation mean for countries

banks and investment firms and financial services could operate outside of their own national boundaries

who created the core periphery model

Wallerstein, model of a ‘world system’ from 1974

why was the ‘world systems’ created

• built upon dependency theory which proposed that poverty and backwardness of poor countries are caused by their peripheral positions in the international division of labour

define globalisation

globalisation is the process by which people, cultures, money, goods and information can be transferred between countries with few or no barriers

how does prof Giddens describe globalisation

‘globalisation is the intensification of worldwide social relations’

give a globalisation quote

Thomas Friedman- globalisation is ‘farther, faster, cheaper and deeper’

what was the value of world import and exports in 2021

$5.6 trillion in the third quarter

define isolationism

a policy to remain separate from other countries and avoid political and economic agreements

define protectionism

creating policies that aim to protect a country’s businesses from foreign competition by restricting trade or imposing taxes on imports

define snowbalisation

the deceleration of globalisation

define multilateral

having more than two countries participate

define sovereignty

the authority of a state to govern itself, make its own laws and decisions and control its own borders

why is the core periphery model outdated

tiger economies, BRICS and MINT now exist

what are semiperiphery nations

• middle income

• industrialising

• mostly capitalist

how much FDI did the US receive

an increases of $506 billion or 11.3%

what is meant by ‘flows of labour’

refers to the movement of people between countries often in search of better employment opportunities, wages and living conditions

why does international labour flows occur from developing to developed

• push factors (e.g., poverty, unemployment, conflict)

• pull factors (e.g., higher wages, better quality of life, job availability).

• Developed countriesoften face ageing populations and labour shortages, increasing demand for migrant workers

what are two key impacts of labour flows on source and host countries

• Source countries may experience brain drain but also benefit from remittances.

• Host countries benefit from a flexible workforce but may face social integration challenges and pressure on public services.

which country received the most remittances in 2024

Tajikstan- 50.95% of GDP

what was the impact of COVID on flows of labour

• before there were a ¼ of a billion economic migrants

• during pandemic 27% decrease in global migration

what are factors increasing the flow of products

• reduction in transaction costs

• reduction in transport costs and quicker transportation

• containerisation

• WTO- aim to free up trade and reduce protectionism

what are flows of services

economic activities which are traded without the production of material goods

what types of services are there

• high level- services to businesses

• low level- services to consumers

what are flows of information

governed by the movement of people through migration and by the speed of data and communication tansfers

examples of flows of information

digitalisation and satellite technology e.g phones, internet, on-demand TV

what is marketing

the process of promoting, advertising and selling products or services

what is global marketing

refers to the process of adapting a company’s products, services and marketing campaigns appeal to customers in different countries

what does global marketing involve

considering cultural differences, language barriers and varying consumer behaviour and orefrences

what is glocalisation

involves tailoring marketing campaigns to sepcific countries or regions such as using local languages, cultural refrences and imagery e.g. Mcdonald’s

how has mcdonald’s glocalised

• in muslim countries pork has been removed from menu

• in hindu countries beef has been removed

• in france offers macarons

• changing language of menus, signs

• mcdonald’s offering iftar buffets

what is standardisation

refers to the practice of using the same marketing strategies and campaigns across different countries e.g. coca cola

why can standardisation be effective

• show’s company’s universal appeal

• does not require significant customisation

define distribution

refers to the way something is spread out or arranged over a geographic area- refers to where products and services are sold globally

define consumption

refers to the purchase of products or services

what is the pattern of consumption

predominantly in richer countries- europe, America

what has been the recent change in consumption

the centre of gravity of economic activity is shifting from west to east

what is the future for production

• consumption will drive trade patterns more than production

• the fastest growing trade route will be between India and China

what are the factors of globalisation

1. finance

2. transport

3. security

4. management and information systems

5. communications

6. trade agreements

how does finance affect globalisation

• deregulates financial markets

• cross border financial flows

how has transport affected globalisation

• products and commodities can be shipped more quickly and in larger quantities

• increased size of aircraft

• growth of low cost airlines

• standardised containers by sea, road, rail

• computerised logistics systems

  • high speed rail networks

how has security affected globalisation

• terrorism threat higher so security increased

• world customs organisation

• national boundaries have become more open

• cyber security and information systems

how has management and information systems contributed to globalisation

• large corporation e.g Lidl and Samsung have built complicated global production networks which consist of extensive outsourcing and business partnerships

• over time, more gov. have intergrated more to suit globalisation

• e.g food company Kraft have 30,000 suppliers providing ingredients

how has communications affected globalisation

• early computer networks linked together important research machines

• 5 billion facebook likes daily

• 500 million tweets each day

• data flowing from fibre-optic cables

what has communications contributed to

shrinking world effect- distant places feel closer together

what is a trade agreement

• wide ranging taxes, tariff and trade treaty that often includes investment guarantees

• exists when two or more countries agree on terms that help them trade

what are the types of trade agreements

preferential and free trade

examples of trade agreements

NAFTA, ASEAN, EU-Japan free trade, EU

what are trading blocs

groups of countries in specific regions that manage and promote trade activities

what do trading blocs lead to

trade liberalisation and trade creation

what is preferential trade

exist when countries within a geographical region agree to reduce or eliminate tariff barriers on selected goods imported from other member countries

what is a free trade area

when two or more countries agree to reduce or eliminate barriers to trade on all goods coming from other members

what is a customs union

involves removal of tariff barriers between members plus added tariff on external members

what is a common market

occurs when member countries trade freely in all economic resources, all barriers to trade are removed

what can greater intergration result in

greater movement of capital and labour

what are positives of global systems

• improved cooperation

• improved stability

• allows for development

• e.g 2015 Paris agreement

what are negatives of global systems

• represents position of more powerful nations

• increased inequality

• increased conflict

• less developed nations are limited in their response

what is interdependence

when countries rely on one another politically, socially, environmentally and economically

what are the issues with interdependence

• unequal flows of people, money, ideas, technologies

• this can cause inequalities, injustice or conflict

From which countries to which do people generally migrate?

Migration typically occurs from low-income countries to high-income countries due to greater opportunities.

Why is the global flow of people considered unequal?

More people leave low-income countries than enter them, while more people enter high-income countries than leave.

How do migrants benefit the workforce in host countries?

Migrants often fill vital but unwanted jobs; e.g., 44% of London’s cleaning workforce is from ethnic minorities.

How can migration improve geopolitical relations?

Host countries with large diaspora populations often have stronger ties with the migrants’ countries of origin (e.g., UK-India)

How do origin countries benefit from migration?

Migrants send remittances home, boosting their domestic economies; e.g., Indian migrants in UAE send ~$15 billion annually to India.

What is a humanitarian benefit of migration from LICs?

People fleeing conflict and poor living conditions can build better lives in safer, higher-income countries.

What risk is associated with dependency on migrant labour?

If migrant labour supply drops, it can harm sectors reliant on them, e.g., Jersey potato farms relied on Polish workers.

How can migration create tension in host countries?

Large inflows can lead to overpopulation, strain on services (e.g., healthcare), and social tension over job competition.

How can a country’s reliance on remittances be risky?

If migrants lose jobs abroad, remittance flow stops—e.g., UK’s 2009 recession led to construction job losses and Estonia’s economy shrank by 13%.

What is a possible economic consequence of high emigration?

It can lead to underpopulation and leave only unskilled workers, weakening the local economy and increasing unemployment.

What is the effect of skilled workers emigrating from low-income countries?

Causes a “brain drain,” where skilled labour is lost, slowing development and innovation in origin countries.

how are migrants more vulnerable to exploitation?

They may accept lower pay and poor conditions out of desperation. Example: ~1,200 migrant deaths in Qatar during World Cup construction.

What major event highlighted migrant exploitation in Qatar?

The construction for the 2022 World Cup, where thousands of migrant workers faced dangerous conditions and many reportedly died.

What is meant by "unequal flows of money"?

Most money flows into low-income countries via FDI, aid, and remittances; high-income countries mainly receive profits from product sales and repatriation.

How can low-income countries benefit from unequal money flows?

FDI provides jobs with higher income; aid and remittances support rebuilding and living standards—e.g., Fiji received $11.28 million in aid after Cyclone Winston (2016).

How do high-income countries benefit from money outflows like FDI?

They profit from cheap labour in low-income countries, which maximises company profits.

What problem arises from worker dependency on FDI in LICs?

Workers may endure unsafe or unfair conditions due to reliance on higher wages from foreign companies.

What happened at Rana Plaza and why is it significant?

• 2013

• a garment factory in Bangladesh collapsed

• killing 1,134 workers

• exposed poor working conditions in supply chains for brands like Primark and Walmart.

What are unequal flows of ideas?

High-income countries influence how lower-income countries are governed and trade, due to their greater economic power.

How has deregulation benefited LICs and NEEs?

It reduces state control, increasing competition and lowering prices—e.g., Chile's deregulated phone market cut rates by 50%.

How does free trade benefit global development?

Promoted by HICs, it helps global markets thrive and reduces conflict risk.