Global systems

What drives globalisation

Space time compression, improved technology, finance, sercuity and information systems, global capitalism and international trade agreements nad the global reach of TNCs

Ways in which the world is getting smaller → time space compression

Reduced time takes to travel to places, increased communiation, diversification of cities, more multilinguals, TNCs and chain stores

4 types of globalisation

Economic, social, political and cultural

Economic globalisation

The growht of TNCs accelrerates cross border exchanges of raw materials, components, finished products, investments and goods, ICT supports growth

Example of economic globalisation

Apple → make profit from worldwide selling of products designed in california, made in LICs and transported worldwide

Social globalisation

international immigration has created extensive family networks cross borders so social inter connectivity has grown over time thanks to spread of universal connections such as phones and internet

Example of social globalisation

International phone calls between friends and family

Cultural globalisation

Western cultural traits come to dominate other territories, globalisation, migraiton brings cultures together and establish them in multicultural cities

Political globalisation

Growth of trading blocs allows TNCs to merge nad make acquisitions while reduced trade restriction and tariffs help markets grow as well as Paris agreement and other collaborations

How is globalisation not a new process, what makes it seem like it is

Silk roads are ancient trade routes from 2 BC showing sings of globalisation, is simply thee pace of globalisation that is increasing with time space compression

What did Canadian philosopher Marshall McLuhan predict who under happen and what does this mean

A global village would occur where free reign is given to económica nd on formation flows which would be reflected by an increasingly international manner ir which orgasniatin would operate

What happened in 2008 and what was its impact

Global financial crash → slowed process of globalisation down

What does international trade give way to

A world economy where prices, supply and demands are affected by global events eg COVID, Russia Ukraine war

Capital flows

The movemnet of money for the purpose of investment, trade or to produce goods or provide services

International trade

The exchange of capital, goods and services across international borders

Labour

Factor of production defined as the aggregate of all human physical and mental effort used to create goods or provide services

Where di the Huguenot people flee fro and to what industry in London did they enter

40-50,000 sought refuge from religious persecution in Europe and worked in the silk industry

How is the African wax fabric industry a story of globalisation

Originated in Indonesia but it was Dutch merchants who tried to make it a business in Europe after stopping in west Africa on their way back to the Netherlands→ now ship globally and migratns from Africa have brought it to London

What are some big globalisation failures

9/11, 2008 global financial crash, 2011 Arab Spain, 2014 Russian ennexation of crimea, 2016 brexit, 2016 trump 1st presidency

What were some of the impacts of thee 2008 financial crash

High risk lending by banks undermined the entire world economy, global gdp fell for the first time since 1945 triggering eurozone crisis

What are some successes of globalisation

2012 number fo registered facebook users reaches 1 billion, 2013 eu expands into Croatia and other Balkan states hope to join, 2015 Paris agreement, 2016 African Union announce plan for all 54 member states to work towards visa free travel

What did Cecil Rhodesia say in the 1980s in favour of British colonialism

We must find new lands from high we can easily obtain raw materials and at the same time exploit the cheap labour that is available form the natives of the colonies. Theses colonies will also provide a dumping ground for the surplus goods in our factories

Between 1960 and present day how much has been drained from LICs trhoug HICs incorrect payment back to LICs from prod T gained through their raw materials

$62 trillion

Where do the roots of globalisation lie

In international trade and the increasing accessibility of markets which open up to the wider global community

Factors of production

The number fo productive resources that have to be combined in order to provide goods and services

What are the factors of production

Land, labour, capital, enterprise

Land as a factor of production

All natural resources provided by the earth including minerals, soils, water, forests etc

Labour as a factor of production

The human resource available in any economy

Capital as a factor of production

Refers to any physical resource that can be regarded as a man made aid for production eg buildings, factories, machinery etc

Enterprise as a factor of production

Is a particular form of human capital describing those who take the risk of establishing businesses and organising the production of goods or provision of services

What doe CLIPS stand for

Capital, labour, information, products, services

Examples of flows of capital

Money, aid, FDI, remittances

Examples of flows of Labour

Working people

Examples of flows of Information

Ideas, copyright, internet, satellites

Examples of flows of Products

Stuff, cars, phones, Amazon deliveries

Examples of flows of Services

Banking, investments, tourism, advertising

Brandt line and its problem

A theoretical line dividing the rich north and poor south in the 80s → very outdated and incorrect

BRIC countries and when/ why it was developed

Brazil, Russia, china, South Africa → rapidly growing economy classification given in 2001

MINT countries

Mexico, indonesia, nigeria, turkey → rapidly growing economy classification given 2004

Tiger economies

Singapore, Hong Kong, South Korea, Taiwan → underwent rapid industrialisation in the 1960s-90s

World system theory/ core periphery model

An outdated model which assumed global power is concentrated in the hands of a relatively small group fo developed nations calles “core”, “periphery” countries were seen as those that are less developed and have been exploited/suffered leakage and out migration → by Frank and Wallerstein

What happened to the financial market in the ate 1990s and what did this mean

World financial markets were deregulated so activities of financial institutions such as banks and investment companies were no longer confined within national boundaries

What are the 4 main flows of capital between

Core regions, periphery regions, IMF and wold bank

IMF

International corporation that aims to “foster global monetary cooperation, service financial stability, facilitate international trade, promote high employment and sustainable growht and reduce poverty around the world”

GNI

He total amount of money earned by a nations people and businesses

Absolute poverty As defined by the world bank

Living on the equivalent of $1.90 a day of less

What did Nigeria reduce thei absolute poverty level to in 2016 from 2002

From 90% in 2002 to 50% in 2016

FDI

Investment made mainly by TNCs based in one country into the physical capital or assets of foreign enterprises

Repatriation of profits

TNCs investing overseas production will normally take any profit made from that investment back to their home country HQ

Aid

An important source of financial support for poor countries that can take many forms and can be produced through the UN

Emergency aid

Money, food, foods and services given at times of dire need

Food aid

Edible commodities donated to population in need

Multilateral aid

Aid that is given by a number of countries and organisation le the UN and WHO

Tied aid

Foreign aid that must be used in the donor country to buy goods and services from teh donor country.

Sustainable development

Development that meets the needs of the people today without harming the ability of future generations to meet their own eets

Bilateral aid

Aid from one country to another

Voluntary aid

Money collected from T he public by NGOs

Short term aid

Aid that provides support for a short time sometimes when their is an immediate need

Top down development

Development projects that are imposed on people from above

Long term aid

Aid that provides support over a long period of time to make changes that last

Bottom up development

Development projects that tart and work form the grass roots level

What did James Shikwati a Kenyan economist say abut aid

“Huge bureaucracies are financed with aid money, corruption and complacency are promoted, Africans are taught to be beggar and not to be independent “

What did Douglas Casey a classmate of Bill Clinton from Georgetown uni say about aid

Foreign aid might be defined as a transfer of money form poor people in rich countries to rich people in poor countries

How does migration exacerbate disparities

Less developed national lose their most skilled and talented labour, who will pay taxes and spend much of their earnings in their destination country

Remittances

Transfers of money made by foreign workers to family in their home country

According to the world bank what % of somalians rely on remittances

40%

According to the world bank what % of Somalias GNI and investment relies of remittances

50% of GNI, 80% of all investment

Are labour or financial markets more free flowing

Financial

Why are flows of Labour less free flowing than the financial market

People move less easily due to restriction on immigration

Where has much of international migration been from/to

From South Asia, Africa and Latin America to North America and Europe as well as around oil rich gulf states of Kuwait, atar, Bahrain, Saudi Arabia and UAE

Why has there been an increase in migration to gulf states

construction boom has provided plentiful employment opportunities

Who are the bulk of economic migrants

Not necessarily the poorest people but those with some educational nd financial means s

Where is the largest regional flow of labour

In Asia

How many people moved from south to west Asia between 2005 -2010

5 million

What is the flow of products facilitated by

Reduction in costs or trade including transaction, tarried, transport and time costs

How have transaction costs been reduced

Improvements in flows of data and the ease with which capital can be trasnferred to pay for transactions

How have transport and time costs been reduced

The process of containerisation has enabled more complex and long distance flows of p products

How have tariffs been reduced

With encouragement of WTO

What is just in case economics

Having excess parts/ products just in case something goes wrong

What is just in time economics

Only order what is needed, have parts just in time when they are required

What are the benefits to just in time economics

Frees capital used in storing stock, increases profits

What are the limitations to just in time economics

If a problem occurs anywhere in the supply chain production stops as there are no excess reserves, if spike in demand occur thee are no stockpiled goods so can’t respond to surge

What do tariffs do

Raise the price of imported products

What do import quotas do

Limit thee volume of imports alllowedi nto a country in a given time period

Subsidy

A payment tot encourage domestic production by lowering their costs

Conglomerates

A collection of different companies or organisations which may be involved in different business activities but all report to one parent company → most TNCs

Economies of scale

The cost advantages that result from the larger size, output or scale of an operation as savings are made by spreading the costs or by rationalising operations

Containerisation

A system of standardise transport that uses large standards sizes steel containers to transport goods which can be trasnferred between ships, trains and lorries to enable cheaper and more efficient transport

Protectionism

A deliberate policy by government to impose restrictions on trade in good and services with other countries usually done with the intention of protecting home based industries form foreign competition

Services

Economic activities that are traded without the production of material goods eg finacaniyl or insurance services

What can services be divided u into

High and low level

High level services

Services to businesses such as finance, investment and advertising

Low level services

Services to consumers such as tourism and travel, customer call centres or communication services

What are high level services and what does this mean for them

They are footloose → can locate anywhere in the world and still serves needs of customers world wide due to advancing technology

How of European Central Bank Of EU , Toronto and Zurich

Frankfurt

What countries in SE Asia have become major global financial centres

Hong Kong, Singapore, Seoul , Shanghai

What are flows of information governed by

The movement of people through migration and by the speed of data and communication transfers

What has transformed flows of information

Digitalisation and satellite technology

How has digitisation and satellite technology trasnfrmoed flows of information

Made communication cheaper and easier through improvements to global phone networks, email and internet enable large amounts of info to be exchanged instantly and live media coverage is available because of satellite technology