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Types of globalisation
Social:
international migration - social networking - NGOs and charities.
Economic:
TNCs - trade blocs - income from international companies - global transactions of money.
Cultural:
media sources - international travel - education and news sources - westernisation
Political:
governments - deregulation - international organisations e.g., UN
Dimensions of globalisation: flows of capital
Flows of capital → all money that moves between countries which can be used for investment, trade or production.
in 2022, the daily volume of forex transactions was $6.6 trillion.
deregulation → banks and investment firms as well as other financial services could operate outside of just their own national boundaries.
foreign direct investment FDI → an ownership stake in a foreign company / project made by an investor, company or government from another country.
e.g., the number of Pizza Hut franchises doubled between 2009 and 2013.
remittances → transfers of money across national borders by migrant workers.
e.g., Filipinos sent $1.9 billion from UAE to the Philippines in 2016.
Dimensions of globalisation: flows of labour:
Flows of labour → highly skilled and unskilled workers migrate from one country to another, bringing aspects of their culture with them.
remittances → transfers of money across national boundaries by migrant workers.
e.g., Filipinos sent $1.9 billion from UAE to the Philippines in 2016.
refugees are people forced to leave homes due to a conflict or political reasons - they’re granted permanent or temporary residency in the host country / UNHCR allowing them to work and build a life.
COVID impacts:
before the pandemic, there were a ¼ of a billion economic migrants.
during the pandemic, tens of millions of economic migrants returned home (estimated 27% decrease in global migration).
Dimensions of globalisation: flows of products
Flows of products → movement of physical goods from one country to another.
reductions in transaction costs - the price of exporting and importing goods decreased, making it cheaper to send items between countries.
containerisation → a system of standardised transport that uses large standard sized steel containers to transport goods. This means larger amounts of items can be transferred at a time, needing fewer trips.
technological advancements such as transportation allow for production in LICs - lower labour/production costs so goods can be sold for higher prices in HICs, increasing profits.
but protectionism can prevent globalisation → refers to government policies that restrict international trade to help domestic industries
e.g., UK subsidising their farmers to protect them, to reduce dependency on importing and for the UK to be self-sufficient.
Dimensions of globalisation: flows of services
Flows of services → economic activities which are traded without the production of material goods.
services can be transferred on phone calls or the internet - means there’s no longer a need for the industry to be tied to a specific location.
high level services → activities that require a higher skill level, so the person delivering the service should be qualified and trained to give the best service possible.
e.g., financial services - accountants need to be well-informed to make decisions about money.
low level services → services that require less training and aren’t as important to consumers.
e.g., customer services - call centres only need workers with basic training to offer advice or to sell products.
Dimensions of globalisation: flows of information
Flows of information → information that spreads very quickly and easily via email, the internet and social media.
fast broadband and connections - allow news and financial information to be transferred, allowing people to be more informed on global events.
social media - allows communication across countries and for people to immerse themselves into other people’s cultures, making them more interconnected.
large databases - used for research and education, with research allowing people to seek better employment opportunities with flexible working and higher pay.
Global marketing
Global marketing → the process of adapting a company’s products, services and marketing campaigns to appeal to consumers in different countries.
glocalisation → tailoring marketing campaigns to specific countries or regions.
e.g., McDonald’s remove pork from the menus of Muslim countries & have menu items for local tastes, like McRice in Indonesia
standardisation → using the same marketing strategies and campaigns across different countries.
e.g., Coca cola uses the same recipe, taste and advertising models around the globe, delivering a uniform message of the company and is relatively inexpensive.
trademark → a legally registered representation.
e.g., Nike and McDonald’s - ensures awareness of a brand, making it familiar. A well-known brand is more appealing to the consumer and better in the competition against less well-known brands.
Patterns of production
International division of labour:
the highly skilled highly paid, decision-making research and managerial occupations which are concentrated in more developed countries.
the unskilled, poorly paid assembly occupations, which tend to be located in developing countries that have lower labour costs.
e.g., Apple products are designed in California & produced in China. This process is split up into many parts, such as design, marketing, production and assembly.
Global shift of manufacturing:
in 1954, 95% of manufacturing was in industrialised economies of Western Europe, North America and Japan.
but with decentralisation due to FDI and outsourcing - firms establishing production in different countries, to take advantage of labour costs and tax incentives etc.
HICs move towards quaternary and service sectors leading to higher incomes and economic growth. BUT those who had manufacturing jobs would become redundant.
Patterns of distribution and consumption
HICs - product consumption still predominantly lies in the more developed countries e.g., Europe and North America.
NEEs - there is demand for fuel and minerals due to the rapid industrialisation in these economies e.g., Brazil, China and India.
LICs - imports are low due to less demand for goods in these countries e.g., Chad.
In the future:
advancements in technology and production will generate a wider variety of goods - this will cause the consumption in HICs to remain fairly high.
with income rises in NEEs, their consumption levels will increase.
Factors in globalisation: finance
Finance → the management of large amounts of money, especially by governments or large companies.
countries borrow, lend and invest to each other - developing relationships between regions and creating flows of capital.
e.g., influx of Japanese FDI has positively impacted Thailand’s economy by developing their automotive electronic industries - leaving Thailand as a major production hub in South East Asia.
advancements of digital financial services e.g., crypto currency make financial transactions faster and more accessible across international borders e.g., remittances.
finance includes microfinance, which provides financial services to entrepreneurs in developing countries.
Factors in globalisation: transport
Transport → carrying people or goods from one place to another using vehicles, aircrafts or ships.
containerisation → using large standardised containers to transport larger volumes of goods - reduces the need for a high number of trips as well as being cost-effective.
advancements in technology led to the creation of the jumbo jet - helped with the movement of people for cheaper prices, especially through the commercial aviation industry.
e.g., Wizz Air can take a person from London to Istanbul for just £52.
high speed rails increase global flows of labour within countries - aids with rural-urban migration = globalisation even on national levels.
e.g., HS2 created to transport people from Birmingham to London, reducing the North-South divide within the UK.
Factors in globalisation: security
Security → stabilising the world economy and lessen chances of future conflict to make the world politically secure.
the use of technology to monitor and stop security threats - CCTV and search histories make it easier to track those attempting to commit crime.
e.g., the container security initiative (CSI) set up after 9/11 to protect against terrorist attacks.
stricter regulations with transporting goods and people - international customs highlight the safety of items before entering a country.
e.g., automatic x-ray technology at airports can trace suspicious objects to be traced.
Factors in globalisation: communications
Communications → the exchange of information and ideas over various distances.
advancements in technology help with the development of social media, mobile phones and SIGNIFICANTLY the internet - creates a sense of an “online world”, where information can be exchanged instantly.
e.g., during the COVID pandemic, businesses struggled to run due to being forced to stay home. Apps like zoom and google meet allowed for transactions to be made online and communication to continue in the midst of a global slowdown.
communication helped with the exchange of cultures and ideas - social media allows for personal experiences of places and people to be shared e.g., TikTok.
but those in LICs without access to this technology are left behind - don’t have access to contact family working in developed countries or to access certain online markets.
e.g., the World Bank reported that more than 40% of the world’s population is still offline.
Factors in globalisation: management and information systems
Management and information systems → understanding global systems and their interconnectedness.
offshoring → company processes relocating abroad to take advantage of lower labour costs and lower taxes. This can expand the labour force of a company beyond national borders.
economies of scale → using mass production in order to increase profits. This means raw materials are cheaper and goods can be produced quickly.
e.g., Walmart bulk purchasing, allows the company to offer lower prices to customers, giving a competitive advantage.
Factors in globalisation: trade agreements
Trade agreements → a contractual agreement with a country concerning their trade relationships.
ensures cost-effective movements of goods by negotiating lower tariffs - allows corporations to expand internationally and take advantage of new markets.
e.g., NAFTA / USMCA increased trade amongst US, Canada and Mexico, causing their trade in goods and services to nearly triple from 1993 to 2017.
within trade agreements are trade bloc which are groups of countries that agree to reduce trade barriers between them - allows for easy transfer of knowledge and technology with the labour force.
e.g., the EU includes 27 countries e.g., Spain, France and Germany, and people can travel to and from these countries without being stopped at borders.
but trade blocs lead to loss of state sovereignty - some decisions made in a trade bloc may not favour every member country e.g., preventing trade with another country outside of the bloc.
Global systems
Global systems → the environmental, political, legal, economic, financial and cultural systems that help to make and remakes the worlds. They are created through increasing interdependence.
Form and nature of economic interdependence in the contemporary world
countries are dependent on the flows of labour, products and services entering the country in order for the economy to grow - labour provides a workforce, allowing a country to develop financially.
countries rely on each other for exports and imports - one country producing a good that is a necessity for another, generating profit for the country supplying the goods.
e.g., Japan’s reliance on oil from UAE, to supply their high industrialised economy
Form and nature of political interdependence in the contemporary world
countries rely on each other during political unrest e.g., many nations intervened when the Serbian State sponsored ethnic cleaning of Kosovo Albanians, eventually leading to Kosovo’s independence.
countries rely on each other for security and stability against threats or conflict e.g., NATO ensure collective defence, so if one member is attacked, other will come to their aid.
Form and nature of social interdependence in the contemporary world
countries rely on each other for leisure activities and entertainment e.g., TV programmes produced in other countries, yet enjoyed globally e.g., Stranger Things.
countries rely on each other for the spread of culture and traditions - come from diasporas of migrants which aid with global flows of ideas.
Form and nature of environmental interdependence in the contemporary world
all nations are affected by each other’s greenhouse gas emissions - they all rely on each other to protect the environment as it isn’t one country’s responsibility.
e.g., the nuclear fallout from the Chernobyl disaster in Ukraine, reached the UK and France.
Issues associated with interdependence: unequal flows of people
Benefits:
migrant workers become an important part of the host country - they are willing to take jobs that must be done but are ‘unwanted’ by others e.g., 44% of the cleaning force in London is made up of ethnic minorities.
countries which people flow out of also benefit financially - workers send remittances back to their home country, aiding the growth of their economy e.g., 30% of UAE’s population are Indian immigrants, which send back an estimated $15 billion annually as remittances.
can aid growth of the host country - migrants work in jobs where there were gaps due to lack of skills.
Problems:
unequal flows can cause overpopulation - leads to pressure on services such as healthcare. And social tension with migrants ‘taking’ jobs.
countries reliant on remittance are dependent on the economy of the host country
e.g., during the UK recession in 2009 many building projects were cancelled, which made construction migrant workers redundant, as a result Estonia’s economy shrank by 13%.
Issues associated with interdependence: unequal flows of money
Benefits:
aid and remittances can improve the quality of life of the country that receives this money
e.g., $12 million was given to Fiji as foreign aid after the devastating Cyclone Winston in 2016.
Problems:
TNCs take advantage of labour in LICs since workers are dependent on their wages, leaves them in sweatshops with dangerous working conditions and long hours.
e.g., the collapse of the garment factory Rana Plaza in 2013 killed over 1000 people, which supplied Primark.
foreign aid can cause issues, like reducing incentives for governments to help their own countries and are constantly reliant on HICs keeps economies in a standstill.
Issues associated with interdependence: unequal flows of ideas
Benefits:
countries with successful strategies can educate LICs with their economic growth, or remove social injustice.
HICs have introduced deregulation to NEEs - benefitted developing countries through lower prices of products and services.
e.g., the long-distance telephone market in Chile was deregulated, which cut telephone rates by 50%.
Problems:
LICs may feel forced to keep up with the ideas of HICs, even if not the most beneficial to them.
e.g., it’s a massive disadvantage to a country’s economy if they don’t join trade agreements etc.
deregulation may lead to more relaxed social and environmental laws in LICs - causes social injustices and environmental damage without proper government regulation.
Issues associated with interdependence: unequal flows of technology
Benefits:
technology innovations in HICs have led to the development of beneficial technological advancements - consumers have access to better variety and quality of products.
transport technology allows companies to benefit from production overseas - can maximise profits with lower production costs.
Problems:
advancements in technology come from affordability - LICs can’t afford to buy purchase technology that can advance their economy and improve their quality of life, so HICs rapidly develop and LICs are left behind.
injustices with manufacturing / assembling consumer technology e.g., smartphones - companies make large majority of profits, whereas the workers are left with little income and poor working conditions.
e.g., China is the largest producer of smartphones, yet only 55% of the population has a smartphone – compared to 77% in the US.
Unequal power relations enable some states to drive global systems to their own advantage and to directly influence geopolitical events
The environment:
wealthier, more powerful countries emit more pollutants to sustain their industries - so less likely to agree to global environment protection, even though they may feel the effects of climate change less.
poorer, less powerful countries which are affected by climate change natural disasters, cannot do much to influence ideas of richer countries e.g., Donald Trump withdrawing the US from the Paris Climate Agreement - poorer countries suffer further.
Trade:
wealthier countries can control trade agreements and pressure low-income countries into making deals beneficial for the richer countries.
therefore, low-income countries may lower taxes & reduce tariffs - which may harm their economy.
plus, TNCs and wealthy corporations may influence trade - they create sanctions on other countries or refuse to trade with them to get their way.
Global financial institutions:
the WTO has been criticised for widening the gap between low & high income countries - despite initially being established to avoid this.
e.g., the maintenance of high import duties in rich countries - reduces imports from developing countries.
e.g., the protection of HIC agriculture, but the pressure for LICs to open markets to international produce.
e.g., developing countries are not represented as much in the WTO.
Geopolitical event example: South China Sea
China’s expansion into the South China Sea:
China has tried to assert sovereignty over most of the South China Sea, despite overlapping claims from other SE Asian countries.
all countries have ownership over the sea up to 12 nautical miles. So, China has built artificial islands (Spratly and Paracel islands) in the South China Sea, in order to extend their control over the area.
Who in involved:
alongside China, Vietnam, the Philippines, Malaysia, Brunei, Indonesia and Taiwan are all claimants over the sea.
USA is not a claimant but are involved in the Freedom of Navigation Operations (FONOPS), challenging China’s maritime claims.
How these power relations can influence geopolitical events between countries:
created division within the Association on Southeast Asian Nations (ASEAN) - the disputes have tested their unity of this regional group as China’s significant economic influence over some countries, has led to a lack of a strong unified stance against China’s claims.
USA’s support of FONOPS is shown through the country sending their navy ships through the South China Sea - emphasises how the sea is for everyone & how they disagree with China, making the rivalry between China and the US stronger as both sides try to show their strength and power.
the military and construction activities in the sea made by China have led to environmental degradation - marine ecosystems have been damaged affecting local communities and contributing to overfishing.
The volume of international trade
International trade:
globally, the number of exports has been steadily increasing.
world exports in manufactured goods in goods has increased from $8 trillion to $11 trillion between 2006 and 2016.
the only time trade decreased, was during the Global Financial Crisis in 2007.
trade was limited for much of the 20th century due to protectionism, where governments subsidise industries to not rely heavily on imports, and high transportation costs.
The volume of investments
Investments:
the volume of global investments is also rising.
FDI has risen from $400 billion to $1500 billion in 20 years.
The patterns of international trade
International trade:
although HICs remain the largest exporters, many emerging economies are also arising as huge exporters e.g., China.
LICs are trading more, but have the slowest growth rate. Least developed countries make up less than 1% of global exports.
globalisation has left many small-scale farmers in LICs unable to compete with the competitive prices of plantations owned by TNCs e.g., the Fairtrade foundation was set up to ensure producers have better working conditions and better pay.
costs of trade for some countries have decreased from trade blocs e.g., the EU allows for reduced tariffs for member countries.
The patterns of investments
Investments:
over the past 40 years, trading and investments have changed.
trading and investments used to be heavily concentrated in developed countries - now, investments are mainly from HICs to LICs due the profits that can be made from lower labour costs etc.
investment patterns have changed as emerging economies are beginning to invest in LICs e.g., China invests large amounts of money into Africa, aiding their rapid growth.
Trading relationships and patterns in highly developed economies
10 nations account for ½ the world’s trade inc. China, USA, Germany and Japan.
this is because a large number of affluent consumers and markets are found in the world’s wealthiest countries.
HICs usually export machinery, electronics and capital goods to LICs and NEEs to aid with their development and generate profits for HICs.
Trading relationships and patterns in emerging economies
China is important as an importer and exporter of goods - has had a dominant influence on world trade since the early 1980’s.
during the slowdown in the rate of Chinese growth, it created a “cooling off” of the global economy as a whole e.g., falling Chinese demand for imports of natural resources / oil, financially harmed African exporters.
TNCs = outsourcing → obtaining key products from alternative, cheaper locations (often abroad) than original home-sources.
near-sourcing → strategically opting to use suppliers close to home due to the risks and costs of supply chain disruption incurred by natural hazards.
merger → when 2 firms in different countries join forces (usually voluntarily) to create a single corporate entity e.g., Royal Dutch Shell (Anglo-Dutch merger) with one headquarter in the UK and the other in the Netherlands.
acquisition → when a TNC launches a takeover of a company in another country e.g., in 2010, UK’s Cadbury was subjected to a hostile takeover by US food giant, Kraft.
NEEs rely on LDCs for raw materials for their inputs into manufacturing.
Trading relationships and patterns in less developed economies
these countries are least likely to participate in global trade for various reasons:
they are less likely to be well-connected with infrastructure to manufacture and transport goods.
they have lower GDP meaning they lack the capital to invest in infrastructure and their consumer markets are smaller due to lower disposable income - cannot support trade.
they are more likely to be suffering political instability which could deter FDI e.g., ongoing civil conflicts in South Sudan prevent their access into foreign markets
although they are starting to trade more, growth has been much slower than for EME countries.
but LDCs have the potential to created trade deals with NEEs by importing machinery = resources to move LDC from primary to secondary sectors.
Differential access to markets and their impacts on economic wellbeing
limited access to markets reduces the ability of a country to achieve economic growth - may not have facilities to produce certain goods that have high demand.
access to trade bloc increases potential to trade - strong unity of countries has the power to negotiate prices to find the best deal.
e.g., the UK left the EU in 2020, made trade deals tougher with poorer other countries = higher commodity prices.
recession in one country can impact economies in other countries - interdependency on other countries for exports and imports.
TNCs locating in LICs, means the workers are more likely to be taken advantage of with low income e.g., Primark in Bangladesh.
fairtrade ensures farmers are paid fairly for their goods.
Differential access to markets and their impacts on societal wellbeing
limited access to markets results in lower incomes and poor standards of living for citizens.
countries with limited access to markets have less capital to invest in education and healthcare, reducing future development.
being a member of a trade bloc can increase job availability, leading to improved quality of life.
deindustrialisation due to availability of cheaper goods, leads to a decline of industrial areas - leads to redundancy, loss of jobs for a lot of people.
The nature and role of TNCs: linkages
TNCs create links between countries and with other companies. Linkages are created in order to benefit the TNC, and often includes expanding the company.
links through FDI → TNCs create links with other countries by investing in them, which benefits the country as this creates jobs and contributes to the economy. TNCs can be investments into a factory, for example, but they may also take the form of:
mergers: TNCs join to form one larger company, helping to form foreign links if the TNC is from a foreign country.
acquisitions: A TNC buys another company in order to expand (usually a smaller company). Acquisitions are frequently associated with local job loss as a large TNC will take full control.
links through integration → TNCs often expand their company by creating linkages between other companies. There are two types of integration:
vertical integration: taking ownership of part of the supply chain, e.g. buying a plantation
horizontal integration: taking ownership of another company, often one that is in a similar industry. The food industry is a prime example of vertical integration. A lot of large companies control the majority of smaller companies.
World trade in one food commodity (bananas): introduction
Ghana is a producer of Fairtrade bananas with the workers in the Ghanaian plantation receiving $75 per person per month through Fairtrade premium.
but banana workers face low wages, precarious employment, restrictions on the right to handle unhealthy and environmentally hazardous chemicals without adequate protection.
for every banana sold, a farmer typically receives 5-9% of the retail price, from 2019.
in the UK, 5 billion bananas are eaten on average per year.
World trade in one food commodity (bananas): LDCs and HICs
Impacts of banana industry on LDCs:
deforestation occurs to clear land for plantations.
soil becomes contaminated with agricultural chemicals.
90% of the cost paid by consumers in HICs stay in the richer areas and it never reaches the producer.
low prices cause TNCs to relocate e.g., Western Africa, involving long hours in unbearable heat with inadequate wages.
Impacts of banana industry on HICs:
the largest slice of profits (42%) is taken by the retailer, often large supermarket TNCs e.g., Tesco or Walmart.
their share has now fallen to 45% as an increasing number of national companies in Colombia, Ecuador and Costa Rica sell produce to TNCs, giving retailers greater power and forcing suppliers to accept low prices.
World trade in one food commodity (bananas): wars and patterns
Banana trade wars:
the EU mainly bought bananas from the ACP (African, Caribbean and Pacific), but doesn’t support free trade as America and Latin America had pay tariffs to the EU to access the banana market.
in 1992, the TNCs filed a complaint to the WTO that the EU practice was unfair trade.
in 1997, the WTO ruled against the EU, forcing them to reduce tariffs on Latin American bananas.
the war lasted 20 years between the US and the EU.
but in 2012, an agreement was ratified whereby the EU agreed to reduce tariffs on Latin American bananas.
Patterns of trade:
traditionally, developing countries export bananas to developing countries.
the EU and the US are the largest importers of bananas – each consumed 27% of the total exported.
World trade in one food commodity (bananas): social, economic, environmental impacts
Social impacts:
when traded in local markets they provide income and employment to rural populations.
farmers receiving lower incomes have to work for longer hours to make a living.
the working conditions are often poor and dangerous.
Economic impacts:
large TNCs grow bananas in Colombia. They own plantations, have their own transport and ripening facilities and distribution networks in consuming countries.
this allows economies of scale so bananas can be sold in the EU at cheap prices.
much of the profit is then leaked back to the origin country of the TNC.
low prices are now causing TNCs to relocate, example to west Africa in search of lower labour costs and weaker legislating work involves long hours in unbearable heat and long hours.
Environmental impacts:
bananas are susceptible to disease so they require chemicals to be treated with. Agricultural chemicals then contaminate the soils and nutrients are lost from the litter layer.
deforestation.
Analysis and assessment of the geographical consequences of global: definition of global system
global system → the environmental, political, legal, economic, financial or cultural systems that facilitate the process of globalisation.
Impacts of international trade on students’ lives:
cheap imported products from China and other EEs have benefited the typical UK high street consumer. The price of many electronic goods such as TVs and laptops has fallen markedly since the early 1990s as they have been increasingly produced in lower-cost locations.
Impacts of international trade on other people’s lives across the globe
HIC → In the UK, farmers’ incomes are protected. One estimate suggests that the world’s richest countries, including the UK, spend around £150 billion each year subsidising their own farmers. Every cow raised in the EU currently receives a large subsidy each year. This has the knock-on effect of reducing the price UK supermarkets are prepared to pay to farmers in other countries for their meat and vegetables. As a result, UK consumers are able to buy extremely cheap food imported from a wide range of countries.
NEE → Strong economic growth has been seen in some countries with a well-developed agricultural sector, notably Brazil.
LIC → It is hard to monitor the working conditions/pay for the workforce of every single supplier that large manufacturing TNCs source from, especially in Bangladesh. Showing the negative impacts socially.
Impacts of variable access to markets on students lives
access to a wider variety of products giving us as consumers more choices and options.
good access to the communications market through technology e.g., smartphones allowing us to transfer information between people in other countries.
Impacts of variable access to markets on other people’s lives across the globe
NEE → tiger economies have been able to expand globally due to better access to economies, which were usually limited.
LIC → UK shoppers can embrace Fairtrade, even though its more expensive, as they know that what they spend finds its way into the wages of poor workers in developing countries.
LIC → specific sector e.g., agricultural sectors allow their markets to increase using the demand for their products globally.
LIC → areas like Sub–Saharan Africa are land-locked e.g., Chad. This means that these countries may not have access to sea trade, preventing the transfer of goods and services in which another coastal country may have access to.
war and conflict
Definition of global governance
global governance → refers to the ways in which global affairs affecting the whole world are managed.
it’s the way in which global affairs are managed through norms, laws and institutions.
The emergence and developing role of norms in regulating and reproducing global systems
norms → the shared values and expectations that govern behaviour.
if a country does not respect human rights, they face condemnation from the international community.
not all countries agree about what is normal and acceptable: This can make global governance challenging.
e.g., a global norm is gender equality. It is generally a norm for women to be equal to men, however in other countries, such as Saudi Arabia (who only lifted a ban that prohibited women from driving in 2018), equality is not a social norm.
although countries may disagree with societal norms in other countries, there is little that can be done to globally govern a country’s norms and ideologies, which is where international laws are helpful
The emergence and developing role of laws in regulating and reproducing global systems
laws → a system of rules which are legally binding.
e.g., The Universal Declaration of Human Rights protects the social rights of citizens and is a legally binding document - If a member has agreed with the declaration but does not abide by it, there may be consequences and prosecutions.
countries may be deterred from global governance if they do not agree with the laws but must follow them e.g., one of the reasons UK citizens wished to leave the EU was so the country did not have to comply with their rules and regulations.
The emergence and developing role of institutions in regulating and reproducing global systems
institutions → formal organisations that are established to facilitate discussion, cooperation and decision-making between different nations.
the majority of global institutions are Intergovernmental Organisations (IGOs), as global governance should include members around the globe so that all opinions are fairly expressed.
e.g., the World Bank provides development loans and aid to help with financial burdens or stunted growth of nations.
e.g., BUT the World Bank only give loans conditionally – leads countries exposed to exploitation.