AQA A Level Geography: Global Systems and Global Governance

Flashcards for AQA A Level Geography: Global Systems and Global Governance

What is Globalisation?

The process by which the world’s economies, political systems, and cultures become more strongly connected to each other through the global network of trade, communication, transportation and immigration.

What term did Marshall McLuhan use to describe the breakdown of spatial barriers due to ICT improvements?

Global village.

What does the Brandt Line visually describe?

The difference in per capita GDP between the Global North and South.

What does the KOF index measure?

How globalized a country is based on its economic, social and political status.

Name the five dimensions of globalisation.

Flows of information, capital, products, services and labour.

What are the main types of capital flow?

FDI, repatriation of profits, aid and remittance payments.

Due to improved data flow, , and commercial jet aircrafts, transaction costs have been reduced.

Containerisation

Why has manufacturing decreased in developed countries?

Reduction in transaction costs, containerisation, commercial jet aircrafts and the reduction in protectionist measures like tariffs.

What has allowed services such as banking and insurance to become global industries?

Improvements in ICT.

What are two types of global marketing?

Global marketing and economies of scale

What is the global shift?

Decentralisation of production to developing countries because of cheaper land and labour, fewer environmental and waste regulations and improvements in transport and ICT.

List the systems, technologies, and relationships driving globalisation.

Ways of working, advancements in IT; Bilateral and multilateral agreements & Governance by the WTO.

How do investment banks help companies raise capital?

By selling shares on behalf of those companies.

Name the 3 things in the 1980s, that made the financial system more global

Information technology advancements, New financial products making foreign investment less risky, governments relaxed rules about what banks were allowed to do, such as charging people more for their services and letting banks invest in a greater range of businesses.

What is a bilateral agreement?

A trade agreement between two countries.

What is a multilateral agreement?

A trade agreement between multiple countries.

What is the role of the World Trade Organisation (WTO)?

Governs the global trade system by setting out rules on how countries can trade with each other.

What is containerisation and how did it revolutionize transport?

Uniform metal containers were invented in the 1950s which allowed more goods to be carried on a ship, as well as reducing the transit time as it was quicker getting goods off a ship and onto other transport like trains.

What is outsourcing?

Paying another company to do work that in the past may have been done in-house, usually to save costs.

How do economic, political, social, and environmental factors create interdependence?

Economic - countries rely on each other for economic growth. Political - Countries rely on each other to solve issues they can’t do on their own. Social - connections create social interdependence. Environmental - Every country in the world is dependent on each other to look after the environment.

What does the Lorenz curve show?

The measure of equality in a country by considering the spread of wealth amongst the population.

What is the Gini Coefficient?

A ratio of how far a country's Lorenz curve is from the straight line of perfect equality to the overall area beneath the equality line. The closer the coefficient is to 0, the more equal a country is.

What is neoliberalism?

Maximum economic growth would only occur if barriers to trade were removed, state-owned companies were privatised and government spending was cut.

How do unequal flows of technology affect globalisation?

More developed countries having better access to technology than less developed countries.

What is the role of the International Monetary Fund (IMF)?

Monitors the global economy, advising governments on how to improve their economic situations, but only gives loans to countries if it is to prevent a global crisis and stabilise economies.

What is the role of the World Bank?

Provides interest free loans to less developed countries in areas like health, education and infrastructure.

Why do some think there are power imbalances from the IMF and World Bank?

The IMF and World Bank are based in the USA, so the less developed countries who are more likely to need the help, have less influence over the decisions of those organisations.

What is Foreign Direct Investment (FDI)?

Where someone spends money in a country in order to generate a profit, such as opening a new branch or investing in the infrastructure.

What is ethical investment?

The practice of only investing in areas that are seen as socially responsible and generally avoiding areas or companies that cause environmental or humanitarian harm.

What is protectionism?

When some countries limit trade using tariff and non-tariff barriers to shield their industries from foreign competition.

What is free trade?

The policy of removing these barriers, which began to emerge in the early 20th century

What is a trading bloc?

Associations between governments that promote and manage trade by removing barriers between member countries and having common barriers for countries that aren’t members of the bloc.

What is a Special Economic Zone (SEZ)?

Areas that have different trade and investment rules to the rest of a country.

Define the five different types of trading blocs

Preferential Trade Area- where barriers are lowered, but not completely eliminated. Free Trade Area- Where internal barriers are eliminated, but the countries maintain their own independent external barriers e.g. NAFTA. Customs Union- Where internal barriers are eliminated and common external barriers are agreed. Common Market- Where internal barriers are eliminated, common external barriers are adopted and free movement of resources like labour is allowed among countries. Economic Union- where internal barriers are eliminated, common external barriers are adopted, free movement of resources is allowed and there is a uniform set of economic policies, including a common currency.

What are SDT Agreements?

Special and differential treatment agreements which let the LDCs bypass developed countries’ tariffs and have the right to restrict imports, giving them greater access to markets.

What are some social consequences of market access inequality?

Living in countries with better market access tends to lead to higher-paying jobs and therefore more disposable income to spend on improving the quality of life. Better market access leads to more money available to spend on education.

What are some economic consequences of market access inequality?

With poor market access, it can be difficult to establish new industries as high tariffs when selling abroad will be uncompetitive and they could be undercut by TNCs producing similar products more cheaply. This can make developing countries more reliant on low-value primary products which tend to fluctuate in price.

What is the fourth most important food product within least developed countries?

Bananas

What is the traditional trade pattern of bananas?

Developing regions exporting low-value primary products to more developed countries.

What are the environmental issues around Banana Plantations?

Bananas are susceptible to many diseases so commercial plantations operated by large TNCs apply 30 kg of active ingredients per hectare per year including fungicides, insecticides, herbicides, disinfectants and fertilisers. The banana industry is the largest agrochemical input into the environment. Banana plantations also cost the environment in terms of deforestation, waste (for every 1 tonne of bananas produced there are 2 tonnes of waste), soil fertility and loss of biodiversity, especially aquatic life as pollutants run into water courses.

What is a TNC?

Companies that operate in two or more countries

What is a merger?

When two companies of similar sizes agree to become one bigger company

What is an acquisition?

When one company buys a usually smaller company

What is vertical integration?

When a company takes over other parts of its supply chain

What is horizontal integration?

When a company merges or takes over another company at the same stage of production, like a retail chain taking over another retail chain.

What is Intra-firm trading?

When one division of a TNC trades with another part of the TNC

Why does Apple outsource assembly to Foxconn in China?

Large source of highly skilled, hard-working but low-paid workers, competition against Taiwan for the Apple manufacturing contract forced down production costs, and Shenzhen is China’s first and most successful SEZ, offering incentives to attract foreign companies.

What did the 1991 Madrid Protocol on Environmental Protection outline?

Focuses on protecting the fragile environment by banning mining and setting out rules to protect Antarctic plants and animals, regulate waste disposal and prevent pollution.

What are international laws?

Established by countries through international agreements that are legally binding.

What are norms?

Accepted standards of behaviour that usually face negative consequences if a country, company or individual does not comply.

What are institutions?

Political and legal organisations that pass and enforce laws, decide whether a law has been broken or act as a forum for different groups to resolve their differences.

What is global governance?

How global affairs are managed and requires some form of international political integration in order to negotiate.

What is Agenda 21?

Adopted at the Earth Summit in Rio de Janeiro in 1992 and was a global ‘blueprint’ for sustainable development.

What are NGOs?

Non-governmental organisations that also operate at a range of scales to monitor and support institutions and their international strength and support mean they have the ability to challenge TNCs and governments on their negative actions

List the four global commons.

Antarctica, the high seas, Earth’s atmosphere, and outer space.

What is the ‘tragedy of the commons’?

Countries and organisations may exploit global commons without dealing with the consequences as the costs of exploiting are shared by everyone.

List 5 threats to Antarctica.

Climate change, Ocean acidification, Whaling, Fishing, Search for Minerals, Tourism and Research.

What did the Antarctic Treaty (1959) establish?

That Antarctica should only be used for peaceful purposes, countries should cooperate on scientific research by sharing plans, researchers and results and Antarctica should remain a global common.