Global Systems and Global Governance General AO1 - AQA A-Level Geography

Define Global Village

Define Global Village

A flat world where economic and information can flow freely. Proposed in late 1960's by Michael McLuhan. Gradually reflected by more nations over time

Define Global Economy

Encompasses local and national economy which interlink a number of factors such as emergence and shift in markets, technology improvements.

Define Globalisation

Process by which national economies, societies and cultures become integrated through global network of trade communications, transport, immigration.

What are the four sectors of economic activity

Primary, Secondary, Tertiary, Quaternary

What is the primary sector of economic activity

Agriculture, mining, fishing. If resources decline, typically more rural

What is the secondary sector of economic activity

Construction worker, factory workers, machinist. Typically older industrial cities such as Sheffield and Manchester declining over time

What is the tertiary sector of economic activity

Insurance, education, providing services. Urban area concentrated. Salaries can vary significantly.

What is the quaternary sector of economic activity

Research and Development, computing. Focuses in high built up areas.

What are the advantages of globalisation

1) Global consciousness causing environment problems to be addressed more
2) Capitalisation leading to economic growth in NEE's.
3) TNC's generate new jobs
4) Global technologies reigniting forgotten cultures
5) Global cooperation to help address problems structurally

What are the disadvantages of globalisation

1) Competition leading to decline in resources
2) LDC's often poorer, making escape from the poverty trap difficult
3) Job security threatened as branches close
4) Traditional cultures being lost, others accelerating (Americanism)
5) Risk of diseases (COVID-19)

Give three examples of significant impacts on globalisation

Any three from

- Telegrams / Emergence of TNC's in 19th Century
- British Empire (19th Century)
- Airplanes, global tourism, wireless communications (1920's)
- Capitalism / Communism (1940's - 1990's)
- THE INTERNET (1989) and the metaverse (2020 - Present)
- Mainstream Artificial Intelligence (2023)

Any other valid response

What is the global shift and when did it happen?

1960's - 1980's.
- NIC's / LEDC's and RIC's began to develop.
- Communications Revolution during Phase 2 of globalisation.

Why did the Global Shift occur?

- Outsourcing, cheaper labour overseas.
- Cost of importing declined quickly
- Main drives from Asia and RIC's followed by LEDC's in the early 2000's.

What is a Core Nation?

Typically a HIC, often distributes loans to the IMF and World Bank in return for labour and goods.

What is a Periphery Nation

Typically an LIC, will often receive loans and tied aid, in return for labour. Often has to pay interest on loans.

What new type of nation has emerged in the global economy recently? Give an example

Semi-Periphery Nations. Those that have some properties of both Core and Periphery nations.
Example: China

What the seven dimensions of globalisation?

Flows of Capital
Flows of Labour
Flows of Products
Flows of Services
Flows of Information
Global Marketing
Patterns of Production / Distribution and Consumption

What is a flow of capital?

Money that moves between countries for investment, land, trade, usually by institutions that work over borders.

How have the flows of capital changed recently?

$5 trillion circulates daily as of 2013. People and businesses selling shares. Remittance payments from flows of labour

How have flows of capital impacted HDE's and LDE's differently?

Most models assume HIC's have concentrated power and LDE's have been exploited of their resources and suffer from out-migration ("Brain Drain")

What are the four different types of capital?

Foreign Direct Investment (FDI)
Repatriation of Profits
Aid / Official Development Assistance (ODA)
Remittance Payments

What is Foreign Direct Investment (FDI)?

Investment mainly by TNC's, often based in one country.
Tied / Bilateral Aid.
Risen from $400 billion in 1996 to $1500 billion in 2016.

What is the repatriation of profits?

TNC's investing in overseas production.
Investment usually ends up in the core nation, majority of flows go into the origin country for the TNC.

What is aid and the Official Development Assistance (ODA)?

Financial support for LDE's.
Multilateral Aid - From World Bank or International Organisations
Bilateral Aid - Cooperation between two country for funding.

What are Remittance Payments?

Remittance payments are money that comes from migrant workers that goes back to the original country. Accounts for $79 billion in flows in 2018.

What are flows of labour

- Movement of people, mostly from immigration
- Restrictions on immigration across international borders
- More people migrating from Asia to Europe / North America over the last 25 years

Why do some people choose to migrate and what is the main consequence?

Conflict, unemployment, corruption

"Brain Drain" - Loss of skilled workers in Periphery Nations

What are the flows of products (goods)?

Movement of manufactured goods from one place to another. Typically occur because of low production costs combined with high demand.

Define Containerisation

The system of transport expected for these flows. Often using large universal steel containers for cheaper, efficient transport

Define Protectionism

Policies made by government to restrict trade on goods to protect their own industries. Reduces flows of goods globally and prevents international competition.

What are flows of services

Two different types of services
High Level - Business, Finance, usually concentrated in HDE cities. Some NEE's are also financial hubs however
Low Level - Consumer services, banking, travel, tourism. Decentralisation from HDE's to LDE's (Call centres moving to India, etc).

What are Conglomerates

Companies that report to one major company. Most TNC's work like this. Creates more connected service, increasing flow.

What are flows of information

Movement / Flow of people and the speed of data link / communications

Give three examples of technology that has improved flows of information

Any three from
- Global Telephone Networks
- Mobile technology
- Emails and the INTERNET
- Live media coverage (News, livestreaming)

Define Global Marketing

Process of promoting / advertising and selling products.

What is a brand identity?

Unique marketing strategy employed by TNC's that sets it apart from others and makes it recognisable. Often a slogan (Just do it - Nike)

This can promote clone towns because the same products are on every high street.

What is glocalisation and give an example

Some brands will tailor products to specific populations for religious or cultural reasons.

Example: McDonalds not selling beef burgers in certain countries.

What is the international division of labour

Highly skilled labour often found in HDE's and unskilled labour usually found in LDE's.

One except to this are NIC's - Newly Industrialised countries, that have TNC's and their own global influence while not be a HDE.

What are the patterns of production globally?

Manufacturing is decentralised from HDE's to LDE's over the last forty years. Because of
- Lower land costs
- Deindustrialisation of HDE's.

What are patterns of consumption globally?

Main demand still in HDE's. NIC's are increasing demand to other areas of the world as they consume more affluent goods. Forecasts show a shift in demand from West to East as Asian countries develop.

What are the six key factors in globalisation?

Communication Systems
Financial Systems
Transport Systems
Security Systems
Management and Information Systems
Trade Agreements

How have communication systems contributed to globalisation?

Almost no barriers to data sharing
Developments to communications have accelerated with the Internet in 1989 and mobile phones, especially in LDE's.

Potential for AI to contribute further after it went mainstream in 2023.

How have Financial Systems contributed to globalisation?

Increasing Financial Integrations.
Lots of deregulation to move money across borders
However, deregulation can make markets volatile and vulnerable (2008 crash)

Give five ways that Transport Systems have contributed to globalisation

Any five from
- More efficient transport
- Larger Aircraft
- Low cost / budget airlines
- Universal containers (Containerisation)
- Distribution efficiency
- High speed rail
- Suez Canal (10% of global annual trade)

How have Security Systems contributed to globalisation?

- National borders being relaxed, imposing risks
- International Terrorism, requires anti-terrorist groups and monitoring
- Safety standards for food imports
- Biosecurity for new diseases (Did COVID-19 change anything?)
- Data breaches and Cybercrime.

Give some examples of Management and Information Systems

- Global integrated companies investing
- Large production plants
- Global Marketing and Distribution
- Increased Quaternary Sector work

What are Trade Agreements?

Formal Agreement by two or more countries to remove barriers.
Not always formal agreements but there is interest in cooperation.

Give the names of four trade blocs and their scale
(Major, OPEC, STG Developed, STG Developing)

Any four from

- US Mexico Canada Agreement (Major)
- Pacific Alliance (Major)
- Organisation of Petroleum Exporting Countries (OPEC)
- MERCOSUR (Major)
- European Free Trade Association (STG Developed)
- Caribbean Community (STG Developing)
- South African Development Community (STG Developing)
- South Asian Free Trade Area (STG Developing)
- European Union (Major)
- Association of South East Asia Nations (Major)
- Group 77 + China

What are the four stages of Trade Agreements?

Free Trade Areas
Customs Union
Common Market
Economic Union

What is a free trade area and give an example

An area where trade barriers between members are eliminated and tariffs are kept against external nations
Example: USMCA

What is a Customs Union and give an example

Same as Free Trade Area but countries have an agreed tariff to external nations
Example: Russia, Belarus, Kazakhstan (2010)

What is a Common Market and give an example

Same as a Customs Union but also the agreement for free flow of goods, services and labour
Example: MERCOSUR

What is an Economic Union and give an example

Same as a Common Market but there is a common currency and taxes, as well as a set of economic policies. Sometimes there are laws and other policies as well
Example: EU (Euro as the common currency)

Give three advantages of being in an Economic Union?

Any three from
- Fair exchange rates and common currency simplifying transactions
- Faster transfers for technology
- International status and competition
- Pooling of resources for extreme events
- No trade barriers

Give three disadvantages of being in an Economic Union

Any three from
- Some countries become dependant on others
- Exploitation of resources (UK fishing waters for example)
- Competition for jobs
- Pressure to adopt legislation
- Centralised decisions.

What are the social interactions to interdependence?

Health: World Health Organisation
Education
Culture

How does health impact on social interdependence?

International Institutions took charge of COVID Pandemic. Countries providing aid to those who couldn't afford the costs.

More confidence internationally from governments and improved relations. But Periphery nations still missed out.

How does education impact on social interdependence?

Foreign exchange programs have increased, more students travelling to universities overseas.

Beneficial for involved universities and improved political relations. But does not benefit everyone at a global scale.

How does culture impact on social interdependence?

Social ties have been strengthened. For instance, a large Indian population has settled in the UK

Political relations have improved and new culture improve mutual respect and tolerance, but there is often a loss of cultures long-term (Americanism)

What are the economic interactions to interdependence?

- Trade
- Technology
- Employment
- Labour Flows
- TNC's and Investment
- Supply Chains
- Industrialisation.

How does trade impact on economic interdependence?

Nations take part in international trade, with reliance on other countries to supply demands

Countries can distribute goods and receive profits, but this has led to exploitation of LIC's and lack of growth in these countries.

How does Technology impact on economic interdependence?

Competition and cooperation improves, increasing quality of products and services

Technology is also affordable but the gap is growing between HDE's and LDE's because of lack of funding.

How does Employment impact on economic interdependence?

Jobs are being generated in new places, relocating workers

NIC's are able to get more secondary infrastructure, but there are job losses in MEDC's and HDE's in the secondary industry.

How do labour flows impact on economic interdependence?

International migrants make up 20% of EU countries, Philippines relies on remittance payments.

Remittance payments can benefit the LDE and NIC's can encourage the multiplier effect. But HDE's are suffering from increased national unemployment

How do TNC's impact on economic interdependence?

TNC's operate in several countries and invest in LIC's buying equipment and technology.

Encourages flow of investment into LIC's but outsources local companies if they aren't caught up.

How do supply chains impact on economic interdependence?

Different components manufactured from different countries and distributed globally

Manufactures benefit from lower land costs and labour, however if one position in the chain stops, it can completely stop the flow.

How does industrialisation impact on economic interdependence?

BRIC and MINT countries industrialise, while the EU and America deindustrialise

Encourages development in NIC's, and HDE's can focus on Quaternary jobs. But there is often large unemployment after deindustrialisation. (UK Car manufacturing declining)

What are the environmental interactions to interdependence?

Global Commons
Global Climate Change
Unsustainable Practices

How do Global Commons impact on environmental interdependence?

Legislation on four main areas, oceans, atmosphere, space and Antarctica.

Countries that don't have a share can still use the resources, however oceans don't benefit landlocked countries / other loopholes, etc.

How does global climate change impact on environmental interdependence?

Concerns have led to international summits and formation of groups such as UNFCCC and UNEP.

HDE's can use money and resources to reduce their emissions. But, LDE's are often hit hardest by the changes, despite not necessarily causing them

How do unsustainable practices impact on environmental interdependence?

Pollution and deforestation threaten biodiversity globally

Companies use resources to economically profit but all stakeholders are likely to suffer in the long term. (Damage to carbon sinks / tipping points)

What are the political interactions to interdependence?

International Monetary Fund and World Bank
World Trade Organisation
United Nations
Security and Stability
World Peace

How do the International Monetary Fund and the World Bank impact on Political Interdependence?

Global systems are supported by IGO's and IMF facilities capital flows.

Stakeholders benefit because money is distributed freely and fairly but interest rates can increase taxes on Periphery countries.

How does the World Trade Organisation impact on Political Interdependence?

Overseeing of international trade and establishing free trade.

Increases flows of goods between NIC's and high demanding countries. But has led to large deindustrialisation.

How does the United Nations impact on Political Interdependence?

Leading organisation for international government

There is more integration for globalisation but a few countries are not in the UN and cannot benefit.

How does security and stability impact on Political Interdependence?

Improved political stability allows governments to work together.

Increased cooperation between nations but they do not necessarily have the same goals.

How does World Peace impact on Political Interdependence?

Some claim wars are less likely presently. Thomas Friedman created the theory that every country with a McDonalds wouldn't wage a war (Disproven)

All stakeholders benefit from no wars, however some nations may see land as rightfully theirs but can't fight back to take it. (Tension)

What are the issues associated with flows of people?

- "Brain Drain" from skilled workers leaving
- Conflict - low skilled migrants working for less, wages decreased
- Migrants made to work in dangerous conditions (Qatar stadiums for the World Cup in 2022 cost thousands of lives)

What are the issues associated with flows of money?

- Dependencies on foreign aid
- Exploitation and threats to stop all investment by TNC's.
- Loans have to be repaid, often with interest

What allows for flows of ideas?

- Privatisation
- Deregulation
- Free Trade
- Multiculturalism

What are the issues associated with flows of ideas?

- Profits retained instead of reinvested, stopping growth
- Social injustice and environmental degradation in LDE's.
- May not benefit LDE's and in some cases NIC's / NEE's.

What are the issues associated with flows of technology?

- Countries with better technology can make products more cheaply
- Data access gap (97% of the Netherlands has accessed, compared to only 20% for Myanmar.
- Repressive governments can receive weapons to shut down protests / uprisings.

What are the issues associated with flows of political power?

- Corruption
- Some countries will have a government installed by another, particularly if the country is following bilateral aid (Haiti in the 20th Century)

Define a Geopolitical Event

Events that are caused by political decisions but are influenced by geographical factors. Multiple countries are usually involved

Give some examples of geopolitical events in recent history

Brexit
Russia and Ukraine
China's foreign policies (Group 77)
Global Warming
The IMF

Any other valid global event.

Why has China invested into Africa?

- African nations now support China when there are geopolitical decisions, giving China more control
- Africa is now able to develop.
- Belt and Road Initiatives. Across much of Europe and Africa.
- Allows for an Expanding Military presence in Africa, particularly near the Suez Canal

What are five different influences on trade?

Any five from

- Level of Free Trade
- Regional Trade Agreements (RTA's)
- Economic Shocks / crises / pandemics / wars.
- Comparative Advantages
- Proximity
- Agglomerations
- Market Size and Strength
- Geopolitical Relationships

How does Level of Free trade influence trade?

WTO introducing framework to encourage countries to reduce protectionist barriers, average global volume of trade increased.

How do Regional Trade Agreements influence trade?

Global trade framework lowers barriers. EU / USMCA have lower average tariffs between internal members.

How do Economic shocks and other events influence trade?

After the 2008 crash, multilateral tariffs are harder to achieve, fluctuations in international trade flows.

Recessions caused by COVID leading to "slowbalisation"

How does comparative advantage influence trade?

Countries can choose to specialise in goods that they can afford to make the cheapest to increase their profits

How does proximity influence trade?

Countries are more likely to trade with neighbours for economic and cultural reasons. Intraregional trade is still much greater in most major continents.

Define Agglomerations and how does it influence trade?

Agglomerations are where companies cluster in specific areas (Silicon Valley for example) to have all skilled workers in one specific area. Lowers costs for the businesses.

How does market size and strength influence trade?

Exporters are more likely to travel to growing markets, causing multiplier effect. G7 (Seven largest economies) represent 58% of global net worth

What countries are in the G7?

Canada, France, Germany, Italy, Japan, UK and US

How do geopolitical relationships influence trade?

Alliances between countries are important to encourage cooperation. Conflict often leads to large sanctions from major trade groups (EU to Russia in 2022)

What are some issues with international trade?

- Large trading blocs hold monopoly over smaller ones or developing markets
- Large trading blocs can also have big impacts if they decide to sanction another, "slowbalisation"
- Some countries cannot afford to grow their markets.

What was the value of goods in 2018 compared to 2013? Why is this a positive / negative thing?

2018 - $19.48 trillion ($500 billion more than 2013). This means that international trade is stalling

What are the trends in FDI Investment?

2019 - $1.36 trillion
Developing countries receiving twice the FDI to developed.
Largest investors are currently China, Japan and France.

How has the USA's trading patterns changed? (HDE)

- More protectionist, especially after Donald Trump's first election in 2016.
- Lots of countries depend on Bilateral aid from the USA.