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Flashcards on Global Systems and Global Governance Revision
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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.
Which Canadian academic first used the term 'global village'?
and what does it describe?
Marshall McLuhan
describes the breakdown of spatial barriers around the world, due to the almost instantaneous transmission of information facilitated by improvements in ICT.
global scale for economics > other scales
What is the Brandt Line?
A visual description of the difference in per capita GDP between the Global North and South, dividing the world at about 30° north. Created in 1980’s.
What is the KOF index?
A measure of how globalised a country is based on its economic, social and political status.
What is globalisation caused by?
the movement of : information, capital, products, services and labour between countries
those factors, leading to increased interconnectedness.
How have Flows of Information affected Globalisation?
Developments in information technology such as satellite and mobile technology have allowed the diffusion of cultural ideas, language and technology.
What are the main types of capital flow?
FDI, repatriation of profits, aid and remittance payments.
Historically, where were manufactured products located?
Industries located in more developed countries.
How have Flows of Services affected Globalisation?
Services such as banking and insurance have managed to become global industries as they can serve their customers from wherever.
Why do people move overseas?
Some highly skilled workers may move to more developed countries where wages and conditions are better, but other unskilled workers may move due to unemployment and poor wages in their home country.
What does Global marketing involve?
Treating the world as one single market and using one marketing strategy to advertise a product to all customers of the world.
Historically, where were manufacturing industries located?
Manufacturing industries were located in developed countries and the products were then distributed in the country they were made in.
What has been a driving force behind globalisation?
The development of new systems, technologies and relationships in a range of sectors including finance, transport and management.
What do investment banks do?
Investment banks help companies raise capital by selling shares on behalf of those companies.
How do countries enter into trade agreements?
A country can agree to remove controls if the other country promises to do the same.
What is the purpose of the World Trade Organisation (WTO)?
It governs the global trade system by setting out rules on how countries can trade with each other.
What was the purpose of the North American Free Trade Agreement (NAFTA)?
Eliminate trade barriers and promote cooperation between the countries.
When did Containerisation start?
Uniform metal containers were invented in the 1950s which allowed more goods to be carried on a ship.
How do Optic fibre cables work?
Signals of light to transmit more information at an even quicker, almost instantaneous rate.
How do Larger companies benefit from economies of scale?
Purchasing specialised equipment, using production lines and buying raw materials in bulk to reduce the average cost of each item.
How do trade agreements affect the likelihood of war?
Companies become more interdependent, which makes war less likely.
How does Economic Interdependence affect Global Systems?
Countries rely on each other for economic growth.
How does Political Interdependence affect Global Systems?
Countries are interdependent on each other to solve issues they can’t do on their own.
How does Social Interdependence affect Global Systems?
Greater connections between people living in different countries create social interdependence between the countries.
How does Environmental Interdependence affect Global Systems?
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.
What are the Benefits of the flow of people?
Creating economic growth as migrants may do jobs that citizens can’t do, such as engineering, or jobs they don’t want to do, such as logging or mining.
What does Foreign Direct Investment (FDI) do?
Allows foreign companies and countries to take advantage of cheap raw materials and low labour costs, whilst the host country receives foreign capital and expertise.
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.
What is a Benefit of unequal Ownership of Technology?
Concentration of technology in a single area can lead to rapid innovation which can help people all over the world, such as medicines against malaria and AIDS.
What has meant power is also distributed unequally?
The unequal flows of people, money, ideas and technology.
What is the purpose of the International Monetary Fund?
The International Monetary Fund 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 did the 2005 Kyoto Protocol call for?
Industrialised economies to reduce GHG concentration by 5% of 1990 levels by 2008-2012.
What is International trade?
The import and export of goods and services between countries.
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 Fairtrade?
A system that aims to ensure a fair price for produce grown by farmers in LICs.
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.
How did GATT prevent the protectionist measures the USA put in place, which led to the Great Depression in the 1930s?
They brought down tariffs from 70% pre-GATT to 2% in 1994 and then brought in non-tariff barriers like health and safety regulations, to protect domestic markets.
What are Special Economic Zones (SEZs)?
Areas that have different trade and investment rules to the rest of a country.
What is Access to markets about?
How easy it is for a country or company to trade with one another.
What do WTO special and differential treatment (SDTs) do?
Which let the LDCs bypass developed countries’ tariffs and have the right to restrict imports, giving them greater access to markets.
What are the 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.
What were The Trade Wars Bananas?
One of the longest trade disputes in history, lasting 20 years from 1992 until 2012
What are Transnational Corporations (TNCs)?
Companies that operate in two or more countries
How TNCs connect countries together through their spatial organisation?
They create a global supply chain because different parts of their business are located in different countries.
What is Trade Intra-firm trading?
When one division of a TNC trades with another part of the TNC.
What is Apple?
Which sells hardware products like the iPhone, iPad and Macbook and software such as MacOS, iOS and iTunes.
What is a good example of an agglomeration?
Where information exchange and access to expert staff are crucial.
What are Impacts on China of Apple?
Working conditions In 2006 it was reported that 200,000 workers regularly worked in “sweatshop like” conditions for over 60 hours a week for around $100 a month, half of which is taken up by living expenses.
What is Global Governance?
Involves many different international organisations which encourage member states (countries) to commit to protecting biodiversity, improving human livelihoods and protecting natural resources.
What issues in the world today have to be tackled at a global scale?
A number of international laws, norms and institutions have been created to deal with this.
What are NGOs?
Non-governmental organisations 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.
What is the purpose of International institutions?
International institutions are designed to provide growth (improving the economy or society) and stability (ensuring there are no sudden changes to the economy or society).
What are the problems with the system of global governance?
Countries sign up to international laws voluntarily- if a country doesn’t sign up or formally approve a particular treaty, then they are not bound by those laws.
What is the UN?
The United Nations (UN) was set up in 1945 following the Second World War to establish a peaceful and fair world.
How does the way Antarctica is governed has an impact on people and places in Antarctica, but also the rest of the world?
Monitoring melting ice will inform efforts to combat climate change which may impact people’s daily lives by using renewable energy resources, conserving electricity and using cars less.
What is Integration of Globalisation?
Globalisation allows countries to pool resources together to solve global problems that are too great to handle alone. Greater integration of information and people creates better understanding between different backgrounds and cultures.
What is Inequalities of Globalisation?
As companies move low-skilled jobs to less developed countries, low-skilled workers in developed countries will find it difficult to earn money, furthering inequalities between the rich and poor in a country.