Global Systems and Global Governance

A-Level Geography

World Health Organization (WHO)

Global body that coordinates international response to health issues including diseases like COVID-19 and Ebola.

Global Commons

Four regions (Atmosphere, outer space, high seas, Antarctica) that transcend international borders. These regions and their resources are said to be the "common heritage of mankind".

Tragedy of the Commons

It is near impossible to regulate global resources because they are mobile and cut across national borders. This allows individual countries to abuse them for selfish purposes such as dumping waste into ocean water.

Solutions to the Tragedy of the Commons

Assigning property rights to government or private companies, plus introducing global treaties like the Montreal and Kyoto protocols to protect the environment.

Common Heritage of Mankind

The principle which states that some locations and resources belong to all of humanity and that access should be shared with everyone, including low income countries and future generations.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Externalities

Where costs are passed on to someone else. For instance, a company might pollute a river, but the government's environment agency will have to pay for it.

Regions of Antarctica

Mountainous East Antarctica with thick ice, thinner West Antarctica with more ice shelves, Antarctic peninsula sticking out towards South America with balmier conditions putting it at more risk from climate change.

Climate of Antarctica

Antarctica is the earth's coldest and driest continent. Antarctica receives little precipitation and is considered a polar desert. It is also home to the windiest spot on Earth.

Katabatic Winds

Cold dense air sinks from the atmosphere (due to high pressure around South Pole) then slides down from upland areas into valley causing Antarctica to be on average the windiest continent.

Circumpolar Current

Ocean current encircling Antarctica, entombs Antarctica in dry cold winds and ice, blocking out warmer currents and rain from the tropics.

Wind Tunnel Effect

Antarctica's smooth ice causes a lack of friction and allows winds to reach up to 200km/hr

Antarctic contribution to sea level rise

Antarctica contributes around 0.19mm every year through the undercutting and collapse of ice shelves, faster ablation of glaciers. Positive feedback loops may accelerate Antarctica's contribution. Most of the losses come from the west, with small gains in some part of the east.

Biological Pump

Way in which the ocean absorbs CO2 through photosynthesis and then consumption by animals, which transfers it to the deep ocean through decomposition

Impacts of Climate Change on Antarctic Marine Ecosystem

Reduction in sea ice will have a knock-on-effect on food webs as much of the algae that feed krill grow on sea ice. High predators also use the ice to feed and breed. Furthermore, warmer ocean temperatures may cause stress to hatch rates of species like krill.

Greenpeace Whaling Campaign

Campaign that aims to raise awareness and enforce a global commercial ban on whaling (which they helped implement). Their work is focused in Japan, which continues to illegally hunt whales, and in the Southern Ocean where they track unlicensed vessels.

Convention on the Regulation of Antarctic Mineral Resource Activities (CRAMRA)

1988 treaty that initially allowed "exploration" but not exploitation, before a small group of campaigners plus France and Australia caused the initial treaty to fall apart, replaced by the 1991 protocol, which placed an outright ban (that will have to be renewed in 50 years).

Threats of Antarctic Tourism

Fuel spills from cruise ships, noise and plastic pollution, construction, introduction of alien species to wilderness.

Benefits of Antarctic Tourism

Encourages cleanup of scientific bases, provides income, jobs, and publicity to continent, and transportation can be shared by scientists, also relatively easy threat to manage thanks to IAATO

Benefits of Antarctic Scientific Research

Halley station can be used to sample the atmosphere. This was critical to ozone layer research in the 1980s, which helped to respond to the issue before it got out of hand. Isolated environment can also be used as psychological training for astronauts.

Strengths of the Antarctic Treaty

Created the precedent of setting the continent aside for peaceful, scientific activities over imperialism, militarisation, and commercialisation. The treaty is also easily understandable, and resistant to geopolitical tensions. Helped keep continent untouched.

Weaknesses of the Antarctic Treaty

Allows individual members to veto changes they disagree with, and is also subject to a 2041 review on the mining ban. May struggle to resist future resources shortages, including water, oil, and precious metals. Doesn't cover Climate Change and fishing disputes.

Antarctic Territorial Claims

They both exist and not exist at the same time. Technically, the 7 countries with claims did not give them up as part of a compromise within the Antarctic Treaty, but claims overlap and are unenforced with countries free to build bases wherever.

Future risks to Antarctica

Anthropogenic Climate Change will lead to a reduction in ice, and impacts on marine ecosystems. Furthermore, resource conflicts coinciding with necessary treaty reviews may open the continent up to permanent habitation and commercial exploitation.

Capitalism and Globalisation

Built on the principle of freedom to competitively trade and set up your own business, with the hope of a reduced turnover time for invested capital. As a result, Capitalism encourages overseas investment as this is more profitable due to exploitation of cheaper labour markets.

Neo-liberalism

The elimination of "inefficient" government intervention, results in de-regulation, privatisation and in theory increase in welfare by getting customers to consume more. Facilitates growth of transnational companies.

Decline of Socialism and Communism

Only 4 politically communist countries remain, with two (China and Vietnam) both opening to private investment, and the western capitalist mindset.

Trade Bloc

A group of countries that form an economic alliance, within which tariffs are eliminated, free trade is allowed, and economies can be integrated. Example is the EU.

Transnational corporations

A company that operates its business in multiple countries. They often seek new markets in newly industrialised countries, and this is often where their factories are based. 100 largest TNCs employ 15 million people, including 9 million outside home country.

Government policies and Globalisation

Governments choose whether to open or obscure their country from globalisation, generally based on whatever will win them their next election. Many countries create special economic zones such as Bangalore, India which offer low taxes and lax laws to attract foreign investment.

Consumers and Glocalisation

Increased emphasis and reliance on global brands, when combined with tourism has led to "glocalisation": global brands fused with local markets (such as McDonald's in Mexico)

Technology and Globalisation

Telecommunications, the internet, and satellites have made distance negligible within the virtual world, allowing ideas and products to flow more rapidly across borders. Furthermore, bulk containerisation and development of jet aircraft have created highly efficient global trade networks, allowing products to be shipped across the world in a few days.

The Media and Globalisation

Film, music, and literature about your culture can be enjoyed by those on the other side of the world, plus electronic mass media means most people are up to date with global news stories, creating a shared human narrative.

Geopolitics and globalisation

Spread of "liberal democracies" around the world. Environmental and health issues are also increasingly global, forcing cooperation. Conflicts like the War on Terror create a global alliance of sorts.

Security and globalisation

More porous borders, such as the EU's Schengen Area, allow for easier flows of labour and goods, but also create a dilemma between openness and enforcing borders in order to prevent terrorism, organised crime, extremism, biohazards (including COVID-19) and hacking.

Sovereign Wealth Funds

Investment funds controlled by governments which invest in foreign companies. They are created as a means of turning surplus money from natural resources or other exports into political leverage and financial influence. Countries with SWFs include Norway, China, Qatar, Algeria.

Platform Capitalism

The use of digital technology to make a profit without owning products or stores

Third Industrial Revolution

Unprecedented growth of the internet and web-based services has transformed our economy into one increasingly digital. For example, retail has moved off the high street and online, allowing for the rise of new companies like Amazon, Just Eat, and Uber

Five Types of Platform Capitalism

1. Advertising (money comes from adverts) 2. Cloud (digital infrastructure for offline companies) 3. Industrial (manufacturing m,

How did the Credit Crunch begin?

American banks had been making cheap deals, recklessly taking on debt, and (because times were good) gave out loans to "subprime" customers less likely to pay back (lower credit score). Because they had spare cash, they loaned out debt to foreign banks, meaning that when the financial crash begun, an impact was felt worldwide, and a chain of panic led to many countries entering recessions and becoming worse off financially.

Financial impacts of 2008 crisis on Iceland

Iceland's banking sector collapsed, which had a knock-on-effect on GDP (which entered a 3-year recession), unemployment (which rose to 10%), and the value of the Krona (collapsed). Iceland had accumulated debts 10x its GDP, so entered liquidity crisis. New taxes had to be implemented so Iceland could repay their debts, which were passed on to next generation.

Social impacts of 2008 crisis on Iceland

Emigration / "Brain drain" of highly-skilled Icelandic youth to countries with more opportunities, however increased immigration from Eastern Europe to fill lower wage jobs, and a massive focus on tourism as a source of income (as Iceland was a cheap destination)

Gini coefficient

Measurement of income inequality from 0 (egalitarian and perfectly equal spread of wealth) to 1 (total imbalance). Most capitalist countries have been seeing a rising gini coefficient.

Golden Visa

Where the super-wealthy effectively buy residency and potentially citizenship in foreign countries by investing.

Canadian Immigrant Investor Program

Attracted many high networth individuals, particularly from Greater China. Most golden visa recipients bought houses in major cities like Toronto and Vancouver, making these cities increasingly unaffordable for those on low incomes. Scheme was not sucessful in promoting economic development as the scheme was exploited by avoiding the taxes and only passively engaging in the Canadian economy.

High Networth Individuals

People with a spare $1 million+ of wealth, which excludes main residence and pension ($40+ million \= Ultra HNWI). There are 12 million globally, 465,000 of which live in the UK, particularly in London, where the buying up of second homes has increased wealth inequality by making the city increasingly unaffordable.

Spratly Islands Dispute

These islands in the South China Sea are claimed by all the surrounding countries to expand their exclusive economic zones (EEZ), important as the waterway accounts for 30% of global trade, 11 billion barrels of oil, and 13% of fisheries. China has increased tensions by building military bases on artificial islands in order to counter the US's Naval influence.

Belt and Road Initiative

Nicknamed the "Silk Road of the 21st century", the B&RI is a $4-8 trillion infrastructure project aiming to reshape global trade around China. An example is upgraded ports in Sri Lanka, using loans to Chinese construction companies that are unlikely to be paid back, thus giving China control over the port.

Pros of Chinese Investment in Africa

China has been funding infrastructure expansion in many African countries that have previously received little foreign investment due to authoritarianism and poor human rights. This is boosting and connecting African economies, and guaranteeing a source of raw materials for Chinese manufacturing.

Cons of Chinese Investment in Africa

African countries placed in a debt-trap diplomacy relationship, and must become steadfast economic and political allies of China in order to receive full investment. Poor working conditions, such as exposure to acid and pollutants in Zambian factory. Arguably a form of neo-colonialism.

Debt-trap Diplomacy

Where debt is created through excessive lending in order to extract economic or political concessions, it is therefore a way a country can increase its influence.

One / two-commodity dependency

Many countries, particularly less developed ones, are reliant on one or two commodities such as oil, gold, or coffee for a majority of their trade, which makes it difficult for them to grow their exports, and makes their economy vulnerable to changing markets.

Exports

Goods and Services sold to other countries

Imports

Goods and services purchased from other countries

Trade surplus

Where exports exceed imports in value

Trade deficit

Where imports exceed exports in value

Free Trade

Trade with limited trade barriers and low government regulation.

Comparative Advantage

Where countries specialise in the products for which they can make most efficiently, at the lowest cost or greatest quality.

Protectionism

The use of trade barriers to protect industries and jobs within a country that under free trade might be at a disadvantage.

Price undercutting

Where a dominant firm in an industry deliberately reduces its prices, or takes advantage of lower cost labour, to force over competitors out of the market and earn more profits.

Tariffs

Taxes on imports, making them more expensive

Quotas

Limits placed on the number of a product that can be sold / imported

Subsidies

Government investment and financial support given to an industry to make it cheaper, and give it a comparative advantage.

Technical trade barrier

The use of standards (environmental, labour, hygiene, safety) to restrict imports from certain markets.

Trade bloc

An arrangement between a group of nations to allow free trade amongst its members, usually formed between neighbours (such as EU, ASEAN, NAFTA)

Customs Union

Where a trade bloc unifies external tariffs, thus acting as one unit.

Common Currency

The use of one currency throughout a trade bloc (such as the Eurozone) to remove variable fluctuation of individual currencies.

Economic Union and common market

A group of countries that adopt common financial policies and regulations, usually allows freedom of movement for people and capital.

Benefits of an individual currency

A country can control their own interest rates, which is important for people looking to borrow money from banks. Can also add to a country's influence and identity, such as the strong and stable Pound Sterling

Trans-Pacific Partnership (TPP)

A trade agreement initially formulized of 12 Pacific countries, potentially covering $295bn of trade per year, and ~700 million people, collapsed when Trump pulled the US out but replacement deal made. Criticised for favouring TNCs

Loss leader

A product a supermarket markets a very low price to attract customers through the door, they are typically essential items like bread, milk or Bananas

Cavendish Bananas

Represents 90% of bananas currently produced, opens up risk of diseases and pests spreading through a monoculture.

Impacts of Fairtrade

Fairtrade lends small farmers reinvestment money to help improve their businesses and communities, can help lift families out of poverty ("fairtrade babies"), and improves the relationship between consumer and producer.

Why has the banana industry in the Windward Islands Been Under Threat?

Hurricanes, promotion of free trade by WTO favouring Latin America, less comparative advantage

Banana Republic

A politically unstable country whose economy is reliant on exporting a limited-resource product such as bananas in Central America

Why do companies become trans-national?

Cheaper labour, avoiding trade barriers, controlling sources of raw materials, diversification, horizontal and vertical integration

Why do companies outsource?

Increases flexibility, can take advantage of differing standards such as lower wages.

Pros and cons of outsourcing for the supplier

Can give access to new market and technical knowledge, and the TNC can invest in the local area to improve standards of living, but the supplier also makes themselves expendable, and may have to compromise on prices and quality in order to keep their investments.

Just-in-time Production

A method of production that involves supplying a factory with the components they need when they need them, reducing the need for massive warehouses and in theory increasing efficiency. An example is a car component manufacturer setting up near Nissan's Sunderland factory.

Vertical Integration

Acquisition and control of different stages of production (retail, distribution, manufacture, raw materials), seen with TNCs.

Horizontal Integration

Acquisition of firms at the stage of production (basically amounts to purchasing competitors and cutting costs).

Positive and Negative Impacts of Socio-economic multiplier effect.

Positive: New technologies, more efficient manufacturing, improved incomes, improved employment...

Negative: Loss of profits, collapse of business, layoff of workers, lower incomes, smaller consumer market...

Glocalisation

The process by which TNCs adapt their products and services based on the cultural needs and taste of a local country (e.g McDonald's in Mexico)

How has Coca-Cola benefitted from global expansion?

Coca Cola sell 1.9 billion products every day in 200+ countries, making $31 billion per year, following 53 straight years of growth. They own many different brands, selling 4,300 unique beverages in total, and were the 5th-most valuable brand in 2018 thanks to business-savvy sponsorship and marketing deals.

Positive impacts of Coca Cola's Global expansion

Increased employment opportunities and better education in areas where they have outsourced. They have driven investment into LICs and NICs, and have shared profits with local bottlers. They have committed to raising environmental awareness and using sustainable agriculture (such as rainwater harvesting in China).

Negative Impacts of Coca Cola's Global expansion

Harsh working conditions, have funded misinformation campaigns on obesity, union busting, funnelled profits to home country, have exploited cheap labour markets, have exhausted local water supplies, polluted water with pesticides.

Apple Inc - Spatial Organisation

Founded in 1976 in California, started off in PC Manufacturing business but now specialises in mobile and wifi products. They are the number one global brand, worth $145 billion, employ 98,000 people, own 450 retail stores. A typical Apple product is designed in Silicon Valley and manufactured in China by Foxconn.

Why has Apple Inc grown so rapidly?

Smart business decisions, competent leadership of Steve Jobs, outsourcing, taking advantage of foreign financial incentives, agglomerating into silicon valley, focusing on their stylish, premium brand image.

Positive Impacts of Apple Inc globalisation

Areas in which they have invested, such as Cork in Ireland, have become attractive places for employment due to higher-skilled workforce and better infrastructure, have been forced to audit work standards, massive revenue growth, slow move towards ethical products.

Negative Impacts of Apple Inc globalisation

Tax avoidance, sweatshop conditions (60 hours a week for 100$ per month), reputation partially damaged, cost-cutting has sacrificed health and safety, underage labour, worker suicides, reliance on non-renewable energy, lack of recyclability, pollution of water, high carbon emissions

How have Apple avoided tax?

Tax avoidance can be legal if properly justified, Apple had funnelled their profits through an Irish subsidiary, allowing them to pay negligible corporation tax. When this was banned, Apple set up a fictional headquarters that only existed on paper on the Island of Jersey to hide $252 billion in cash.

Supplier hierarchy

4th tier suppliers supply raw material to 3rd tier, which manufacture individual components, which are designed into parts of a product like an iPhone touchscreen by the 2nd tier, and assembled into a full product in the 1st tier, before being sold by the hub TNC (profits trickle down slowly)