Global Systems and Governance Y13 HG

What is a global system?

Systems put in place to help the world work together

What is globalisation?

The world becoming increasingly more interconnected through trade and cultural exchange

What is global governance?

The movement of political integration aimed at negotiating responses to problems that affect more than one state or region

What was the 2008 global financial crisis, the cause, the effects and recovery?

• the collapse of the the Lehman Brother’s global bank

• Cause: lending of mortgages to people with poor credit histories who wouldn’t repay them → these mortgages were then pooled together to create a bigger one → caused nationwide house price slump in America as it was difficult to sell properties at any price

• Effects: no money was lent to anyone so no financial aid

• Recovery with international trade and access to markets , but also setbacks with international conflicts

What are the factors of globalisation?

• culture

• Environment

• Politics

• Technology

• Society

• Economy

How is culture a factor of globalisation?

• westernisation - countries adopting western cultures, values and practices e.g McDonald’s from America

• Cultural diffusion - the mix of different cultures from all over the world in a country

How is environment a factor of globalisation?

impacts of degradation (env damage) linked by commons (areas of the world that are out of reach and are ungoverned) e.g deforestation to make room for agricultural land

How is politics a factor of globalisation?

• trading groups e.g EU allowing free movement of people to and from other countries which increases trade

• Governmental and global institutions e.g UN prevent conflict allowing global economy to flourish

How is technology a factor of globalisation?

• higher productivity due to improved transport (e.g containerisation - ability to move more products around the world at the same time by cargo ship AND internet access) increasing levels of trade as it is easier and cheaper to move goods, services and info across borders

How is society a factor of globalisation?

• migration = more workers

• Social networks - promoting products etc

How is economy a factor of globalisation?

• trade and aid for resources

• TNCs for resources and goods that u usually wouldn’t be able to access from other countries

• Capital flows - assets/ items of monetary value

What is meant by net zero?

Amount of emissions released is the same amount absorbed which is managed by strategies like carbon capture

What is the difference between the factors and dimensions of globalisation?

• factors: why globalisation happens

• Dimensions: the flows of globalisation (what is experienced and where globalisation happens)

What are the dimensions of globalisation?

• economic - the integration of national economies through capital flows

• Political - growing importance of global governance structures and role of international organisations

• Cultural - flow of information across different societies

• Social - flow of people through migration, tourism and global communication networks

• Ecological - climate change require international corporation to address e.g COP29

What are the factors of production?

• land - natural resources to make the goods

• Labour - the workforce

• Capital - investment used to provide places and machinery to make the goods

• Enterprise - those taking the risk of establishing businesses and organising the production of goods

What are core regions?

HICs

What are periphery regions?

LICs.

What is the IMF?

the stands for International Monetary Fund and lends loans to stabilise economies in HICs

What is the world bank?

Gives out low or no interest loans and grants to LICs to support development

How do the world bank and the IMF make money?

Loan money from core regions

What do core regions gain from periphery regions?

Gain labour and migration (fills skill shortages e.g in NHS)

What are remittances payments?

Money sent back to periphery regions as migrants move to core regions and get payed from jobs

What country heavily relies of remittances?

Nepal relies on remittance by 28.8% which is almost a third

What county has the highest total value of remittance payments?

India

What is the case study for remittance?

• Somalia in the Horn of Africa

• 40% of somalians rely on remittances to meet their basic needs

• A terrorist group called Al-Shabaab was taking some of this remittance money, causing some US and UK banks to remove remittance transfer as well as war

• This was caused by lack of anti money laundering laws and little government regulation (only been a government since 2012)

• No remittances meant that many people in Somalia could not afford necessities like healthcare and education