75 terms

Global Systems & Global Governance

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globalisation
the process of the worlds economies, political systems and cultures becoming more strongly integrates to each other
what are the 5 flows of globalisation?
information, capital, products, services and labour
global marketing
creating global awareness of a brand which is usually linked to a TNC eg coca cola
what 5 factors affect globalisation?
transport systems, financial systems, trade agreements, management/ information systems and security
contanerisation
a system of standardised transport, that uses a common size of steel container to transport goods.
trade
the movement of goods and services from producers to consumers
comparative advantage
the principle that countries can benefit from specialising in the production of goods that they are efficient at producing
economies of scale
a proportionate saving in costs gained by an increased level of production
interdependence
-where international countries become increasingly reliant on each other as a result of globalisation
-it creates inequalities between countries and mainly benefits wealthier nations
what is the cause of unequal flows between nations
interdependence, dependence on each other means they both have something the other wants so flows of people, money, ideas and technology are unequal
unequal flows of people (+ and -)
+migrants boost workforce productivity
+fill jobs gaps that nationals wouldn't do
+remittances are sent back to host countries
+unemployement reduce din host country
-skilled workforce removed from source country
-low skilled migrants may work for less money than locals which may cause conflict
-migrant works often work in dangerous conditions
unequal flows of money (+ and -)
+FDI allows HICs to take advantage of cheaper raw materials and low labour costs
+host country benefits from foreign capital
+foreign aid can be used to improve living standards or rebuild infrastructure
-foreign aid can create dependency between nations and exacerbates inequalities
-FDI can force out local businesses as foreign companies can make products more efficiently
-companies may pressure LIC governments to pass laws to make capital investment easier
-foreign aid can be used unethically to fund armed conflict
unequal flows of ideas (+ and -)
+neo liberal ideas have increased free trade
+communication of ideas helps to improve technology
-education is harder to obtain in poorer countries
-control of ideas lie in HICs where there are more uni graduates
unequal flows of technology (+ and -)
+concentrations of technology centres leads to rapid innovation eg. silicon valley
-developed countries control the flow of technology to LIcs
-countries with more technology have better access to communications infrastrcture eg. internet
unequal flows of power (+ and -)
-developing or emerging economies countries with a lot of money and technology can drive global systems to their advanatge
-countries with limites money have limites power so can only respond to events rather than controlling them
eg. climate change
-richest countries often contribute to climate change the most, they have the power to change things but often don't
how can global institutions reinforce unequal power relations?
-IMF and world bank are based in and led by developed nations so undeveloped nations have little influence
-loans from both are conditional but the less developed country must make changes to recieve loans eg. deregulation whcih benefits HICs
foreign direct investment (FDI)
an investment made by a company in one country in business interests in another country eg. opening a new branch of a business abroad
terms of trade
the cost of goods that a country has to import, compared with the price at which they can sell the goods they can export
trade barriers
government-induced restrictions on international trade such as tariffs, quotas and subsidies
tariff
a tax paid on imports or exports, used to stop cheaper foreign products being favoured over local produce
quotas
a type of trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time
subsidy
a form of financial aid or support extended to an economic sector generally with the aim of promoting economic and social policy
free trade
international trade left to its natural course without tariffs, quotas, or other restrictions
trade bloc
a type of intergovernmental agreement, where regional barriers to trade are reduced or eliminated among the member states.
single market
a type of trade bloc in which most trade barriers have been removed with some common policies on product regulation, and freedom of movement of the factors of production and of enterprise and services. The goal is that the movement of capital, labour, goods, and services between the members is as easy as within them.
name the main trade blocs
european union, nafta, mercosur, african union, association of southeast asian nations (ASEAN)
world trade organisation (WTO)
-regulates international trade and aims to cut trade barriers to trade
-formed in 1993
-it also oversees over 97% of world trade.
world bank
-promotes economic development
-provides long term loans to invest in health, education and infrastructure
-loan partly comes from subscriptions from members
-capital is redistributed from developed to less developed countries
- has a US president
international monetary fund (IMF)
-monitors global economy and advises governments on how to improve economic situations
-gives loans to countries with economic problems
-has an EU managing director
how has globalisation impacted the volume & pattern of trade?
-since the 1980s the value of global trade has increase 8x
-devloped nations are the biggets traders but developing countries like China are trading more
-growth in trade among less developed countries is slowly increasing
-more countries are opening up to trade by removing barriers or joining trade blocs
-rise in fair trade, nearly 1000 fair trade producers have been set up
in 2010 what percentage of global trade did African countries account for?
only 3% of global trade
how has globalisation impacted the volume & pattern of investment?
-volume of FDI was $1500 billion in 2015
-pattern of FDI is changing, developing countries are now investing in emerging ecnomies like China, Brazil, India and Mexico
-emerging economies invest more into less developed countries
-ethical investment has grow since the 1990s
ethical investment
investing in socially responsible nations eg. companies that cause environmental or humanitarian damage are avoided by investors
access to markets
how easy it is for countries and companies to trade with one another which is determined by the trade barriers in place
special and differential treatment (SDT)
-agreements formed by the WTO which let the least developed countries bypass tariffs which gives them greater market access
-eg. Everything But Arms (EBA) gives exports from LICs duty and quota-free access to the EU for most goods, excluding armaments
-the profits made from SDT agreements allow less developed countries to develop their industries
social conseuqences of special and differential treatment
-people in countries with good market access tend to have high paid jobs so have more disposable income and better living standard
-less market access means less investment into education and healthcare
economic consequences of special and differential treatment
-countries with poor market access struggle to establish new industry
-poor market access countries are dependent on low value agricultural goods that fluctuate in price
-high market access countries see more economic growth as they can trade more & diversify their industries
transnational corporation (TNC)
a company that operates in at least 2 countries generally with HQ's and R&D centres in HICs and production centres in LICs
-80% of global trade was linked to TNCs in 2013
-operate in primary, secondary and tertiary (services) industries
-one of the main driving forces of globalisation
how do TNCs use linkages to their advantage?
-expand their operations to gain more control over their markets
-through acquisitions or mergers
-or through horizontal or vertical integration strategies
glocalisation
-where TNCs adapt their product depending on where in the world they work, or adapt the marketing of it
-eg. in Indian McDonalds, no pork or beef is served and the McAloo Tikki is a spiced potato croquette that cannot be found elsewhere. Also, Cadburys sweeten their chocolate in China
mergers
where 2 similar sized companies form a larger one
acquisitions
a smaller company buys out a larger one
sub-contractors
using foreign companies to manufacture products without owning the business
horizontal integration
where a company merges or takes over another company at the same stage of production eg. one retail chain may take over another
vertical integration
when a company takes over the entire supply chain eg. through mergers and acquisitions Shell owns every part of its supply chain from oil refineries to marketing
intra-firm trading
-a division of a TNC trades with another part of that TNC
-makes up between 30% and 50% of global trade
rationalisation
slimming the workforce, replacing them with machines
global governance
the ways in whcih global affairs are managed as their is no 'world government'
international laws
legally binding rules establised by countries through international agreements
norms
accepted standards of behaviour
institutions
political and legal organisations which exist to pass and enforce laws
how do international institutions increase growth and stability?
-laws and norms are enforced so that countries must abide by common rules
-WTO aims to increase trade through common rules, more trade leads to economic growth
-the WHO combats epidemics in order to create social stability eg. ebola 2014
how do international institutions create inequalities and injustices?
-there are conditions to receiving IMF or World Bank loans eg. countries have to implement free trade and cut government funding (structural adjustment programs) which could be blamed for further poverty in poorer countries
-economic groups like the G7 strengthen the power of developed countries, rather than encouraging inequality
-members of security institutions can reject resolutions and intervene
united nations
-set up in 1945 to establish peace
-has 193 member countries so has lots of authority
-countries must sign up to the UN charter
-security council maintains global peace while the general assembly act as a parliament of nations
how does the UN increase growth and stability?
-the UN MDGs have helped reduce the people in poverty, increased children in education an reduced child and infant mortality rates
-UN peacekeeping missions can help to end wars and remain stable politically
how does the UN create inequalities and injustices?
-developed countries hold the most power over UN decisions eg. no African country has a permanent seat at the security council
-at times the UN has been ineffective eg. UN peacekeeping missions failed in 1995 which led to the deaths of 8000 Bosnian Serbs
why must institutions operate at various scales?
-to ensure global governance is a success
-global decisions affects institutions all all scales
-local and regional decisions can also have a wider impact
global common
area out of the political reach of a single member state or nation, these areas belong to all
what are the 4 global commons?
-Antarctica
-the high seas
-atmosphere
-outer space
-cyberspace is also considered a common
what does the phrase 'tragedy of the commons' means?
the cost of exploiting the commons are shared by everyone
describe the climate and environment of Antarctica
-14 million km^2
-contains 90% of all ice on earth
-receives less than 166mm of rain annually
-average temperature is -49 degrees and is mainyl dark all winter
-very little plants survive there, mainly moss and lichen grow
-abundant but fragile sea life eg. seals and whales
antarctic convergence
-area within this zone is considered a global common
-the up welling of nutrient rich cold water occurs here and phytoplankton thrive here
how does climate change threaten antarctica?
-over the past 50 years it has warmed by 3 degrees
-ice shelves around the Weddell and Ross sea have started to melt & adelie penguins are only adapted to sea ice so numbers has declined
-krill population has decreased by 80% since 1970s
-melting sea ice has caused 3mm rise in sea levels every year
-carbonic acid is formed from atmospheric co2 and saline water which can cause ocean acidification
how does fishing and whaling threaten antarctica?
-Patagonian tooth fish is begin fished unsustainably so it's vulnerable to extinction
-in 2013 over 200,000 tonnes of krill were fished from antarctica
-illegal fishing is hard to monitor
-whaling bans are in place but some countries still kill whales in aid of science
how does the search for minerals and resources threaten antarctica?
-large underground deposits of coal and iron ore in the Transantarctic mountains
-in the southern ocean there are large oil reserves
how does tourism and research threaten antarctica?
-increases travel by air and water which ca pollute eg. boat oil spills
-tourists can disrupt breeding colonies of birds
-trampling damages fragile vegetation and erodes the landscape
-non-native species introduced
-waster from research bases used to be dumped in the sea
what is the antarctic treaty system (ATS)?
-now has 53 signatories
rules:
-should be used peacefully with no army bases or weapons
-countries should cooperate on scientific research
-individuals cannot make claim to it
failures of the ATS
-all bases can be inspected at any time but this doesn't often happen
-there is no system to ensure all countries abide by the rules
-a consensus must be reached by all countries involved which can make progress slow and difficult
successes of the ATS
-the Protocol on Environmental Protection was signed in 1991 and adds to the ATS focusing on protecting the environment
-the 1991 protocol banned mining, protected animals, regulated waste disposal and prevented pollution
-now an Environmental Impact Assessment is required for all new activties
international whaling commission (IWC)
-responsible for regulating whaling and ensuring the population is at a sustainable level
-in 1994 the IWC set up at whale sanctuary in the southern ocean however they were criticized for poor monitoring of numbers of whales
united nations environment program (UNEP)
-a UN agency which reports activity in Antarctica to the UN
-run by the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR) which stops illegal fishing and conserves the ecosystem
-its effectiveness is limited by individual countries protecting their own interests eg. it took 5 years to negotiate the creation of a marine protected area in the Ross Sea
IWC whaling moratorium & failures
-in 1982 the IWC introduced a whaling moratorium that banned all commercial whaling including Antarctica which has helped whale numbers increase
-success is monitored by estimating populations by sighting
-some countries think monitoring should be better and that whaling boats should be IWC registered
-countries like Japan still kill whales for science so is poorly enforced
antarctic and southern ocean coalition
-formed in 1978 aims to stop exploitation of Antarctica's resources
-is an example of an NGO that monitors threats to Antarctica
-monitors environmental change and checks whether countries are abiding by the rules
-ASOC monitors climate change's impact on Antarctica
what are the benefits of globalisation?
-increased integration between countries as they pool their resources
-development increases as increased FDI can help less developed countries improve
-stability increases as countries become more dependent which reduces likelihood of wars
-economic growth occurs due to trade
what are the costs of globalisation?
-inequalities can occur where the divide between rich and poor countries increases
-conflict can arise due to increase in technology dependency (cyber warfare)
-injustices such as human trafficking and sweatshops can be made easier
-generally TNC's contribute to climate change through transportation which causes environmental damage