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Flashcards

Global systems

Emily Bolland-Gathercole Human Geography A level English 140 cards

Cards in this deck (140)

  1. 1Define Globalisation.Globalisation is the process by which the world is becoming increasingly interconnected.
  2. 2What are the economic dimensions of globalisation?Trade and aid, TNCs and capital flows.
  3. 3What are the political dimensions of globalisation?Trading groups, governmental and global institutions.
  4. 4Describe two environmental factors in globalisation.Impacts of degradation; global commons.
  5. 5State two social dimensions of globalisation.Migration, social networks.
  6. 6What are the cultural impacts of globalisation?Increased westernisation.
    Cultural diffusion.
  7. 7Describe 2 technological implications of globalisation.Improved communication technology.
  8. 8Define the term 'capital.'Capital is accumulated wealth, which may include machinery, building, money stocks or investment.
  9. 9Why is capital a factor of consideration in globalisation?Capital is an important flow in globalisation; it can involve the physical transfer of production resources but usually refers to the flow of money for investment.
  10. 10Define the term 'deregulation.'The removal of government rules, regulation and laws from the operation of business.
  11. 11Describe the effects of deregulation on flows of capital.Deregulation led to a removal of restrictions on the movement of capital.
  12. 12State the 4 main types of capital flows.1 Foreign direct investment
    2 Repatriation of profits
    3 Aid
    4 Remittance payments
  13. 13What is Foreign Direct Investment ?An investment made by a government or a large company into the physical capital or assets of foreign enterprises.
  14. 14Fill in the gaps: Inflows and outflows of Foreign Direct Investment are dominated by [HICs/LICs].HICs/developed economies (41.5% of global FDI inflows, 65.4% of global FDI outflows)
  15. 15Which two regions dominate flows of FDI?North America and Europe.
    (Africa and Oceania are the weakest)
  16. 16Define the term 'repatriation.'Where profits made by companies abroad are returned to the home country.
    This is often a flow back to a developed country, termed a leakage from the economy of the host country.
  17. 17Give a formal definition of 'leakage.'The economic loss of profits back to companies owned outside the host country.
  18. 18Define the term 'aid'.Aid refers to financial support for poorer countries, mainly from rich countries.
  19. 19State 2 key types of aid.Bilateral aid- government transfers money or assets directly to the recipient country.
    Multilateral aid- provided by many governments instead of one; a single organisation pools funds from various contributing nations.
  20. 20What is conditional/tied aid?When one country donates money or resources to another (bilateral aid) but with conditions attached which will often be in the HICs favour, e.g the aid has to be used for buying goods from the donor country.
  21. 21Give one advantage and one disadvantage of aid.Advantage: provides humanitarian relief.
    Disadvantage: promotes dependency rather than self-reliance.
  22. 22What are remittance payments?Money paid to workers in foreign countries back home to their family.
  23. 23How important is this flow of capital for developing nations?Remittances are the second most important form of income to developing nations.
    (ref. Somalia, Tajikistan, Moldova)
  24. 24Describe the patterns of remittances transfers.Biggest transfers (more than 10% of GDP) from USA to Mexico.
    Large flows from the USA to China, India and the Philippines.
  25. 25Define the term 'labour.'Labour is the human resource available to the economy.
  26. 26Labour markets are not as free-flowing as financial markets. Why is this?Due to restrictions on immigration.
  27. 27Describe the main flows of labour.From South Asia, Africa and Latin America to North America or Europe.
    Regionally, the Gulf States of Kuwait, Qatar and Saudi Arabia attracted lots of economic migrants.
  28. 28Which continent has seen the greatest flow of labour in recent years?Asia- the largest regional flow of labour is from south Asia to west Asia (5 million migrated between 2005 and 2010).
  29. 29What are 'products'?Products are tangible articles manufactured for sale.
    {Case study on flows of products: cotton trade in Mali.}
  30. 30How has the flow of products been facilitated in recent years? Give 4 ways.1 Reduction in transaction costs (due to improved flows of data and payments).
    2 Containerisation
    3 Improved air transport and super freighters.
    4 Reduction of protectionist measures due to the oversight of the WTO.
  31. 31What are 'protectionist measures'?Deliberate policies by government to put up barriers to trade e.g. quotas and tariffs.
  32. 32Define the term 'service'.A service is a transaction in which no physical goods are transferred from the buyer to the seller e.g. banking, transpor and retail.
  33. 33Explain the difference between high and low level services.High level services serve business and relate to finance, investment and advertising whereas low level services serve the consumer (e.g. banking, travel, tourism etc.)
  34. 34What are footloose industries?An industry which can be placed in any location and is not affected by factors such as resources and transport.
  35. 35Describe how flows of services have changed in recent years.There are more footloose industries thanks to improvements in flows of information and capital.
    There has been a decentralisation of some low-level services to developing countries e.g. call centre operations and tourism.
  36. 36Which cities have seen important developments in flows of services?Zurich and Toronto have grown in importance in financial services.
  37. 37What is a conglomerate?A combination of two or more corporations, each engaged in entirely different business operations, that fall under one corporate group.
  38. 38Why are conglomerate firms becoming more popular? (linked to flows of services)Because communications technology is becoming easier to use worldwide. This therefore provides oppurtunities for businesses to expand their services and grow.
  39. 39What do flows of information involve?Flows of information are wide ranging and can involve the transfer of cultural ideas, language, technology and design etc.
  40. 40Explain how satellite technology has impact the flow of information.Satellite technology allows live media coverage across the globe; it has also enabled the spread of mobile telecommunication technology.
  41. 41Explain the affected of email and internet on the flow of information.The growth of email and internet enables the fast flow of large amounts of information and enhances business communication.
  42. 42Define the term 'global marketing.'Global marketing is the process of establishing a brand through brand recognition stratergies and adapting it across global regions, so as to treat the world as one single market.
  43. 43State one effect of global marketing for the consumer.Global marketing has reduced diversity and led to more uniformity in the products and services offered to consumers globally.
  44. 44What is the cultural impact of the global marketing trend?The standardisation of goods and services has led to increased cultural homogenity which has damaged traditions and reduced diversity.
  45. 45Give one economic effect of global marketing and splain it.Global marketing creates economies of scale which arise as output or size of a company increases, causing unit costs to fall.
  46. 46State one major chain which production has undergone recently.Production has decentralised over time to developing economies.
    The production side of many TNCs now takes place away from the home nation where the HQ is located.
  47. 47Where are most production activities carried out?NICs like BRIC or MINT.
  48. 48Why did TNCs start to move to low income countries?TNCs were attracted by government incentives like entreprise zones (China) as well as cheap labour and access to large markets without trade barriers.
  49. 49Describe the consequences of changing patterns of production in HICs.Deindustrialisation and loss of manufacturing jobs in richer countries.
  50. 50Give a real-life example of the shift in patterns of production. (e.g. a TNC founded in a HIC which has moved to an LIC)Dyson- UK based vacuum cleaner brand- moved to Malaysia in search of large, low-wage work forces.
  51. 51Why is the distribution of manufactured goods now more far reaching than ever?This is due to advances in transport and communication networks which mean transport time and relative costs have fallen dramatically.
  52. 52Describe patterns of consumption for manufactured goods.Consumption is mainly still in the developed countries, but the emerging more affluent middle class in NICs have growing spending power and are demanding more consumer products.
  53. 53State all the factors responsible for speeding up the globalisation process.1 Financial
    2 Transport
    3 Security
    4 Communications
    5 Management and Information systems
    6 Trade agreements
  54. 54Describe the financial factors which have accelerated the globalisation process.Electronic trading systems mean that companies around the world can trade rapidly and easily.
    Deregulation of financial markets has led to the removal of barriers to the movement of finance.
  55. 55State some transport improvements which have accelerated globalisation.Increased size and standardisation of container- transport of manufactured goods is more efficient.
    Computerised logistics systems and data analysis have facilitated free movement of goods.
  56. 56Outline the security challenges brought by an increasingly globalised economy.Organsied crime
    Terrorism
    Bio-security
    Fiscal security
    Smuggling (ref. World Customs Organisation)
  57. 57How have advances in communications technology helped to accelerate globalisation?The internet allows people in countries around the world to instantly contact each another through email, chat programs and video calls. This instant communication has revolutionised business and social lives.
  58. 58Define the term 'global value chains'. (management and information systems)Where various stages of the production process are located in different parts of the world.
  59. 59Describe the advances in management of the production chain which have accelerated globalisation.Production networks are now coordinated on a global scale using flows of information and transport technology; these production networks are organised differently depending on industry to maximize efficiency.
  60. 60What is Just in time (JIT) technology? (management and information systems)Just-in-time (JIT) is an inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs.
  61. 61How does Just-in-time technology help accelerate globalisation? (managment and information systems)ASK EMMA.
  62. 62State the two different types of trade agreements.bilateral- between two countries.
    multilateral- between three or more countries.
  63. 63How do trade agreements help to accelerate globalisation?Trading blocs promote the integration of national economies by eliminating trade tariffs.
    Increased flows of labour between countries promote cultural integration.
  64. 64Define the economic advantages of trading blocs.Economic development through the economic multiplier.
    Easier negotiation of trade with other large trading groups.
    Freedom of movement of goods and labour.
  65. 65What is the economic multiplier effect?The process by which growing economic activity in an area creates employment; employees have money to spend on goods and services and more economic growth.
  66. 66What are the political advantages of trading blocs?Intergovernmental support and security.
    Representation and influence in world affairs.
    Trading blocs foster peace and promote conflict resolution.
  67. 67Outline the political disadvantages of trading blocs.Some loss of sovereignty.
    Trade disputes arising over tariffs, prices of commodities or changes in trade agreements.
    Border and customs authorities facing corruption and breaches of security.
    Pressure to adopt central legislation.
  68. 68State one general problem with trading blocs (globally).Lack of access to trading blocs by poorer nations causing a widening development gap.
  69. 69What are the subsystems of globalisation?Economic globalisation
    Environmental globalisation
    Social globalisation
    Political globalisation
  70. 70How are these subsystems regulated/supported?They are supported by the work of international political organisations which seek to coordinate an international responses.
  71. 71Name the four key international political organisations involved in the management of subsystems.World Bank (economic)
    International Monetary Fund (IMF) (economic)
    World Trade Organisation (economic)
    International Panel on Climate Change (IPCC) (environmental)
  72. 72Why have these organisations been criticised in general?For representing only the positition of the more powerful national and thereby leading to increased inequality, leaving less developed nations more constrained.
  73. 73What is the World Bank?The World Bank is a financial institution which provides technical assistance to developing countries around the world.
  74. 74What do the World Bank do?They give low-interest loans, zero to low-interest credits, and grants to developing countries to fund development projects.
  75. 75Outline the changes which have taken place in the World Bank's role.1960s-1980s- focus on building schools and hospitals; improve literacy and agricultural reform.
    1980-1990- introduction of SAPs to streamline the economies of developing nations.
    1990-present- achieving Millenium Development Goals.
  76. 76Give some general criticisms of the World Bank.Governed by a small number of rich countries- should be representing more than 180 countries fairly.
    Too much focus on GDP and not enough on living standards.
  77. 77Outline the role of the IMF.The primary role of the IMF is to stabilise international exchange rates and facilitate development.
  78. 78How does the IMF do this?More than 180 members contribute to a pool; member countries with a payment imbalances may borrow on a temporary basis and G20 countries contribute the most.
    Members with a balance repayment problem can request loans to help fill gaps.
  79. 79State some criticisms of the IMF.Lack of concern for democracy and human rights- support of some military dictators.
    Slow to react in crisis situations.
    Mostly controlled by western economies.
  80. 80Describe the role of the World Trade Organisation (WTO).1 Regulates trade between nations.
    2 It's a forum for governments to negotiate trade deals.
    3 Acts as a place for settling trade disputes.
  81. 81Give some criticisms of the WTO.The liquidation of some environmental protection laws as large coorperations claim they are 'bariers to trade.'
    Dominated by the USA- the rights and democracy of poorer nations are underrepresented.
  82. 82What is the purpose of the IPCC?To provide policy make s with an objective opinion about:
    1 Causes of climate change
    2 Potential environmental impacts
    3 Possible response options
  83. 83How does the IPCC do this?It collects and assesses the best available scientific, technical and socio-economic information on climate change.
    Its reports are policy-relevant and not policy-perscriptive.
  84. 84Why has the IPCC come under fire on occasion?Lack of specific guidance on how countries should lower emissions.
    It has alledgedly diluted the impacts of climate change due to political pressure from industrialised nations such as China, Brazil and the USA.
    Errors in some reports.
  85. 85State some general advantages of these organisations.Coordinated response.
    Collective desicion - making.
    Independent advice.
    Successful negotiations of the EU/Latin America trade deal and the Bali Package.
  86. 86Give some general positive outcomes resulting from unequal flows of labour, capital, ideas and technology.Promotes stability, growth and development.
  87. 87Give some general negatives resulting from unequal flows of labour, capital, ideas and technology.Inequality
    Conflicts
    Injustices
  88. 88What are some of the positive effects of the international movement of labour?Addresses skill and labour shortages in host country (e.g. nurses from the Philippines in the UK).
    Oppurtunities for migrants to develop new skills (+ increase job opportunities).
    Remittances help development in home country.
  89. 89Describe the negatives of the international movement of labour.Brain drain.
    Greater risk of disease pandemics.
    Outsourcing of production from high-wage to low-wage economies causes unemployment in more developed countries.
  90. 90Define the term 'outsourcing.'The process of subcontracting part of a firm's business to another company to save money. (e.g. Apple outsource production to Foxconn.)
  91. 91What is 'offshoring'?Relocating some part of a firm's activity to another country. (work is done abroad but within the same company)
  92. 92Describe the effect of developments in flows of technology.Rapid developments in ICT are allowing outsourcing and offshoring (from HICs to LICs or NEEs)
  93. 93How is this affecting HICs?Loss of jobs leading to the downward multiplier (see next flashcard)
    Deindustrialisation
    Structural unemployment, as the skill set of workers who have lost their jobs is no longer compatible with requirements.
  94. 94What is the donward multiplier effect?When decling economic activity leads to unemployment, less spending, decline in services and then outmigration.
    Further economic decline results.
  95. 95Outline the implications of unequal flows of technology for HICs and NICs.Recipient countries must invest in construction and training a workforce to provide the skills required, which further promotes economic growth.
  96. 96Why might a country such as China offshore some of its business activities?To be closer to foreign markets where their customers are.
  97. 97Outline the effect globalisation has on inequality (globally).Globalisation is general thought to reduce inequality (on a global scale) through the transfer of capital from rich to poor countries.
  98. 98How has globalisation altered the development continuum? Development continuum: linear scale showing the path to development running from LDCs to MEDCs.The development continuum is more condensed- the gap between rich and poor is closing.
  99. 99Outline the impact of globalisation on the poorest countries.Globalisation is yet to have much impact in these countries; the poorest African countries (e.g. Chad/Burkina Faso) still lag behind.
  100. 100How has globalisation affected inequality in rich countries? Explain this trend. FINISH THIS CARD.In many advanced countries (including BRICs), inequality has worsened.
  101. 101Where is internal inequality reducing thanks to globalisation?China, Sub-Saharan Africa, some Latin American countries (e.g. Mexico).
  102. 102Why is globalisation in general increasing inequality for the majority of countries?Because the richest people can better cope with the changes needed in skills and technology, so exel in the new jobs market, which puts the poor at a disadvantage.
  103. 103How has globalisation caused unequal power relations?With globalisation, the most powerful HICs, such as G8 countries, continue to grow and marginalise poor countries.
    Rich countries may also use their position of power as leverage in a conflict situation e.g. the USA and Europe sanction Russia for the conflict with Ukraine.
  104. 104Give an example of where the growth in global communications has spread conflict.The Arab Spring in 2010- conflict started with the Jasmine Revolution in Tunisia and spread to the Middle East.
  105. 105Describe the general features of international trade.1 Uneven
    2 Dominated by HICs and NEEs who have the wealth and political control to advance their trade position.
    3 Least developed countries have limited access to global markets- weak in trade.
  106. 106Describe patterns in the trade of merchandise.Very high value of merchandise exports in Europe and Asia.
    The G7 countries account for nearly 50% of global merchandise trade.
    Very low in Africa.
  107. 107Which countries/regions export the most commercial services?Europe is the largest net exporter;
    also: India, China, North America and Japan.
  108. 108Which countries/regions import the most commercial services?Sub-Saharan African countries are overall net importers of commercial services.
  109. 109What is included under the umbrella term 'commercial services'?Foreign direct investment in banking, communication, and distribution.
    The temporary migration of doctors, teachers, and construction workers.
    (tourism)
  110. 110Describe global trends in flows of capital.Interconnectivity of trade has increased global capital flows.
    Most investment flows are now intra-firm.
    FDI is becoming increasingly an important flow of capital.
  111. 111What is FDI?FDI is overseas investments in physical capital by transnational corporations
  112. 112Where is FDI particularly important nowadays? Why?In countries with:
    Plentiful natural resources (Brazil)
    Large consumer markets (China)
    Growing financial markets (Hong Kong)
    South-East Europe (+other developing countries)
    Because it's an important source of funding for development.
  113. 113Which countries receive the largest amount of FDI?America ($258 billion)
    China ($220 billion)
    Belguim ($102 billion)
    (Hong Kong and Brazil are in the top 10)
  114. 114Who are the major FDI investors?Over half FDI are made by the UK, USA and Luxembourg.
  115. 115Sum up the aim of the Faitrade organisation. How do they achieve this?To help agricultural producers in developing countries who are in the hands of TNCs achieve better terms of trade.
    To do this, producers band together in cooperatives giving them more influence on market conditions.
  116. 116Outline how patterns of production have changed since the 50s.50s- most manufacturing activity in Europe and North America.
    Present day- NICs (BRIC and MINT) account for a large proportion of manufacturing output.
  117. 117Account for these changes.The shift was catalysed by the movement of TNCs to LICs, attracted by initiatives like entreprise zones and large bubbles of cheap labour.
  118. 118Describe patterns of consumption and the changes their undergoing.Consumption lies mainly in HICs.
    Future: patterns of consumption will shift from west to east due to increasing affluence of populations of NEEs.
    (this will drive trade between India and China).
  119. 119Outline the concept of SDT agreements.SDT agreements- special and differential treatment agreements implemented by the WTO.
  120. 120What is the purpose of SDT agreements?SDT agreements give developing countries special rights and allow HICs to treat developing countries more favourably than other WTO members.
  121. 121Give one organisation which defends the position of poorer economies.The UNCTAD- The United Nations Conference on Trade and Development.
  122. 122Outline 2 aims of special support measures for the least developed countries.To provide incentives for export diversification (away from primary goods which are vunerable to price volatility).
    To promote faster income growth.
  123. 123Describe some problems with the World Trade Organisation's SDT agreements.Not all poor countries are members of the WTO, and if they are they may not be aware of the support available.
    Concern from advanced economies that support of poor countries will lead to cheap imports flooding their markets.
  124. 124Define the term 'Transnational Corporation.'A TNC is a company operating in at least two countries with headquarters in one country and other operations (branch plants) in a number of others.
  125. 125Describe the KEY role of TNCs globally.TNCs dominate interanational trade- the top 500 TNCs account for more than 70% of trade in goods and services.
  126. 126Why do TNCs locate in multiple locations? Give 4 advantages.They can:
    Escape trade tariffs
    Find the lowest-cost locations for production
    Reach foreign markets
    Exploit natural resources at their source
  127. 127Give the three organisational levels of TNCs.Headquarters- usually in a city in an advanced country.
    Research and development- takes place in countries with highly skilled scientists and engineers.
    Branch plants: located overseas where products can be efficiently produced without threats to long-term continuity.
  128. 128Where do primary sector TNCs locate?In areas where there are unexploited resources (e.g. copper in some African countries).
  129. 129Outline the benfits of locating in LICs/NICs for secondary industry.Labour costs are low
    Investment in education makes it easy to train workers
    Strong work-ethic- willing to work long hours; no unions.
    Government incentives e.g. entreprise zones
  130. 130Define the term 'entreprise zone.'An area set up by the government to attract industry by the removal of taxes and restrictions to development.
  131. 131Explain the differences between location of secondary and service sector TNCs.Service sector TNCs are more footloose.
    Proximity is a key factor for service sector TNCs, as well as cheap labour etc.
    Language may also be a consideration.
  132. 132What are the two types of integration?Vertical and Horizontal.
  133. 133Define the term 'vertical integration.'Where the supply chain is owned entirely by the company.
  134. 134Define the term 'horizontal integration.'Where the company diversifies its operation by expansion, merger or takeover.
  135. 135Summarise the positive impacts of TNCs in the host countries.Generates jobs and income
    Brings new technology
    Gives workers new skills
    Has multiplier effect
  136. 136What are the negatives for host countries?Exploitation of labour and resources
    Impacts on the environment and local culture
    Repatriation of profits.
  137. 137What are the benefits for TNCs?Lower costs because of cheaper land and labour
    Greater access to new resources and markets
    Fewer controls- oppurtunities for expansion
  138. 138What issues may TNCs face in locating in LICs/NICs?Ethical issues such as the image of environmental damage or sweatshops can be detrimental to their reputation.
  139. 139What are the positives and negatives of TNCs in the home country?Pos: Cheaper goods
    Pos: can specialise in financial services and R&D
    Neg: Loss of manufacturing jobs and deindustrialisation.
    Neg: structural unemployment.
  140. 140What is 'structural unemployment'?Structural unemployment is caused by a mismatch of skills between the unemployed and available jobs.

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A level Human Geography (Global Systems ) Flashcards on Global systems , created by Emily Bolland-Gathercole on 14/05/2018.
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