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Global Governance - GG notes all of

GG notes all of
Subject

Human Geography

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Students shared 335 documents in this course
Academic year: 2023/2024
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Johnny Prior
Brighton College
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Global Governance

Case studies

 Apple

 UN

 Antarctica

 Bananas

Globalisation

Globalisation is the increasing interconnection and interdependence of the worlds economic,

cultural and political systems

• Interconnection

• Increased flow of

tangible (raw materials,

manufactured goods,

people) and non-

tangible (ideas, data)

between places.

• Interdependence

• Change in one place can

drive change in

another, often via the

interconnections

established through

globalising processes

Graph measuring globalisation

there is 3 stages of globalisation

1: The emergence of empires and their acssociated trade patterns

2: The emerge of trans-national corperations and the globalisation of product chains

3: The emergence of individual social, cultural and economic networks facilitated by the

internet

Dimensions of Globalisation

Flows of capital

  • Capital - all money that moves between countries which is used for investment, trade or

production

  • The deregulation of global financial markets has allowed these flows to internationalise

since the late 20th century

Mapping the flows

  • Core regions: Highly developed economies
  • Prephery regions: Less developed economies

Flows of labour

  • Relaxing of VISA restrictions
    • Increase polaristion (going to the extreme)
    • Polaristion of working conditions
    • Cheaper airfares
    • Migration demand
      • Japan
      • Qatar - world cup

Flows of products

Global marketing: Coca Cola

Global marketing involves viewing the world as a single market and selling a uniform product

which is 'glocalised' to suit regional tastes or regulations

Coca-Cola sells one of two products (sugar or corn syrup) globally, with slight packaging

alterations to suit its different markets

Glocalisation - change certain aspects to appeal to other target markets

  • Majority of the development happens in the USA
  • Most of the main important stuff comes from china
  • Very dominated by high income countries
  • No supply from south America and Africa, it is very dominated by Europe, Asia and north

America

  • Manufacturing is all moving towards

lower income, high population

countries

Global shift

Manufacturing has relocated to

emerging countries due to:

  • Lower land and labour costs
  • Incentives by governments to attract

FDI, including investment in

infrastructure and education of their

workforces

  • TNCs transferring technology to

developing countries in order to

improve productivity

HDEs continue to dominate distribution and consumption, but this is changing as emerging

economies develop and become attractive markets for products. African countries are

excluded from this production.

Time-Space Convergence: Transport of communication

technology

It is the result of the fact that humans predominantly

experience distance as time

Advances in transportation technology and the advent of the

internet have sped up the ability of humans to move

themselves and information around the world. This leads to

the world feeling smaller and more interconnected.

Economies of scales

Containers have expanded in size, but the costs of

shipping an individual container have remained the

same. consequently, the cost of moving items

internationally has decreases

Containers are also standardised, meaning that they

can be uploaded at any port globally and transported by

ship, truck and train interchangeably

Containerisation

  • Affordability
  • 12p per wine bottle

Security Systems

Increasingly fluid borders pose new threats in the form of terrorism, smuggling, cybercrime

and other activities

In order to regulate the global economy, new systems have evolved in order to regulate these

threats. They are essential for maintaining our interconnected world.

SWIFT: Financial systems

The current global financial system is reliant on trustworthy, high speed money transactions

which themselves rely on key financial systems

Central to the current system is SWIFT

Management and information systems: JIT

Running and international business efficeintly relies on the development of a new business

system

E. Just in Time systems rely heavily on big data to collect information regarding customer

demand for certain products. This information is then fed back through the supply chain and

ensure the correct materials, components and manufactured goods are located at each stage

of the supply chain.

with family Double or extra time
in order to meet family's needs

Understanding power

 Military Power- the ability to use violence to exert influence.

 Economic Power- the ability to use capital to exert influence.

 Political Power- the ability to use formal political structures (the law, government

institutions) to exert influence. - UK, USA, China, France, Russia - political

powerhouses

 Ideological Power- the ability to exert influence by defining norms and culture. If

your country can define something as "normal" then you can have power e. USA and

Democracy

Other understandings of Power:

 Hard power: Exerting influence by using force, e., economic power, military means,

economic sanctions, trade barriers.

 Soft power: Exerting influence via positive means e. economic or development aid,

hosting major sporting/cultural events, global acceptance of your culture.

Unequal Power Relations in Global Systems

Generally, Highly Developed Economies have more power within global systems and can shape

them to their advantage.

The USA and the UN

The IMF (people who if you’re in debt can bail you out) and Structural Adjustment

Programs

Summary

o Russia is able to project .... Through minimal warfare (I you are able to use a

combination of cyber attacks and non-state actor (controlled by Russian state -

not part of Russian state))

o Instead of invading Crimea with tanks (in which USA would have to respond)

Russian states launched cyber-attacks (take down internet)

o Crimea 2014

 Little green men appear in Crimea

 No one knew who they were or where they were from

 Took over governmental organisation - made Russia theirs by making

people vote for Russia - can claim that they didn’t invade Crimea - the

people of Crimea voted to join Russia

o Minimal warfare – where people don’t have enough evidence to launch an attack

 China in Africa

o China are forming links with Africa

o Unconditional cooperation

o African governments have access to Chinas finance, expertise and development

aid, with no preconditions under its “five-no” policies.

o No interference in ways of development

o No political help

o Avoided pressure from International monetary fund.

o Investment has been reliable through the global financial crisis and Covid

o Provided vaccines to Africa.

o Exposed ugly face of western capitalism.

International Trade in Global Systems

Why do Nations Trade?

 Trade is ultimately explained by the idea of comparative advantage.

 The ‘invisible hand’ of the market encourages countries to specialise in the goods and

services that they excel at producing and trade for those that they do not.

 Hypothetically this should drive national and global increases in production and quality.

Globalisation and Trade

 Globalisation has been associated with the ascendancy of ‘Free Trade’ and the removal

of trade barriers between nations.

 However, it is important to note that trade has developed a distinct geography as

numerous factors still influence what and where different countries import goods

from and export goods to.

Key Factors Influencing Trade Patterns

 Comparative Advantage: countries generally produce and export goods that they can

make efficiently and at lower costs.

 Proximity: countries are more likely to trade with their neighbours due to both cost

considerations and for cultural, historical and linguistic reasons.

 Agglomeration: certain industries tend to cluster in specific locations to take

advantage of regional skills and technology.

 Market Strength: exporters are drawn to large, affluent and growing markets to

maximise revenue.

 Geopolitics: political alliances are more likely to promote harmonious trading

relationships than antagonisms.

 Proximity

 Trade barriers - tariffs

 How its traded

Even though there's a clear change in trade patterns it is totally geographical

Deglobalisation in trade?

We are seeing an ever-rising number of countries not wanting to trade with other countries

This happens

 Protect home industries - MAGA - cheap products from foreign countries are ricing

American industries down

Countries will limit foreign goods coming in because

 Subsistence - can only just supply enough for their country

 National security concerns

Why might countries limit trade

Trade protectionism: any economic policy that limits trade between countries in order to

protect trade within the home country

This usually takes the form of tariffs- taxes placed on foreign goods designed to make them

artificially more expensive than those produced in the domestic market.

China is now pushing

its own brand of

smartphones, Huawei

What makes a country attractive to FDI?

 Large Manufacturing Capabilities (technology/labour) - India, China

 Natural Resources open to exploitation - Brazil (Timber), Congo (Minerals)

 Financial Business Services (Banking Services) - Hong Kong, Singapore

 Large, Accessible Consumer Markets - China (1 billion people), EU nations (Single

Market)

 Lower Business Taxes (Tax Havens) - Luxembourg, Switzerland

Patterns of trade

Trading relationships and patterns in these countries/regions

 USA

 EU

 China

 India

 Latin America

 The Pacific Alliance

 Sub-Saharan Africa

Benefits of nations grouping together as trade entities on a global scale

 Improve global peace and security and reduce conflict

 Increase global trade and cooperation on trade issues

 Members develop their economies and standard of living

On a regional scale

 Compete on a global level with other trading entities

 Bigger representation in world affairs

 Freedom of movement of trade

 Allow people seeking work to move between countries easier

 Negotiate trade advantages

 Possible development of a common currency to prevent fluctuations and simplify

transactions

 Support particular sectors

 Share technology

 Deprived areas receive support from larger organisations

 Raise standards in education and healthcare

 Spread democracy, human rights and possible political and legal integration

Organisation of petroleum exporting companies, includes:

o Middle east

o South America

o Africa

o Trade of oil globally

o Single most important traded commodity

World trade organisation - oversee all trade, rules

 The main trading entities are the USA (part of NAFTA) and the EU

 The groupings of: Association of South East Asian Nations (ASEAN) are becoming

increasingly important

 China is part of the Asia-Pacific Economic co-operation (APEC) is an economic force

and trading entity in its own right

 Tensions arise between entities as they want to ensure they get the best deals for

their citizens, workers and businesses

o Reducing poverty in 77

o Increase influence on world affairs

o Needs a powerful ally to effect international co-operation and change

 Chinas growth has been due to the manufacturing of consumer goods for richer

western countries

 China as a large NIC has not been confined to industrial expansion within its own

borders

 Spread their wealth and influence by investing in other parts of world (Africa)

 They have seen the lack of development and an opportunity for investing in resource

development and increased trade

 In Africa they want to

o Extract a range of primary resources including metals to support industrial

expansion

o Helping some of the poorest countries to develop infrastructure as well as

healthcare and education

Latin America

 Emerging region

 Two distinct trading blocs: Mercosur and Pacific alliance

 Mercosur

o 1991

o Brazil, Argentina, Uruguay, Paraguay and Venezuela

o Common market of the south

o Allows the free movement of labour between member states

o Allows trade globally but it tends to view the EU and USA as its main market

 Pacific Alliance

o 2011

o Chile, Peru, Colombia, Mexico

o Been more open to making bilateral agreements with other nations and trading

entities

o Sees USA and Asia Pacific as its main markets

o Part of the TTP agreement

Differential Access to Markets

Market Access: the ability to export and sell your county’s products and services in foreign

markets.

Nations and TNCs constantly seek to expand their market access in order to increase

earnings and revenue in foreign currency.

Key Drivers of Differential Market Access: Trade Blocs

Trade Blocs: are countries which are bound together by agreements that allow members

access to each others markets without exposing them to the tariffs and taxes imposed on

the goods of non-members.

Examples include:

 The EU: a monetary and customs union that allows free trade in products between

member states.

 USMCA: a trade agreement between the USA, Mexico and Canada that allows free

trade of goods as long as a significant percentage of manufacturing is done in North

America, e. 75% for motor vehicles.

Which countries tend to have Higher Market Access?

Highly Developed Economies:

 They tend to be able to afford the higher tariffs imposed on their goods by foreign

countries.

 Their TNCs are able to use FDI to set up manufacturing in foreign countries and

therefore gain market access. E. Toyota has relocated manufacturing to Mexico in

order to gain access to USMCA.

 HDI’s tend to be more likely to enter customs unions or trade blocs allowing them

preferential access to neighbouring markets.

Differential Market Access: The EU Common Agricultural Policy

 CAP is the EU's agricultural policy.

 It consists of two pillars: Agricultural Production Support and Common Organisation

of Markets, and Rural Development Policy.

Pillar 1 - Agricultural Production Support:

 Supports EU member farmers and their access to EU agricultural markets.

 Aims to achieve five key objectives:

o Increase agricultural productivity in the EU.

o Ensure a fair standard of living for EU farmers.

o Stabilize EU agricultural markets.

o Provide EU consumers with reasonably priced food.

 Involves subsidies to reduce production costs and raise farmer incomes.

 Farmers must meet EU environmental, safety, and welfare standards.

 Includes quotas to ensure EU food security.

Pillar 2 - Common Organisation of Markets:

 Addresses the EU's external trade regime.

 Aims to limit competition between EU and non-EU agricultural products

 Involves import levies to raise world market prices.

 Uses import quotas to restrict the volume of goods imported into the EU.

 Maintains an Internal Intervention Price to prevent the fall of EU agricultural prices.

Criticism and Mitigation:

 CAP has faced criticism for limiting the development of low-income agricultural

economies.

 The EU has implemented preferential market access agreements with developing

countries to mitigate these impacts.

 Notable agreements include the "Everything but Arms" program and Economic

Partnership agreements.

 The EU claims that 71% of its agricultural imports originate from developing

countries.

 Assembly is normally done in low developed economies.

 Retail is then done in medium/high developed economies.

How do TNCs globalise?

 Outsourcing: the relocation of parts of the supply chain to other countries. This

involves FDI by the TNC and the new operations remain under their ownership.

 Outsourcing: the sub-contraction of operations to other companies, usually where

business costs are lower.

 Acquisitions: When an international corporate merger takes place, two firms in

different countries join forces to create a single entity.

 Joint ventures: This involves two companies forming a partnership to handle business

in a particular territory (but without actually merging as a single entity).

 Vertical Integration: Taking control of all aspects of the supply chain from production

to marketing to maximise economies of scale.

o BP owns exploration rights to 50 oil and gas fields, 11 oil pipelines, refineries

across the world and 19 000 retail service stations.

 Horizontal Integration: Taking control of complementary or competitive operations at

the same stage of production.

o US Kraft Foods has expanded via acquisitions of Cadbury (entering the

confectionary market) and Heinz (entering the condiments market).

What are the economic impacts of TNCs on HDE's?

Positives:

 The globalisation of TNCs has allowed them to take advantage of economies of scale

and reduce the prices of many products consumed.

 Global supply chains have resulted in agricultural products being available year-round.

 People such as small business owners, farmers have lost out to the growth of TNCs.

 Individual products have got cheaper due to there being more demand.

The abandonment of Flint

 Michael Moore's documentary "Roger & Me" highlighted the industrial decline of Flint,

Michigan, questioning how such conditions could exist in America.

 Anna Clark's book, "The Poisoned City," explores the water crisis in Flint, focusing on

the decisions that led to lead contamination and its impact on residents.

 Flint's decline mirrors issues in other Midwestern cities with shrinking populations,

joblessness, and hopelessness.

 After the 2008 crisis, emergency managers replaced municipal governments in Flint

and Detroit, leading to the termination of a water contract with Detroit and the use

of polluted Flint River water.

 Despite federal laws mandating water treatment, Flint's water went untreated,

containing lead levels far above the EPA's action level.

 The book examines the obfuscation and deception following the water crisis, detailing

how a once-industrial city neglected basic infrastructure, endangering lives.

 Flint's population decline, racial segregation, and economic struggles contributed to

infrastructure decay, exacerbated by the local government's failure to address the

issue.

 The book highlights the disproportionate impact on poor, predominantly black and

Latino communities, emphasising a national embarrassment regarding infrastructure.

 The State of Michigan denied water quality problems, discredited studies, and lacked

transparency on public health issues, contributing to a prolonged crisis.

 Emergency management policies, imposed after the 2008 financial crisis,

disproportionately affected poor and black cities like Flint and Detroit.

 Emergency managers prioritized cost-cutting over long-term planning, resulting in the

privatisation or degradation of public assets, including water infrastructure.

 They wanted to cost cut because they pay federal tax to local, state and national

government and each city is responsible for their own city and if there's a problem

they get no help. After factories shut down - unemployment, loss of money for the

city because less employment - migration. The city stayed the same size but with much

less money

 City had to pay for a big city with small city money therefore didn’t have enough

money to control the water system - neglected

 The Flint crisis eroded trust between citizens and the government, revealing the

shortcomings of collective action and raising questions about the future of

infrastructure.

 The article concludes by emphasizing the need for government responsibility in

providing essential services, particularly clean drinking water.

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Global Governance - GG notes all of

Subject: Human Geography

335 Documents
Students shared 335 documents in this course
Degree:

Sixth Form (A Levels)

Was this document helpful?
Global Governance
Case studies
Apple
UN
Antarctica
Bananas
Globalisation
Globalisation is the increasing interconnection and interdependence of the worlds economic,
cultural and political systems
•Interconnection
•Increased flow of
tangible (raw materials,
manufactured goods,
people) and non-
tangible (ideas, data)
between places.
•Interdependence
•Change in one place can
drive change in
another, often via the
interconnections
established through
globalising processes
Graph measuring globalisation
there is 3 stages of globalisation

Students also viewed

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