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GGS - Coggle Diagram
GGS
Globalisation
- The process of becoming more globally connected on variety of scales.
- The movement of people, knowledge, ideas, goods & money across national borders.
Economic:
- Transactional corporations (TNCs) trade products internationally & use international outsourcing & offshoring to lower costs.
- Industries moved to developed countries -> save money on labour, bringing economic growth there.
- Trade blocs create economic integration between states & promote development.
- Sources of income from international companies.
- Global transactions of money.
Political:
- Governments connections to trade, such as trade deals & trade blocs.
- Western democracies especially have had a global influence on political ideas, such as development of marker economies in former communist states.
- Deregulation policies allow markets to grow with an international reach.
- International organisations exist to harmonise national economies & political relations.
Cultural:
- Exposure to media sources such as television & social media allow a recognition & understanding of other cultures.
- The ability to travel internationally lets people experience cultures.
- Individuals have a greater awareness & understanding of world events due to education & news sources.
- Westernisation - domination of western areas.
Social:
- International immigration is creating multicultural societies where people share & adopt cultures.
- Social networking has revolutionised human connections, as tech platforms enable interactions with people living in different countries & access to international information.
- Global NGOs & charities are involved in the global improvement of education & health, such as the World Health Organisation.
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Interdependence
Nations depend on each other economically, politically, socially & environmentally
Political:
- International political issues require countries working together -> solve them.
- Issues raised must be unanimous decision from all nations
- Countries rely on other to intervene if political unrest
Environmental:
- All nations affected by other's GHG emissions, nuclear waste etc
- Rely on each other to protect environment
Economic:
- Countries dependent on flows of labour, products & services entering country for economy -> grow
- Labour provides workforce; products & services -> countries develop & make more money
Social:
- Migration -> social interdependence -> diasporas across world that depend on place they live in
- Countries rely on each other for leisure activities
Issues:
Unequal flows:
- people, money, ideas, technology
- can cause inequalities -> injustice or conflicts
Unequal flows of people
Benefits
- Migration -> workforce
- 44% of London's cleaning workforce = ethnic minorities
- Countries home to large diaspora pop -> strong geopolitical ties with origin country
- Origin countries benefit from remittances
- Fleeing from conflict or poor QoL
Issues
- Host countries -> dependent on migrant workers
- Overpopulation -> pressure on services -> migrants 'taking' jobs
- Origin countries depend on remittances
- Emigration -> unemployment & economic deterioration -> unpop. Skilled workers leave -> HICs -> unskilled keep economy running
Unequal Flows of Money
Benefits
- Receiving money, FDI -> improve QoL -> improves income
- Aid & remittances -> improve QoL -> rebuilding after disaster
- Rich countries take advantage of lower labour costs -> maximising profits
Issues
- Injustice -> LICs
- Companies LICs operating from LICs -> dependencies for workers -> dependent on higher wages -> subject themselves to dangerous situations
- Foreign Aid -> reduce incentive foe government to help own countries
- Companies pressure governments to alleviate taxes or relax social & environmental laws so TNCs invest
- TNCs criticises for profiting too much
Unequal flows of ideas
Benefits
- HICs intro deregulation to developing countries & NEE -> lower prices of products & services from competitive rates
- Free-trade increased because of deregulation -> global markets thrive & decrease conflict risk
- Countries with successful strategies -> educate LICs on ways to create economic growth or remove social injustice -> LICs implement strategies
Problems
- Arguments -> deregulation happening too quickly for LICs to keep up
- Rapid FDI flows & growth of global markets -> some countries can't keep up
- Privatisation allows large companies who buy originally state-owned industries to grow. LICs don't benefit -> not growing their economy but funding company
- LICs feel forced to keep up with ideas of HICs, even if ideas not most beneficial to these countries
- Deregulation -> relaxed social & environmental laws on LICs -> social injustice & environmental damage
- Multiculturalism & interdependency may be disputed by people
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Unequal Power Relations
- HICs more powerful -> more money & tech & deeper relations with other countries -> influence global systems to advantage
- LICs that lack money & tech have less influence over geopolitical events -> rely on decisions made by other countries
Environment:
- All countries = reliance to protect environment -> interdependent
- Rich countries usually emit lots of CO2
- Some rich countries may be less likely to agree to global environmental protection if may reduce CO2 emissions
- Poorer countries -> frequently affected by climate change induced natural disasters can't influence ideas of richer countries
- USA Trump withdrew from Paris Climate Agreement
Trade:
- richer countries control trade agreements
- those enter trade agreements with rich countries can benefit from country's wealth
- Richer countries -> pressure LICs into more beneficial deals
- LICs may lower taxes, reduce tariffs, set up Special Economic Zones etc. -> encourage investment
- Rich corporations & TNCs influence trade -> create more sanctions on other countries or refuse to trade to get own way
- E.g. Banana Wars
Global Financial Institutions:
- IMF & World Bank -> reinforcing unequal power relations between countries
- These institutions attach loan conditionality's -> deregulation, privatisation
- Doesn't regard economies receiving loan -> less investments into education & healthcare sectors
The World Trade Organisation:
- Criticised for widening gap between LICs & HICs
- Can be seen as biassed towards richer countries:
- Maintenance of high import duties & quotas in rich countries -> reduces imports from developing countries
- Protection of HIC agriculture, pressure for LICs to open markets up to International produce
- Developing countries not represented much in WTO
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Global Governance
- Multiple nations acting together in matters that effect entire world e.g. climate change, famine, epidemics, war
- -> need for global governance, single nation can't tackle worldwide issues
- Works local -> global scale. Decisions made by global institutions affect all scales
- Trade agreements set by WTO affect how trading happen internationally. E.g. EU
- Department for International Trade decides products UK imports from where
- Regional institution -> warehouse, receives international products & distributes them
- Local shop buys international products from warehouse
- Effects of global governance on variety of scales occurs in different respects -> environment
- Nations sign global agreements, effects how much CO2 localities can emit
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Global Institutions
- Oversee maintenance of global systems
- Majority -> Intergovernmental Organisations (IGOs)
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Patterns of Production, Distribution, Consumption
Consumption
- HICs consumer manufactured products more than LICs -> less demand for goods in LICs.
- Developing economies -> demand for fuel & minerals -> rapid industrialisation
- LICs imports = low
- As NICs develop, their populations are becoming more affluent & starting to demand similar consumer products to those being exported from their own countries
Production
- Global shift in the pattern of production from HDEs to lower wages economies has been driven by a number of factors:
- Lower land & labour costs
- Incentives offered by governments, in the form of tax breaks or special economic zones, have encouraged TNCs to invest & relocate production side of their business abroad
- Transfer of technology by TNCs has enabled countries in the developing world to increase their productivity, without raising their wages to the same levels as HDEs
Other factors influencing the locational decision made by entrepreneurs of large manufacturing companies:
- Availability of skilled & educated workforce
- Opportunity to build new plants with with latest & most productive technology
- Access to large markets without tariff barriers
- Availability of infrastructure including power supply, roads, ports
Main consequences of global shift has been deindustrialisation in richer HEDs & a subsequent decline of manufacturing in these regions
- Governments in HDEs have reacted with varying strategies that attempt to reverse the decline:
- encouraging foreign TNCs to invest in deindustrialised regions by offering incentives
- encouraging investment in skills & technology to upgrade manufacturing industry
- adopting more protectionist policies such as import, tariffs, to protect domestic production
Different patterns for distribution & consumption are likely to appear in future with marked transition from west to east
- USA, western Europe, Japan & China will continue as best destinations for exporters
- As Asia becomes more competitive a growing share of the region's exports will be to other countries in Asia
- finance corporations from HDEs have the potential to benefit from the expansion in financial services in Asia - Pacific region but face increasing competition from Chinese, Singaporean & Korean banks
Trade Agreenments
Countries trade with each other
- International trading less expensive & easier
Controls & restrictions -> trading products expensive:
- Tariffs (tax for importing & exporting)
- Non-tariff barriers (limit/fixed number of goods)
- Outright band on products or country import/exports
- Countries enter trade agreements to lower costs of trade
- Certain restrictions can be removed or lessened -> other country doing the same
- all trade agreements over looked by WTO
Global Marketing
Marketing strategies
Awareness of brand:
When brand creates trademark -> easily recognised by consumers.
- Familiar brand = more likely to sell -> chosen over less well-known brands
- By keeping trademark worldwide, consumers in other countries = likely to recognise brand & trust it
Keeping the same strategy:
- Making changes to marketing campaign = costly, such as costs for employment
- Change in order to respect cultural differences, such as religion or preferences
E.g. KitKat, British company -> Japan 1973. Japan now only place to sell the unusual flavoured varieties. KitKat has edited its marketing strategies to appeal to Japanese collectibles culture -> unusual products popular in Japan.
Globalisation allowed businesses to market products on international scale. Grown businesses -> recognition & profit.
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The Global Commons
Leave common vulnerable to exploitation.
- These environments rich in resources (oil, wildlife, minerals)
- Countries & companies that exploit _> face fewer consequences -> owned by every country
- Unless international law made -> no rules
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Globalisation Critique
Benefits
- Increased economic growth – global trade and FDI can create new job opportunities and stimulate a multiplier effect e.g. China became the world’s second-largest economy after opening up to globalisation
- Improved living standards – additional wealth enables countries to invest in infrastructure and improve education and health care, which in turn will stimulate further growth
- Cultural integration – cultures and ideas can flow freely across borders, promoting cultural awareness and diversity e.g. the popularity of K-pop
- Political stability and global governance – as countries become more interdependent, they become more likely to work together and international cooperation can be promoted e.g. the Paris Climate Change Agreement
Costs
- Environmental degradation – deforestation and increased carbon emissions present a significant threat to the planet both locally and globally e.g. China is now the largest emitter of greenhouse gases
- Inequalities – there is a growing gap between rich and poor both within and between countries e.g. the top 1% of the world’s population holds 44% of the world’s wealth, while the bottom 50% holds just 1% of the wealth
- Cultural erosion – the spread of western culture leads to the dilution or loss of culture elsewhere e.g. the growing dominance of English as a dominant language contributes to the decline of indigenous languages with one language dying out every two weeks
- Injustice and conflict – exploitation of people and the environment can lead to conflict and tensions e.g. the collapse of the Rana Plaza factory in Bangladesh highlighted the exploitation of workers in the garment industry