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Global Governance - Coggle Diagram
Global Governance
Global governance
Glocalisation
Benefits =
- company more relevant to local market conditions
- increases capital in the market leading to positive multiplier effect
Problems =
- shutting down local comapnies
- resentment of market - consumers prefer local products
- large company costs to adopt local culture
Global marketing = promoting and selling products or services
- e.g, Coca Cola recognisable brand = sold in over 200 countries. Brand value $30 billion.
Creates economic of scale = increasing profits by selling larger amounts of product so the manufacturing price for each product is lowered
Trading blocs = a group of countries that share trading agreements between themselves and are protected from external trade to some extent
NAFTA = North America Free trade
- Agreement signed by Canada Mexico and the US
- Implamented in 1994
Benefits =
- large surge in cross-border trade and investment
- implemented higher health and safety and environmental standards
- Exports from Canada have increased 80% and exports from Mexico gave increased 65%
- exports have risen $142 billion to over $500 billion
Negatives =
-Resulted in loss of jobs due to cheap labour in Mexico
- 1.3 million farm jobs lost from 1994 to 2004 due to removal of tariffs = corn prices exported below costs
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United Nations = known as guardian of international peace, security and human rights. It promotes development of poorer nations though work with IMF and World bank. - formed In 1945 as an intergovernmental insentive
Millennium development goals = global initiative which was launched by the UN with the aim fo raising the living standards in the world's poorest countries, where people have not always benefited from globalisation
Special differential treatment = world bank funds development in LICs to reduce inequality
- Countries with low GNI (below £1,035 for 3 year average) / low human index less than 60
- to give LICs opportunities for access to markets and have the right to import to a greater extent
Globalisation
Globalisation = Increased connectivity and free flow of ideas across the rest of the world leading to social and economic development
Interdependence = where countries rely on each other for development
Specialised economies = where increased global trade means countries don't have to be self-sufficient to produce raw materials so can specialise in an area of the market
Outsourcing = obtaining goods by contract from outside supplier
Glocalisation = products adopted to suit locations
Factors of globalisation
Transport
Example is contanisnerisation = 90% of transport is due using containers
- helps to increase global supply chains and made more world trade more accessible for countries globally
- reduces expsense of trade and increased speed of trade
- by 1970s 30 tonnes per hour could be loaded per hour compared to 1.7 tonnes in 1960s
- increases globalisation as it allows world to become more interconnected and faster flow of goods
- negatives = loss of jobs for dock workers e.g, London docks
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