Global Governance

Global governance

Critiques of globalisation

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

Dimensions of globalisation

Benefits of globalisation

  • investment from TNCs = provided more jobs and skills for local people
  • TNCs bring wealth to foreign currency to by local materials and services = money can be invested into infrastructure of host country

  • benefit home country as goods can be produced at cheaper costs = larger profits for TNCs


  • increased awareness of environmental awareness e.g impacts on deforestation and habitat loss and global warming

  • shared protection of global common

  • air quality is 31% better than 1970 and water quality is 49% better = increased awarness of the impacts


  • Free trade removes barriers and gives more access for LICs

  • greater share of information and political integration = world can be safer and more co-operation for global crises and hazard events
  • higher standards of living = poverty decreased by 35% since 1990

example = indsutrialisation in Vietnam. People employed in Singapore Industrial Park gone from 0 in 1996 to 27,000 people in 2004 = shows benefits of globalisation providing employment. Increased standards of living with six-fold incraesed in GDP over 6 years

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Negatives of globasliation

  • globalisation operates mainly in terms of HICs to dominate the world trade
  • Exploitation of LIC workers in secondary sectors = in Bangladesh employs workers earn less in a month than average US worker in a day
  • increased contasinerisation has increased sea, land and air pollution = container ports traffic has increased from 225 million in 2000 to 750 million in 2017
  • ideas of homogenisation of cultures - everywhere is becoming the same
  • increased migration can lead to social. and cultural conflict

example = coffee prices fallen 70% since 1997 due to costing exporters in developing countries $8 billion in lost foreign-exchange earnings

Flows of capital = flow of money for investment trade or production.

  • FD

Flows of labour = migration e.g 25% of Nepals GDP from remittences sent from economic migrants from the Middle East

Glocalisation

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

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

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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Migration

  • largest migration Mexico to USA and the largest regional is from SE Asia to Middle East = driven by oil and construction boom
  • 90% of Quatars 2 million population are migrant workers. Employed further 1.5 million for 2022 World Cup
  • World Cup issues = should benefit migrants however are paying migrants loans with interest rates over 35% to recruitment agenices - 6500 migrants died during construction

International trade and access to markets

Differential access to markets

Economic impacts =

  • Harder for countries with poor market access to establish new indutries = face high tariffs making products and may be undercut bu TNCs selling same products bur cheaper
  • makes them dependant on selling low value primary products
  • GNI tends to be lower and little money to reinvest in industry

Social =

  • people with better market access tend to have higher paid jobs giving them more disposable incomes and increasing their standards of living
  • have less money available for education and health care = lower quality of life

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

  • launched in 2000

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