Global systems and governance
The Antarctic Treaty, 1959
- Recognising that it is in the interest of all mankind that Antarctica shall continue forever to be used exclusively for peaceful purposes and shall not become the scene of object of international discord. - Acknowledging the substantial contributions to scientific knowledge resulting from international cooperation in scientific investigation in Antarctica. - Convinced that the establishment of a firm foundation for the continuation and development of such cooperation on the basis of freedom of scientific investigation in Antarctica as applied during the international geophysical year accords with the interests of science and the progress of all mankind. - Convinced also that a treaty ensuring the use of Antarctica for peaceful purposes only and the continuance of international harmony in Antarctica will further the purposes and principles embodied in the Character of the United Nations.
Two measure of inquality
- The difference between HICs and LICs and whether the difference between the two is increasing or decreasing. - The inequalities in incomes that exists within each country and how this is being affected by globalisation. Indicators suggest that globalisation is reducing global inequality through the transfer of capital and income from richer to poorer economies. But it is thought that it could increase inequality within countries as richer societies cope better with changes in jobs and technologies.
Special and differential treatment (SDT)
-agreements formed by the WTO which let the least developed countries bypass tariffs which gives them greater market access. During the latter part of the 20th century, there was a growing number of newly independent nations following decolonisation in Africa, Asia and the Caribbean. Recognised there was a danger that protectionist policies would exclude many developing countries from trading freely with more developed nations. In order to prevent this the UNCTAD (United Nations Conference on Trade and Development) assisted developing countries.
Largest branded TNC's (2014)
1. Apple (USA) 2. Samsung ( Korea) 3. Google (USA) 4. Microsoft (USA)
Threats to Antarctica (global commons case study)
1. CLIMATE CHANGE - In the past 60 years temperatures have risen by 0.5 degrees celsius per decade, up to 5x faster than the rest of the world. As CO2 combines with water in the atmosphere, rainwater will contain carbonic acid leading to ocean acidification. Warmer oceans. 2. FISHING - Fishing ships may directly destroy marine habitats and contaminate water by dumping waste. 19th century saw Norweigian, Britisha dn American exploitation of blue and white whales for oil and baleen, then in the 20th century for meat and bonemeal. By 1985 most commercial whaling ceased due to dangerously low stocks. 3. SCIENTIFIC RESEARCH - 30 countries have research organisations based in Antarctica, many research stations are seasonal. Scientists are well briefed on the care for the environment and are mainly invested in its protection but there is some disturbance to wildlife. 4. TOURISM - Numbers have risen from less than 2000 per year in the 1980s to 27,000 in 2011-12. Each ship contains 50-100 people but fragile ecosystems can be damaged, summer tourist season coincides with peak wildlife breeding period so there is a concentration of both wildlife and people on the few ice free locations. 5. MINERAL RESOURCES - Coal, oil maganese, titanium, gold and silver. Commercial mining is banned in the Antarctic Treaty. Can damage environments.
Largest non-financial TNC's (2014)
1. General Electric (USA) 2. Royal Dutch Shell (UK) 3. Toyota (Japan) 4. Exxon Mobil (USA)
Largest public TNC's (2014)
1. ICBA (China) 2. China Construction Bank (China) 3. Agricultural Bank of China (China) 4. Bank of China (China)
Antarctic Treaty Articles
1. No military use shall be made of Antarctica 2. There will be complete freedom of scientific investigation. 3. Antarctic Treaty Nations will exchange plans for their scientific programmes. 5. Nuclear explosions and nuclear waste disposal are banned from Antarctica. 6. The Treaty applies to all land and ice shelves south of 60 degrees but not the seas. 12. The Treaty may be modified modified at any time by unanimous agreement. New protocols are having to be added to deal with emerging issues Antarctica is experiencing.
Who owns Antarctica?
12 countries represented by the Governments of Argentina, Australia, Belgium, Chile, the French Republic, Japan, New Zealand, Norway, the Union of South Africa, the union of Soviet Socialist Republics, the UK, USA and Northern Ireland signed the treaty on 1st December 1959 in Washington. The treaty had 12 original signatory nations, as of 2018 there are 53 signatory nations.
IMF (International Monetary Fund)
189 out of 196 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. Created in 1945 after WW2. 3 ways it tries to ensure stability; 1) keeps track of global economy and the economies of member countries, lends money to countries in difficulties, gives practical help to members. SURVEILANCE - oversees and highlights possible risks to stability and advises on needed policy adjustments LENDING - Provides loans to member countries with problems. Enables countries to rebuild their international reserves, stabilise. their currencies, comtinue paying imports and restore conditions for economic growth. Unlike development banks the IMF does not lend for specific projects.
Key event in a globalisation timeline
1944 - World Bank set up at the close of WW2 1948 - Jamaicans migrate to the UK 1975 - Britain joins Europe 1990 - The first proper Windows personal computers are sold 1996 - Broadband internet becomes available for homes in the US and Europe 1998 - Tesco opens its first overseas store in Asia 2000 - The millennium Development Goals are launched 2001 - The terrorist attack on the World Trade centre in New York 2004 - Facebook begins 2011 - China overtakes Japan to become the World's second largest economy
Governing Antarctica - The Madrid Protocol
1991. Additions to the Treaty are known as 'protocols'. The Madrid Protocol follows a lengthy campaign by Greenpeace, including the construction of an Antarctic base from 1987-1991. Greenpeace claims this protocol as a victory. The purpose of this treaty was to protect Antarctica for 50 years from commercial exploitation primarily of its mineral wealth.
What is a 'norm'?
A 'norm' is an acceptance of certain attitudes, practices and regulation as valid and 'normal' for states aspiring to a high standard of governance. The UN has done an enormous amount of work to protect human rights and promote sustainable development. Both concepts are social norms as they are widely valued and are viewed as appropriate goals to pursue, moreoever it is expected that there should be universal acknowledgment of their importance.
Merger
A combination fo 2 things, especially companies, into one.
What is a TNC?
A company which operates in more than one country. Also referred to as a multinational company (MNC). Large firms such as Coca-cola expend their businesses globally over time by building branch plants overseas, or by forging links with foreign suppliers as part of the out-sourcing process. Another way of achieving global growth and increased market share is through mergers, takeovers and acquistitions. TNCs are 'architects' of globalisation, they build networks of production and consumption. HQs in developed countries e.g TNC has HQ in USA. There are over 60,000 TNCs. THey employ 45million people around the world, controlling 75% of world trade
Transatlantic Trade and Investment Partnership (TTIP)
A free trade agreement currently being negotiated by the EU and the USA. Criticised for its covert nature. A bilateral agreement, aims to reduce regulatory barriers to trade for big business including food safety law. environmental legislation, banking regulations. Social and environmental NGO's oppose agreement since it will give more power to large TNC's above that of democratically elected gov.s Claim it will threaten public services (like NHS). PROS; could add £10bn to UK economy, restricted markets will open.
Trade Blocs
A group of countries which form an alliance regarding trade e.g NAFTA. It removes competition. Tend to have countries in it which are close. Countries across Asia are coming together to form a trade bloc to compete with China.
Global governance
A movement of political integration aimed at negotiating responses to problems that affect more than one state or region e.g climate change.
NGO's
A non-governmental, non-profit organization that runs aid programs and lobbies for people's rights around the world
cumulative causation
A process through which tendencies for economic growth are self-reinforcing; an expression of the multiplier effect, it tends to favor major cities and core regions over less-advantaged peripheral regions
environmental sustainability
A state in which the demands placed on the environment can be met without reducing the quality of the environment for the future.
Containerisation
A system of standardised transport that uses a common size steel containers to transport goods. The containers can be transferred between ships, trains and lorries, enabling cheaper, efficient transport.
Gini coefficient
A value of 0 corresponds to the absence of inequality, so that having adjusted for household size and composition, all individuals have the same household income(low disparity). A value of 1 corresponds to to inequality in its most extreme form, with a single individual having all the income in the economy(high disparity). UK has a value of 0.34
World Bank
A vital cource of financial and technical assistance to developing countries around the world. It is a unique partnership to reduce poverty and support development. Established in 1944, the HQ's are in Washington, D.C. Employs 10,000 people in more than 120 offices worldwide. Goal is to end extreme poverty by decreasing the percentage of people living on less than $1.90 a day to no more than 3% by 2030. Provides low interest loans, zero to low-interest credits and grant to developing countries. Support a wide array of investments in such areas as education, health, public administration, infastructure etc. Some projects are co-financed with goverments, other multilateral institutions; commercial banks and private sector investors. Also provide finance through a bilateral or multilateral donor.
Chinese interests in Africa
Africa = vulnerable, victim, aid given to Africa is usually conditional. African countries have become increasingly drawn to China's "no-strings attached" development assistance and promises of growth. China relies of African markets for a steady flow of natural resources to sustain manufacturing. China imports from Africa: oil, iron ore, timber and copper in exchange for China exporting cheap manufactured goods back to build infrastructure, provides FDI and loans. Over half of China;s foreign aid is distributed in Africa. Critics believe China seeks to establish itself as a new colonial power. Infrastructure programs funded by the Chinese gov. carried out by Chinese workers=benefit chinese coorporations. Chinese goods flood african markets, local producers can't compete. Africa is reaping economic benefit, bu chinese businesses get new business investments, access to natural resources. But as China's economy slows down so does Africa's. In 2015 Chinese imports from Africa dropped by 40%.
Aims of the SDT
Aim to enable the worlds poorest countries to tackle the structural handicaps that characterise LDCs which are; low level of income, a concentration on export of primary goods, vulnerability to export price volatility. Engage in world trade on a more advantageous level by providing incentives for export diversification and allowing more stable export revenues. Promoting faster income growth and development.
World Trade Organisation (WTO)
Aims to supervise and liberalise trade by reducing barriers. Deals with the global rules of trade between nations. Provide stability by giving trading nations confidence that there will be no sudden policy change. Negotiates to reach agreements that become ground rules for international commerce.
Takeover
An act of assuming control over something, especially the buying out of one company by another
Common market
An agreement between member countries to trade freely. Can be capital, labour, services etc.
Aid
An important source of financial support for poorer countries. Can be provided by the UN (multilateral) from contributions made from richer countries. Bilaterally from one government to another. Can be in the form of technology and expertise via NGO's or as food and relief at times of disaster.
Horizontal (multi-origin) linkages
An industry relies on several other industries to provide its component parts (computers, cars) Form of divison labour based on specialisation, outsourcing and comparative advantage For a car, the brakes will be manufactured elsewhere to the gearbox which will be done somewhere different to the tyres etc. all will come together in one place where the car is then assembled.
Issue - liability in Antarctica
Annex VI: Liability for environmental emergencies - this annex sets rules governing who is liable for preventing and dealing with environmental emergencies arising from scientific research, tourism and other activities in the Antarctic Treaty area such as logistic (shipping and aircraft) support. The aim of the annex is to stipulate -before anything goes wrong -who could be responsible for cleaning up an environmental emergency and the legal avenues to respond to disaster. It also allows compensation to be claimed from the polluter is someone else has to clean it up.
Antarctica (global commons case study)
Antarctica Convergence Zone; Cold water from the north sinks beneath the warmer southern waters causing mixing and upwelling currents. This lead to a high marine productivity especially of Antartic krill. Climate; Coldest, windiest and driest continent. Av. temp. of -49 degrees celsius, lowest being -89. Very low annual ppt at less than 50mm per annum. Location; Surrounded by the Southern Ocean, 60X bigger than the UK, 99% is covered in an ice sheet. Physical geography; Mountainous and rocky. Nunataks which are small areas of rock which emerge above the ice sheets, snow and ice cannot accumulate on these since they are too steep and high. Divided into east and west but the Transantarcitc Mountains which have peaks above 4000metres. Dry valleys -high altitude. The McMurdo Dry Valleys are located on the Western coast of McMurdo Sound and form the largest relatively ice-free area in Antarctica, covering 4,8000 square kilometres. A region of Earth where life approaches its absolute environmental limits. Ice free because any PPT that falls as snow on the valley floor is blown away by strong, dry winds. The only ice that is found on the valleys is in the form of alpine glaciers along the steep valley sides and the permanent ice that covers the lakes on the valley floor.
Adaptation
Any alteration or adjustment in the structure or function of an organism or system which enables it to survive better in changing environmental conditions.
Global differential rates of GDP growth by continent
Asia (excluding Japan) has the highest rate of GDP growth at 6%, possibly due to the rapid industrialisation it has experienced. Western Europe has the lowest at 1.4% Economic growth in China has meant that the GDP per capita has increased X25.9, a 7% economic growth rate (2014).
Tiger economies
Asian economies that have economically grown rapidly due to industrialisation since the 1960s when TNC's looked for areas with cheap labour. South Korea, Taiwan, Singapore and Hong Kong.
The Climate Change Summit (an example of a supranational body)
Atmosphere including global temperature, climate change and ozone depletion in one of the global commons. The United Nations Framework Convention on Climate Change (UNFCC) is the body responsible for overseeing negotiations. At the Paris summit in 2015 a deal was signed to come into practice in 2020. All 187 countries at the summit pledged to hold global temperature rise to a max. of 1.5 degrees celsius. ISSUES; The withdrawal of the USA in June 2017 from the Paris Agreement, could undermine the deal making it more difficult to get countries to stick to it.
Inflows of FDI
Average incomes have soared amongst Asian 'tiger' economies which have been major recipients of American, European and Japanese FDI. Worldwide, one billion people have escaped US$1.25 a day poverty since 1990; over 500million have escaped poverty in China alone.
World trade in bananas CASE STUDY
Bananas are 4th most important food product in LDCs, a staple food for 400 million people. Globally they are the 5th most traded agricultural product. IIn 2013 a record 16.5million tonnes were exported. World trade in bananas is dominated by 2 groups; the ACP (AFRICA, CARIBBEAN AND PACIFIC) and the 'dollar producers' (CENTRAL AMERICA). IN 1975, the EU made a SDT agreement with 71 ACP countries called the LOME CONVENTION. These countries were given tariff-free access to EU markets to import bananas. This protected the smaller, family run farms (ACP) from competition from Latin America. US TNCs supplied 75% of the EU market, in 2012 TNCs filed a complaint to the WTO that the EU practice was unfair trade, the WTO ruled against the EU in 1997 forcing the EU to reduce tariffs on Latin America bananas.
Trading relationships and patterns
Been determined over the last 70 years by a series of trade agreements and principles which have been established to deal with the rapid ride of international trade and the issue associated with it. They deal with trade between the large developed economies (e.g USA & EU), emerging economies (e.g China & India) and smaller less developed economies such as in Latin America and Southern Asia.
Effects of China's growth
Between 1990 and 1999 the number of Chinese living on less than $1 a day fell by 15million. There is a growing income inequality between rich and poor. Income disparity is more noticeable between countryside and cities. China's economy is driven by exports and investments not by domestic consumption although this is beginning to change as people get richer. It imported $955billion of goods in 2007 but exported $1.2trillion. A slow down in the Chinese economy hits other regions of the world hard.
Negatives of flows of labour
Brain drain, skilled workers leaving a country Risk of exploitation, 80% of all out-migrating women from the sub-region are at risk of exploitation. Poor governance such as Somalia, exacerbate the vulnerability of migrants Countries that are heavily interdependent are in a volatile situation. Strain on schools and hospitals. Increasing xenophobia in the UK, especially since the recent migration crisis.
BRIC
Brazil, Russia, India, China. Known as BRIC economies who are up and coming countries - rapid industrialisation. Growing economies.
Effects of unequal flows of capital, labour, products, services and information
Can promote stability, growth and development by equalising conditions and reducing internal tension and conflict. But can cause inequalities, conflicts and injustices for people and places.
Global flows
Capital flows Labour flows Product flows Service flows Information flows
Benefits of interdependence
Capital flows to countries where TNC's have thier HQ's; These countries benefit from globalisation. Coorperation taxes paid by the business to their 'host' gov.s. Apple has its HQ in California paid US$6billion to the US gov. in 2012. Lending; Stems from IMF + World Bank lending to countries. World bank lent Laos US$1billion to build a dam on the Nam Theun River, dam generates hydroelectric power which they sell to Thailand making US$2billion annually, this is enough money to pay back the loan and increase the GNI of Laos, while helping Thailand too. Information flows; Access to mobile internet services is transforming people's lives in developing countries. Small businesses in Kneya are thriving thanks to smartphone apps. Indian call centre workers enjoy a ,uch higher standard of living than their parents did.
South China Sea
China is seeking to spread its influence overseas. The island chains include many rocky outcrops, coral atolls and reefs and sandbanks. China claims most of the waters which Vietnam disputes. Reserves of oil and gas under the sea bed while trade routes passing through mean that if Chine did own it they would be able to control and regulate what passes through this main trading route.
Tragedy of the commons
Concept explains why shared 'common access resources' of any type are likely to be overexploited. If individuals act independently and according to their self-interests this will be contrary to the interest of the whole group because the shared resource will become depleted. Each of the global commons is covered by a number of international laws or treaties of one kind or another; The high seas by the UN Convention on the Law of the Sea (UNCLOS) The atmosphere by the UN Framework Convention on Climate Change (UNFCCC) Antarctica by the Antartic Treaty Systems (ATS) Outer space by the 1979 Moon Treaty
SCAR
Convention on the Conservation of Antarctic Seals. The concept of this convention was initially developed by the Scientific Committee on Antarctic Research (SCAR) and was finally agreed by the Treaty parties in London in 1972. The Convention applies to all species of seals living south of 60 degree. Its purpose was to increase the protection of seals found in or close to the Antarctic coastline such as Weddell and Leopard seals, with a population of 15-30million, are the most numerous seals on Earth and could have been hunted commercially. The convention prohibits the killing of both Ross and Antarctic fur seals. In the event, the sealing industry has not returned and the Convention has focused on strengthening the protection for all Antarctic seals.
Political interdependence
Countries are dependent on each other to solve issues that cannot be addressed by one country. Peace building, trade blocs, conflict resolution.
Global governance
Countries of the world coming together to set up institutions, laws, treaties, rules and norms on how to tackle issues that are common to all countries and cannot be dealt with by any one particular country. Global governance is steered by the work on supranational bodies such as the UN and EU (bodies where member nations delegate some authority to them), In turn national governments play a role by agreeing to act in line with proposals made by these supranational organisations e.g by passing national laws to restrict carbon emissions as their 'share' of climate change limitation agreements. Due to power and influence TNC's also play an important role in global governance.
Issues related to interdependence (MALAWI case study)
DEBT- 2004 debts were over $3billion, no money for education, healthcare+infastructure. LOW INCOMES - 90% of pop. employed in agriculture=subsistence farming. POOR EDUCATION - 6% of children go to secondary school, few people educated. LANDLOCKED - Not desirable for TNC's, no access to sea. LACK OF RESOURCES - Few natural resources, cost of imports high. POLITICALLY UNSTABLE - Discourages foreign investment. DROUGHT - In 2005 40% of pop. became dependent on food aid = malnutrition. HIV - 8% of pop. HIV positive, 90,000 a year die from it = poverty.
Unequal power relations (CHINA Case study)
Deng Xiaoping allowed coastal regions to develop at a much faster pace than inland regions. Liberalisation of trade by joining the World Trade Organisation in 2001. Setting up SEZ's along east coast. Biggest rivals = BRICS , their GDP totalled $16trillion in 2012 but China alone accounts for 55% of their GDP. China has over $1.2trillion to invest overseas, USA -energy sector and finance industries. AUSTRALIA - Resources of iron ore, coal and gas. NIGERIA - Oil. A more connected world will mean gov.s working together to reach a common goal, but not necessarily the case e.g South China Sea.
Flows of information
Depend on the movement of people through migration and the speed of data transfers. Digitisation and satellite technology have transformed flows of information. Improvements in telephone networks. Email and internet allows large amounts of information to be exchanged instantly around the world. Live media coverage. The internet has brought real-time communication between distant places, allowing goods and services to be bought at the click of a button. Facebook had 1.5billion users by 2015.
Whale sanctuaries
Designed to provide whales with a refuge from whaling, allowing species to recover from serious over-exploitation that occured throughout the 20th Century. The aim is to benefit long-term whale conservation by; - Facilitating the recovery of seriously depleted great whale populations by protecting important areas such as feeding or breeding grounds. - Providing economic benefits to range states -Fostering interest and cooperation in non-lethal research into the behaviour and biology of cetacean species. - Providing the Commission with a broad management tool to protect multiple species -Setting aside a place where whales can play their important role in the ecosystem. EXAMPLE; Southern Ocean Snactuary which was established in 1994, surrounds Antarctica and bans all types of commercial whaling in the area. There has been a dispute over the legality of the Southern Ocean Whale Sanctuary with Japan completely disregarding the outline and hunting under false pretenses of scientifc research. It is important that IWC upholds the rules of the sanctuary and continues to protect whales.
Middle East (economic migrants case study)
Despite the drop in oil prices and the financial crisis of 2008 and 2009, the economies of Persian Gulf countries expanded between 2005 and 2015. This economic expansion in counties like Saudi Arabia, UAE, Kuwait etc has encouraged millions of migrants to move to the Middle East for jobs. Most come from South Asia and elsewhere in East Asia. Students are coming for the newly established and expanded unis and colleges in the Gulf region.
Trading characteristics of developed countries
Developed characteristics; Around 80 countries are classified by the World Bank as having high av. incomes of US$12,736 or above. Life expectancy is typically in the 75-85 years range and HDI(Human Development Index) is high. Trading characteristics; Office work has over-taken factory employment. Almost four-fifths of the UK's GDP is derived from trade is services. However, trade in 'hi-tech' manufacturing (as opposed to mass production of basic items) remains important for some countries, notably Germany.
Trading characteristics of emerging countries
Developed characteristics; Correspond with the World Bank's 'middle-income' group of countries. Number of emerging economies has increased rapidly recently possibly due to globalisation. TNC's attracted because their transport infrastructure has improved. Life expectancy = 65-75. Trading characteristics; Begun to experience high rates of economic growth. Share of global trade has growing enormously.
Sustainable development
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Issues with global governance
Difficult because accepted 'norms' vary between cultures. Countries may interpret the laws differently Countries may lag behind economically Some important issues are not been addressed such as food insecurity.
How are TNCs organised?
Division of labour is the assignment of different parts of a manufacturing process or tasks to different people in order to improve efficiency. A product goes through several stages or linkages before reaching the consumer.
Global commons
Domains that lie outside of the political reach of any one nation state. 1. High seas (areas away from coastal zones) 2. Antarctica 3. Outerspace 4. Atmosphere (5. Cyberspace) Global common refers to the Earth's shared resources such as the deep oceans and atmosphere. Include areas that have no national governance but used jointly by all people. The only land mass considered to be part of the global commons is Antarctica. As current resources become depleted there will be an increasing need for the global commons to meet the needs of the worlds population.
Example of a scheme used by the SDT
EBA'S (Everything but Arms) agreement by the EU in 2001 aimed to accept all products from LDCs on a duty free, quota basis: LDCs will get more value for their products and be able to sell more freely. A country is granted EBA status if it is listed as a LDC by the UN Committee for development policy. In 2013, EBA beneficiaries accounted for exports worth 14.1billion euros.
Going global
ECONOMIC GLOBALISATION; Transnational corporations, global money markets, growth of TNC's, global marketing, development of market economies in former communist states. SOCIAL; Migrant families and diasporas, growth of online social networks, global communication networks, spread of ideas, migration, impact of western democracies through media, sport, leisure and celebrities. CULTURAL; Migrant families and diasporas, growth of global culture, globalisation of products, migration. POLITICAL; Global governance, global action on climate change, the diffusion of gov. policy, growth of western democracies and their influence on poorer countries, decline of centralised economies.
De-regulation
Enables free trade by removing barriers from governments.
SEZ (Special Economic Zones)
Encourage foreign TNC's to come and invest in China. Gov. established. Where foreign companies were encouraged to set up manufacturing plants in return for very low tax rates. 6 zones in the country in 2014 and 14 open coastal cities. Set on China's east coast offering export via the Pacific Ocean. Responsible for 22% of China's GDP, 45% OF FDI and are where 60% of the countries exports are made. 30milllion new jobs. Concentrating investment into certain areas meant Chinese gov. could concentrate gov. spending in these areas creating excellent infrastructure TNC's require. Local entrepreneurs able to learn from forgeign companies and start their own domestic rivals to global brands. At first TNC's moved routine manufacturing tasks to Chine for low tax rates in the SEZ's, the low wage rates and lax env. and labour laws. China became known as 'factory of the world' by 1980s it was turning out half of the world's shoes. As time went on TNC's manufactured more complex goods and workforce became more experienced. Car industry; VW and FORD invested into plants on China's east coast. China became wealthy enough to start buying cars - another reason why they chose China. TNC's had to partner up with a domestic business so chinese people could gain business and techinal skills. TNC's locate near unis = skilled workforce. In 2006 exports were worth $969billion.
Environmental monitoring in Antarctica
Environmental monitoring is essential in Antarctica to allow assessment of the impacts of human activities. British Antarctic Survey (BAS) delivers and enables world-leading interdisciplinary research in the Polar Regions. Its skilled science and support staff based in Cambridge, Antarctica and the Arctic, work together to deliver research that uses the Polar Regions to advance our understanding of Earth as a sustainable planet.
Environmental interdependence
Every country in the world is dependent on the rest of the world to look after the environment e.g climate change agreement.
The WTO(an example of a supranational body)
Exists to take responsibility for managing trade in an inter-related world. Aims to reduce global injustice and inequalities through trade liberalisation. Support negotiations into reducing exploitative practices. Responsible for removing protectionist policies. ISSUES; Following the failure of the Doha Round of talks due to the increasing power of NEEs, the influence of the WTO remains uncertain. World trade negotiations are best tackled on a global scale rather than bilaterally. Some countries are seen to be favoured more than others.
Methods to increase nations economic growth
FAIRTRADE; To empower marginalised people and improve the quality of their lives, businesses offer producers favourable financing, long term relationships, minimum prices and higher labour/environmental standards. FREETRADE; Commerce among individuals and businesses, punishing to marginalised people and environment, WTOM World Bank, IMF.
Trade policies between countries
FAIRTRADE; Vulnerable farmers and workers in the less industrialised countries, interferes with free market, inefficient, too small scale for impact, fairtrade labelling organisations. FREETRADE; Countries lower tariffs, quotas, labour and environmental standards, TNC's
PACIFIC ALLIANCE (Small trade group)
Former by Chile, Mexico and Peru. All come together to form an area of integration with the purpose of ensuring complete freedom in movement of goods, services, capital and people.
Advantages of nations grouping together as trading entities
GLOBAL SCALE; To improve peace and security and reduce conflict, increases global trade and co-operation on trade issues, helps members develop their economies and standard of living. REGIONALLY; Compete on a global level with other trading enitities, bigger representation in world affairs, allow freedom of movement of trade
Trading characteristics of less developed countries
Group of around 30 countries classified by the World Bank as having low av. incomes of US$1,045 or below. Life expectancy is low (50-60). Suffer severely from conflict and weak governance. Trading characteristics; Agricultural and raw materials play a very important role in the economy of many LICs. Food prices fluctuate from year to year due to climatic factors and market forces.
Diaspora
Group of people with a particular ethnicity, found outside their origin.
Coca-cola CASE STUDY (an example of a TNC which operates by horizontal linkage)
HQ= Atlanta, Georgia. Products are sold in 200+ countries.$48billion net operating revenue with a $9billion net income. 3,500+ products worldwide. 250 bottling partners and nearly 900 plants worldwide. Set up bottling plants across the world because it is cheaper, access to larger markets. They bottle and sell the coke in that country so there is less transportation. Tariffs don't need to be paid since they are already in the country. Utilise natural resource e.g water. Allows brand and infuence to grow, more recognisable as a standardised product. Glocalisation = Coke own a lot of brands e.g smart water and Fanta so that they can target markets based on what they want.
outsourcing
Hiring workers in other countries to do a set of jobs
What are the USA's major exports/imports?
IMPORTS; Cars, crude petroleum, broadcasting equipment, computers, vehicle parts. EXPORTS; Oil, cars, planes, helicopters, space crafts, gas turbines, packaged medicines.
What are China's major imports/exports?
IMPORTS; Intergrated circuits, crude petroleum, iron ore, cars, gold. EXPORTS; Broadcasting equipment, computers, office machine parts, integrated circuits, telephones.
Patterns of production, the relationship between production and consumption (DETROIT case study)
In 1945, around 95% of manufacturing was concentrated in the industrialised economies of Western Europe, North America and Japan. Manufacturing really took off because of the start of MASS PRODUCTION and CONSUMPTION created buy Ford Motor company. After 5 years of producing automobiles, Ford introduced the Model T which was simple, light and sturdy. Mass production of this car lowered its unit price making it affordable for av. consumer. Ford increased worker's wage to combat absenteeism and employee turnover. Model T surpassed all expectations, it attained a 60% of the automobile output within USA. This production system involved SYNCHRONISATION, PRECISION and SPECIALISATION within a country. Biggest customers were in USA due to high wages and employment in car industry, rise of Asian car manufacturers which meant Ford couldn't compete with more efficient and cost effective cars, production distributed across the world - cheaper, less restrictions. Jobs were lost.
Regulation of global governance
In this increasingly economically integrated world, some argue that gov.s are losing their influence and that TNC's now have more power to control resources, capital and labour. 'Regulation' means management achieved through the enforcement of a set of rules. Many rules have been put in place to regulate world trade, for instance.
International capital flow
Includes all money that moves between countries that is used for investment (like in land and labour), trade or production. This happened in the late 20th century since there was a 'de-regulation' of world financial markets (countries could start trading). This meant that the activities of financial institutions such as banks, insurance companies and investment companies were no longer confined within national boundaries.
Mitigation
Includes any actions, strategies, measures or projects undertaken (by humans) to offset the known detrimental impacts of a process.
Economic immigrants in the UK (case study)
Increasing Xenophobia in the UK especially since the refugees coming from Syria. Foreign born workers are unquestionably a significant part of the UK's 31.6million strong workforce. There are 5.4million non-UK born workers in the UK, that represents 17% of the total. Number of immigrant workers has been increasing, more than doubling since 2000 when the proportion was 8%. EU migrants are more likely to work than natives with the participation rate for the group at just below 80%. 10||% of UK's 2.1million construction worlers are estimated to hail from abroad. In 2015 of the 1.22million total staff around 235,000 were non-british, around 19%. 21% of nurses were non-british. Each year 500,000 people from 200 countires study in the UK. Low annual net migration to the UK economy (105,000 a year) would result in GDP growing less fast
Systems for inspection
Inspection and observation is compulsory for all operations under the terms of the ATS. There is no single unifying 'legal system' Prosecution against ATS rules are the responsibility of individual nation states through the ATCM. Environmental audits are carried out by observers from the ATCM of bases on land and at sea. Any new activities by operators are subject to environmental impact assessments.
Somalia (Remittance payment case study)1
Interdependent, according to the World Bank 40% of Somalians rely on remittances to meet their basic needs, and economic development accounting for 50% of GNI and 80% of all investment in the country. In 2012 there was concern that the payments were falling into the hands of the terrorist group Al-Shabaab so US and UK banks withdrew the service. Somalia has little gov. regulation = volatile, lack of anti-money laundering laws. Annual total of remittance = $1.3bn, has a pop. of 10million, "Remittances are a crucial reason for stability and security", the money is a lifeline for thousand of families.
Migration within Asia (case study)
International migration is key behind the socio-economic development of South and South-west Asia. International migration has alleviated population pressires and unemployment while remittances from overseas migrants hace helped reduce poverty. In 2011, South and South-West Asian countries recieved an estimated $90billion in workers' remittances, more than 5 times the $15billion in official development assistance received over same period. Move due to natural disasters, poverty and civil unrest. Poor governance and migration dynamics in some destination countries exacerbate the vulnerability of migrants. Women migrating are at risk of exploitation.
Production
Is the action of making or manufacturing from components of raw materials, or the process of being manufactured.
What the World Bank does.
It gives loans out to different countries. Counties they tend to give loans to are developing to aid in development, they support with the development of machinery. Lots of countries including HIC's donate money to support developing countries. The countries who donate will have TNC's and rely on goods from poorer countries. Loans have conditions attached to the, e.g interest or forming relationships with certain countries. Larger organisation with 7000 staff from 185 countries and always has an american president. Top down approach; when the decision to undertake projects or developments is made by a central authority such as gov.'s with little or no consultation with the local people whom it will effect, conflict may arise. Bottom up approach; When local people are consulted and supported in making decisions to undertake projects or developments that meet one or more of their specific needs.
Environmental principles of the Madrid protocol
It provides protection of the Antarctic environment and dependent and associated ecosystems and the intrinsic value of Antarctica, must be fundamental planning and conduct of all human activities in Antarctica. With this aim ass such activities are to be planned and conducted so as too; Limit adverse impacts on the Antarctic environment and avoid -Adverse effects on climate or weather patterns -significant adverse effects on air or water quality -significant changes in the atmospheric, terrestrial, glacial or marine environments -Changes in the distribution, abundance or productivity of species or populations of species of fauna and flora -further jeopardy to endangered or threatened species -degradation of or risk to biological, scientific, historic, aesthetic or wilderness significance
Trans-Pacific Partnership (TPP)
Japan are the leaders. Free trade agreement between 12 countries; USA, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Aim to deepen economic ties between nations, slashing tariffs and fostering trade to boost growth. 98% of tariffs will be eliminated on a range of products from dairy products, beef, sugar, wine. When Trump came into power he removed the USA from the TPP making it ineffective since the USA was a major requirement for the deal. Without the US, the TPP 11's share of global GDP went from 38% to about 13.5%
Social interdependence
Labour flows, greater connections between people living in different countries creates social interdependence between the countries.
Product consumption
Lie predominantly in the richer countries of the developed world. Products being manufactured in NEE's are largely exported and sold to countries in Europe, North America and Japan. Patterns are starting to change however, as NEE's develop their populations become more affluent and begin to demand similar consumer products to those being exported from their own country. Change in diet will see a larger change in the future. As production and consumption changes, the distribution has to adapt to changes in supply and demand global services are beginning to follow the global shift trend too e.g call centres.
Consequences of the global shift (LONDON case study)
London docks were built to handle the huge volume of goods and raw materials brought to London by ship to be manufactured, and industries like sugar refineries, flour mills, timber yards grew to process these materials. Global shift has meant that TNC's relocated the production side of their business abroad - cheaper, less restrictions. London has lost 600,000 jobs in manufacturing. Employment in manufacturing in the UK fell by around 50% in the 30 years from 1983 to 2013. More than 50% of all manufacturing jobs are located in the developing world and over 60% of exports from those countries to the developed world are manufactured goods.Q
Problems with interdependence
Loss of profits; Repatriation of profits by TNC's to their home country may limit the benefits felt by those developing countries where low-wage factories and offices hace been established as a result of FDI =limited 'trickle-down' of wealth for local societies. Environmental degradation; Chinese cities suffer from 'airpocalypse'. In Accra, Ghana, entire families undertake the dangerous work of breaking down old computer monitors brought in from Europe, melting circuit boards down to get the high value metals. Braindrain; International migration has meant that many developing countries and emerging economies have suffered a loss of skilled workers. Many Indian and Polish doctors migrated to the UK.
Why were Husky dogs removed from the Antarctic?
Main transport. Environmentally friendly way of moving around the continent. But there was a virus outbreak, it was found that it could be passed onto seals = impacts on the foodchain. Of the 13 dogs who arrived, 5 died within the first year due to infection and disease, they weren't able to breed of the other dogs and the last died in 2001.
Time-space convergence
Makes the world feel smaller as a result of connections.
Global marketing
Marketing is a process of promoting, advertising and selling products or services. When a company becomes a global marketer,, it views the world as one single market and creates products that fit the various regional market places. It will usually develop a recognisable brand and employ one marketing strategy to advertise the product to all customers all over the world. The ultimate goal is to sell the same product in the same way everywhere.
Interdependence
Means that what happens in one place increasingly has impacts on other places. 4 types of interdependence; social, economic, environmental, political.
Customs union
Members within the trade bloc can trade freely but they all agree on external taxes/tariffs on other countries outside the trade bloc. All countries agreeing removes competition.
The Core and Periphery model
Model shows the capital flows experienced in the global economic system. It distinguishes between a 'core' area and a 'periphery' based on Frank and Wallerstein's model of a world system through the core and the periphery. CORE REGION is global powers which are very well developed and dominate the flow of capital e.g USA, China, HIC's/ PERIPHERY REGION is under developed countries that are reliant on the flow of investment from core regions. Model shows evidence of globalisation, the profits from TNC's in poor countries go back to core regions. Model is outdated because countries are constantly changing and developing.
Positive trade balance
More exports than imports (trade surplus)
Negative trade balance
More imports that exports (trade deficit)
How are LDC's at a disadvantage in the global trading market?
More likely to be exploited by HICs Often be less investment there due to a lack of infrastructure and a struggling economy HICs dominate the market and LICs become interdependent on them
The Niger Basin in Sub-Saharan Africa (an example of where the World Bank invested)
Niger Basin is a fragile region. Countries in the Basin are seeking solutions to clean, renewable energy for electricity and other development needs. A project supported by world bank and the cooperation in international waters in Africa (CIWA) program, aims to address development challenges for the Basin's nine countries. Niger river is one of the few sources in Africa's Sahel region. The Niger basin used to support communities and farmers but is now the most fragile developing region of the world. Threats of food insecurity and climate change and compounded by civil unrest and terrorism, the Ebola. Investments in hydropower plants, reservoirs, irrigation schemes and navigation facilities can help reduce poverty. These investements contribute to economic growth, food security, climate resilience and improved livelihoods. It has now developed one of the world's most progressive river management organisations that looks at collaborative investment of countries affected.
NAFTA (Major trading group)
North American Free Trade Agreement. Main goal is to reduce trade and promote economic growth between Canada and Mexico and the Unites States. By eliminating all tariffs it also created agreements on international rights.
Why has there been a global shift?
Opportunity to build new plants with latest and most production technology. Increase efficiency, increase production. Lower hand costs. Incentives offered by gov.'s in LIC's to attract investment. Availability of skilled and educated workforce. Transfer technology to increase productivity = keeps wages low. LIC's reducing standards e.g health & safety. Low labour costs. Gov. incentives in form of tax breaks/enterprise zones e.g in Nigeria they give 'start-up' money to make your own business which keeps money in the country = employment. Access to large markets without tariff barriers, enabled through trade agreements e.g EU, NAFTA
NGO's in Antarctica
Over 30 different NGOs have joined together to form the Antarctic and Southern Ocean Coalition. Founded in 1978, ASOC(Antarctic and Southern Ocean Coalition) is the only non-governmental organisation working full time to preserve the Antarctic continent and its surrounding Southern Ocean. A coalition of over 30 NGOs interested in Antarctic environmental protection, ASOC represents the environmental community as Antarctic governance meetings and works to promote important Antarctic conservation goals.
Varying nature of TNC'S
Over the past few decades TNC's have developed different forms and have moved into a wide range of activities; - resource extraction; particularly in the mining and oil and gas industries e.g BP and Exxon. - manufacturing; in high end products of computers and electronics (Apple) and pharmaceuticals, large volume consumer goods such as cars and tyres and mass produced consumer goods such as drinks and cosmetics. - services; Banking and insurance (HSBC), supermarkets, advertising, hotel chains and fast food outlets (KFC)
What are the pros and cons for the producers of moving towards an ethical trading policy by a major international distribution firm?
PROS; Receive more of the final value paid for the product, work in improved employment conditions, expand production by exploiting comparative advantage. CONS; Price may be raised reducing sales, may be a niche market so fewer customers, may be ethical in name but no additional benefits reach employees.
What are the pros and cons for the consumers of moving towards an ethical trading policy by a major international distribution firm?
PROS; Sense of virtue by choosing to buy ethical products, increase their consumption of the product as a way of increasing the benefits back to producers. CONS; Price rise may put product beyond what they are able to pay, may not have certainty that advertised benefits feed through to producers.
Flows of labour
People move less easily because of restrictions on immigration. But recently there has been an increase in the number or people crossing borders for better employment opportunities = economic migrants. Much of the movement has been from south Asia, Africa and Latin America to the richer areas of North America and Europe. Another major destination has been aroung the oil-rich Gulf states of Qatar, Kuwait, Saudi Arabia and Dubai where the construction boom has provided plentiful employment opportunities. Between 2005 and 2012 around 5million workers moved from South Asia to west Asia, most migrants move short distances within a region especially Sub-Saharan Africa.
Geopolitics
Politics incfluenced by geographical factors.
Global shift
Positives for host country; Cheap labour force, lack of environmental restrictions, abundance of natural resources. Positives for source country; Job opportunities, more efficient industries = economic growth, TNC investment.
Why do countries choose to group together?
Protectionism (protecting industry) Job opportunities Political and economic stability Decreasing competition (comparative advantage) Labour flows Access to more goods Sharing resources Sharing information and knowledge Free trade between countries involved All setting the same standards and taxes
Microfinance schemes
Refers to a number of different financial products including; Microcredit - the provision of small-scale loans to poor e.g by credit unions. Attempts to reduce poverty and has several key characteristics; often provides small loans for working capital requirements of the rural poor, minimal risk assessment of borrowers compared to commercial banks, security is rarely demanded for the money. Microsavings - e.g voluntary local savings clubs provided by charities Microinsurance - Especially for people and businesses not traditionally served by commercial insurance, which can act as a safety net to prevent people from falling back into poverty after e.g a harvest failure. Payment management - For managing remittance payments sent between individuals.
Globalisation
Refers to the process by which the world's economies, societies and cultures have become integrated through a global network of communication, transportation and trade. The connections and movements can make different places interdependent on one another for trade or other forms of support.
Economic interdependence
Relying on remittance payments - capital flows. Reliance on physical goods - may need a product for economic development e.g oil.
Unequal power relations
Richer countries have power over the poorer countries
The WHO (an example of a supranational body)
Role is to eradicate and combat the spread of global diseases, successful in reducing global mortality rates and the near eradication of Polio through global vaccination programs. ISSUES; Although the WHO offered guidance and leadership on how to contain the Ebola virus during the 2014 outbreak in West Africa, they were criticised for delays with this and also with the inability to prevent the spread of HIV/AIDs in Africa.
Negative impacts of Coca-cola
SOCIAL - Accused of allowing Fletoros to sack workers who try to join unions. The wage in El Salvador sugar plantation is $1.50 per tonnes of sugar cut. ENVIRONMENTAL - Plant in El Salvador has been accused of pumping waster into local rivers, the caustic soda used to clean bottles gives water a high pH so it kills fish. ECONOMIC - Coke's investment in India has been blamed for a decline in traditional fruit juice sellers who have found their sales have dropped.
Positive impacts of coca-cola
SOCIAL - In Africa, coke provides a comprehensive HIV/AIDS healthcare program covering nearly 60,000 employees and their families, in China coke has funded Project Warmth training 1500 young farmers in basic skills such as reading and maths. ENVIRONMENTAL - In Brazil coke has 140 delivery trucks running on biodiesel to help reduce GG emissions. In Kenya coke paid for 120,000 trees to be planted to stop soil erosion in the Ngong Hills. ECONOMIC - Coke pays $3.5billion in salaries worldwide each year. After the Asian Tsunami coke contributed $20million to help with reconstruction. It pays $1.7billion in taxes worldwide.
The causes of the growth of China
Seen the fastest economic growth. In 1987 decided to move to an economy driven by the motive to earn a profit. As a communist country China did not allow most foreign produced goods that were not from other communist countries were also banned. Led to the creation of industries in China that were making poor quality goods in inefficient ways. The first thing that happened was that local gov. officials and factory managers were given the freedom to make decisions in their local regions over what and how to produce goods in regions rather than being told what to do by a central gov.
Flows of services
Services are economic activities that are traded without production of material goods. They depend on communication and sharing information and are footloose (don't need physical resources), this means they can locate anywhere. By 2040 India is expected to be the 2nd largest economy in the world and some of its success is because of call centre services which Indian workers provide for large US and EU companies.
High level services
Services to businesses such as finance, investment and advertising.
Low level services
Services to consumers such as banking, travel and tourism, customer call centres or communication services. Found in poorer areas = lower paid.
The new Silk Road/ 'On Belt, One Road'
Silk road has been revived. It was a means for transporting Chinese goods and diplomacy. China has a vast industrial overcapacity (steel manufacturing and heavy equipment) for which the new trade route would serve as an outlet. China's domestic market slowed down, President Xi invested $1trillion of gov. money into the project. Also encouraging state owned enterprises and financial institutions to invest in infrastructure and construction in the places along the 'silk road'. Covers shipping lanes, road and rail routes and pipelines. Striking up economic and cultural partnerships. In 2016 work started on the 3rd stage of a chinese-designed nuclear reactor in Pakistan where China announced it would finance a big new highway and put $2billuon into a coal mine in the Thar desert. A gas pipeline from the Bay of Bengal through Myanmar to South-west China.
'Silk road'
Since 2015 China's exports have been declining. In march 2017, China reduced its economic growth target to 6.5%, the lowest for 26 years. So China is seeking to expand its operations globally. China largely depends on he exports of finished goods. FDI into China remains very high but if no longer rising, has to compete with India, South east Asia, Latin America and Africa for foreign investment money. China's export orientated clothing industry employs around 10million people these jobs are increasingly threatened as companies move production to lower-cost countries such as Indonesia and Vietnam.
Trading entities
Since the 1950's, trade agreements have been formed by countries joining together to form trade blocs in order to stimulate trade between themselves to gain economic benefits from co-operation. There are various examples of trading groupings e.g free trade areas, customs union, common markets, economic or monetary unions. These unions or groups of countries usually allow free trade between group members in a free trade area; trade barriers are eliminated among participating countries.
Positives of flows of labour
Skilled workforce contributing to the country they've moved to = pay tax = improvements in infastructure. Economic expansion in countries like Saudi Arabia, UAE Schools and hospitals possibly reliant on migrant workers Cultural diversity International students are studying in different countries Some migrants take on lower paid jobs. Industry will struggle to compete projects without being able to draw on skilled migrant labour from Europe.
Issues with outsourcing
Some workers return to their origin with new skills and ideas. Outsourcing of production from high wage to low wage economies causes unemployment in more developed countries. Loss of skilled workers leads to a training gap. Countries find it hard to retain their best 'talent' as they are attracted away by higher wages. Addresses important skills and labour shortages. Reduces geographical inequality between workers.
SADC (Smaller trade group)
South African Development Committee. Its goal is to further socio-economic cooperation and integration as well as political and security cooperation among 16 Southern African states.
EU (Major trade group)
Started out as a trading bloc with free movement of goods and services. Its interests include regional inequalities, preserving the environment, promoting human rights and investing in education and research. Spending on security, development, research and training.
Global systems
Systems put in place to help the world work together e.g the world trade system, laws regulation the movement of people etc. Alongside the process of globalisation, a range of global systems have evolved to reflect the increased economic, political, social and environmental interdependence that exists in the contemporary (modern) world. Most of these systems are supported by international political organisations which have been established to provide stability or concerns across nations. These systems have helped to improve co-operation, stability and development. However, they are often led by the more powerful nations with vested interests, causing them to steer and influence the pattern of change for their own advantage. This can lead to increased inequality, conflict and injustice as LICs are limited in how they are able to respond (unequal power relations).
Foreign Direct Investment
TNC putting money into country to develop something and get something back. It increases economically active sector, improving quality of life and standard of living allowing periphery regions to develop.
Profit repatriation
TNC's move money from poorer countries to richer ones. TNC'S investing overseas in production will normally take the profit made from that investment back to their home country headquarters = economic leakage. Chine have added 25% corporation tax to TNC's - have to get some profits and reduces repatriation of profits.
Services
TNC's would not be able to operate globally if a range of services had not also grown alongside their growth. Today most TNC's outsource legal, financial, marketing, transport and insurance matters to 3rd party firms e.g PWC for accountancy. These firms have their head offices in global cities that drive the globalisation process forwards. New York, London and Tokyo main cities. A recent trend has been to start to outsource low level services to LIC's such as India. Call centre work has been moving to India where at on time costs were just 10-20% of UK costs.
'New global middle class'
Term used to describe the growing proportion of urban working people who have emerged out of rural poverty. Some work in the manufacturing sector in Bangladesh and China. Others belong to services industries in India and the Philippines. Without inflows of capital from abroad for investment in key projects, this growth would have been hard if not impossible to achieve.
International Whaling Moratorium
The 1970s saw the beginning of the global anti-whaling movement. In 1972 the United Nations Conference on the Human Environment at Stockholm adopted a proposal that recommended a 10 year moratorium on commercial whaling to allow whale stocks to recover. The reports of the Convention on International Trade in Endangered Species in 1977 and 1981 identified many species of whales as being in danger of extinction. At the same time, a number of non-whaling and anti-whaling states began to join the IWC and eventually gained a majority over the whaling nations. Some countries who were previously major whaling forces, like the USA became strong proponents of the anti-whaling cause. These nations called for the IWC to reform its policies and to incorporate newly discovered scientific data regarding whales in its proposed regulations. On 23rd July 1982, members of the IWC voted by the necessary 3/4 majority to implement a pause on commercial whaling.
Opinions on the Antarctic Treaty System
The Antarctic Treaty System is one of the few international agreements of the 20th century to have succeeded. Antarctica is a 'common heritage for mankind' and should be governed as a 'world park' by the United Nations. The ATS has limited environmental damage within Antarctica.
2020 predictions for trends of trade
The Asia-Pacific region will experience the fastest growth in global trade. There will be some growth in Sub-Saharan African countries as they develop. Europe will be the most important market for Sub-Sahara's exports.
What the IMF (International Monetary Fund) does.
The IMF is a huge organisation with the main purpose to stabilise global economy. Money that member countries/states pay into, the stronger a countries economy is the more money they are expected to pay into the IMF. They loan the money back out to the country to try and stabilise their economy. They give money and advice on how to diversify industries, the loans have interest attached to them. Has a total of 2,300 staff from 185 countries.
International Whaling Commission (IWC)
The IWC was set up to attempt to regulate the industry to a position of sustainability (where catches are balanced by production) but was widely regarded at failing in this. The only thing that eventually did drive many companies out of the whaling business was a fall in profits due to a lack of whales when there weren't many left to kill any more. Slowly however the IWC did have some impact. In the 1960s blue and humpback whales were fully protected, protection that was then extended to fin and sei whales in the 1970s. In 1986 the IWC suspended all commercial whaling. Whales are protected by the International Convention for the Regulation of Whaling, the founding document of the IWC, first signed in 1946. LOOPHOLE... Commercial whaling has all but stopped worldwide but some nations particularly Japan and Norway continue to kill whales, Japan has come under criticism for doing this under the guise of a 'scientific take' - taking whales for scientific research reasons. The 'Scientific Reasons' for such whaling is to find out if the time has arrived to recommence commercial whaling again. These 'scientifically' caught whales end up in restaurants and one whale can have a $1,000,000 market value at the restaurant table.
Antarctic Treaty System
The Treaty has not remained static but has evolved to take account of major issues as they have arisen. The original Treaty did not address issues such as resource exploitation or environmental protection since they were not considered to be priorities in the late 1950s. 28 nations have consultative status. Meet each year. 3 international agreements are; - Convention for the Conservation of Antarctic Seals (1972) -Convention on the conservation of Antarctic Marine Living Resources (1980) - Protocol on Environmental Protection to the Antarctic Treaty (The Madrid Protocol-1991)
The UNEP - Governing Antarctica
The United Nations Environments Environment Programme's (UNEP) direct involvement in Antarctica matters includes the preparation of a regular report for the UN's Secretary-General on Antarctica. In order to keep the international community informed on the activities of the Antarctic Treaty parties, the UN was requested to serve as a neutral channel to provide information on Antarctic activities. To this end, the UN Secretary-General submits to the UN general Assembly a report on the 'Question of Antarctica' on a periodical basis, usually every 3 years. The report is prepared by UNEP.
Resilience (ecological)
The amount of disturbance that an ecosystem can stand withstand without changing existing structures and processes.
Prohibiting Mining (part of the Madrid Protocol)
The ban is of indefinite duration and strict rules for modifying the ban are provided. In brief, the prohibition can be modified at any time if all parties agree. If requested after 50 years a review conference may decide to modify the mining prohibition, provided that atleast 3/4 of the current Consultative Parties agree, a legal regime for controlling mining is in force, and the sovereign interests of parties are safeguarded. Consistent with the Antarctic Treaty, a party may choose to withdraw from the protocol if a modification so agreed does not subsequently enter into force.
Waste from Ships (part of the Madrid protocol)
The discharge of any oil or oily mixture, bulk chemicals of garbage from a ship is prohibited in Antarctica = Must be discharged at port reception facilities. Sewage = If biological treatment systems break down ships will avoid discharging untreated raw sewage within 12 nautical miles off shore. Food waste = Passed through a waste disposal unit that shreds the waste so that it will pass through mesh. The waste is held in holding tanks until it can be discharged. Other waste = Generated on ships is stored on board until it can be disposed of outside Antarctica.
Waste from Antarctic bases (part of the Madrid protocol)
The dumping of waste of chemicals on land or at sea or open burning of rubbish are all prohibited. Waste from Antarctic bases if packaged up and shipped out of Antarctica. Certain bases as permitted under the environmental protocol, discharge sewage and food waste into the sea. Many national programmes carry put an annual audit of the quantities of waste generated as research stations, field camps and ships.
Bilateral trade
The exchange of goods between 2 nations.
Consumption
The final purchase of goods and services by individuals. Consumption influences distribution.
Remittance payments
The flow of money back to poorer country from an economic migrant. The top recipient of remittances is India ($70billion). In 2011 the top recipients of remittances was Tajikistan (making up 47% of GDP), Liberia (made up 31%). These payments are more cyclical and volatile than FDI because they are extremely volatile.
The international division of labour
The highly skilled highly paid, decision making research and managerial occupations which are concentrated in more developed countries. The unskilled, poorly paid assembly occupations, which tend to be located in developing countries that have low labour costs.
How is migration linked to flows of capital?
The majority of out migration of labour takes place from poorer to richer countries. This exacerbates disparities as the LIC's lose their most skilled workforce who will pay taxes and spend much of their earnings in their destination country.
Distribution
The movement of goods and services from the source through a distribution channel, right up to the final customer, consumer or user.
What is trade
The movement of goods from producers to consumers. It spans many different sectors of industry. Physical trade takes place in primary products(food, energy) and also secondary goods (manufactured products like processed food or electronics). Tertiary sector is highly diverse range of service products and includes trade in legal, educational and other professional services. International trade isnt good for everyone, HICs use LICs for producing goods but HICs can change their suppliers at any point.
What is comparative advantage?
The principle that countries can benefit from specialising in the production of goods at which they are relatively more efficient or skilled. Free trade benefits all parties in theory. Trade agreements which provide states with free access to one another'ss markets and break down 'protectionism' ought to maximise trade. Reduces competition and keeps production costs down, access to more markets, utilise natural resources/skills.
Vertical (simple) linkages
The raw material goes through several succesive processes, this can be across international boundaries and can form part of some TNCs operations. The TNC would own every part from the raw material to the produced good.
Deindustrialisation
The reduction of industrial activity or capacity in a region of economy.
Liberalisation of trade
The removal or reduction of restrictions and barriers on the free exchange of goods between nations.
Global features and trends of trade
The top 10 trading nations accounted for 52% of global trade in goods. Developing countries accounted for 44%. The total value of exports of goods was US$17.8trillion. 52% of exports of goods from developing economies are sent to other developing economies. On the other hand developed countries sent 30% of their exports to developing countries. Trade with LICs by both developed and developing countries is increasing. LIC exports amounted to US$215billion, 44% of this was exported to Asia, 24% to Europe and 12% to North America. The USA is the second biggest trader in goods, with imports and exports totaling US$3909billion. The value of world trade and global GDP has risen by 2% annually.
Protection of Antarctica
There are few places where there has never been war, where the environment is fully protected, and where scientific research has priority. The whole of the Antarctica continent is like this. A land which the Antarctic Treaty call a natural reserve, devoted to peace and science.
Barriers to trade
This is a gov. imposed restraint on the flow of international goods and services. No. of barriers to trade which are used as either protectionist strategies or sometimes as a way to affect diplomatic relations. TARIFFS; Tax or duty that raises the price of imported products e.g US had an 11% import tariff on imports of bicycles from UK. QUOTAS; Quantitive volume limits on the level of imports allowed or a limit to the value of imports allowed into a country e.g South Korea imposed a quote on imported rice. EMBARGOES; Partial of complete prohibition of commerce or trade with a particular country. SUBSIDIES; Grants or allowances awarded to domestic producers to reduce their costs and make them more competitive against imported goods e.g Common Agricultural Policy. VOLUNTARY EXPORT RESTRAINT (VER); A trade restriction on the quantity of a good that an exporting country is allowed to export to another country. IMPORT LICENSES; A license issued by a national gov. authorising the importation of goods from specific source. Needed for military goods, technology, plants and animals
Why do TNCs operate in multiple countries?
To escape trade tariffs To find lowest cost location for their production To reach foreign markets more effectively To exploit mineral or other resources available in foreign countries.
Factors influencing globalisation
Trade blocs; Allows free trade and easier transport of goods. Collapse of communism; lack of state ownership, opening it up so it isn't all centralised in one area. Migration; Flows of labour, skilled workforce move = TNC incest into area, increase remittance payments, information brought with them. Communications; Technology removed concerns and made international trading easier and faster even for smaller enterprises, communication and flows or info=more efficient so trading is much easier. Capital/investment; Re-regulation of financial markets allowed for the removal/ relaxing by gov.'s of barriers to movement of finance. Global marketing; Brands adapt menu so its available to everyone across the world, Transport Products shipped quicker (containerisation) Management systems; JIT technology (production suits demand)
Flows of products
Trade has facilitated the international movement of products. Means a reduction of tariffs so transaction costs are reduced, This process if concurrent with the reduction of transport costs. Flows of manufactured goods have multiplied in size in recent years, stimulated by low production costs in Chine and even lower-waged economies such as Bangladesh and Vietnam. In 2015 global GDP fell just short of US $80trillion in value of this around 1/4 was generated by trade flows in agricultural and industrial commodities.
Free trade area
Trade tangeable goods between countries. Allows you to access more and have a bigger market to export the goods to.
Why are China and the USA as trading partners so important?
US goods exports to China continue to outpace export growth to rest of the world. China is the 3rd largest market for US goods and services exports. Exports to China support 1million American jobs. Exports of services to China are significant and largely drive growth in US service exports.
The Umberella City (SONGXIA: Comparative advantage case study)
Umbrellas are thought to have originated in China. They are a worldwide global product with over 5000 models on sale on Amazon. Around 70% of the world's umbrellas are made in China. These factories are concentrated in Songxia, in Shangu district of China where over 1000 umbrella factories are located. A single worker here makes 300 umbrellas a day. This prominent position is retained due to; comparative advantage, specialisation, access to domestic + international markets, cheap costs, gov support.
Coca-cola (case study showing every flow of globalisation)
Used the same branding and slogan across various countries; "taste the feeling". Coca-cola only tweaks minor elements for different markets. The company uses the same formulas for all its markets. The bottle design is recognisable but the bottles/cans conform to each countries standard sizing. Not everyone likes fizzy drinks so coca-cola bought other drinks such as smart water, powerade, fuze tea. 'Thumbs up' is a brand of cola in India. It was introduced in 1977 to offset the withdrawal of coca-cola company from India. The brand was later bought by coca-cola who re-launched it in order to compete against Pepsi. As of February 2012 'Thumbs Up' is the leader in the cola segment in India, commanding approx. 42% market share and an overall 15% market share in the Indian aerated waters market. Established in 1866 Atlanta by 2016 it had 100,300 associates worldwide. Operates in 200+ countries. The 'one brand' strategy makes it recognisable (94% of pop. recognise it).
What TUC (Trade Union Congress) does.
Very much focused on the welfare of people. Ensures fair wages, good working conditions and safety. Prevent exploitation. Needed because of globalisation with the trading from LIC's to HIC's - an opportunity for exploitation due to unequal power relations.
Agglomeration
When companies in similar industries locate near each other because of benefits gained by sharing ideas and resources.
Leakages
When money is lost from the economy e.g from remittance payments.
Economic leakage
When money is lost from the economy e.g remittance payments and repatriation profits.
Glocalisation
When they meet the needs of the locals. McDonalds makes certain that a Big Mac tastes the same in every country, but it also varies items on its menu according to local tastes. Customers in Mexico can order a green chilli cheeseburger, customers in Arab countries can order a McArabia.
Joint venture
When two or more countries combine their expertise and share the risk, profits and liabilities.
Preferential trade area
You reduce or eliminate barriers/tariffs on a particular thing from an external country.
economies of scale
factors that cause a producer's average cost per unit to fall as output rises
What has global governance focussed on recently?
financial stability trade marine exploitation and pollution climate change laws of the sea standards of production human rights security international development cross border crime and international justice environment, protection for fragile spaces
Global shift
the movement of manufacturing from HICs to cheaper production locations in LICs. Over time, decentralisation has occurred, largely as a result of FDI by transitional coorporations (TNC's) into those developing countries able to take on manufacturing tasks at a competitive price. Positives for host country; Cheap labour force, lack of environmental restrictions, abundance of natural resources. Positives for source country; Job opportunities, more efficient industries = economic growth, TNC investment.
