Global Systems and Global Governance

Dimensions of globalisation

Global marketing

This is the process of promoting and selling products or services

Global due to the ability to export and import

It involves treating the world as a single market with one strategy for advertisement

Economies of scale, which means its cheaper to have 1 global marketing campaign than 1 for every individual country

It also creates brand awareness

Despite this advertisement is still regionally adapted for different cultures

Patterns of production, distribution and consumption

Production

Historically, manufacturing was concentrated in western economies and America - products consumed in countries of origin

Decentralisation has occurred due to FDI by TNCs in developing countries. Lower land and labour costs encouraged TNCs to relocate the production side of their business - Global Shift

A consequence of Global shift has been deindustralisation of richer countries and a loss of jobs in the manufacturing sector

Example is the UK, where employment in this sector fell by 50% between 1983 and 2013.
More than 50% of all manufacturing jobs are located in developing countries

Factors affecting the location of companies;

Availability of a skilled and educated workforce

The building opportunity with new tech

Government incentives like tax breaks

Access to large markets without tariffs or trade barriers through trade agreements

Transfers of technology made by TNCs enable the developing countries to increase their productivity without raising wages

Distribution and consumption

consumption still mainly remains in HICs, so products manufactured in NICs are exported

Example is that Dyson is a UK-based manufacturer but it moved its bulk assembly and manufacturing factories to Malaysia but still sells the bulk of it's products in the UK and Europe

Patterns are changing, as NICs develop their more affluent populations demand for similar consumer products. There are predictions for the patterns;

Fastest growing trade route between India and China

Western Financial companies have opportunity ti benefit form the the expansion of trade in the Asia-Pacific region

Flows of

Capital

Capital is money that is invested

Time scale

Historically, capital was invested into its own countries

Overtime, capital has been invested in foreign countries

FDI = Foreign Direct Investment

Improvements in ICT encourage the international flow of currencies as money can be transferred instantly

Cryptocurrency

Bitcoin

Increased flows means more interconnection as countries economies rely on flows of investment between countries

labour

Movement of people in the workforce from one country to another

recently there has been more international migration due to;

Better work opportunities

Conflict

Some high-skilled workers mover to MEDCs for better work wages and working conditions

Some low-skilled workers move to MEDCs due to unemployment in LEDCs

The increasing flows of people interconnect countries and especially cultures

Products

Time scale

Historically, manufactures have developed in MEDCs and the products produced were sold where they were made

Overtime, Manufactures have relocated over seas to LEDCs and export their products due to cheap labour and less regulations

The flow of products has resulted in international trade

Services

These are the economic activities not involved in material goods - like banking

Improvements in ICT allow services to become global industries as they depend on good communication and information transfer

In the 1970s and 80s deregulation occurred (the removal of rules to increase competition) which opened national financial markets due to easier international business

Services are split

High level

eg. Financial

situated in MEDCs cities

Low level

eg. Customer Services

situated in LEDCs because of cheap labour

Information

the flow of financial data and new

been made accessible due to technological advances like email and internet

the more flow the more interconnected the world is as everyone can learn about everyone and thing without leaving their own countries

Factors of Globalisation

Trade: WTO means more free trade and trading groups like NAFTA and the EU

Since 1950, trade agreements are formed by countries joining together to form trade blocs

EFTA - European free trade association

AFTA - Asian free trade association

EU - European union

UEMOA - West African economic and monetary union

APEC - Asia-pacific economic co-operation

OPEC - Organisation of petroleum exporting countries

NAFTA - North American free trade agreement

Aims to eliminate all trade barriers

Trade between member countries tripled between 1993 and 2007

Promote economic competition

increase investment opportunities

Mexico receives foreign investment

Improve co-operation

Disadvantages

Canadian companies have closed due to competition

US firms move to Mexico resulting in job loss

Food surplus from the USA and Canada result in low prices affecting the agricultural economy in Mexico

There are various forms of trade groups:

free trade areas

Where the trade barriers between the states are eliminated but external members are still taxed

customs unions

Refers to trade blocs which allows free trade within themselves, but impose a common external tariff

common markets

A group formed by countries in geographical proximity where trade barriers are eliminated

economic or monetary unions like the EU

Example is the UK is part of the EU economically and politically but not monetarily as we aren't part of the eurozone

Not all trade agreements are regionally based like OPEC which focuses on the trade of oil globally, the most traded commodity

There are a number of advantages to trade blocs:

Globally:

Global peace

Increase in global trade

Develops economies and standards of living

Regionally:

compete on a global level with others

bigger representation on global affairs

freedom of movement of trade

allow people seeking work to move between countries easily

groups to negotiate trade advantages with other groups

Possibility of developing a common currency

supports particular sectors of a national economy

raises standards in education and healthcare

spreads democracy and human rights

can lead to more economic, social and political intergration

Possible Disadvantages:

loss of sovereignty

loss of financial control to a central authority like a bank

pressure to adopt central legislation

economic sectors can be damaged by having to share resources

Trade deals are assessed by looking at how successful they are in reducing barriers like tariffs

In 2011the rich OECD group studied 55 regional trade agreements to discover if barriers to agricultural produce were lowered

deals between the rich and emerging economies had lifted the traded duty-free goods from 68% to 87% over 10 years

in these deals NEEs the proportion had increased from 28% to 92% which demonstrates that regional trade agreements can lower barriers

Agreements

Bilateral agreements - An agreement on trade that is negotiated between 2 countries or 2 trade blocs

Multilateral agreement - An agreement negotiated between more than 2 countries or trade blocs at the same time

Communications: Mobiles and internet caused internet revolution

Transport: faster by air, road and rail

faster and in more quantities because:

increased size of aircraft

low cost airline and air freight

containerisation

high speed rail networks

Collapse of communism: more countries develop market economies

TNCs: Growth through mergers and expansion like Microsoft and Sony

Capital Investment due to capital mobility

Historically, trade was hindered by problems in exchanging finance for goods

Deregulation allowed arrangements for the removal or relaxing financial movement barriers

financial transactions between traders are quick and secure

Global Marketing: rise in significance of global brands - Coca Cola is recognised by 97% of the global population

Managements and information systems

improved transport and communication systems has lead to a production revolution changing how companies manufacture and distribute products

new processes of high volume production allow economies of scale (cost reductions). To benefit from these cost advantages, companies invested in:

large production and assembly plants with technology like robotics in the automotive industry

Global marketing and distribution networks allow sales to keep pace with increase production

global capable management

Investments organised with the global value chains, where the different stages of production process are located across different countries

Corporations in different industries and economic sectors organise this differently for a competitive edge

An example is that the fashion industry is reliant on fast transport from suppliers to have the short lead times necessary to be present in disparate markets

For greater efficiency some companies use the Just in time technique, costs are cut by reducing the quantity of goods in stock

It involves producing and delivering goods just in time to get sold

parts are also supplied just in time to produce goods

The new systems for remote management and increase cost efficiency have led to;

Spatial separation between high-order business activities - research,marketing - located at HQs in stategic positions.
Low-order activities - production - based in low production cost locations or in proximity to markets for the finished goods

Global Corporations focus on a few key strategies

Rapid growth of logistics and distribution solutions industry

Travel: increased business, personal and tourism travel

Containerisation: standerdised shipping in vast quantities at low costs worldwide

Migration: ideas and information spread via the movement of people

Government Support

National governments have trade departments to accommodate

Objective is to increase exports

Example is that the UK government have the UKTI (UK trade and Investment) to advise and support the trade of goods overseas

Example is that Pakistan has dry ports located inland where customs documents are completed locally before shipping goods to sea ports

Security

Issues such as;
- supply chain security
- crime
- anti-terrorism
- food and bio-security

World customs organisation (WCO) or EU security standards

Critique

Costs of Globalisation

Benefits of Globalisation

What is Globalisation?

It is the process of countries becoming more interconnected and interdependent

It is the process of economies, political systems and cultures becoming connected

It is caused by the movement of information, capital, products,services and labour in international trade

Export machinery and clothes to MEDCs and import cars and chemicals

Becoming very important to global trade

NEEs

Single Product Economies

Umbrella City

70% of umbrellas are made in china

Located in Shaoxing

It maintains its position because

Specialization

Good access to domestic and international markets

Cheap production costs

Government support

Songxia Umbrella Industrial Park

1/2 billion umbrellas made a year in over 1200 factories

Single worker makes 300 a day

a country (usually LEDC) which relies on one, or a very small number, of products (usually raw materials) for its export earnings.

Oil in Nigeria

Nigeria should have done well from globalization

The global demand has fuelled Nigeria's economy

But the focus on oil has resulted in a decline of traditional industries or manufacture and farming

It has cause a mass rural - urban migration resulting in rural poverty and over crowding in cities like lagos

As Nigeria doesn't have the technology or skills to exploit the oil the major oil companies are encouraged to develop the reserves

The TNCs have had no regard for the indigenous people or the environment

Oil spills are common in the Niger DElta

The high income has resulted in Nigeria's currency being over valued - imported consumer goods cheap

results in domestically manufactured goods being too expensive to export

This is known as Dutch Disease and is common in EMEs

Industrialization is a consequence of this, driving more people into oil, making Nigeria less internationally competitive in manufactured goods and increases its reliance on foreign imports

Oil reserves of around 36 billion barrels

Gas reserves of over 2800 billion cubic meters

oil and gas account for more than 80% of the national income

Member of OPEC

International Trade

Global trade rules are set by the WTO

Countries can't give another countries special access to their market without doing the same for all other countries

However, they can give special access to countries within their trade bloc

Must promote free trade

Must act predictably in their trading

There must be fair competition

One company or country shouldn't get an unfair advantage over rivals

International trade and investment have changed dramatically

Trade

International trade is the import and export of goods and services between countries

The volume of global trade has increased from the 1980s - its value increased by nearly 8x

Developed countries still remain the biggest global trades but some NEEs are catching up

China is now the largest exporter of goods

Less developed countries are growing slowly but are starting to trade

However the poorest 49 countries which make up 10% of the global population only account for 0.4% of world trade

More countries have lowered their trade barriers partly to do with the new trade blocs

Rise in fairtrade - supporting people in LEDCs who make products and export them to MEDCs

Since the 1970s, nearly 1000 producer groups have been set up with their produce being sold in supermarkets in developed countries

Investment

FDI - a person, company or group spending money in a foreign country to generate profit

investors may be attracted to the size or stability of the market. The possibility of extracting resources for themselves or the ability to access financial services like luxembourg who have big financial sectors

The volume of FDI has risen from $400 billion to $1500 Billion

Patterns of investment have changed

Historically, developed countries invested in other developed countries

Since 1980s, developed countries have been invesing in NEEs and developing countries

In the past 10 years china has been one of the biggest receivers of FDI

NEEs now invest heavily in less developed countries

China invests heavily in countries in Africa

Ethical investment - when a person, company or group only invest in areas that are considered socially responsible

Companies that have caused environmental or humanitarian harm are generally avoided by ethical investors

Grown since 1990s

Trading Blocs

What are they?

Agreements between governments about trade

Associations between different governments that promote and manage trade

Remove trade barriers between members and keep barriers non-members

Refer to globalization for a list of examples of trading blocs

many trade blocs are regional - they make trading easier between neighboring countries

Example - in 2016, German exports to other EU countries were 708 billion euros, compared to 501 billion to countries outside the EU

Some trading blocs are based around specific industries

Example is OPEC for the export of petrol at standardized prices

Special Economic Zones increase the volume of trade with emerging economies and less developed countries

SEZs - areas that have different trade and investment rules to the rest of a country - increasing trade while keeping barriers in the rest of the country

Trading relationships change depending on the countries involved

Developed countries

most trade takes place between developed countries

Export cars and chemicals to NEEs and import Machinery and clothes

Export machinery and medicine to LEDCs and import Food, tobacco and oil

Less developed countries

Most trade with MEDCs and NEEs

Export food, tobacco and crude oil to MEDCs and import machinery and medicine

Export crude oil and minerals to NEEs and import manufactured goods

Developed countries have greater access to markets than other countries

Access to markets - how easy it is for the countries or companies to trade with one another usually determined by the import or export barriers

Access is effected by wealth. MEDCs usually have higher tariffs on imported goods from LEDCs which makes it harder for LEDCs to access the market

MEDCs have more money to invest so they can avoid high tariffs imposed by LEDCs

LEDCs rely on loans that require them to remove their trade barriers increasing access to their markets

Access is increased by being a member of a trade bloc

SDT agreements give less developed countries greater market access

The WTO forms special and differential treatment agreements (SDTs)

let LEDCs bypass some MEDCs tariffs

Example is the EU's 2001 Everything but Arms agreement allowing the least developed countries to bypass tariffs on goods that aren't weapons

Profits made from SDTs all LEDCs to diversify the range of industries they have

Negative impact? - allowing cheap imports into the country and argue that regional trade bloc would be more effective allowing the collective negotiation of prices

Differential access to markets has economic and social consequences

Economic impacts

Hard for countries with poor market access to establish new industries

So they resort to selling low value primary goods that fluctuate in price leading to a low GNI so they have less money to invest in industry resulting in slow economic growth

Countries with high market access can grow their economies quickly making their citizens wealthy and giving them the money to invest and grow their economies further

Social impacts

people in countries with good access usually have better paid jobs and therefore more disposable income increasing their standards of living

countries with less market access result in less money for education or healthcare so quality of life is lower and the population can mainly access low paid, low-skilled jobs

more dangerous working in less developed countries as sweatshops and dangerous factories who also employ children have moved from MEDCs

Trade market access affect people's lives around the world

Trade benefits MEDCs more than LEDCs

Example is that many LEDCs export primary products which are developed by MEDCs and exported at a higher price meaning they profit, so wages in that country are higher

Trade and high levels of access to markets means a wider range of goods are available to MEDCs - increasing the standard of living

Trade creates more inter dependency between countries

If one thing goes wrong in one country many other countries are affected

eg. the financial crisis in 2008 increased rates of unemployment in many countries

The global coffee trade

Coffee is grown in warm countries around the equator

Coffee production is dominated by countries in south America and Africa

For example the biggest coffee producer is Brazil

Brazil exported 20% of the world's coffee in 2015

It has around 300,000 coffee farms

produces 2.5 million tonnes a year

There are 2 types of coffee bean the arabica and robusta

Whilst both are grown the arabica makes 70% of the worlds coffee production

Coffee plants grow in nurseries, then move to farms after 6-12 months for harvesting - coffee is mainly grown in small holdings

Issues with coffee production

Susceptible to a range of diseases

Pests and insects like the Black Twig Borer

Certain weather makes the outbreak of disease or pests more likely

Wet weather = more bacteria

Dry weather = more pest infestations

Farmers use fertilisers and pesticides, these are imported so usually very expensive

Coffee is traded globally

Coffee is produced in mainly LEDCs and consumed in MEDCs

Brazil is the largest coffee producer see above for info

USA is the largest importer of coffee

Imported 20% of the world's coffee in 2015

The price of coffee fluctuates depending on supply and demand

Supply = how much is produced

demand = How much consumers are buying

If the demand increases and the supply doesn't the price will increase

If the price increases people will produce more because they want more money causing the price to fall

If the supply increases and the demand doesn't the price will drop

If the price drops more coffee is bought and the price rises again

Low prices are good for consumers and high prices are good for producers

Price fluctuations will effect farmers

Example - the amount of coffee exported from Veitnam has increased steadily since 1987. By 1999, Veitnam exported over 450 million kg of coffee a year. Causing coffee prices to fall from $1.19 per kg to $0.68 per kg in a year. This caused south american American Coffee producers to go out of business

The coffee trade is dominated by TNCs

Only 7-10% of the price goes to coffee farmers as they only sell the coffee bean which is low value

TNCs buy the bean and roast them which increases their value and they receive the profits when selling them

Coffee farmers are in LEDCs and TNCs are from MEDCs so the profits also go to the developed countries rather than invested in the LEDC

Most coffee producers are small-scale and rely on selling their products, so have no power over prices

TNCs have alot of control over the coffee market as 4 companies control 40% of coffee exports

TNCs pick and choose where they buy their coffee

Usually countries selling at the lowest price

So countries lower wages, regulations and environmental protection to attract TNCs - race to the bottom

Eg. much of the coffee in Brazil is farmed intensively, leading to a loss of wildlife habitats and Biodiversity

Fair trade

In 1992, the Fair trade foundation was set up

Works with producer organisations

Aims to set a minimum fairtrade price which covers all the farmer's costs - prevents poverty

Works with farmers to maintain environmental standards and to prohibit forced labour and child labour

Coffee campaign has grown enormously

no. of organisations grew from 175 in 2002 to 329 in 2011

Global sales increased from 15 000 tonnes to 80 000 tonnes a year

Fair trade pays additional money to the communal fund to help local communities develop helping the LEDCs invest in industry

More ethical than traditional trade

TNCs

Transnational co-operations are companies producing, selling or operating in 2 or more different countries. Eg. Sony manufacture in China and sell in Europe

Important to the global economy

80% of global trade was linked to TNCs in 2013

Operate in many industries

Primary - extraction of natural resources

Eg. Shell

Secondary - Making material goods

Eg. Toyota

Tertiary - Providing services

Eg. Aviva

The creation of jobs, provision of technology and investment mean they have political influence

TNCs bring FDI into LEDCs, spread technology and promote cultures

One of the main driving forces of globalisation

Connect countries due to their spatial organisation - global supply chain - different parts of the TNC operate in different countries

TNCs headquarters in MEDC's big cities due to good communication and transport

Research and development (R&D) is located in cities or towns where there;s a supply of highly skilled people - same country as headquarters

Location of regional R&D closer to markets they are selling to so they can make specific adaptations to products

Factories in LEDCs due to cheap natural resources and labour - low production costs or they have factories near their markets to cut import and export costs

TNCs form Links between Countries through investment

They do this by expanding their operations

Mergers - 2 companies agree to become one big company

Example - BP and Amoco merged in 1998

Acquisitions - one company buys another company

Example - Ford bought Volvo in 1999

Using Subcontractors - TNCs use foreign companies to manufacture products without owning them

FDI - involves merger and acquisitions and using subcontractors

Example - if HSBC bought a bank in Indonesia it's FDI

TNCs expand operations to gain more control over their markets

Vertical integration

A company takes over other parts of the supply chain

Example - shell now owns its supply chain from extraction to selling at petrol stations

Horizontal intergration

When companies merge with over companies at the same stage of production

Example - In 2006, Disney took PIXAR, both making family orientated animations

TNCs Organise Production to take advantage of a global supply chain

TNCs create the global supply chain giving them economies of scale - most value

TNCs Primary industries invest in countries with natural resources they can extract

Example - in 2016 Shell acquired BP to access oil in Brazil and Australia

TNCs Secondary industries invest in countries with low labour costs and cheap land and tax breaks. Or in places where there is a large market for their product

TNCs Tertiary industry invests in well educated populations

TNCs invest in countries with weak labour and environmental regulations allowing them to cut costs

TNCs have a big impact on global trade

Intra-firm trading - 1 division of a TNC trades with another part of the TNC

Counted in trade figures

Makes up 30-50% of international trade

When a TNC invests it creates a multiplier effect

By opening a factory it creates jobs for the local area so people have more money to spend helping local businesses and governments

TNCs make it easier for local companies to trade as part of the global supply chain

TNCs take advantage of Global Marketing

TNCs benefit from having lots of money to spend on advertising and large marketing departments

TNCs gain knowledge of local markets and adjust their strategies even incorporating local cultures

The aim of TNCs is to create a brand that is globally recognised

94% of the global population recognise coca-colas logo

Walmart

Is a chain of discount department stores and is one of the largest TNCs in the world - the largest retail TNC

Walmart began in 1962 in the USA

More stores opened across the USA and then recently across the globe by the acquisition of other companies some of these companies still trade under their own names

The UK store is called ASDA

Walmart divides its labour across different countries

Headquarters - Arkansas

Manufacturing is carried out in in China and India where production costs are cheap

Its is starting to expand into NEEs like India

Walmart has impacts in the USA

Economic

Employment - each new store creates jobs

One of the cheapest US supermarkets

Decline in the manufacturing industry

Buys products from outside the US causing a loss in manufacturing jobs inside the US

Loss of local business

Social

Walmart provides a large choice of goods - super centre

Open 24 hours a day

Many jobs at Walmart are poorly paid with few benefits

Poor working conditions - long and irregular hours

Environmental

Produce a huge amount of polluting gases - but it has opened green stores which run on renewable energy

Stores are often large and out of town

Walmart has impacts on its Host countries

Economic

Creates jobs in construction, manufacturing and retail services

Local companies and farmers supply goods

Local suppliers to Walmart may be able to expand their businesses by exporting goods

Forces its suppliers to accept low prices

Local companies suffer in competing with Walmart

Most profits are sent back to the USA rather than invested in the host country

Social

Skilled jobs in LEDCs

Eg. Stores in China are run by locals

Working for Walmart can offer a more reliable wage

Poor working conditions

Walmart donates 100s of millions to improve healthcare and the environment in its operating countries

In 2015 it donated over $2 million to west Africa after the Natural Disasters

Environmental

Invests in environmentally friendly technologies and sustainable development

Uses large areas of land for factories and stores

Antarctica

What is a global common?

Global commons don't belong to anyone country

They are governed by different pieces of international law

There are 4 global commons

Antarctica

The high seas

Seas further than 200 miles away from land

Atmosphere

Space

Environmental NGOs protect the commons from exploitation as they offer habitats and are valuable for scientific research

Global commons face many pressures

Many feel they can exploit the global commons without dealing with consequences as the costs of exploitation are shared

Tragedy of the commons

Industrialization and development are increasing the demand for resources

Many resources are and can be extracted from the comons

large amount of polluting gases are being pumped into our atmosphere

New technologies make it easier to get to the global commons as they were fairly inaccessible before but makes them more vulnerable

Plants problems due to pressure

Overfishing in the seas

Atmospheric pollution is causing climate change

Increased CO2 causes acidification of the oceans which effects the marine organisms

The sea absorbs more CO2 when it is colder

Global common protection

Institutions are acknowledging that countries rights to develop must be balanced by the need to protect the commons

NGOs like the WWF call for the areas to be protected with any development being sustainable

Sustainable development requires global cooperation

Interdependence

Economic

What it means?

Countries rely on one another for resources eg.Oil produced and consumed in different countries

The flows include remittance, foreign aid and FDI

Benefits

FDI allows other countries to take advantage of cheap materials and labour, host country benefits from foreign capital. Foreign aid improves infrastructure and living standards

Flows are unequal

Money from MEDCs to LEDCs in investments but LEDCs rarely have the money to do the same

Problems

Inequalities - foreign aid creates dependency, FDIs usually force out local businesses

Conflict - foreign aid can go to armed groups. FDI creates conflict between foreign companies and local people

Injustice - Companies may pressure governments to make it cheaper to invest

Global trade systems

International trade and access to markets is overseen by the WTO (World trade organisation)

Began in 1995

aim and role

Supervise and liberalise trade by reducing barriers

Sorts out trade problems between member governments

Negotiate legal ground rules for international commerce

Successor of the GATT

over 160 members, over 3/4 are NEEs or LEDCs

International financial systems

Global financial systems

World bank

Aims to reduce poverty and supports less developed countries

Historically, they funded top down projects

descision to undertake project is made by central authority

Now, they fund more bottom up projects

locals are consulted and supported in making decisions to develop in order to address one or more of their specific needs

Loans money for investment and development

all members must pay in but only those who need it can take money out

must pay back

International monetary funds

regulates the financial flows

Imposes cuts on education and welfare government spending

Advises governments

loans money to countries with economic problems

Support the world's economic order by regulating the flow of international capital

Established after WW2

Political

What it means?

Countries depend on one another to solve global issues like global warming

Social

What it means?

Connections between people in different countries - migrants

Environmental

What it means?

Every country is interdependent on each other to look after the environment and example is the Chernobyl explosion in Ukraine releasing radiation

Concerns about global warming have led to the formation of the IPCC (Intergovernmental Panel on Climate Change)

Unequal Power relations

the systems and supporting organisations help improve the world, they are often led by the most powerful nations that influence the pattern of change for their own advantage, only allowing less powerful nations to respond in limited ways

Developed countries have control over global economy and political events

Example

Big contributors to climate change are usually rich and developed countries, they are usually resistant to making changes to limit climate change because it may harm their economy

Those most affected are the LEDCs like Bangladesh who are suffering from rising sea levels and aren't able to influence bigger countries to reduce emissions

Global institutions can reinforce the unequal power relations

Global financial systems for example

IMF - based in the USA, led by developed countries, LEDCs have less influence

Loans are conditional - LEDCs must make changes like cutting regulations to receive the loan

WTO - reduce trade barriers, developed have kept trade barriers reducing imports from LEDCs. Boosting MEDCs economies at the expense of the LEDCs economies

Unequal flows of people create benefits and inequalities

1. people move from less developed countries for jobs

2. People move to escape warfare, famine or persecution

3. people move for economic reasons usually aren't poor due for the need of visas and the cost of transport

4. Easier for people from developed countries to migrate - unequal flow

5. Benefits; usually migrants create economic growth as they do jobs that people can't or won't do

6. Remittance - send money home to less developed places

7. unequal flows create problems;

Inequalities - Brain drain - scientists to Silicon Valley - those skilled leave the LEDCs for better work lives in MEDCs increasing the development gap

Conflict - low skilled migrants are happier to work for less than low skilled locals, by employing the migrants they depress wages which creates conflict between locals and migrants

Injustice - migrant workers are made to work in dangerous conditions

Unequal flows of technology

most technology is owned by MEDCs

More tech = more innovation of ideas

Inequalities - developed countries can afford the best tech, making it easier for them to produce products cheaper

Conflict and Injustice - repressive governments of LEDCs use weapons tech sold by developed countries to stop protests

Ideas about Global Governance are dominated by developed countries

Before 1980

National Govs took responsibility for the welfare of their citizens, controlling imports through trade barriers to protect their industries

In 1980

Developed countries thought economies work better without state intervention like trade barriers and tariffs - neo-libralism

Increased free trade meant more development and less conflict

Problems

Inequalities - concentrates wealth in the hands of a few

Conflict - If private companies and free trade in LEDCs are threatened by their government, MEDCs interventions are justified

Injustice - Governments and TNCs argue that free trade leads to development, justifying poor working conditions and environmental degradation

The world is Governed by Norms, Laws and Institutions

Many of the issues the world faces today are global and go beyond the national laws

Eg. National governments can't tackle climate change alone

A number of global norms, laws and institutions have been formed to deal with global issues

International laws like human rights, labour standards and trade regulations

Norms are accepted standards of behaviour

Eg. the right to freedom of speech may be restricted by some countries and as a result face internation condemnation

Institutions are political or legal organisations that pass and enforce laws these include the UN, WTO and international criminal court

Regulates the global economic and political systems by setting up rules countries and companies should follow

By setting rules, global governance makes everyone in a global system act a certain way

Global governance aims to promote growth and stability

Advantages

The laws and norms that international institutions enforce mean that countries abide by common rules

Trade rules mean that countries can't take advantage of each other, so all countries can develop

The WTO increases global trade through it's common rules as it makes trade predictable, increasing stability

The World health Organisation (WHO) combats epidemics which increases social stability and the UNESCO ensures the benefits of scientific advances are shared

The world bank gives loans to LEDCs to increase their economic growth

Problems

Countries sign up to international laws ans institutions voluntarily so not all countries are bound to such rules

It can be difficult to make countries and TNCs comply with the rules

Some countries have not brought economic sanctions to China as it is so important to the global economy

Some think the global institutions act for political reasons

Global institutions can create inequalities and injustices

There are conditions to receiving a loan from the IMF or World Bank

EG. to receive loans LEDCs have to implement free trade policies and cut government spending

Economic groups like the G7 strengthen the power of developed countries rather than encouraging equality

Members of security institutions like the United Nations Security Council can veto resolutions

Eg. Between 2011 and 2016, Russia and China vetoed several resolutions to intervene in the Syrian Civil War

The UN

Set up in 1945 to establish peace

193 members

When countries join they sign a UN charter which sets out basic principles of global governance and the functions of the UN

Aims

Maintain global peace and security

Develop friendly relations between nations

Use cooperation to solve international issues

To bring countries together to settle disputes

The UN is made up of several organisations

Eg. the UN security council responsible for global peace

Eg. the General Assembly act as a parliament of nations

The UN works to promote growth and stability but some say it has made some issues worse

Growth and Stability

Growth - The UN Millennium Development Goals have reduced the number of people living in poverty and increased the number of children in school

In 2015, the UN set targets for 2030 to promote continued sustainable development

Stability - UN peace keeping missions help end wars with peaceful elections after civil wars for example

Inequalities and Injustices

Inequalities - developed countries hold most of the power over decisions taken at the UN, most of the global issues tackled by the UN affect African countries but no African country has a permanent seat at the UN security council

Injustices - at times the UN has been ineffective

In 1995, the UN peace keepers failed to protect 8000 people in Srebrenica when they were massacred by the Bosnian Serbs

Institutions work together to make global governance a success

Institutions operate at a range of scales

Global = UN

International = EU

National = British Government

Regional = Welsh Assembly

Local = local councils and county courts

Decisions made at global institutions affect the institutions further down

Eg. the 2015 Paris Climate Change Agreement required changes at local levels

Decisions made at local levels affect global institutions

Eg. In 2016 a regional government blocked a trade deal between the EU and Canada

Non-governmental organisations (NGOs) operate on a range of scales to monitor and support institutions

Case Studies

Examples

Statistics