Explain the concept of the ‘global commons’. [4 marks]
The global commons refers to the Earth’s shared resources, such as the oceans and the
atmosphere. These areas have no national government, but are used by all people.
Antarctica is the only land mass considered to be part of the global commons. If an individual
country acts independently, this will be contrary to the whole group and the shared resource
becomes depleted. As current resources become depleted, there will be an increasing need
for the global commons to meet the needs of the world’s population, therefore it is in all
countries interests to protect areas such as Antarctica.
Outline how changes in patterns of production have promoted globalisation. [4 marks]
One of the primary goals of TNCs is to integrate production, maximising global economies of
scale by organising production to reduce costs. Often, production in the primary sector for
TNCs is based where there are unexploited resources. Manufacturing is commonly in
developing countries, like South Asia, as labour costs are lower so that goods can be sold
for cheaper. TNCs often integrate parts of their business through vertical integration. This is
an arrangement where the supply chain of a company is owned by that company, meaning
they can reduce costs because of economies of scale. These factors increase the flows of
people as they travel to the sources of labour in developing countries and there is an
increase in international trade in goods as the world becomes more interconnected.
Explain how unequal flows of people can lead to inequalities. [4 marks]
Migration commonly occurs from low income to high income countries, due to opportunities
such as better employment and freedom. This creates an unequal flow as more people leave
LICs than people entering LICs. This can lead to overpopulation and pressure put on the
services in HICs such as healthcare. Large amounts of emigration cause unemployment and
deterioration, with only unskilled workers left in LICs. Migrants who move are often
desperate for work, therefore become vulnerable to exploitation such as low wages and poor
working conditions. This creates inequalities because often the host country benefits the
most, taking the majority of the profits, whilst the migrants working in the host country face
poor living conditions.
Explain how global institutions help to promote growth and stability. [4 marks]
Global institutions, such as the United Nations and the World Trade Organisation, aim to
negotiate responses to issues that affect over one state or region in order to promote growth
and stability. The UN was founded in 1945, as an international organisation involving most
countries in the world. It has attempted to promote growth and stability through strategies
such as the Millennium Development Goals, which targeted areas such as global partnership
and poverty. The WTO focuses on trade and investment inequalities by using trade
liberalisation to remove protectionist policies and reduce exploitative practices. Thos
promotes the growth of less developed countries by providing them with more access to
trade.
Distinguish between production, distribution and consumption [4 marks]
Production is the nature or stage at which goods are manufactured from raw materials, to
the point where they are ready for delivery. In the primary industry sector, production
involved extracting raw materials such as minerals, agricultural products, or energy from
renewable resources.distribution involves the networks and organisational routes through
which a good is transported or delivered to its market. Consumption is the act of purchasing
this good for the final use.
, GLOBALISATION 20 MARKERS
Explain how global marketing has reduced diversity and led to more uniformity in the
products and services offered to consumers globally. [4 marks]
Similar products are now mass produced and marketed by companies internationally, such
as Apple iPhones. People around the world have access to the same products and
marketing often crosses cultural boundaries. Over-standardisation of goods and services
has led to increased cultural homogeneity, as the same wants are generated across cultural
barriers. This damages individual traditions, diluting cultural diversity. Access to foreign
goofs or services causes the desire for culturally distinctive goods to fade.
Explain why Antarctica (global common) is under threat from human activity and why it
needs to be protected [4 marks]
There is a danger for Antarctica because many natural resources known to exist there have
no individual nation to protect them. This means that there has been overfishing and whaling
for economic which has led to depletion, marine pollution and loss of sustainability.
Overfishing of krill needs to be controlled as they are vital for the food web in Antarctica as
everything in the region is dependent on them.
Explain the nature of the threat of fishing and whaling and its potential impact to the Antarctic
environment [4 marks]
Establishment of the International Whaling Commission in 1994 means that whaling is now
less of a threat. However, Japan still undertakes some whaling operations for scientific
research. In the Southern Ocean, species of fish such as Antarctic rock cod are in danger of
being overfished. In particular, a slows in the biomass of the shrimp-like krill is a concern as
it is fundamental to the food web.
Explain how the International Whaling Commission has contributed to the conservation of
the environment of Antarctica and the Southern Ocean [4 marks]
In 1994, the IWC established the Southern Ocean Whale Sanctuary, where it banned all
types of commercial whaling. Japan continued to hunt whales as the IWC permitted whaling
for the purposes of scientific research. By protecting whales and their breeding grounds, the
IWC has ensured the conservation of whale species, which are major regulators in the
Southern Ocean ecosystem. The status of the Southern Ocean Sanctuary is reviewed every
10 years.
With the use of an example, explain how TNCs are able to overcome trade barriers and gain
access to different markets globally [4 marks]
TNCs are influential, and can move capital in order to establish new operations in many
countries. To access markets, they locate inside free-trade areas such as NAFTA and the
EU. This enables the TNC to overcome external trade barriers such as tariffs and have
access to the large markets within the free-trade area. For example, Apple’s products are
designed in California, made in China, and has its European headquarters in north Cork,
Ireland, which employs 4,00 workers for iMac production. This mean that it has access to the
EU market without having to pay external tariffs.
Outline reasons why global governance is a complex matter and hard to achieve [4 marks]
Global governance is the way in which global affairs that affect the whole world are
managed. It is difficult and complex to achieve because there are different levels of
development around the world. Less developed and developing countries aspire to catch up
economically with higher income countries, and countries have different economic aims and
goals. Countries also have different ideologies and political objectives. Most countries
attempt to increase their influence for their own benefit, but when their influences overlap it
increases likelihood of conflict and geopolitical tensions. Different societies and cultures can
also lead to a lack of cooperation in global matters.
, GLOBALISATION 20 MARKERS
Use an example of economic interdependence to outline its importance in the contemporary
world [4 marks]
Trading blocs such as NAFTA and custom unions such as the EU allow countries to benefit
from economic cooperation, free trade and reduced barriers to assist development. The EU
has a common currency, Euro, which makes transactions easier between member countries.
Most trade agreements for economic benefit crossover to political cooperation. Foreign
direct investment has improved quality of life of many as it provides income that is usually
higher for low income countries. Aid and remittances can also help improve quality of life.
Richer countries can take advantage of lower labour costs and maximise profits.
Use an example of political interdependence to outline its importance in the contemporary
world [4 marks]
Political interdependent allows countries to trade more effectively and reduces the likelihood
of conflict as countries rely on one another more and tensions would have significant
impacts on economic development. Economic agreements have political associations, e.g.
central EU parliament makes laws which apply across countries. Military alliances such as
NATO exist to give military protection to member states.
Use an example of social interdependence to outline its importance in the contemporary
world [4 marks]
The UN development agencies provide support for less developed countries though
multilateral aid or development funding. Countries acting together through the UN is more
effective to support health and education in developing countries, as well as raising
awareness of development issues in developed nations.
Use an example of environmental interdependence to outline its importance in the
contemporary world [4 marks]
There is concern among richer nations that poor countries will develop with little
consideration from environmental impacts. This is hypocritical on the part of developed
nations, as they are primarily focused on mitigating global climate change and a lot of the
interdependence is persuading poor countries with rainforest to conserve it so that carbon is
sequestrated.
How would a transnational corporation in the secondary sector usually organise and locate
these key functions (strategic management, production operations, research and
development, sales and marketing) of its businesses? [6 marks]
Strategic management is typically found at the company headquarters, usually in a major
city in the home country. As TNCs grow, strategic management may include subsidiary
headquarters in each continent or main countries of operation. Apple’s headquarters are in
north California. Production is normally located in the manufacturing regions of developing
countries, e.g. Eastern Europe or Asia. Production operations can be located in traditional
industrial areas of developed countries that have gone into decline. European headquarters
are in North Cork with 4,000 workers on iMac production. Research and development is
likely to occur in the TNCs home country, at or near the headquarters or in locations near top
universities. Apples products are designed in California, 3 data centres in the USA. Sales
and marketing is organised globally, with main sales offices located in countries where the
main markets for products are located. Apple’s products are sold all over the world, 44% of
sales are in the USA, most recent growth has been in the Asia-Pacific region.
With reference to examples, outline the role and function of NGOs in global governance [6
marks]
NGOs have expanded their scope from local and national settings and become international
organisations due to globalisation. In the 21st century, they emerged as a global force to
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