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Summary Global Systems and Governance AQA A level
Summary notes, case studies and marked essays from the AQA Global systems and Governance A level course, got me an A at a level
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Global Systems and GovernanceGlobalisation – a process by which national economies, societies and cultures have become
increasingly integrated through the global network of trade, communication, transportation and
immigration
Factors and dimensions of globalisation:
Politics – trading groups, government and global institutions e.g. NATO, UN and other international
partnerships
Economy – trade and aid, transnational/multinational corporations e.d. Apple, Coca Cola, capital
flows
Society – migration, social networks
Culture – ‘westernisation’, cultural diffusion
Technology – higher productivity, transfers of investments to LEDCs, communication
Environment – impacts and degradation e.g. Amazon rainforest, linked by ‘commons’
,Flow of Capital – the movement of money for the purpose of investment, trade or to produce
goods/provide services.
Foreign direct investment is the investment made by transnational corporations into foreign
countries. This could include setting up companies and acquiring shares.
Repatriation of profit is when these transnational corporations take any profit from work in the
periphery regions back to their headquarter in their home country. It can also be called economic
leakage as these flows end up in richer countries.
Aid is a form of financial support for low income countries and can be distributed through the UN
and assistance from rich countries. It can be transferred from one government to another.
Migration of labour usually happens from poorer to richer countries. This can cause economic
disparities as high skilled labours move to richer countries therefore increasing their economy as
they pay taxes and spend earnings.
Remittances are transfers of money made by foreign workers to family in their home countries and
have become the second most important sour of income in developing countries.
In the 2002 map there is a clear core reign between American and Canada to Western Europe, in the
2012 map this area still has a large flow of capital, but it is comparable to those of Northeast Asia.
The 2012 map shows worldwide increased flow of capital, which increases the prosperity of many
countries that were formerly periphery regions.
Flows of Labour
,Key Features:
Most migrants move over short distances either in the same region or neighbouring regions
North America, Europe and the Gulf countries in Western Asia attract migrants from the
furthest destinations
Most economic migrants are not the poorest and often have some education and financial
means
Largest regional flow of labour is south Asia to west Asia, where 5 million workers moved
between 2005 to 2010
In the past 25 years, more people have migrated from Asia to North America and Europe but
also people have migrated to the Gulf states and Tiger economies in South East Asia due to
employment
Remittance
- 40% of Somalians rely on remittances for their basic needs
- Remittance makes up 50% of their GNI and 80% of all investment in the country
- Worries that remittances were being used by terrorist groups lead to banks and money
transfer services withdrawing money services, this had strong effects of the Somalian
economy
- Remittance reliance makes the economy particularly vulnerable to ‘shocks’ in the economy
such as coronavirus
- COVID-19 caused a 20% global decrease in remittances
- Unemployment in the US leads to poverty in Somalia
- Some banks are unwilling to send money to ‘high risk’ places
Top 10 Remittance Corridors:
- United States to Mexico 22.2 billion
- U.A.E to India 13.8 billion
- Hong Kong to China 13.5 billion
- United States to China 12.2 billion
- United States to India 12 billion
- United States to the Philippines 10.1 billion
- Saudi Arabia to India 5.3 billion
- United States to Vietnam 4.2 billion
- Britain to India 4.1 billion
- Japan to China 4.1 billion
To what extent do remittances benefit low income economies? 9 marks
, Remittance payments are one of the leading sources of capital in lower economically developed
countries. The act of transferring money from workers abroad to family in their home country leads
to billions being sent around the globe each year.
Remittances can have significant impacts on the livelihoods of people in developing countries.
Throughout 2020, India received over 83 billion dollars in remittance. This money often provides
food, healthcare and sanitisation for families, as well as investment in new businesses and charities.
This not only improves the local economy but also peoples wellbeing. Remittances used for
schooling can have long term benefits with more people being able to access higher education who
will then be able to get higher paid jobs.
Remittances in Somalia make up 80% of all investment in the country and 50% of its GNI, this
demonstrates the affect remittances have on local people. Abrupt withdrawal of remittances can
have severe consequences for people who solely rely on these payments. International politics can
often cause this, in 2012 many UK and US banks halted remittances to Somalia due to concerns that
terrorist organisations such as Al-Shabaab were receiving this money, leading to significant economic
decline.
Remittance payments can also reduce the amount of government loans given out. Many low income
countries cannot afford to lend money to their residents, causing people to be stuck in poverty
cycles. With remittances, citizens are able to receive money from abroad without having to rely on
unstable governments.
Natural disasters often lead to an increase in remittances to the affected country, in 2019 flooding in
Pakistan lead to a 19% increase. This can have positive effects as this money can be used to rebuild,
help the injured and reconstruct the economy. However changes in the amount of money can be
hard for people to adjust to and budget. Sole dependence on remittance is very common with 29%
of people in Nepal being heavily dependent. This can cause problems as crises in foreign countries
can have secondary affects in remittance dependant areas. This was seen particularly in America
during the COVID-19 pandemic, workers becoming suddenly unemployed or furloughed caused a
20% worldwide decrease in remittance payments. Anti-immigration laws can also cause decline in
remittance and put heavy economic constraints on workers and their families.
Remittances can also cause occasional economic inequalities in these low income countries. People
with relatives working abroad and sending remittances can become significantly more wealthy than
others in their communities. Remittances can also be limited by isolated locations as people may not
all have the resources to access these payments and may have to travel long distances to get them.
A further limitation is unsteady exchange rates which can impact the amount of money sent and can
cause economic instability in some households.
Remittances do benefit the economies of low income countries significantly and have become one of
the most important international flows of capital. With remittances corridors sending billions around
the world, its clear the high number of remittance reliant communities. Whilst there can restrictions
on limitations due to their ability to impacted by uncontrollable factors, the majority of the time
they still benefit people and economies.
9/9 A01 -clear understanding of key terms and good use of case studies
A02 – your arguments are well supported with evidence and are well evaluated
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