Summary AQA A Level Geography: Global Systems and Global Governance Detailed Notes
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Global Systems and Global Governance
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AQA
Full, detailed, A* level notes about the Global Systems and Global Governance topic in the Geography A Level. Case studies included. Clear and concise notes to help you build knowledge on the topic and achieve higher grades. Send me a message if you have any questions about what is in the document!
Global Systems and Global
Governance Revision
Globalisation ● Factors Affecting Globalisation ● Global Systems ●
International Trade ● Global Coffee Trade ● TNCs ● Global Governance ●
Global Commons ● Antarctica ● Globalisation Critique
Globalisation
Globalisation is the process by which the world’s economies, political systems,
and cultures become more strongly connected to each other through the global
network of trade, communication, transportation and immigration. If there was
no globalisation, there would be no interaction between different countries, but
if there were complete globalisation, the world would act as a single community.
The real world is somewhere in between, but countries are becoming more and
more closely integrated.
The concept was first developed in the 1960s after Canadian academic Marshall
McLuhan used the term global village to describe the breakdown of spatial
barriers around the world, due to the almost instantaneous transmission of
information facilitated by improvements in ICT. McLuhan argued that our world
had more similarities than differences and that much of the world had been
caught up in the same economic, social and cultural processes. Furthermore, he
said that economic activities now operated at a global scale and that other
scales are becoming less important.
The Brandt line was developed in the 1980s as a visual description of the
difference in per capita GDP between the Global North and South and divides
the world at about 30° north, but extends southwards to include Australia and
New Zealand.
The KOF index was developed in 2002 and is a measure of how globalised a
country is based on its economic, social and political status. Filling the top 3 in
2017 were the Netherlands, Ireland and Belgium whereas some in the bottom
included Somalia, North Korea and the Marshall Islands
Globalisation is caused by the movement of information, capital, products,
services and labour between countries and is not new, as empires in the past
sourced their materials and labour from all over. However, the current form of
globalisation is more global, integrated and has developed at a much faster rate
than in the past. As the world becomes more globalised, countries become more
interdependent and, as such, there have been global attempts to try and
manage a range of issues.
Five Dimensions of Globalisation
Flows of ● Developments in information technology such as
Information satellite and mobile technology have allowed the
, diffusion of cultural ideas, language and
technology. Information such as financial data or
news of current events can be spread across the
world very quickly and easily now.
● In 1987, Michael Fish famously falsely predicted
that there would be no storm because
technology at the time meant that he didn’t
know until he got home after the broadcast, but
those sorts of things don’t happen any more. In
1987, the MET office was making 1,200
observations on the weather from satellites, ships
and buoys a day. Now, they make 215 billion a day.
We can get live updates about issues around the
world such as Ukraine and Afghanistan.
● The development and rapid spread of e-mail, the
internet and social media has meant that large
amounts of information can be exchanged
instantly around the globe. This means that
people can work and communicate with others
who live in different countries.
● Increasing the flows of information increases
interconnection and means that people can learn
a lot about different people and cultures without
leaving their country.
Flows of Capital ● The main types of capital flow are FDI,
repatriation of profits, aid and remittance
payments. Historically, capital has only been
invested within a country, with companies
setting up factories or branches in different parts
of the nation. However, over time, foreign
investment has increased from $400 billion in
1996 to $1500 billion in 2016 and in 2016, it was
estimated that $12.5 billion was sent from the
UAE to India in remittances.
● The flow of global finance has increased from $2.5
trillion in 2002 to $4 trillion in 2012 and during
this time, the global pattern of flows of capital
has changed. In 2002, the most dominant flow
was between North America and Western
Europe, but by 2012, this had declined and flows
between Western and Eastern Europe had
increased as well as flows around China. Overall,
financial flows are becoming more connected
regionally.
● Improvements in communications and the
internet have encouraged this increase in the
flow of capital as it can now be moved instantly
around the world.
● The increase of the flow of capital increases
interconnection as countries’ economies are
, becoming dependent on flows of investment
from other countries.
Flows of Products ● Products are tangible articles manufactured for
sale and historically these industries were located
in more developed countries and products were
sold in the country they were made. But in recent
decades manufacturing in developed countries
has decreased; people employed in
manufacturing in the UK fell from 5 million in
1985 to 2.6 million in 2014. This is due to a
reduction in transaction costs due to the
improved flow of data, containerisation and
commercial jet aircrafts which make physical
transportation easier and cheaper, and the
reduction in protectionist measures like tariffs as
overseen by the WTO.
● Lower labour costs mean that this manufacturing
has been relocated to developing countries, and
then imported to the countries in which they’re
sold e.g. vacuum cleaner manufacturer Dyson
moved the production side of its business to
Malaysia in 2002, but vacuums are still sold in the
UK.
● International trade in manufactured goods is
increasing with the UK importing £200 billion of
manufactured goods in 1990 to £550 billion in
2008.
● The changing flow of products is making the
world more interconnected with many
manufactured items bought in the UK being
produced in other countries and then imported.
Flows of Services ● Improvements in ICT have meant that services
such as banking and insurance have managed to
become global industries as they can serve their
customers from wherever.
● During the 1970s and 1980s, there was a
deregulation and opening up of national financial
markets to the rest of the world which made it
easier for banks and other financial institutions to
do business in other countries.
● Services can be split into low-level, such as
customer service, and high-level such as banking.
High-level services tend to be located in
developed countries as they are likely to need
more skilled workers, whereas low-level services
are increasingly decentralised to less developed
countries where labour is cheaper.
● Increasing flows of services make the world more
interconnected because people are connected to
, other countries through a bank account.
Flows of Labour ● More people are moving overseas with an
increase of over 40% of international migration
between 2000 and 2015. Some may move
because they have to e.g. to escape a conflict, but
others may choose to move for work.
● Some highly skilled workers may move to more
developed countries where wages and conditions
are better, but other unskilled workers may move
due to unemployment and poor wages in their
home country. The main flows are from South
Asia, Africa, Latin America and the Gulf States to
North America and Europe.
● Increasing the flow of people between countries
make them more interconnected as people will
bring aspects of their culture with them and
people are now also likely to have family
members that live all across the world.
Global Marketing
● Nowadays, products are sold all around the world, which means that
marketing, the process of promoting and selling products or services,
must also become global.
● Global marketing involves treating the world as one single market and
using one marketing strategy to advertise a product to all customers of
the world. This gives economies of scale- it is cheaper to have one
marketing campaign for the entire world, than individual ones for each
country. Global marketing can create global brand awareness, so
customers are more likely to buy the product with a particular logo or
name, rather than the lesser-known competitor.
● However, marketing still needs to be adapted to each country due to
different customs and laws, such as some countries not drinking alcohol.
Patterns of production, distribution and consumption
Historically, manufacturing industries were located in developed countries and
the products were then distributed in the country they were made in e.g. in 1954,
95% of manufacturing was concentrated in the industrialised economies of
Western Europe, North America and Japan.
Over time, production has decentralised to developing countries because of
cheaper land and labour, fewer environmental and waste regulations and
improvements in transport and ICT. This has led to deindustrialisation in HICs
and the rise of NEEs. This is known as the global shift and it divided international
labour into 2 groups: highly paid and highly skilled workers in areas like research
and development and marketing staying in developed countries and low-skilled
and low-paid manufacturing jobs moving to less developed countries.
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