The global commons refers to the Earth’s shared resources (1),
such as the deep oceans and atmosphere (1) (d).
The global commons includes those areas that have no national governance but are used jointly by all people (1).
The only land-mass considered to be part of the global commons is Antarctica (1).
Explain how trade agreements are a factor in globalisation.
Trade agreements are formed by countries joining together to form a trade bloc that encourages trade between themselves and promotes economic co-operation (1),
for example NAFTA (1) (d).
Trade agreements are a factor in globalisation by encouraging trade across a number of countries. This may lead to increased investment from other countries (1)
for example Audi has built a factory in Mexico in order to gain access to other NAFTA countries (1).
Explain how differential access to markets can impact on economic well-being.
Being in a trading bloc increases the potential for trade (1),
for example NAFTA means that trade is enabled between Mexico and the US (1) (d).
This improves economic well-being for Mexico where thousands of jobs are generated in the car industry (1).
However, being in a trading bloc can also have negative impacts such as a dependence on the economy of countries in the trading bloc (1).
Outline the spatial organisation of one transnational corporation(TNC) you have studied.
Apple is a global brand which has its main operations based across North America, Europe and Asia (1).
Its HQ and research centre is based on its own campus – Apple Campus in Cupertino, California (1)(d).
Assembly is mainly outsourced to Foxconn who have bases across China making use of a vast low-cost labour market (1).
Foxconn has its main production base in its own purpose-built city, Foxconn City in Guangdong (1)(d).
Outline threats to Antarctica from fishing and whaling.
Antarctica marine waters are highly productive due to the Antarctic Convergence where the upwelling and mixing creates waters rich in
oxygen and nutrients (1).
This makes them highly lucrative for fishing businesses and over-fishing has occurred (1) (d).
Many species of whales have been over-exploited (1).
However, the threat is now less due to the establishment of the IWC which banned commercial whaling globally in 1982 (1).
Explain how one transnational corporation (TNC) has contributed to the globalisation of the world’s economy.
Nike has become one of the world's largest suppliers of sports equipment (1),
employing over 44 000 workers in over 50 countries (1) (d).
Manufacturing helps the social and economic development of these countries through the transfer of skills, technology and the rise in wages (1).
The company’s headquarters and much research takes place in Oregon in the USA (1)
but its products are manufactured in poorer countries like Indonesia and Vietnam, where labour costs are cheaper (1) (d).
Globalisation is the process of becoming more globally connected on a variety of scales, involving the movement of people, knowledge, ideas, goods, and money across national borders
Globalisation leads to a theoretically 'borderless world'
Even environments are globalised, with pollutants from other countries affecting climate and global laws to mitigate climate change
Dimensions of Globalisation:
Flows occur when countries share things with one another
Flows can be physical (people, products) or non-physical (ideas, money, services, information)
Flows include capital, labour, products, services, and information
Flows of Capital:
Movement of money for investment, trade, or business production
Major flows occur between core regions (wealthier, developed countries) and periphery regions (less wealthy, developing countries)
International Monetary Fund (IMF) fosters global monetary cooperation, financial stability, international trade, employment, economic growth, and poverty reduction
The World Bank gives out loans for development or relief, with loan repayments flowing back
Flows of Labour:
Movement of people who move to work in another country
3-4% of the world's population are international migrants
Migration is mainly to high-income countries
Highly skilled workers move for higher wages, while unskilled workers move due to high unemployment rates
Flows of Products:
Physical goods flow from one country to another
Products are now traded internationally due to technological advancements
Production has relocated internationally (offshoring) to low-income countries for lower costs and enhanced profits
Flows of Services:
Footloose industries can locate anywhere without constraints
High level services require higher skill levels, while low level services require less training
Services can be produced in a different country than where they are received
Flows of Information:
Information can flow via the internet, SMS, phone calls, etc.
Fast broadband and connections allow instant transfer of news and financial information
Social media facilitates global communication and interconnectedness
Global Marketing:
Businesses can market their products on an international scale
Global marketing strategies include creating brand awareness and keeping the same strategy worldwide
Factors Affecting Globalisation:
New financial technologies and systems accelerate globalisation by connecting institutions and banks internationally
Transport technologies, systems, and relationships have made global connections easier and faster
Security technologies and systems have been developed to ensure safety in a globalised world
Communication technologies enable the transfer of information, services, and capital globally
Patterns of Production, Distribution, and Consumption:
Developed markets dominate global exports in manufactured goods, automotive products, steel and iron, and agricultural products
Emerging economies contribute to the oil industry and textile and clothing exports
HICs consume manufactured products more than LICs, with developing economies demanding fuel and minerals
Moving production overseas to low income countries can be beneficial due to quick and easy communication with overseas factories
Services can be accessed through the internet or phone, creating thousands or millions of jobs through communication technology alone
Global availability of smartphones and apps has added a new dimension to migration, allowing people to move with fewer restraints
Relationships can be maintained over great distances, deepening global connections and potentially increasing flows of labor
Common systems in global companies aim to make management more efficient
Economies of scale involve increasing profits by producing a larger amount of products to lower the average price per product
Global supply chains manage product flows from manufacturing to delivery, allowing different production stages in different countries
Outsourcing involves hiring other companies for essential tasks, saving money in low income countries due to lower labor costs
Offshoring relocates company processes abroad to save money on taxes, materials, and labor costs
Trade agreements have accelerated globalization by making international trading less expensive and easier
Trade agreements aim to benefit all parties involved by removing or lessening certain restrictions
Tariffs, non-tariff barriers like quotas, and bans on products or country import/exports can hinder trade
All trade agreements are overseen by the World Trade Organisation (WTO) to ensure fairness
Interdependence theory states that nations depend on each other economically, politically, socially, and environmentally
Interdependent countries rely heavily on decisions of other countries and may struggle without them
Unequal flows of people, money, ideas, and technology can lead to benefits, inequalities, injustices, or conflicts
Migration tends to occur from low income countries to high income countries due to better opportunities
Unequal flows of money often benefit low income countries through investments, aid, and remittances
Richer, more developed countries tend to have more power and influence in global systems
International trade is increasing, with patterns showing investments from HICs to LICs and emerging economies, and trade shifting towards emerging economies
Access to markets within international trade is impacted by factors like trade agreements and barriers that limit imports and exports
Reduced access to markets due to trade agreements disallowing countries within them to trade as freely with other countries