GS + GG - Content

• Explain the concept of the ‘global commons’.

  • 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