global systems and governance

• The International Monetary Fund provides loans to countries with balance of payments problems and grants crisis loans to help countries recover from financial crises.
• The UN's primary purpose is to maintain peace and security among nations through collective action.
• The World Bank focuses on development aid, development projects, and policy advice for developing countries to reduce poverty and improve living standards.
• The UN is the most important international organization, with 193 member states.
• The World Trade Organization aims to promote free trade and multilateral trade agreements between nations.
• The United Nations Development Programme (UNDP) works on sustainable human development by providing funding and expertise to projects aimed at reducing poverty and promoting economic growth.
• The World Bank is an international organization that provides development assistance, including loans, technical support, and policy advice, to developing countries.
• six factors of globalisation: economy, society, culture, technology, environment, and politics
• globalization has led to increased interconnectedness among people, organizations, and governments across different regions
• four factors of production: capital (examples- factories and machinery), land (natural resources), labour (quality and quantity), enterprise (organise production or oversee Services
• imf: international monetary fund, provides loans to countries in need of financial assistance
• wto: world trade organisation, promotes free trade between nations by reducing barriers such as tariffs and quotas on imports and exports
• flows of labour: host country- increase in workers, pressure on services. Original country- can develop due to remittances, lose workforce
• factors that facilitate flow of goods: transport (containerisation), WTO encourage low tariffs, lower transaction costs (capital transferred more easily)
• advantages of globalisation: economic growth, improved living standards, cultural exchange, technological advancements, environmental benefits
• high level services: services to businesses (finance, investment, advertising)
• low level services: services to individuals (tourism, education, healthcare)
• conglomerate corporation: a firm made of different smaller firms which serve several different functions
• vertical integration: when one company owns all stages of production from raw materials to finished product
• footloose industries: an industry which can be located anywhere without factors such as cost being affected
• outsourcing: when companies move their operations abroad to take advantage of lower costs or better resources
• flows of information: movement of people and spread of data, transfer of cultural ideas, language, industrial technology and design
• globalisation is the process by which countries become more interconnected through trade, investment, migration and communication.
• global marketing: the activity or business of promoting and selling products or services globally
• impacts of TNCs: (in LICs/NEEs) provides jobs, multiplier effect, inward investment, take profits back to HICs, drain natural resources, increase placelessness
• multiplier effect: money spent on goods and services within a country creates further spending and employment opportunities
• TNCs are transnational corporations that operate across national borders
• placelessness: lack of identity due to homogenised culture
• migration will affect globalisation as the movement of people will increase the integration of societies and cultures
• International panel on climate change: the UN's body for assessing climate change
• top down: when a decision is made by the government or local authority with little or no input from the public
• bottom up: when local people are consulted about projects that will affect them- they are more likely to support them
• ten factors of globalisation: trade, global marketing (global brands market for whole globe), capital/investment (easier for trade), communications (technology), transport (faster and easier), TNCs, collapse of communism (more countries in global market), travel, migration, containerisation
• The banana wars: Ecuador grows bananas- bad for environment (fertilisers, mass produced, deforestation) sold to US and EU, not much fair trade, grow marijuana, causes political issues
• TNCs operate in different countries: escape trade tariffs, low labour costs, exploit natural resources, access to markets
• common TNC characteristics: organise production to minimise cost, sourcing cheapest raw materials, easily recognised branding
• TNCs can grow because: cheap labour, globalised transport networks, technology developments
• TNC headquarters usually in HIC in major city, they engage in research and development to keep competitive
• agglomeration: when companies in similar industries locate near to each other because they share ideas and resources
• vertical integration: an arrangement when the supply chain of a company is all owned by that company. Raw materials to finished product