gen 005

• Global governance or world governance


  A movement towards political cooperation among transnational actors, aimed at negotiating responses to problems that affect more than one state or region
• Global Interstate System


  The whole system of human interactions. The modern world-system is structured politically as an interstate system of competing and allying states
• Institutions of global governance

  • United Nations
  • World Bank
  • International Criminal Court of Justice
  • World Trade Organization
  • NAFTA
  • International Monetary Fund
  • World Health Organization
  • NATO
• United Nations


  • An international organization designed to make the enforcement of international law, security, and human rights; economic development; and social progress easier for countries worldwide
  • Includes 193 member countries and 2 permanent observer entities
  • Primary purposes: Maintaining worldwide peace and security, Developing relations among nations, Fostering cooperation between countries to solve economic, social, cultural, or humanitarian international problems
• World Bank


  • An international financial institution that assists the development of its member nation's territories, promotes and supplements private foreign investment, and promotes long-range balanced growth in international trade
• International Criminal Court of Justice


  • An intergovernmental organization and international tribunal that has jurisdiction to prosecute individuals for the international crimes of genocide, crimes against humanity, war crimes, and the crime of aggression
• World Trade Organization


  • The only international organization dealing with the global rules of trade, ensuring that trade flows as smoothly, predictably, and freely as possible
• NAFTA


  • The North American Free Trade Agreement's purpose is to reduce trading costs, increase business investment, and help North America be more competitive in the global marketplace. The agreement is between Canada, the United States, and Mexico
• International Monetary Fund


  • An organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty worldwide
• World Health Organization


  • Provides leadership and determines paths for research, acts as a directing and coordinating authority on international health work, and ensures good and productive technical cooperation. The objective is the attainment by all peoples of the highest possible level of health
• NATO

  • A formal alliance between the territories of North American and Europe, with the primary purpose of defending each other from the possibility of the communist Soviet Union taking control of their nation from its inception. Collective defense is at the heart of the Alliance and creates a spirit of solidarity and cohesion among its members
• Importance of global interstate system

  • The most important feature is that it is anarchic, unlike politics within states. Relations between states take place in a Hobbesian state of nature, so their main goal is security
  • Purposes: Stimulate economic progress and world trade, Providing a platform to compare policy experiences, Seeking answers to common problems involving member states, Identify good practices and coordinate domestic and international policies of its members
• Dictatorship


  The centralization of power to a single entity, where the leader personifies the entire political structure and rules without limitations
• Martial law


  The imposition of direct military control of normal civil functions or suspension of civil law by a government, especially in response to a temporary emergency where civil forces are overwhelmed or in occupied territory
• Foreign Direct Investment (FDI)


  A purchase of an interest in a company by a company or an investor located outside its borders, generally involving acquiring a substantial stake in a foreign business or buying it outright to expand operations to a new region
• How Foreign Direct Investments (FDI) Work

  • Companies look at open economies that offer a skilled workforce and above-average growth prospects, with light government regulation. FDI frequently goes beyond capital investment and may include the provision of management, technology, and equipment
• Types of Foreign Direct Investment

  • Horizontal - Establishing the same type of business operation in a foreign country as in the home country
  • Vertical - Acquiring a complementary business in another country
  • Conglomerate - Investing in an unrelated foreign business, often through a joint venture
• Technological Innovation


  The process where an organization embarks on a journey where the importance of technology as a source of Innovation has been identified as a critical success factor for increased market competitiveness. It comprises new products, processes, and significant technological changes
• Technology


  Applying scientific knowledge for practical purposes or the branch of knowledge concerned with applied sciences
• Innovation


  The effort to create purposeful, focused change in an enterprise's economic or social potential. It is the action phase, following the idea phase of creativity
• Creativity


  The use of imagination or original ideas to create something. It is the idea phase, preceding the action phase of Innovation
• Invention


  The creation of a new product, service or process. Invention precedes Innovation, which is concerned with developing and implementing new systems, products, or services based on an invention
• Changes due to Technological Innovation

  • Faster transportation
  • Improved communication
• Act of introducing

  Innovation
• Invention


  The creation of a new product or service or process
• Innovation


  Introducing new product or service or process into the marketplace
• Invention


  Precedes Innovation
• Invention


  Based on a new idea that is turned into some conceptual model that demonstrates the feasibility
• Innovation


  Concerned with developing and implementing new systems, products, or services and is typically based on an invention
• Changes due to technological innovation

  • Transportation
  • Communication
  • Education
  • Job Creations
  • Health care
  • Relationships
  • Crime Detection
• Incremental Innovation


  • Small but important improvements in a product, process or service
  • Associated with enhanced customer satisfaction
• Architectural Innovation


  • Existing technologies and link new technologies in novel ways
  • Built not on new technological breakthroughs but on integrating competencies
  • Product structure change with no important effect on component subsystems
• Radical Innovation


  • Revolutionary
  • Examples: Railroads, electricity, computers, the Internet
  • Changed the way in which goods and people were transported, the way people lived and used equipment
• Globalization has offered the world significant advantages for economic gains and comfortable living
• The bad side of Globalization is all about the new risks and uncertainties brought about by the high degree of integration of domestic and local markets, intensification of competition, high degree of imitation, price, and profit swings, and business and product destruction
• Prevalent risks of globalization

  • Equity distribution
  • National sovereignty
  • Interdependence
• Economic system


  A system of production, resource allocation, and distribution of goods and services within a society or a given geographic area
• Four main types of economic systems

  • Traditional
  • Command
  • Market
  • Mixed
• Sustainability is living to minimize humans' negative impact on the earth and the animals and plants we share it with
• Sustainable development


  Economic development that is conducted without depletion of natural resources