QA A-level Global Systems and Governance Knowledge Booklet
A
lobalisation
G
S hifts between capital, people and ideas due to the interconnectedness of the world and increasing
interdependence due to modern technology and trade which can be said to cause a time-space
compression
Dimensions of globalisation:
1. Flows…
- Flows of capital: the movement of money for investment/trade/businessproduction
- Money is usually invested by overseas (HDE &EME) companies
- HDEs and EMEs like investing in LDEs as there are cheaper production costs
- Flows of labour: the movement of people AKA migration
- Voluntary: The number ofeconomic migrantshas increaseddue to the rise
of TNCs and modern (cheaper and faster) transportation
- Involuntary:Refugeesandasylum seekers
- Flows of products: the movement of produced goods
- Product flows are the movement between an area of production and
consumption
- They are becoming more international due to globalisation
- Flows of services
- Due to technology, services can transfer information without being tied to a
location
- High-level serviceslike finance/banking require qualifiedworkers and are
often located in global city hubs eg. London
- Low-level serviceslike call centres require minimallytrained workers and are
often located offshore (where there are cheaper labour costs)
- Flows of information
- Rapidly grown due to the Internet, social media and broadband
- The real-time data and sharing of information has increased the
interconnectedness of the world
2. Global Marketing…
- International brand awareness: the more a brand isrecognised the higher its profits
- Having 1 marketing strategy helps create a global identity which increases
global awareness, trust and sales and decreases marketing costs
- A trademark is a legally registered representation of a brand eg. McDonald's
‘M’ logo
- Glocalisation: when a global company produces productsaimed at a local market
, - T o attract the maximum number of customers TNC’s may adapt their
products to match local cultures
- Eg. In India, there’s no beef in Starbucks and a
McChilliPaneerPockets
- Patterns of production, distribution and consumption:
- Developed markets dominate the global exports of manufactured goods,
especially the EU and the US
- In the past manufacturing happened in Industrialised countries eg. USA/UK.
Now LDEs and NEEs do most manufacturing because of cheaper labour costs
eg. India/China. This is known as the “global shift”
- HDEs have the loudest demands
- HDEs consume and produce luxury products within them so there are
cheaper exporting costs
Factors of globalisation:
T he development of new technologies, including computers, mobile phones, the internet and
satellites has created a more globalised world through the rise of…
- Rise of communications:
- Global communication is much easier today allowing for faster flows of information,
services and capital
- Satellites/fibre-optic communication → better internet and mobile phone
systems → faster transfer of information and capital
- Online services → create millions of jobs internationally
- More apps/social media → more global connections
- Ready access to information → shrinking space-time continuum
- Rise of management & information systems:
- Global supply chains
- Easy communication of information and transport nowadays → can have
stages of production in different companies → more cost and time-effective
than all in one factory → increase overall profit
- Economies of scale
- Making a larger amount of a product → decreases production cost per
product → increases overall profit
- Outsourcing
- Better global communication → hiring other companies (usually in an LDE) to
do a task due to cheaper labour costs → increases overall profit
- Offshoring
, - etter communication, transport and ability to transfer money
B
internationally → moving a company process abroad for cheaper labour
costs → increases overall profit
- Rise of trade agreements:
- Trade agreements accelerate globalisation because they make international trade
easier and cheaper
- Restrictions such as tariffs and non-tariff barriers can be removed with trade
agreements → increases the volume of trade
- trade bloc is a group of countries that work together to increase trade and boost
A
economic growth
- Trade agreements are 97% overlooked by the World Trade Organisation(WTO) to
ensure they are fair
- Provides a forum for negotiations and ensures agreements are followed →
encourages cooperation between countries and promotes peace/stability
- ise of global financial systems:
R
The financial system is the relationship between those who lend/borrow money and the
institutions who hold/give out/take in money eg. a bank
- Banks and financial institutions are now globally in one large global financial system:
these systems allow easy flows of money
- TNCs invest their profits for more interest → billions of dollars in the global
financial system
- People buy and sell shares and stocks from global corporations
- Countries invest and take loans from huge financial institutions eg. World
Bank → a huge global flow of capital
- Countries borrow/lend money to each other → financial relationships
between countries
- Financial technology has allowed for global financial information
- Global communication → access to information on stocks → allows for
international investment
- Access to international banks → people can have off-shore accounts →
Personal wealth increases
A
lobalisation
G
S hifts between capital, people and ideas due to the interconnectedness of the world and increasing
interdependence due to modern technology and trade which can be said to cause a time-space
compression
Dimensions of globalisation:
1. Flows…
- Flows of capital: the movement of money for investment/trade/businessproduction
- Money is usually invested by overseas (HDE &EME) companies
- HDEs and EMEs like investing in LDEs as there are cheaper production costs
- Flows of labour: the movement of people AKA migration
- Voluntary: The number ofeconomic migrantshas increaseddue to the rise
of TNCs and modern (cheaper and faster) transportation
- Involuntary:Refugeesandasylum seekers
- Flows of products: the movement of produced goods
- Product flows are the movement between an area of production and
consumption
- They are becoming more international due to globalisation
- Flows of services
- Due to technology, services can transfer information without being tied to a
location
- High-level serviceslike finance/banking require qualifiedworkers and are
often located in global city hubs eg. London
- Low-level serviceslike call centres require minimallytrained workers and are
often located offshore (where there are cheaper labour costs)
- Flows of information
- Rapidly grown due to the Internet, social media and broadband
- The real-time data and sharing of information has increased the
interconnectedness of the world
2. Global Marketing…
- International brand awareness: the more a brand isrecognised the higher its profits
- Having 1 marketing strategy helps create a global identity which increases
global awareness, trust and sales and decreases marketing costs
- A trademark is a legally registered representation of a brand eg. McDonald's
‘M’ logo
- Glocalisation: when a global company produces productsaimed at a local market
, - T o attract the maximum number of customers TNC’s may adapt their
products to match local cultures
- Eg. In India, there’s no beef in Starbucks and a
McChilliPaneerPockets
- Patterns of production, distribution and consumption:
- Developed markets dominate the global exports of manufactured goods,
especially the EU and the US
- In the past manufacturing happened in Industrialised countries eg. USA/UK.
Now LDEs and NEEs do most manufacturing because of cheaper labour costs
eg. India/China. This is known as the “global shift”
- HDEs have the loudest demands
- HDEs consume and produce luxury products within them so there are
cheaper exporting costs
Factors of globalisation:
T he development of new technologies, including computers, mobile phones, the internet and
satellites has created a more globalised world through the rise of…
- Rise of communications:
- Global communication is much easier today allowing for faster flows of information,
services and capital
- Satellites/fibre-optic communication → better internet and mobile phone
systems → faster transfer of information and capital
- Online services → create millions of jobs internationally
- More apps/social media → more global connections
- Ready access to information → shrinking space-time continuum
- Rise of management & information systems:
- Global supply chains
- Easy communication of information and transport nowadays → can have
stages of production in different companies → more cost and time-effective
than all in one factory → increase overall profit
- Economies of scale
- Making a larger amount of a product → decreases production cost per
product → increases overall profit
- Outsourcing
- Better global communication → hiring other companies (usually in an LDE) to
do a task due to cheaper labour costs → increases overall profit
- Offshoring
, - etter communication, transport and ability to transfer money
B
internationally → moving a company process abroad for cheaper labour
costs → increases overall profit
- Rise of trade agreements:
- Trade agreements accelerate globalisation because they make international trade
easier and cheaper
- Restrictions such as tariffs and non-tariff barriers can be removed with trade
agreements → increases the volume of trade
- trade bloc is a group of countries that work together to increase trade and boost
A
economic growth
- Trade agreements are 97% overlooked by the World Trade Organisation(WTO) to
ensure they are fair
- Provides a forum for negotiations and ensures agreements are followed →
encourages cooperation between countries and promotes peace/stability
- ise of global financial systems:
R
The financial system is the relationship between those who lend/borrow money and the
institutions who hold/give out/take in money eg. a bank
- Banks and financial institutions are now globally in one large global financial system:
these systems allow easy flows of money
- TNCs invest their profits for more interest → billions of dollars in the global
financial system
- People buy and sell shares and stocks from global corporations
- Countries invest and take loans from huge financial institutions eg. World
Bank → a huge global flow of capital
- Countries borrow/lend money to each other → financial relationships
between countries
- Financial technology has allowed for global financial information
- Global communication → access to information on stocks → allows for
international investment
- Access to international banks → people can have off-shore accounts →
Personal wealth increases
