Global systems and global governance
3.2.1.1 Globalisation
Dimensions of globalisation: flows of capital, labour, products, services and information; global
marketing; patterns of production, distribution and consumption.
Globalisation – a process by which national economies, societies, and cultures have become
increasingly integrated through the global network of trade, communication, transportation and
immigration
Flows of Capital
Deregulation of world financial markets in the late twentieth centaury meant that the activities of
financial institutions were no longer confined within national boundaries
BRIC – Brazil, Russia, India and China (economies that have advanced rapidly since 1990s)
MINT – Mexico, Indonesia, Nigeria and Turkey (more recently emerging economies)
Diaspora – a large group of people with a similar heritage or homeland who have moved and settled
in places all over the world
Capital – all money that moves between countries which is used for investment, trade or production
Foreign direct investment (FDI) – investment made mainly by TNCs based in one country into
the physical capital or assets of foreign enterprises
Repatriation of profits – TNCs investing in overseas production will normally take any profit
made from that investment back to their home country (economic leakage)
Remittance payments – transfers of money made by foreign workers to family in their home
country
Flows of labour
Largest flow of labour in the world is in Asia (between 2005 and 2010 5 million workers moved from
South to West)
Remittance dilemma in Somalia, 2012
- 40% of Somalians rely on remittances to meet their basic needs
- Account for 50% of GNI
- 80% of all investment in the country
Flows of products
Containerisation – a system of standardised transport that uses large standard size steel containers
to transport goods, enabling cheaper, efficient transport
Protectionism – a deliberate policy by government to impose restrictions (tariffs) on trade in goods
and services with other countries with the intention of protection home based industry (e.g. USA
imposing tariffs on goods from China)
3.2.1.1 Globalisation
Dimensions of globalisation: flows of capital, labour, products, services and information; global
marketing; patterns of production, distribution and consumption.
Globalisation – a process by which national economies, societies, and cultures have become
increasingly integrated through the global network of trade, communication, transportation and
immigration
Flows of Capital
Deregulation of world financial markets in the late twentieth centaury meant that the activities of
financial institutions were no longer confined within national boundaries
BRIC – Brazil, Russia, India and China (economies that have advanced rapidly since 1990s)
MINT – Mexico, Indonesia, Nigeria and Turkey (more recently emerging economies)
Diaspora – a large group of people with a similar heritage or homeland who have moved and settled
in places all over the world
Capital – all money that moves between countries which is used for investment, trade or production
Foreign direct investment (FDI) – investment made mainly by TNCs based in one country into
the physical capital or assets of foreign enterprises
Repatriation of profits – TNCs investing in overseas production will normally take any profit
made from that investment back to their home country (economic leakage)
Remittance payments – transfers of money made by foreign workers to family in their home
country
Flows of labour
Largest flow of labour in the world is in Asia (between 2005 and 2010 5 million workers moved from
South to West)
Remittance dilemma in Somalia, 2012
- 40% of Somalians rely on remittances to meet their basic needs
- Account for 50% of GNI
- 80% of all investment in the country
Flows of products
Containerisation – a system of standardised transport that uses large standard size steel containers
to transport goods, enabling cheaper, efficient transport
Protectionism – a deliberate policy by government to impose restrictions (tariffs) on trade in goods
and services with other countries with the intention of protection home based industry (e.g. USA
imposing tariffs on goods from China)
