Global systems and governance essays

Globalisation definition A process by which national economies, societies and cultures have become increasingly integrated through the global network of trade, communication, transportation and immigration. What are the 5 factors that promote globalisation? Flows of: Information Capital Products Services Labour What are flows of information Information is things such as financial data or current news that can be spread across the world very fast. Development of email, social media and the internet allows large amounts of info to be transported across globe immediately this then allows different countries to communicate and work together. Increasing flows of information makes our world more interconnected as people can learn about other countries without leaving their own. What is capital money that is invested to produce an income or profit What are flows of capital Historically people only invested money into their own country (things like building factories and expanding). Now the amount of capital invested into other countries (foreign direct investment) has increased by lots increasing from about $400 b to $1500 b in last 20 years. Improvements of ICT has increased flows of capital as you can do it on the internet. Increased flows making the world more interconnected as most countries are reliant on investment to and from other countries. What are flows of products Historically products were made in more developed countries and sold where they were made. Recently manufacturing has decreased in developed countries, the number of people employed in the UK for manufacturing halved in the last 20 years. This is due to lower Labour costs overseas, so many companies and relocated the production of their business abroad. Then import the products to more developed places to be sold. This causes international trade to increase, doubling in the last 20 years. This makes the world more interconnected as many products have been imported from other countries. What are services? Economic activities that aren't based around producing any material good e.g. banking What are flows of services Improvements of ICT have allowed services to become global industries. These improvements mean they can be located anywhere in the world and still serve people. Services are split into low level (customer service) which tend to be located in less developed countries, or high level (financial services) which tend to be in highly developed places like London New York. Increasing flows of services increases interconnectedness of the world as by having a bank account you're connected with other countries. What is labour movements of people who participate in the work force from one country to another. What are flows of labour? International migration increased by over 40% in the last 15 years. Some people move as they have to to escape conflict zones, but others choose to move for work. Some are highly skilled workers (ICT, doctors) moving for better wages and working conditions. Others are unskilled who move due to unemployment or poor wages in own country. This makes countries more interconnected as these people bring their cultures with them and have family all over the world. Name the three driving forces behind globalisation New systems technology Relationships What are financial systems They're based on investment banks, the main role of banks is to help companies raise money by selling shares on behalf of those companies. What happened to make the financial system more global? Information technology like the internet allowed investors greater access to information. For example a company can see if another business is doing good or bad to help them decide whether to invest. New financial products were made making foreign investment less risky. Governments put in place financial deregulation. This is relaxing the rules arounds banks allowing them to invest in a wider range and buy and sell shares across the world. These changes led to a greater range of companies getting involved in finance.