Globalisation and global systems; international trade, capital flows and migration; the role of transnational corporations; unequal power relations; and the global governance of the oceans and Antarctica as global commons.

What this dot point is asking

AQA section 3.2.1 wants you to define globalisation and global systems, explain the international flows of trade, capital, labour and information, analyse the role of transnational corporations and the unequal power relations in the global system, and evaluate the global governance of the global commons, especially the oceans and Antarctica. The synoptic idea is interdependence: the same flows that connect the world also generate inequality, which governance struggles to regulate.

Globalisation and global systems

Globalisation has several dimensions, economic (trade and investment), social (migration, shared lifestyles), cultural (the spread of media, brands and ideas, sometimes criticised as cultural homogenisation) and political (international organisations and agreements). It has been accelerated by improvements in transport (containerisation, air freight), communications technology (the internet, fibre-optic cables) and the liberalisation of trade and finance since the late twentieth century.

Flows: trade, capital and migration

International trade has grown rapidly with falling tariffs, free-trade agreements and trade blocs (the EU, USMCA, ASEAN), which reduce barriers between members but can disadvantage non-members. Capital flows include foreign direct investment (FDI), aid, portfolio investment and remittances sent home by migrant workers, which are a major income source for many lower-income economies. Labour migration moves workers between countries, generating remittances and skill transfers but also a brain drain when skilled workers leave their home country.

TNCs and unequal power relations

TNCs organise production through outsourcing, offshoring and global production networks, spreading technology and capital while concentrating profit and strategic decision-making in their home countries, usually in the global North. Power in the global system is unequal: wealthy states and large corporations shape the rules of trade and finance, while many lower-income countries remain dependent on exporting primary commodities at volatile prices. This fuels debates about trade justice, dependency, the terms of trade, and whether globalisation narrows or widens the development gap.

Global governance and the global commons

Global governance is the regulation of shared problems through institutions (the UN, IMF, World Bank, WTO) and international law, coordinating action where no single state has authority. The global commons are resources lying beyond national jurisdiction:

• The oceans are governed by the UN Convention on the Law of the Sea (UNCLOS), which defines territorial waters and exclusive economic zones (EEZs) and sets rules for the high seas beyond them.
• Antarctica is managed by the Antarctic Treaty System, which reserves the continent for peace and science, bans military activity and, under the Madrid Protocol, prohibits mining.

Governance can promote stability, cooperation and environmental protection, but it is shaped by powerful states, often lacks strong enforcement, and can entrench rather than reduce inequality.

Try this

Q1. Define globalisation. [2 marks]

• Cue. The growing interconnection and interdependence of countries through flows of capital, labour, goods, services and information.

Q2. Name the agreement that governs Antarctica. [1 mark]

• Cue. The Antarctic Treaty System.

Q3. Explain how the global shift can create both winners and losers. [4 marks]

• Cue. It brings jobs, FDI and growth to host emerging economies, but causes deindustrialisation and structural unemployment in some source regions of developed countries.