THE GLOBAL INTERSTATE SYSTEM
IMPORT
What is a STATE? -are goods and services produced in a foreign
country and bought by domestic. That includes
In politics, a state is the government of
anything shipped into the country even if it's by
a country which has control over
the Foreign subsidiary of a domestic firm. If the
a geographic area or territory. States have
consumer is inside the country’s boundaries
three main features:
and the provider is outside, then the good or
• Control over a geographic area, service is an import.
or territory.
EXPORT
• A people, the population of the state.
Exports are goods and services that are made
• Institutions which have the power to in a country and sold outside its borders. That
make laws. includes anything shipped from a domestic
company to its foreign affiliate or branch.
GLOBAL INTERSTATE SYSTEM
It is the whole system of human interactions.
The modern world system is structured TYPES OF TRADE AGREEMENT
politically as an interstate system - a system of
● UNILATERAL
competing and allying states. Political scientists
commonly call this the international system and It occurs when a country imposes trade
this is the focal point of the field of international restrictions and no other country reciprocates.
relations.
A country can also unilaterally loosen trade
Institution that govern international restrictions, but that rarely happens.
Relations
● BILATERAL
UNITED NATIONS
are between two countries. Both countries
United States President FRANKLIN agree to loosen trade restrictions to expand
ROOSEVELT coined the name united nations business opportunities between them. They
that was used in the declaration of United lower tariffs and confer preferred trade status
Nation on 1 of January 1942. with each other.
UN means allies to fight against the Axis ● MULTILATERAL
Powers in the Second World War II. Only 26
are the most difficult to negotiate. These are
nation’s representatives pledge their
among three countries or more. The greater
governments to:
the number of participants, the more difficult
1. Each Government pledges itself to the negotiations are. They are also more
employ its full resources, military or complex than bilateral agreements. Each
economic, against those members of the country has its own needs and requests.
tripartite pact and its adherents with
which such government is at war.
GLOBAL INTERSTATE SYSTEM
2. Each Government pledges itself to
cooperate with the Governments World-systems are defined by the existence of
signatory hereto and not to make a a division of labor. The modern world-system
separate armistice or peace with the has a multi-state political structure (the
enemies. interstate system) and therefore its division of
labor is international division of labor.
FREE TRADE
The division of labor consists of three zones
TRADE AGREEMENT
according to the prevalence of profitable
Trade agreements are when two or more industries or activities: core, semi periphery
nations agree on the terms of trade between and periphery.
them. They determine the tariffs and duties that
countries impose on imports and exports. All
trade agreements affect international trade.
process of designating laws, rules, or
regulations intended for a global scale.
DIVISION OF LABOR
EFFECTS OF GLOBAL GOVERNANCE
Core - High income nations in the world
economy. This is 1 the manufacturing base of Globalization restrains governments by
the planet where resources funnel in to inducing increased budgetary pressure. As a
become the technology and wealth enjoyed by consequence, governments may attempt to
the Western World today. They are dominant curtail the welfare state, which is often seen as
capitalist countries that exploit peripheral a drag on international competitiveness, by
countries for labor and raw materials. reducing especially their expenditures on
transfers and subsidies.
Semi-periphery are the middle-income
countries, such as India and Brazil. These are What is Nation?
considered semi-periphery due to their closer
A nation is a large type of social organization
ties to the global economic core.
where a collective identity has emerged from a
Semi-peripheral countries share characteristics combination of shared features across a given
of both core and peripheral countries. population, such as language, history, ethnicity,
culture, territory and/or society.
Periphery called as the low-income countries,
whose natural resources or labor support the • Internationalization refers to the
wealthier countries, first as colonies and now increasing importance of international
by working for multinational corporations under trade, international relations, treaties,
neocolonialism. alliances, and many more. International,
means between or among nations. The
Peripheral countries are dependent on core
basic unit remains the nation, even as
countries for capital and have underdeveloped
relations among nations become
industry.
increasingly necessary and important.
Resources are redistributed from the
• Globalization refers to global economic
underdeveloped (poor part of the world - the
integration of many formerly national
periphery) to developed countries (core).
economies into one global economy,
Cyclical rhythms represent the short-term mainly by free trade and free capital
fluctuation of economy, while secular trends mobility, but also by easy or
mean deeper long run tendencies, such as uncontrolled migration. It is the effective
general economic growth or decline. erasure of national boundaries for
economic purposes. International trade
The term contradiction means a general (governed by comparative advantage)
controversy in the system, usually concerning becomes interregional trade (governed
some short term vs. long term trade- offs. The by absolute advantage).
last temporal feature is the crisis: a crisis
occurs if a constellation of circumstances International trade is the exchange of capital,
brings about the end of the system. goods, and services across international
borders or territories because there is a need
The world-system theory stresses that world- or want of goods or services.
systems should be the basic unit of social
analysis. Thus, we should focus not on Interregional trade is occurring between, or
individual states, but on the relations between existing between two or more regions.
their groupings (core, semi-periphery, and
periphery)
GLOBAL GOVERNANCE
Global Governance is sometimes referred to as
"world governance." Global is a movement
towards political cooperation among
transnational actors, negotiating responses to
problems that affect more than one state or
region. "Global Governance" may mean the
