2.1 Global systems and interdependence Flashcards
What is a global system
socioeconomic system which encompasses part/all of the globe
What do global systems represent
The interdependence which is happening in todays world
Give an example of a model used to describe global systems and how it is changing
Core, Periphery and Semi-Periphery model
It is changing due to the growth of Semi-Periphery’s such as ‘tiger’ economies
What are the advantages and disadvantages of global systems
They are supported by international organisations, making them stable.
Sometimes the decisions are biased
Who oversees the global environmental system
IPCC - UN body featuring 195 countries
Who oversees the global financial system
IMF (lenders of last resort)
World bank (reduce poverty)
They are crucial for the worlds economic order
Why do people criticise the IMF and World bank
The are ‘top down’ rather than ‘bottom up’ causing them to make bad decisions like cut education funding
Who oversees the global trade system
WTO
When was the WTO established and how many members does it have
Established 1995 and has 160 countries, 75% of which are developing
What are the aims of the WTO
Supervise trade
Provide stability
Negotiate/Mediate
Give an example of a failed WTO agreement
The Doha agreement lasted from 2001-2008 and aimed to reduce agricultural tariffs by 30%
USA, UK and Japan said it risked their own goods and said it was unfair
Give an example of a successful WTO agreement
The Bali package was a multilateral package involving 159 countries,
all agreeing to remove red tape custom procedures
What are the 2 main issues of interdependence
Outsourcing and Labour issues
Geopolitical issues
What is outsourcing
Cost saving strategy when work is produced elsewhere
What are the positives of outsourcing
- Addresses important skill and labour shortages
- Workers can return home with new skills
- In HIC’s opportunity for better work may come along
