2.1.2 Global systems

Question 1

Why does globalisation cause economic interdependence?

Answer 1

Countries rely on each other for economic growth.
e.g. oil is produced by one group of countries and consumed by another group of countries. Consumers rely on producers to sell them oil, while producers rely on the money the consumers give them when they buy the oil.

Question 2

Why does globalisation cause political interdependence?

Answer 2

Countries are dependent on each other to solve issues that cannot be addressed by just one country.
e.g. in the 2015-16 European migrant crisis, the countries of Europe had to work together to support refugees from the conflict in Syria.

Question 3

Why does globalisation cause social interdependence?

Answer 3

Greater connections between people living in the different countries.
e.g. in 2015, there were 244 million migrants worldwide - migrants build new relationships and become interdependent with people from other countries.

Question 4

Why does globalisation cause environmental interdependence?

Answer 4

Every country in the world is dependent on the rest of the world to look after the environment.
e.g. in 1986, a reactor at the Chernobyl nuclear plant in Ukraine exploded. Radiation from the explosion led to an increase in some cancers and birth defects in Ukraine, Russia and Belarus, and possibly further afield.

Question 5

Why does interdependence create inequality?

Answer 5

Flows of people, money, ideas and technology are unequal

Question 6

What are the benefits of unequal flows of people?

Answer 6

• Immigrants can create economic growth, as they do jobs that a country’s citizens can’t (e.g. skilled jobs like engineering) or don’t want to do (e.g. dangerous jobs like mining).
• Many migrants send money back to their families or home communities - this is called a remittance. Remittance payments can significantly increase the amount of capital flowing into less developed countries. This can create economic growth in the home country because local people can afford to spend more, boosting the local economy.

Question 7

What are the problems caused by unequal flows of people?

Answer 7

• Less developed countries suffer from ‘brain drain’ - skilled people leave and take their knowledge with them. This reinforces existing inequalities between countries.
• Low-skilled migrants are often happier to work for less money than low-skilled workers. By employing them, companies may depress wages for the local population. This can cause conflict between the local and migrant populations.
• Migrant workers are made to work in dangerous conditions for little money, e.g. in Qatar, several thousand migrants died building facilities for the 2022 FIFA World Cup.

Question 8

What can flows of money include?

Answer 8

Remittances, foreign aid, foreign direct investment (FDI) and income from trade

Question 9

What are the benefits of unequal flows of money?

Answer 9

• FDI allows foreign companies and countries to take advantage of cheap raw materials and low labour costs, while the host country can benefit from foreign capital and expertise.
• Foreign aid can be used to improve living standards or to rebuild local infrastructure after a disaster.

Question 10

What are the problems caused by unequal flows of money?

Answer 10

• Foreign aid can create dependency, which gives governments little incentive to improve their own countries. FDI can force out local businesses, because foreign companies with superior capital and technology can make products more efficiently.
• Foreign aid can find its way to armed groups and help to fund conflict. FDI can cause conflict between foreign companies and local people - e.g. FDI in agriculture can lead to peasant farmers being evicted to create larger plantations.
• Companies may pressure governments of less developed countries to pass laws that make it cheaper to invest there - e.g. by cutting environmental regulation or weakening laws on working conditions.