✅3.2.1.2 - Global systems

Question 1

What is interdependence?

Answer 1

When governments, companies, and countries are reliant and dependent upon one another

Question 2

What can unequal flows of money and people create?

Answer 2

Stability, but also inequality

Question 3

In unequal flows of people, what are the pros for source countries?

Answer 3

Migrants may send money back to the home country - remittances
Reduces pressure on services in the country, population pressure

Question 4

In unequal flows of people, what are the cons for source countries?

Answer 4

Population decrease, fewer people, smaller workforce
Looses tax, decrease in economy and skills
Population ages as younger people move away
Many people die on the way, boats on Mediterranean

Question 5

In unequal flows of people, what are the pros?

Answer 5

Greater workforce, boosts economy
Cheap labour
Greater levels of tax, more people spending in recipient country
Geopolitical links formed- e.g UK and India due to migration
Skilled workforce, doctors etc
Fills low skill, low paid jobs- 44% of cleaning jobs in London are ethnic minorities

Question 6

In unequal flows of people, what are the cons?

Answer 6

Increased population, demand for housing, jobs etc
Demand for infrastructure
Can lead to social tension, race riots, unrest
Increases cost for border control
1.53 million detained on Mexico border, costly
Country can become reliant on remittances- Estonia’s economy shrank 13% in UK’s 2009 recession due to lack of remittances

Question 7

What is the World Bank?

Answer 7

Organisation of 188 countries who work to promote financial co-operation to reduce poverty, usually through promotion of trade and high employment

Question 8

What is the UN?

Answer 8

Known as the ‘Guardian of International Peace, Security and Human rights’. Promotes development of poorer nations through work with the IMF and World Bank

Question 9

What is the WTO?

Answer 9

Deals with the rules of trade between countries ensuring trade flows freely, in favour of free trade

Question 10

What is the IMF?

Answer 10

Important source of financial and technical assistance to developing countries, main aim is to reduce poverty

Question 11

What can the impacts of outsourcing be?

Answer 11

Loss of jobs and de-industrialisation in the outsourcing country

Question 12

What is the de-multiplier effect?

Answer 12

Once people have lost their jobs, they can’t spend, so services in an area are lost and the area falls into decline

Question 13

What is the Gini Index?

Answer 13

Used to indicate internal inequality

Question 14

What would a Gini Index value of 1 indicate? 0?

Answer 14

1: That all a country’s income went to one person
0: The a country’s income was divided completely equally

Question 15

How has the World Gini coefficient changed over the last 200 years?

Answer 15

It has risen, from 0.43 in 1820 to 0.68 in 2005

Question 16

What is an example of product interdependence?

Answer 16

Ukraine’s reliance on Russia for their oil and natural gas, and Russia’s reliance on Ukraine and EU for income

Question 17

How much of Ukraine’s Gas comes from Russia?

Answer 17

1/2

Question 18

How much of the EU’s gas comes from Russia?

Answer 18

1/3

Question 19

What happened in 2002 that angered Russia over Ukraine?
How did Russia react to the offerings from the EU to Ukraine?

Answer 19

NATO asked Ukraine to join, and the EU suggested joining EFTA.
So Russia offered them oil discounts and money for rejecting the deals

Question 20

When did Russia turn off Ukraine’s gas supply?

Answer 20

2006, 2009, 2014

Question 21

Pros of unequal Flows of money

Answer 21

FDI- improves QoL
Aid can relieve disasters $11.3m to Fiji after Cyclone 2016

Question 22

Cons of unequal Flows of money

Answer 22

LIC workers become dependant on TNCs there- but TNCs are footloose, plus exploit them, like in sweatshops. Exploitation: over 1000 killed when Rana Plaza collapsed in 2013, Bangladesh. Used by Walmart. Workers still went in after to meet quotas.
TNCs can have leverage over LICs and get them to allow them to relax environmental laws and accept the pollution
Most profit stays with TNCs

Question 23

Pros of unequal Flows of Ideas

Answer 23

Copying HIC ideas like encouraging dereguation can succeed: e.g, CHile, deregulated telephone markets cut rates by 50%

Question 24

Cons of unequal Flows of Ideas

Answer 24

Profits of privitised industrises don’t go to country, rather the company
LICs may feel pressured to impose Western ideals on themselves to join agreements like SAPs from IMF

Question 25

Interdependence pros

Answer 25

Shared values, global citizenship. Same Goals, e.g, SDGs
Border less zones, more movement of people
Golden Arches Theory - countries in same supply chain won’t go to war due to interests in supply chain

Question 26

Interdependence cons

Answer 26

Industry jobs lost in HICs
TNCs are footloose, can leave country without money
Risk of Doomsday scenario. Like Covid. Or WannaCry virus in 2017, hit 200,000 (but equally could help to find solutions)

Question 27

Inequality in LDCs

Answer 27

Over half of those living in LDCs live on less than $1/day
Women have 1/16 chance of death in childbirth vs 1/3500 in N. America
Debt: 1980 LDCs paid $550b to HICs having borrowed $540b, yet they still owe $523b due to interest rates

Question 28

Inequality in HICs

Answer 28

Inequality globally decreasing but rising in countries (class divide)
Top 1% jobs are becoming less diverse
2200 bankers in UK paid over £1m/ year

Question 29

What is Modernisation

Answer 29

The idea that to become ‘modern’ a country must adapt to Western cultural values and social institutions
Overall considered wrong now due to its implication that Eastern countries can’t thrive with their own value, like Japan is

Question 30

How were the SAPs trying to encourage modernisation

Answer 30

The IMF and World Bank would offer economic assistance to countries but apply neoliberal ideology as a precondition to receiving money, to make investing easier, although it decreases the QoL for population
E.g., Raises taxes and reduces gov. spending