3212- global systems

Question 1

globalisation causes

Answer 1

interdependence (they rely on each other)

Question 2

how does globalisation cause economic interdependence?

Answer 2

• 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 oil

Question 3

how does globalisation cause political interdependence?

Answer 3

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

Question 4

how does globalisation cause social interdependence?

Answer 4

• greater connections between people living in different countries creates social interdependence between countries- migrants for example build new relationships and become interdependent with people of other countries

Question 5

how does globalisation cause environmental interdependence?

Answer 5

• every country in the world is dependent on the rest of the world to look after the environment e.g. in 1980s a reactor at the Chernobyl nuclear plant in Ukraine- radiation from the explosion lead to cancers and birth defects in Ukraine, Russia and Belarus

Question 6

interdependence creates inequality, both between countries and

Answer 6

between people within the same country

Question 7

interdependence tends to bring more benefits such as increased wealth and more power to developed countries rather than less developed countries and to richer rather than poorer people-why?

Answer 7

due to unequal flows of people, money, ideas and technology

Question 8

explain idea of unequal flows of people

Answer 8

• people tend to move from areas where there are few jobs (normally less developed countries) to countries with plenty of jobs (normally developed countries)
• people also leave countries to escape war, famine or persecution; these refugees often try to get to the nearest safe country
• the people who move for economic reasons are not usually the poorest in society as money is needed to pay for a visa , transport and living expenses in the destination country
• it is easier for people from developed countries to migrate than people from less developed countries- in 2017, UK citizens could travel to over 150 countries without a visa, while for citizens of Afghanistan it was less than 25

Question 9

what are some benefits of flow of people?

Answer 9

• immigrants can create economic growth as they do job’s that country’s citizens cant do such as skilled engineering jobs or that citizens don’t want to do such as logging or mining
• many migrants send money back home to their families or home communities which can significantly the amount of capital flowing into less developed countries = economic growth and multiplier effect by boosting other local industries

Question 10

how can unequal flows of people cause problems?

Answer 10

1- inequalities= as less developed countries suffer from ‘brain drain’ as skilled people leave and take their knowledge with them which reinforces existing inequalities between countries

2- conflict= low-skilled migrants are often happier to work for less money than low-skilled locals. By employing them, companies may depress wages for the local population causing conflict between the local and migrant populations

3- injustice= migrant workers are sometimes made to work in dangerous conditions for little money e.g. in Qatar, several thousands of migrants have died building facilities for 2022 FIFA World Cup

Question 11

explain idea of unequal flows of money

Answer 11

• flows of money can cause remittances, foreign aid, foreign direct investment and income from trade
• flows of money are unequal- money often flows from developed countries to less developed countries e.g. govs and companies may invest in infrastructure or the extraction of minerals in less developed countries/ less developed countries rarely have the capital to invest in other countries

Question 12

explain how flows of money can bring benefits to countries

Answer 12

• foreign direct investment allows foreign companies 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 13

how can unequal flows of capital have negative impacts?

Answer 13

1- inequalities= foreign aid can create dependency which gov, which gives govs little incentives to improve their own countries

2- conflict= foreign aid can find its ways 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

3- injustice= 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

Question 14

explain idea of unequal flows of ideas

Answer 14

• ideas about how the world works are dominated by developed countries
• before 1980s, most national governments took responsibility for providing welfare for their citizens and controlling imports through trade barriers to protect their national industries
• however in 1980s many developed countries began to think that the economy would work better without state intervention - maximum economic growth would only occur if barriers to trade were removed, state-owned companies were privatised and government spending was cut = neo-liberalism
• neo-liberal ideas have increased free trade which has led to more development within countries and less conflict between some countries

Question 15

how can unequal flows of ideas have more negative impacts?

Answer 15

1- inequalities= neo-liberalism started in developed countries and has spread globally. It tends to concentrate wealth in the hands of a few e.g. large, wealthy businesses based in developed countries

2- conflict= if private companies and free trade in a less developed country are threatened by the decisions of the country’s government, developed countries may believe that their intervention is justified

3- injustice=govs and TNCs may argue that free trade and privatisation are the best way to help a country develop ; this justifies poor working conditions and environmental degradation in less developed countries

Question 16

explain the idea of unequal flows of technology

Answer 16

• most technology is owned by developed countries
• globalisation has led to unequal flows of technology; mainly flows from developed to less developed countries
• concentration of technology in particular places can lead to rapid innovation that can help people all over the world e.g. tech companies in Silicon Valley, US have developed innovations in communications and healthcare

Question 17

explain how unequal flows of technology can have negative impacts

Answer 17

1- inequalities= developed countries can afford the latest technology, whereas less developed countries cant. Countries that have the latest products and technology can make products more cheaply and have better access to information and services due to better information infrastructure- for example in 201 97% of the Netherlands’ citizens had access to internet, compared to around 20% in Myanmar= gives developed countries an advantage over less developed countries

2- conflict and injustice= repressive govs of less developed countries have used weapons technology sold to them by developed countries to stop protests from their own people

Question 18

explain how globalisation makes some countries more powerful than others

Answer 18

• the unequal flows of money, ideas and technology have created unequal power relations between countries with some countries having much more power than others
• developed or emerging countries with a lot of money and technology are able to drive global systems to their own advantage- these countries have a lot of control over the global economy and political events
• many less developed countries lack money and technology- these countries have limited power. Rather than controlling the global economy, and political events, they are only able to respond to events
• for example, many of the biggest contributors to climate change are also the richest countries; these countries can be reluctant to agree to proposals to limit climate change as they think they may harm their economy e.g. through loss of jobs in fossil fuel industry and higher energy prices)
• in contrast, some of the countries most affected by climate change are the poorest. For example countries like Bangladesh are likely to be impacted by rising sea levels but find it difficult to influence other countries to reduce greenhouse gas emissions because they lack power

Question 19

explain how global institutions govern the global financial system

Answer 19

• the IMF and World Bank govern the global financial system
• the IMF monitors the global economy and advises global governments on how they could improve their economic situation- it also gives loans to countries with economic problems
• the Worlds Bank provides loans to to less developed countries to invest in areas like health, education and infrastructure- the money from loans comes partly from subscriptions from its member countries where all members pay in but only those who need it can take money out= funds are redistributed from developed countries to less developed countries, although less developed countries are expected to pay back the loans

Question 20

explain how global financial institutions such as the IMF and World Bank are reinforcing unequal power relations between different countries

Answer 20

• the IMF and World Bank are both based in the USA and are led by the USA and other developed countries. Less developed countries who are most likely to require a loan therefore have less influenced over the decisions of the organisations
• the IMF sand World Bank’s loans are conditional- the less developed country has to make changes such as cutting regulation to make foreign trade and investment easier, in order to receive the loan
• the WTO generally works to reduce trade barriers between countries, however many developed countries have kept trade barriers in place, reducing imports from less developed countries- this tends to boost the economies of developed countries at the expense of less developed countries