4.1 - Global Interactions And Global Powers

Question 1

What is globalisation

Answer 1

Globalization refers to a range of processes and impacts that occur at a global scale. These are usually economic systems but can include physical systems (such as global warming) and sociocultural systems (such as fashion, music and the film industry). Globalization is not new
- many countries had empires from which they sourced raw materials and labour - but the current form of globalization is more global, more integrated and has developed at a much faster rate than in the past.

Question 2

What are the 3 forms of globalisation

Answer 2

• Economic: largely caused by the growth of transnational corporations (TNCs)|
• Social: the impact of western culture, art, media, sport and leisure pursuits on the world
• Political: the growth of western democracies and their influence on poor countries, and the decline of centralized economies.

Question 3

What does global systems refer to

Answer 3

Global systems refer to organizations, groupings or activities that link different parts of the world. Transnational companies (TNCs), for example, operate in two or more countries, linking the economies of those countries. Such relations or activities have an effect on the people and the environment of the countries in which the

Question 4

What does global governance refer to

Answer 4

Global governance refers to attempts to regulate these global systems, for example by the United Nations, the International Monetary Fund and the World Bank. Their interventions may also have an impact on people and the environment.

Question 5

What are globalisation indicies

Answer 5

There are a number of globalization indices, including the KOF Index of Globalization, Ernst and Young’s (EY) Globalization Index and the New Globalization Index.

Question 6

What si the KOF index

Answer 6

The KOF Index of Globalization, introduced in 2002, defines globalization as “the process of creating networks of connections among actors at multi-continental distances, mediated through a variety of flows including people, information and ideas, capital and goods. Globalization is conceptualized as a process that erodes national boundaries, integrates national economies, cultures, technologies and governance and produces complex relations of mutual interdependence”.

Question 7

How do you measure political globalisation

Answer 7

Political globalization uses the number of embassies and high commissions in a country, the number of international organizations of which the country is a member and the number of UN peace missions in which a country has participated. In 2012 political globalization was highest in Italy, followed by France and Belgium.

Question 8

What is the EY globalisation index

Answer 8

The EY Globalization Index was developed by the Economist Intelligence Unit to measure the 60 largest countries/territories by
GDP according to their level of globalization. The Index looks at each country’s openness to trade, capital flows, exchange of technology and ideas, labour movements and cultural integration. As in the KOF Index, countries and territories such as Hong Kong, Singapore, Ireland, the Netherlands, Belgium and Switzerland are at the top of the table.
However, it notes that the character of globalization is changing.

Question 9

How does new globalisation index differ from others

Answer 9

The New Globalization Index differs slightly from the others in that it measures the distance of goods traded. Thus, for example, New Zealand and Argentina score higher on this measure than, for example, Hungary and the Czech Republic. In addition, it counts the number of refugees

Question 10

What does all indicies shows

Answer 10

Allo the indices show that small HICs, such as Singapore and the Netherlands, tend to be near the top of the list, whereas very large HICs, such as the USA, are located towards the bottom. Large rich countries such as Germany, France and Italy tend to be towards the middle of the rankings, while the major LICs are towards the bottom of the rankings.

Question 11

What are global superpowers

Answer 11

Superpowers are able to influence policy on a worldwide scale, and often in different regions at the same time. The concept of a superpower has developed to include its economic, cultural, military and geographical influence on the rest of the world, as seen, for example, in the USA and the former USSR and, more recently, in China, India and Brazil.

Question 12

What made the USA and the USSR so strong

Answer 12

The Cold War as they become politically strong and mallitary strong

Question 13

How did the USSR and USA extend their power

Answer 13

Through politics by promoting communism, taking over other countries. They both had strong economies through their sources of industry

Question 14

What is soft power

Answer 14

The ability to change individuals communities and nations without force. The USA uses American films, food, music to influence its culture

Question 15

Who were the rising super powers after 1991

Answer 15

After the collapse of USSR the USA continued to be a super power despite its involvement within the war and loss of economic strength.

China experienced growth due economic growth by industry. However its debatable weather it has huge power over other countries

Europe had huge power

And the oil countries due to its wealth development

Question 16

How did the Second World War boost the USAs power

Answer 16

After the Second World War, the USA had a greatly enhanced status and power. The Great Depression of the 1930s had been replaced by an economy stimulated by wartime production. Unlike Europe, the USA did not suffer from wrecked infrastructure. US involvement in the Second World War - the large-scale air and land campaigns in Europe and the
“island-hopping” war against Japan in the Pacific - set a precedent for the global projection of US military strength.

Question 17

What factors other than economics and military strength helped the growth of the USA

Answer 17

the USA encouraged the establishment of international institutions and international law. The UN headquarters were located in New York; the World Bank and the IMF were based in Washington. Although these were, and continue to be, international organizations, US institutions had greater access to them than if they had been located elsewhere.

Question 18

How did the technological growth of the USA help it become a superpower

Answer 18

The USA has by far the world’s largest and most technologically advanced fleet of warplanes, ships, tanks and artillery systems. These give it dominance over air, sea and land. Control of space and information are key aspects of US military strategy for the 21st century.
The USA’s global military presence includes overseas bases, ships and aircraft that allow the USA to apply force to any part of the globe, supply weapons and military training to a wide range of countries, and have a network of listening posts to gather and disseminate vital information.

Question 19

How does the USA defence ministry help it become so strong

Answer 19

The US defence industry employs over 2 million people, with local manufacturing plants or research and development facilities in most US states. Approximately one in six households in the USA have someone employed in the military-industrial complex. Annual spending on defence exceeds $100 billion a year. Federal funding for military research is $40 billion a year, twice what is spent on health, energy and the environment combined. The institutions and organizations that have developed over 50 years of intensive military spending have created vested interests with huge political influence.

Question 20

How does the USA selling arms and military service help its overall world power

Answer 20

The US accounts for half of all international arms sales. Much US military equipment destined for export is manufactured abroad under licence. For example, Turkey has made F-16s since the mid-1980s. The US cooperates closely with certain allies, including the UK and Israel, on high-tech projects such as missile defence.

They are also the biggest devotees of new weapons and planes

Question 21

How is china developing

Answer 21

Since 1978 the standard of living has tripled and markets have been reformed.

Question 22

What did the brew Chinese leader help develop china

Answer 22

• added a element of free enterprise into agriculture And allow poor families to keep crops for themselves which increased food production and furthermore this was implemented into industrial sectors

Question 23

How did the knew presedant after 1997 develop china

Answer 23

After Deng died in 1997 and Jiang Zemin became the leader, China saw major improvements in its diplomatic standing and economic strength.
Although disparities increased between urban and rural living standards, China’s economic miracle has had an enormous impact on ordinary people, with village and township enterprises springing up all over the country. The Yangtze valley has become integrated into the Asia-Pacific trade bloc.

Question 24

How has chinas development affected trade between countries

Answer 24

China’s economic growth has also had a major impact on trade among the superpowers and the geographic regions of the world. The EU is the dominant trading region, followed by Asia and then North America. Despite the Asian financial crisis of 1997-8 - which saw the collapse of many Asian banks and the value of their stocks and shares, forcing many countries to restructure their economies and reduce their levels of debt

Question 25

How is chinas GDP growing

Answer 25

China’s GDP has continued to grow by 8 per cent a year. China’s demand for raw materials for this economic boom had a major impact on world markets in oil, iron ore, metals, petrochemicals and machinery. One of the largest of China’s many infrastructure projects was the Three Gorges Dam, the world’s largest hydroelectric plant. More giant projects are planned, including the diversion of river water from the south to the water-hungry north.

Question 26

How has the rapid development in china not helped the structure of the Chinese economy

Answer 26

Despite rapid change, the structure of the Chinese economy still has the character of a poor developing country, with almost half the workforce employed in the primary sector.
Industry accounts for 22 per cent of jobs but 51 per cent of output, with manufacturing 35 per cent. This reflects the fact that China has become the world’s leading manufacturing centre, although much of the value-added output is from foreign-owned plants in China’s special development zones. According to the IMF, in
2014 China produced 17 per cent of the world’s gross domestic product, surpassing the USA’s 16 per cent. However, China remains well below the USA in terms of GNI/head.

Question 27

What’s the G7

Answer 27

The G7 (Group of Seven) is a powerful group of HICs - the USA, France, Germany, Italy, the UK, Japan and Canada - that meets annually to discuss matters such as the global economy, global governance, energy policy and international security. They were joined by Russia in 1998 to form the G8 (Group of Eight). However, Russia was suspended following its activities in Ukraine.

Question 28

Why was the G7 established

Answer 28

The G7 was initially established as a group of non-communist countries concerned about the rise in oil prices following OPEC’s decision to exert greater control over the world’s oil. The G7 is not a formal institution but acts in an advisory capacity. The small number of similar countries that make up the G7 should, in theory, enable decisions to be made, but critics argue that it does not follow through with its proposals and that it does not speak for any emerging economy.

Question 29

Is Russia in the G7

Answer 29

No as it contiued with communism and had conflict with Ukrain

Question 30

What is the problem with Russia not being present in the G7

Answer 30

Without Russia, the G7 is able to speak unanimously. However, without Russia, the G7 represents a smaller proportion of the world’s population, and without China, it cannot claim to be a truly global organization.

Question 31

What does the G7 agenda focus on

Answer 31

The G7 agenda has focused to a large extent on promoting economic recovery in Ukraine and in the EU. There are divisions among its members, with some countries wishing to impose austerity packages and others, such as the USA, preferring monetary policies to revive domestic demand and promote economic growth.

Question 32

What is the G20

Answer 32

The G20 (G-20 or Group of Twenty) is an international assembly for the governments and central bank governors from 20 major economies. It was established in 1999 to discuss policy issues related to global financial stability. The G20 includes 19 countries - Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Atrica, turkey, the US and the USA

Question 33

What is the goal of the G20

Answer 33

The G20 countries represent about 85 per cent of gross world product, 0 per cent of world trade, and about 65 per cent of the world’s population. The G20’s main interest is global economic governance, but it has also discussed the impacts of an ageing population, reform of the World Bank and the IMF, energy security and resource depletion. Given the nature of the countries involved, the G20 has an important bearing on global policy. It is likely that large Asian economies will play an increasingly important role in global governance in the future, on account of their population size and the size of their economies.

Question 34

What is the OECD

Answer 34

After the Second World War, the Organization for European Economic Cooperation (OEEC) was established to run the US-financed Marshall Plan for the reconstruction of Europe. It recognized the need for cooperation between countries and their interdependence. In 1960
Canada and the USA joined the OEEC members to form the Organization for Economic Cooperation and Development (OECD). Other countries joined, and today the OECD has 35 members.

Question 35

What is the aim of the OECD

Answer 35

The OECD aims to identify, analyse and discuss problems, and find policies to solve them. It provides a forum for countries to share experiences and to seek solutions for common problems. Its stated aim is to help countries around the world to:
• restore confidence in markets and the institutions that make them function
• re-establish healthy public finances as a basis for future sustainable foster and support new sources of growth through innovation, environmentally friendly “green growth” strategies and the development of emerging economies
- ensure that people of all ages can develop the skills to work productively and satisfyingly in the jobs of tomorrow.

Question 36

What is the OPEC

Answer 36

An oil cartel. The Organization of Petroleum Exporting Countries (OPEC) was established in 1960 to counter oil price cuts by American and European oil companies. Founder nations included Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Qatar, Indonesia and Libya joined in 1962 and the United Arab Emirates, Algeria, Nigeria, Ecuador and Gabon joined later. In 1979 the OPEC countries produced 65 per cent of world petroleum, but only 36 per cent by 2007. As early as
2003, concerns that OPEC members had little excess pumping capacity sparked speculation that their influence on crude oil prices would begin to slip. However, revenues from oil have allowed member countries to invest in and diversify their economies, generating wealth since the 1970s.

Question 37

Why is the development of OPEC important for the weastern world

Answer 37

They control the price of oil.

The importance of oil means that countries need to maintain favourable relationships with OPEC countries and that the Middle East will be involved in economic cooperation and development with industrialized countries. It also means that there needs to be political stability in the Middle East and a need to reassess coal and nuclear power as energy options.

Question 38

What is the world bank

Answer 38

The World Bank, established in 1944, is a source of financial and technical assistance to developing countries around the world. Its mission is to fight poverty by providing resources, sharing knowledge and building capacity. It is made up of two unique development institutions owned by 186 member countries: the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

Question 39

What is the purpose of the world bank

Answer 39

To meet the needs of the developing world and greatly increase the size and number of their loans. However they shifted towards measures such as building schools and hospitals, improving literacy and agricultural reforms

Question 40

What are some critics of the world bank

Answer 40

• its free market reform policies are harmful to economic development
• its ran by a small number of rich countries
• it promotes us or weastern intrests

Question 41

What is the International Monetary Fund

Answer 41

The International Monetary Fund (IMF) is the international organization that oversees the global financial system by following the economic policies of its member countries, in particular those with an impact on the exchange rate and the balance of payments. It is an organization formed with a stated objective of stabilizing international exchange rates and facilitating development.

Question 42

When was the IMF created

Answer 42

The IMF was created in July 1944 with 45 members, and it now has 186 members. Countries contributed to a funding pool, which other countries with payment imbalances could borrow from on a temporary basis. The IMF was important when it was first created because it helped the world stabilize the economic system. The IMF’s influence in the global economy steadily increased as it accumulated more members.

Question 43

What are some critics of the IMF

Answer 43

Critics claim that IMF policymakers supported military dictators friendly to American and European corporations, and that the IMF is generally unconcerned about democracy, human rights and labour rights.
One of the main SAP conditions placed on troubled countries is that the governments sell as much of their national assets as they can, normally to western corporations at heavily discounted prices. Moreover, the IMF sometimes advocates “austerity programmes” - increasing taxes even when the economy is weak - in order to generate government revenue.
There is also often a considerable delay in the IMF’s response to crises, and it tends only to respond to them (or even create them) rather than prevent them.
The IMF is for the most part controlled by the major Western nations.
Historically, the IMF’s managing director has been European and the president of the World Bank has been from the USA.

Question 44

What is the new development bank

Answer 44

The New Development Bank (NDB), formerly the BRICS Development Bank, was established by Brazil, Russia, India, China and South Africa in
2014. The NDB “shall support public or private projects through loans, guarantees, equity participation and other financial instruments”. The bank has its headquarters in Shanghai.
Its main focus for lending will be infrastructure and sustainable development projects, such as clean energy. Brazil, Russia, India, China and South Africa initially contributed $10 billion to the fund (Figure 4.9). The bank plans initially to fund one project from each member