EQ2- What Are The Impacts Of Superpowers On The Global Economy, Political Systems And The Physical Environment Flashcards
Define Neoliberalism
Is a political philosophy of free markets, free trade and privatisation all while decreasing the influence of government.
Explain the International Monetary Fund (IMF) in terms of:
- What they do
- How have they increased neoliberalism
- Influence of superpowers
Founded in order to stabilise currencies after the great depression and WW2. Also lend money for development.
In return for loans they try to force countries to privatise government assets to increase the private sector and control of TNC’s. Promotes Capitalism and Prevents Communism.
Its members are not all equal with 8 countries representing 47% of the vote. The IMF’s work has reflected US and EU policies in managing international debt.
Explain the World Trade Organisation (WTO) in terms of:
- What they do
- How have they increased neoliberalism
- Influence of superpowers
Has a focus on trade and its rules, with an aim to free up global trade and reduce trade barriers by negotiating free trade agreements. Also focus on poverty reduction.
Advocates for trade liberalisation, reducing the control and money governments receive from protectionist barriers.
Operates a one country one vote system which is fairer to developing countries. However no votes have ever been taken and decision making is made by bargaining favours from the US and EU. Has also failed to stop these countries subsidising domestic food producers, harming farmers in developing countries who want to trade.
Explain the World Bank in terms of:
- What they do
- How have they increased neoliberalism
- Influence of superpowers
Role is to finance development and focuses on the effects of natural disasters. Gives loans to developing countries for development projects and now aims to eliminate poverty and implement sustainable goals.
The countries receiving loans have to agree to certain conditions for repayment and economic growth. Had previously led to many countries being unable to pay their loans.
The world bank was responsible for lending money to countries like France for post war reconstruction, to allow them to develop into the superpowers they are today. The World bank is heavily influenced by the US, with a 16.5% control of votes and all world bank presidents being american
Define Transnational Corporations (TNC)
Are large businesses that operate in a number of countries. They often separate their production between various locations
Explain the role of TNC’s in global trade flows
TNC’s are vital players in globalisation. The top 200 TNCs employ 1% of the global workforce but account for up to 80% of the worlds economic activity
State how TNC’s are able to maximise profits
Outsourcing Buying smaller firms/suppliers Accessing new markets Economies of scale Owning all the stages of the production process
Explain how the nature of TNC’s have changed over the past years
In 2006, 6 of the top 10 TNC’s were American, by 2015 there was only 3
Chinese TNC’s are growing rapidly
Most TNC’s are publicly owned, they have shareholders who receive dividends. Chinese TNC’s operate differently, they are state led meaning profits are returned to the state and are often less well known as their TNCs are less global
Explain how TNCs have helped global trade
Trade has increased by at least 46% per decade. In the 2000’s, after the introduction of TNCs, global trade increased by over 85%.
The reason for this is the global shift, which has led to rapid increases in exports from developing countries. TNCs have become extremely powerful
Most trade now consists of flows of components and services moving between countries before the final product is completed.
TNC’s now account for 80% of all global trade
Explain the role of patents in maintaining wealth for TNC’s
The need for patents was introduced by the WTO in 1995.
Was introduced to protect intellectual property so the inventor had a right of ownership for their idea.
This benefits TNCs as they have spent more on research than anyone else
Explain the process of western culture as a way superpowers influence
Explain the characteristics of western culture (4)
Is the spread of western ideas, arts, food and media around the world
A culture of consumption
A culture of capitalism and attaining wealth
A English language dominant culture
A cherry picking culture of the worlds culture
Explain Glocalisation from Mcdonalds as a way superpowers are able to influence through culture
Has 36,000 restaurants worldwide serving 65 million people per day
In India, McDonalds adapts its menu to suit local tastes and the Hindu and Muslim religions. It does not sell beef or pork and has more vegetarian options than the west
Explain the control TNCs have over media outlets as a way of spreading power culturally
Countries like the USA has the ability to constantly reinforce its cultural message and values through the media.
Many IT companies have branched out to become content providers
Royalties are given to Western TNCs for viewing media, 85% of royalty payments go to USA, the EU or Japan
Explain how Coca cola is able to use its power as a western firm to be culturally influential
Coca Cola is able to glocalise its advertising to different countries around the world.
Coca cola advertisement in Germany includes German actors with european hair and skin colour, in Africa they include actors with African skin colour with colourful clothing and African music, in the UK they include multicultural actors with UK fashion and music
Explain how the UN security council plays a key role in global action
The four policeman were set up after WW2 in 1945, including the USA,UK,Soviet Union and China.
Were set up to guarantee peace around the world. Were trusted to do the right thing and respond, as well as have the money and technology to help.
Involves the permanent members as well as 10 non permanent members who are voted in
