EQ3 Flashcards

Question

# superpower challenges debt

Answer 1

-maintain superpower status comes at high financial cost, us military spending is a clear eg of this -nato=$883bn -usa=$611bn -eu=$246 bn -china=$215bn -russia=$69.2bn

Answer 2

-arguably the 'regional mosaic' structure is inherently unstable as broadly = powerful countries make complex +competing allliances w no country acting as 'global police' -a new cold war could lead to a period of tense stability

Answer 3

-asian century scenario would see strong economic +pop growth in asia, but continued demand for resources in old west -expanding asian middle class is likely to lead to 35% ^ in demand for food, a 40%^ in demand for water+50%^ in demand for energy by 2030 -risking shortages +unrest + conflict over remaining resources

Answer 4

-new arms race is possible outcome of new cold war scenario -as china expands its global reach w/naval+air power, the usa+allies may need to react by diverting resources away from economic growth +social programmes + into guns+ships

Answer 5

-asian century scenarip would cause fundamental shift in worlds economy, global economic wellbeing would depend on health of NICs in asia rather than economies of europe + n america

Answer 6

-Debt in the Eurozone amounted to **€9.7 trillion in 2016** and **£1.6 trillion in the UK**, in both cases about **90%** of annual GDP; -debt is a drag on economic growth. -EU **unemployment** was close to **10% in 2016,** representing a cost to taxpayers and underused economic capacity

Answer 7

-National debt in the USA in **2016 was $19 trillion**, but the US dollar's status as the global currency of choice makes it less vulnerable to economic shocks. -The USA has many large, innovative global TNCs, eg **Apple, Google, Facebook and Cisco**.

Answer 8

-The EU is ageing fast; -by **2025 20%** of EU citizens will be **over 65**. -The EU's workforce will **drop by 14% by 23**, which will place an ^ burden on those in work to f**und pensions, healthcare and care homes**. -After **2035**, the EU's population is likely to be falling.

Answer 9

-The USA is ageing less fast than the EU + social costs **(pensions, healthcare**) tend to be bone by individuals rather than the government. -The total population will keep growing from **324million in 2016 to 415million in 2060.**

Answer 10

-The EU's **28** nations do not have the same political views. -Tensions between countries wanting deeper union (**France and Germany)** and those wanting less **(UK**) have grown (**leading to Brexit**). -Relationships with **Russia** are strained and **immigration** is an increasingly divisive issue.

Answer 11

-Race relations in parts of the USA are strained +, at a national level, there is often **political deadlock **between **Democrats and Republicans**. -However, the US values are **fairly universal** and these are projected to a **global audience.**

Answer 12

-Energy security is a key EU issue, as it relies on imported oil and gas, some od which comes from Russia.

Answer 13

-The USA is increasingly energy secure as a result of oil and gas fracking. Water insecurity is an increasing problem in the southwest.

Answer 14

-Youth unemployment in the EU was 22% in 2015, and over 45% in Greece and Spain. -Long-term youth unemployment risks a 'lost generation' of young people, as well as political disaffection.

Answer 15

-Health spending swallows **17% of the USA's annual GDP** and is huge cost to families and government. -**74% of adult Americans are overweight **(30% are obese), adding significantly to healthcare costs.

Answer 16

-rose from us+eu mortage lending markets -mortages come from savers invested money, then lent to borrowers -interest paid would be used to pay interest to savers+provide mortage lender w profit -over m loan period the lender wuld hold legal deeds of property as security+count them as part of its assests -if payment failed property could be seized -debt=assest -selling debt ^ more capital, which can be lent to others -makes upward spiral -2007-main cause=subprime lending by us banks to low income earners w/insecure jobs -solution was sell risky mortages, packaged +hidden inside other more secure mortages that were approved for higher income earners -when property bubble burst every global bank was affceted

Answer 17

-global system of ip run since **1967** by 'wipo'-they ensure tncs, indivuals+gov can protect new inventions,trademarks, artistic works +trade secrets from use by others -w/out innovation+ideas can be stolen

Answer 18

-requires users of product to pay royalties to inventor-costly to devolping countries -ip holders dont make new invention avaible, they could prevent new medicines being made -systems can create a monopoly where a paint holder can change what they like for new product, denying it to some ppl on basis of pride

Answer 19

-china infringe ip by producing counterfeit products- 22 fake apple stores in 2011, 2013 un estimates 70% of CFG originate from china -y many CFG made in china? many of ogs r produced there so they have access to IP. poor protection of IPR+ joined wto 2001. lack of policy -cf can undermine global systems of ip rights+patening; starining tncs+investment -cf costs G20 countries $85bn a yr. -damage to brand image+ end agency of consumers throughinferior products can have LT effects on revenues of leading TNCs -CF ^ as global manufacturing has shifted to countries IPR r property protected -2.5 mill jobs in developed countries have been lost bc of it

Answer 20

-many usa companies manufacture in china+ complain their ip isnt adeuqately protected -chinese business legislation required some countries to share tech ip before doing business in china -intergov negotiantions on trade deals have been comprimised by accusations of lax ipr protection -could affect future deals between usa/china unless properly implemented