EQ3 Changes in superpowers/future uncertainties

Question 1

What is the predicted global GDP ranking position of the US by 2050?

Answer 1

Third place

The US’s share of world GDP at Purchasing Power Parity is expected to fall to around 12%.

Question 2

What could China’s share of world GDP at purchasing power parity increase to by 2050?

Answer 2

Around 20%

This indicates a significant growth in China’s economic power relative to the US.

Question 3

What does Purchasing Power Parity (PPP) relate to?

Answer 3

What countries can buy with money

PPP considers how prices differ across countries, affecting international economic comparisons.

Question 4

What is one challenge for policymakers regarding protectionism?

Answer 4

Avoiding a slideback into protectionism

History suggests that protectionism could negatively impact global growth in the long run.

Question 5

What is a current example of protectionism? What has this done?

Answer 5

Trump’s tariff spree

This has provoked trade wars and raised concerns about global economic stability.

Question 6

What has happened to wealth inequality since 2008? Why’s this a challenge?

Answer 6

Increased

This poses challenges in ensuring the benefits of globalization are shared more equally across society.

Question 7

What is a critical area for developing long-term global growth? Why is it not working?

Answer 7

New green technologies

Ensuring that growth is environmentally sustainable is essential, yet countries and TNCs continue exploring and drilling for oil.

Question 8

True or False: Past predictions about economic trends have always been accurate.

Answer 8

False

Past predictions have been wrong, implying future predictions may also be incorrect.