GG - Interdependance

Question 1

How many global migrants were there in 2015?

Answer 1

244 million

Question 2

How is there an unequal flow of people?

Answer 2

People tend to move from countries where there are few jobs e.g from LICs to HICs
It is easier for people from HICs to migrate compared to LICs due to transport costs, applying for visas etc
LICs may suffer from the ‘brain drain’ due to migration

Question 3

How may the unequal flow of people cause conflict?

Answer 3

Low-skilled people are often more prepared to work jobs with lower wages and poor Woking conditions meaning that they become exploited. By employing them, companies may depress wages for the whole workforce meaning conflict arises between locals and migrants

Question 4

How is there an unequal flow of money?

Answer 4

Flows of money can include remittance, foreign aid etc
Money often flows from HICs to LICs as HICs may invest in infrastructure or the extraction of minerals in LICs

Question 5

How can flows of money cause benefits?

Answer 5

FDI allows foreign companies and countries to take advantage of cheap materials and low labour costs while the host country benefits from foreign capital and expertise
Foreign aid can be used to help improve living standards or build local infrastructure after a distaster

Question 6

How can flows of money have negative impacts?

Answer 6

Foreign aid can create dependency which gives governments little incentives to improve their own countries
Foreign aid can find its way to armed groups and be used to fund conflict
Companies may pressure LIC governments to make it easier to invest there e.g by reducing working condition restrictions and environmental regulations

Question 7

How is there an unequal flow of ideas?

Answer 7

Before the 1980s governments tried to provide welfare for their citizens by controlling imports through trade barriers to protect national industries
After the 1980s many HICs thought the economy would be better without state intervention (max economic growth with the removal of trade barriers) so governments cut spending and state-owned companies were privatised - neo-liberalism

Question 8

How has the flow of ideas created benefits?

Answer 8

Neo-liberal idea have increased free trade which has lead to more development within countries and less conflict between countries with the removal of trade barriers

Question 9

How has the flow of ideas caused issues?

Answer 9

Neo-liberalism (cutsgovernment speding, promotes privatisation and free trade) was something created by HICs and that is still concentrated there
If free trade in an LIC is threatened by the decisions of the government there HICs may believe it is alright and justified to intervene there, causing conflict

Question 10

How is there an unequal flow of technology?

Answer 10

This mainly flows from HICs to LICs
Due to better education and research systems in HICs, technological advancements are made and are therefore more accessible there so the rapid innovation is concentrated in HICs

Question 11

How can the flow of technology cause benefits?

Answer 11

New developments in communication and healthcare can help people all over the wold improve their living standards

Question 12

How can the flow of technology cause issues?

Answer 12

HICs can afford the latest technology while LICs can’t so LICs have less access to information and communication with the rest of the world (have a disadvantage)
Repressive governments in LICs have used technology sold to them by LICs to use against their own people

Question 13

What two global institutions facilitate the global financial system?

Answer 13

The World Bank
The International Monetary Fund (IMF)

Question 14

What organisation oversees international trade and access to markets?

Answer 14

The World Trade Organisation (WTO)

Question 15

What support structure makes overseas decisions on the global environment?

Answer 15

The Intergovernmental Pannel on Climate Change (IPCC)

Question 16

What is the IMF?

Answer 16

The International Monetary Fund is a regulator of financial flows and monitors the global economy
It advises governments on how they can improve their economic situation
Gives loans to countries with economic problems

Question 17

What is the World Bank?

Answer 17

Aims to reduce poverty - supports lower developed countries
provides loans for less developed countries to invest in areas e.g health, education and infrastructure
Money comes from subscriptions paid by member countries

Question 18

What are the differences between the IMF and the World Bank?

Answer 18

The IMF oversees the global financial system but the World Bank promotes economic development in developing countries
The IMF will only provide loans as a last resort (if it will prevent a global economic crisis) while the World Bank encourages start up enterprises in developing countries
The IMF has a total staff of 2,300 from 185 member countries with an elected European managing director while the World Bank is a larger organisation of 7,000 staff from 185 countries and has an American president

Question 19

Describe the makeup of the IMF

Answer 19

Total staff 2,300 from 185 member countries
Elects a European managing director

Question 20

Describe the makeup of the World Bank

Answer 20

7,000 staff from 185 member countries
Elects an American president

Question 21

Why were the IMF and World Bank set up?

Answer 21

To help steady the global economy and provide financial stability following WW2

Question 22

What is the role of the WTO?

Answer 22

Deals with global rules of trade between nations
- Supervises and liberalises trade by reducing barriers
- Acts as an independent body to settle trade disputes between member governments
- Provides stability by ensuring no sudden policy changes

Question 23

What is the makeup of the WTO?

Answer 23

Over 160 members
Over 3/4 of members from developing or least developed countries
Run by members and all decisions are taken by a consensus

Question 24

What is the Gini co-efficient?

Answer 24

Measures internal disparities of wealth (differences in wealth between countries)
Between 0 and 1 with the greater the value towards 1 the more inequalities there are

Question 25

Are economic disparities in countries increasing or decreasing?

Answer 25

Generally increasing

Question 26

Deregulation

Answer 26

The removal of rules or restrictions in a particular industry
Businesses can operate internationally more easily and it increases competition

Question 27

Global institution

Answer 27

A large important organisation that operates across the world e.g the International Monetary Fund (IMF)

Question 28

Interest

Answer 28

Money paid regularly at a particular rate for the use of money lent

Question 29

Loan

Answer 29

Money that is borrowed

Question 30

Neo-liberalism

Answer 30

A political approach that involves less government control of the economy
Involves the removal of trade barriers, privatisation and cuts in government spending
Increases free trade

Question 31

Privatisation

Answer 31

the transfer of an industry or service from public to private ownership and control

Question 32

Remittance

Answer 32

A sum of money thar is transferred to another person or party
Could be from migrants from peripheral regions living in core regions, sending money back

Question 33

Repatriation

Answer 33

The sending of money back to one’s country

Question 34

Sovereignty

Answer 34

The right of a country to govern itself

Question 35

Trade surplus

Answer 35

A situation in which the value of goods that a country exports (sells to other countries) is more than the value of goods it imports (buys from other countries)

Question 36

Trade deficit

Answer 36

A situation in which the value of goods a country imports (buys from other countries) is greater than the value of goods it exports (sells to other countries)