GG - Interdependance Flashcards
How many global migrants were there in 2015?
244 million
How is there an unequal flow of people?
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
How may the unequal flow of people cause conflict?
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
How is there an unequal flow of money?
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
How can flows of money cause benefits?
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
How can flows of money have negative impacts?
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
How is there an unequal flow of ideas?
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
How has the flow of ideas created benefits?
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
How has the flow of ideas caused issues?
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
How is there an unequal flow of technology?
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
How can the flow of technology cause benefits?
New developments in communication and healthcare can help people all over the wold improve their living standards
How can the flow of technology cause issues?
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
What two global institutions facilitate the global financial system?
The World Bank
The International Monetary Fund (IMF)
What organisation oversees international trade and access to markets?
The World Trade Organisation (WTO)
What support structure makes overseas decisions on the global environment?
The Intergovernmental Pannel on Climate Change (IPCC)
What is the IMF?
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
What is the World Bank?
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
What are the differences between the IMF and the World Bank?
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
Describe the makeup of the IMF
Total staff 2,300 from 185 member countries
Elects a European managing director
Describe the makeup of the World Bank
7,000 staff from 185 member countries
Elects an American president
Why were the IMF and World Bank set up?
To help steady the global economy and provide financial stability following WW2
What is the role of the WTO?
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
What is the makeup of the WTO?
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
What is the Gini co-efficient?
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
Are economic disparities in countries increasing or decreasing?
Generally increasing
Deregulation
The removal of rules or restrictions in a particular industry
Businesses can operate internationally more easily and it increases competition
Global institution
A large important organisation that operates across the world e.g the International Monetary Fund (IMF)
Interest
Money paid regularly at a particular rate for the use of money lent
Loan
Money that is borrowed
Neo-liberalism
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
Privatisation
the transfer of an industry or service from public to private ownership and control
Remittance
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
Repatriation
The sending of money back to one’s country
Sovereignty
The right of a country to govern itself
Trade surplus
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)
Trade deficit
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)
