Global Interdependence Flashcards
List arguments for emergency aid
-immediate aid with necessities like food and water saves lives
-helps to rebuild housing after a disaster, some governments and charities are trying to make the world better
List some arguments against emergency aid
-countries should avoid disasters through their own planning and preparedness, to reduce need for aid and damage
-corruption may occur, money might not get to people who need it
List some arguments for development aid
-improving healthcare + living standards by providing medicines, vaccines (e.g. malaria)
-aid for agricultural improvement, increase production
-investment in industrial development can provide jobs, and greater export
-aid can increase power supplies, and energy availablility
-education projects improves literacy rates
-providing clean water improves life quality
-long term aid provides economic stability
List some arguments against development aid
-aid can be used to put political/ economic power over a country
-aid can increase dependency on donor countries, but also aid can be with loans
-aid distorts free economic markets, free trade is the best way to develop
-proportion of profits can be sent to donor countries
-makes governments lazy, poor economic decisions
What is globalisation
The set of economic, political, cultural + social processes that create, multiply, stretch + intensify worldwide interdependencies
Examples of processes which create worldwide interdependencies
-economic specialisation
-entertainment industries
-growth of social media + global streaming services
-industrialisation = need for energy + resources
-consumerism
-increasing education levels (increase of English language)
What is global inequality
The socio-economic and/or political and/or environmental variation in how people live between countries
Examples of global inequality
-education accessibility + literacy levels
-access to electricity (appliances at home)
-GNI
-life expectancy, infant mortality, healthcare
What are visible imports/ exports
-physical materials, goods, and/or products that a person a company or a country buys from a different country
What are invisible imports/ exports
-non-physical services/ products that a person or a company or country buys from another country
What is aid
A voluntary transfer of resources from one country to another country
Why does aid exist?
-financial problems in the recipient country
-political influence for the donor on the recipient
-strengthen relationships between countries
-support after a natural disaster
What is multilateral aid
-when more than one country gives money, e.g. through World Bank
What is bilateral aid
When one country gives money to another
Who can loan money to countries?
- the world bank
- global banks like HSBC
- global financial firms
- political blocs like EU
What are some causes of national debt
- Borrowing money to create jobs + increase tax income
- Need investment in manufacturing, agriculture etc. to extract + create goods for trade
- Need investment in export infrastructure: roads etc.
How is debt not a problem?
- if country has used the money well, for economic growth
- if a country can repay the amount received and interest rate
When does debt become a problem?
- when a country’s economy stagnates or declines, so they can’t repay back their debt
What is a HIPC?
Heavily indebted poor country
What is socio-economic global interdependence?
The reliance of people on products, knowledge & resources from other parts of the world through trade
What is environmental global interdependence?
The connections between local environments & activities and global processes (e.g. rural deforestation + climate change) - Global environmental agreement
What is health global interdependence?
Global health depends on a decent standard of health in each country (vaccinations)
What is trade balance?
The overall difference between all the costs of a country’s imported and all the money earned from exports on an annual bases. (Can be either in surplus, deficit or balance), also can be balanced between countries
What is free trade?
Raw materials, goods & services can move around the world without any restrictions AKA open market
What is protectionism?
Countries restrict imports of certain raw materials, goods or services by banning them completely, or imposing taxes on them to increase cost. (Trying to be self-dependent)
What is foreign direct investment?
Money being spent by a company from another country to build a factory, or supermarkets, etc., from which company can earn a profit from the country.
At what GNI is a country considered to be low-income?
< $1,036
At what GNI is a country considered to be lower-middle income?
$1,036 - $4,045
At what GNI is a country considered to be upper-middle income?
$4,046 - $12,535
At what GNI is a country considered to be high-income?
> $12,535
