Global Systems Flashcards
Economic interdependence (3)
Occurs through trade
HICs export manufactured goods and LICs export raw materials
Example = oil
Social interdependence (2+)
When economic migrants provide labour in a country and in return bring newly acquired skills to home country
Example = in 2015 there were 244 million migrants globally
Political interdependence (3+)
Work together to solve issues
Example = 2015-16 European migrant crisis
European countries worked together to support refugees from the conflict in Syria
Environmental interdependence (3+)
Every country is reliant on each other to look after environment
Example = 1986 a reactor at the Chernobyl nuclear plant in Ukraine exploded
Radiation = cancer and birth defects
What does interdependence create (3++)
Inequalities between countries and people in them
Tends to bring more benefits to HICs than LICs and richer rather than poorer
This is because flows are unequal
What do unequal flows cause (3)
Inequality
Conflict
Injustice
Benefits of flows (3)
Growth
Development
Stability
Benefits to a flow of people (4)
Opportunity for work
Escape war or famine
Immigrants can create economic growth = do jobs that citizens can’t do /don’t want to do
Migrants send money back to families or home communities = remittance
Unequal flows of people example (2+)
It’s easier for people from HICs to migrate than people from LICs
In 2017 UK citizens could travel to 173 counties without a visa while citizens of Afghanistan = 24
Inequalities due to flow of people (3)
“Brain drain”
Skilled people move and take their knowledge with them
Reinforces existing inequalities
Conflict due to flow of people (3+)
Low skilled migrants often prepared to work for less than low skilled locals
By employing = companies may depress wages for local pop.
Conflict between locals and migrants
Injustice due to flow of people (2++)
Migrant workers = dangerous conditions for little money
Example = Quatar = several thousand migrants have died building facilities for the 2022 FIFA World Cup
Benefits to flows of money (2++)
Includes remittances, foreign aid + FDI
FDI allows foreign countries to take advantage of cheap raw materials + low labour costs whilst host country benefit from capital and enterprise
Why is flows of money unequal
Money often flows from HICs to LICs
Unequal money flow = inequality (2)
Foreign aid = dependency = gov has little incentive to improve
FDI = force out local businesses
Unequal flows of money = conflict (3++)
Foreign aid can find its way to armed groups = used to fund conflict
FDI create conflict betweeen foreign company and locals
Example = FDI in farming can lead to peasant farmers being evicted to create larger plantations
Unequal flows of money = injustice (2++)
Companies may pressurise gov of LICs to pass laws to make it cheaper to invest there
Example = cutting environmental regulations or weakening laws on working conditions
Befit to flows of ideas (2+)
Neo liberalism = max economic growth occurs if trade barriers removed and state owned companies are privatised and gov spending cut
Increased trade = development and less conflict
Inequalities with u equal flow of ideas (2)
Neo liberalism tends to concentrate wealth in the hands of few
Exmaple = large TNC in HICs
Unequal flows of ideas = conflict (3+)
If private companies and free trade in LIC are threatened by decisions of that countries gov
HIC May feel their intervention is justified
Leas to conflict
Unequal flows on ideas = injustice (2+)
Gov and TNCs may argue free trade + privatisation = best way for country to develop
They may say it justifies poor working conditions and environmental degradation in LIC
Positives of flows of technology (2+)
Can lead to rapid innovation that can help people all over the world
Example = technology companies in Silicon Valley, USA, have developed innovations in communications and healthcare
Unequal flows of tech = inequalities (2+)
HICs can afford the latest technology, whereas LICs cannot
Countries with the latest technology can make products more cheaply and have better access to information and services due to better communication infrastructure
Example of inequality due to ideas (3+)
In 2016 97% of Netherlands` citizens had access to the Internet
This compares to 20% in Myanmar
This gives HICs an advantage over LICs
Conflict and injustice due to unequal flows of ideas
Repressive gov can use weapons tech sold to them by HICs to stop protests of their own people
Globalisation makes countries more powerful than others (2+)
HIC + NEE + TNC have more money + tech = drive global systems to own advantage
LIC = limited power
Example of power imbalance (4+)
Biggest contributors to climate change = richest countries
Reluctant to agree to proposal to limit climate change as may harm economy
Countries most affected by climate change = poorest
Example = Bangladesh is likely to be impacted significantly by rising sea levels + find it difficult to influence other countries to reduce greenhouse gas emissions because they lack power.
Concerns about the global environment have led to what (3)
More international summits and the establishment of support structures
Such as the Intergovernmental Panel on Climate Change (IPCC)
These systems and supporting organisations = helped to improve co-operation, stability and development.
What do the IMF and world bank do (3+)
Support the structure of the world’s economic and financial order
Act as intermediaries in the flow of international capital
Est. together at end of WW2 = provide financial stability
What is the IMF (3)
Monitors the global economy
Advises gov on how they could improve economic situation
Gives loans to countries
What is the world bank (3++)
Provides support for less developed countries + aims to reduce poverty
Provides loans for less developed so they can invest in areas like health, education + infrastructure
Money for loans comes from subscriptions form it’s member countries
World bank and IMF differences (3/3)
IMF = last resort + prevent crisis
WB = encourages start up enterprises
IMF = 2300 staff
WB = 7000 staff = much larger
IMF = overseas global financial system
WB = promotes economic development in developing countries
Why do people think IMF and WB enforce inequality (2++)
Both based in USA and led by HICs so LICs have less influence over decisions
Loans are conditional = LICs have to make chnages such as cutting regulation to receive loan
How many members WTO
160
Fastest growing economies (3+)
Asia
Sub Saharan Africa = although there’s are large SoL gap their economies grow quicker than most developed countries
Gini coefficient examples (2)
Sub Saharan Africa = risen by 9% between 1993 and 2008
China = increased by 34% in last 20 years
Golden Arches theory of conflict (3+)
No two countries that both have McDonald’s have fought a war against each other since each got its McDonalds
The theory has been disproved on a number of occasions
BUT = legitimate point about economic integration decreasing the likelihood of armed conflict between countries
Repatriation
The sending of money back to one’s own country
Sovereignty
Right if a country to govern itself
Surplus and deficit (2+)
Surplus = exports greater than imports
Deficit = imports greater than exports
Privatisation
Transfer of industry or service from public to private ownership / control
Neo liberalism (3+)
Political approach that involves less gov control of the economy
Involves removal of trade barriers + privatisation + cuts in gov spending
Increases free trade
What flows (4)
People
Ideas
Technology
Money
