Global Systems

Question 1

Define Interdependence

Answer 1

The natural dependence between things

Question 2

Give a key feature of ECONOMIC interdependence in the world bank

Answer 2

Promotes shared prosperity by fostering the income growth of the bottom 40% of each country

Question 3

Give a key feature of POLITICAL interdependence in the world bank

Answer 3

They aren’t tied to any particular country

Question 4

Give a key feature of SOCIAL interdependence in the world bank

Answer 4

End extreme poverty by decreasing the percentage of people living on less than $1.90

Question 5

Give a key feature of ENVIRONMENTAL interdependence in the world bank

Answer 5

They support environmental initiatives

Question 6

Give 3 intergovernmental organisations

Answer 6

World Bank
IMF
WTO

(Act as ‘brokers’ of globalisation) - Bretton Woods, 1944

Question 7

The world bank etc. play a pivotal role in world affairs by……………..political and economic………….for development and……………… worldwide

Answer 7

Harmonising
Frameworks
Investment

Question 8

Why were these global systems created

Answer 8

Fight against protectionism

Seen as a direct response to the Great Depression and, due to leading industrial nations blocking foreign imports with tariffs in the early 20th C, damaging exports for others.

Thus industrialised countries suffered declining economic output, swing the seeds for fascism in Germany and Italy

Question 9

Why are these sytems beneficial

Answer 9

Co-constructed a global legal and economic framework that enables and promotes free trade and FDI within global systems, with TNC’s thriving in this environment

Question 10

What does the Non-profit making World Bank do

Answer 10

Provides advice, loans and grants on a global scale, aiming to reduce poverty and promote economic development

Question 11

How much money did the World Bank distribute in loans and grants in 2017

Answer 11

$42 billion

Question 12

Give 2 examples of the World bank achieving its aim of promoting economic development and reducing poverty

+ give a counter-argument for the good it does

Answer 12

ECONOMIC - Help given to the Democratic Republic of Congo to kick-start a mega-dam project

POVERTY - $470 million granted to the Philippines for a poverty reduction program

Some may argue that economic development CAN be accompanied by rising inequality

Question 13

Give a key feature of ECONOMIC interdependence by the IMF

Answer 13

Lends money to actual governments to stabilise the economy and currencies - co-operating with 68 countries

Question 14

Give a key feature of POLITICAL interdependence by the IMF

Answer 14

When it lends money to governments, it may interfere with that nation’s politics to secure money being returned

Question 15

How much money did the IMF lend to Grecce to help end a period of financial crises in 2010 and what was the effect

Answer 15

Just under $40 billion

Greece’s economic growth rising from a declining -0.5% in 2015 to +2% in 2018

Unemployment falling from 25% - 19%

Question 16

What is are the cons of the IMF

Answer 16

IMF rules and regulations are controversial, in return for help, recipients must run free-market economies that are open to investment by foreign TNC’s - however, does little to negatively affect the lives of many, other than promoting economic growth

Governments may be required to cut back on public spending (healthcare, housing and education) in order for the debt to be repaid. - though prevents economic crises in the benefactors country and makes investment more secure and likely

Question 17

What is a key feature of ECONOMIC interdependence for the WTO

Answer 17

Creates a level playing field and gives countries equal economic growth and development, reduces obstacles to international trade

Question 18

What is a key feature of POLITICAL interdependence for the WTO

Answer 18

Provides the legal framework for the implementation and monitoring of those agreements + settles disputes

Question 19

What is a key feature of SOCIAL interdependence for the WTO

Answer 19

The opening of national markets to international trade will encourage and contribute to sustainable development, raise people’s welfare, and reduce poverty + foster peace and stability

Question 20

What is a key feature of ENVIRONMENTAL interdependence for the WTO

Answer 20

Permits members to take measures to protect the environment + public health.

These measures must be applied in the same way to both national foreign businesses, but mustn’t use environmental protection as a means of disguising protectionist policies

Question 21

What does the WTO do

Answer 21

Advocates trade liberalisation on a global scale (especially for manufactured goods), attempts to settle disputes and encourages countries to abandon protectionist policies in favour of UN-taxed trade.

Question 22

Give 2 examples of the WTO creating a more equal global society

Answer 22

Manufactured goods mainly originate from the BRIC’s

Persuaded China to increase its exports of ‘rare earth’ materials for phone manufacturing in other countries - less protectionist attitude

Question 23

Give a perceived con of the WTO

Answer 23

Difficulty to agree - round of negotiations in 2001 were stalled for 14 years.

However only due to being made up of 162 states, demonstrating its increased equality and interconnectivity as every voice is heard

Question 24

Give a quantitative data source and what it is

Answer 24

Lorenz Curve

A way economists measure what portions of the population are responsible for the income within a group of people, such as a nation

Question 25

Give the Pros of the Lorenz Curve as a data source

Answer 25

Visual representation of statistics

The perfect equality line allows for every country comparison

Question 26

Give the Cons of the Lorenz Curve as a data source

Answer 26

Exact x-axis percentage not easy to decipher

Issues with an accuracy of initial data (Gini coeficient)

Can’t display data for lots of countries as lines would overlap

Question 27

Give 3 quantitative data sources

Answer 27

Lorenz Curve
Oxfam 2016 Report
Gini Coefeicuant income inequality chart