HL Unit 4: Power, Places and Networks Flashcards
What is the definition of Globalisation?
The growing global interdependence of countries.
More international transactions in goods, services, money and technology.
What is the definition of Glocalisation?
A global product is more likely to succeed when it is adapted specifically to each locality or culture it is marketed in. (E.G. altering menus)
Transnational Corporations (TNCs)
What are 2 benefits of TNCs for host countries?
What are 3 disadvantages of TNCs for host countries?
Companies with the power to control operations in more than one country.
Good:
Companies offer training and education.
Creates jobs.
Coca Cola uses local bottling companies so money remains in host country.
Bad:
TNCs take advantage of less strict environmental regulations.
Harsh working conditions - long hours with little pay.
Very little money left in host country.
How have Improvements in Transportation driven Globalisation?
Faster/bigger airplanes allows labor and goods to move around easily. Road network improvements have created cheaper ways of moving goods and people. Sea transport – larger container ships – facilitating the transportation of large volumes of goods.
How has the Freedom of Trade driven Globalisation?
The EU, NAFTA,ECOWAS AND COMESUR have all contributed in allowing free movement of goods, services, ideas and labour between member countries and across regional boundaries.
How have Improvements of Communications driven Globalisation?
Improvements in telecommunication and the internet have contributed in the the exchange of ideas and services through the internet.
How have Technology and Cheap Labour in developing countries driven Globalisation?
Technology makes it possible to outsource services to labour in different arts of the world. Eg. Marking IB scripts online by different examiners in different parts of the world.
What factor does the KOF Index measure and how?
The index covers the economic, social and political factors of globalization.
How is Economic Globalisation evaluated in the KOF index?
Actual Flows: This includes data on trade, FDI and portfolio investment.
Restrictions: The restrictions on trade and capital controls using hidden import barriers, mean tariff rates, taxes on international trade.
How is Social Globalisation evaluated in the KOF index?
Personal Contacts: The direct interactions between people in different countries, using Telephone Traffic, Transfers, International Tourism, Foreign Population Percentage, International letters.
Information flows: The number of internet users (per 1000), the share of households with a television, and international newspapers traded (in percent of GDP).
Cultural Proximity: The number of English songs in national hit lists or movies shown in national cinemas that originated in Hollywood, number of McDonald’s Restaurants, number of Ikea shops, etc.
How is Political Globalisation evaluated in the KOF index?
The number of embassies and high commissions in a country.
The number of international organizations to which the country is a member.
The number of UN Security Council peace missions a country participated in and International Treaties.
What are the 3 Most and Least Globalised countries in 2020?
- Switzerland
- Netherlands
- Belgium
- Central African Republic
- Eritrea
- Somalia
What is the definition of a Superpower?
A nation(s) with a leading position in international politics.
How do countries become Superpowers?
Through economic, military, cultural and technological dominance over many countries. This could be through the use of ‘Soft power’ (cultural influence and diplomacy) or ‘Hard power’ (use of military force, economic and trade policies).
Who is the world’s largest Superpower?
United States
Which nations are emerging Superpowers? (BRICs and others)
Brazil, China, Russia, India, Qatar and the European Union.
How has the global location of Superpowers changed throughout history? (The collapse of the British Empire, The Cold War, Today’s situation)
1920: British Empire covered 25% global land area and had 25% global population.
1945-1990: By the end of the war:
The cost of two world wars and the
damage to the British economy and infrastructure meant it could not afford to run its
colonies. Many people in the colonies wanted independence. The post-war period therefore marked the decline of the former British Empire.
USA had developed into a very strong
military and industrial country. Post-war policy was to contain the spread of Soviet influence.
Cold War started between USSR and USA:
USSR communism and state-controlled economy (second largest in the world). Strong links with east Europe and LICs.
USA democracy and capitalist economy (largest in the world). Links with west Europe, the Commonwealth, Latin America, Asia.
USSR largest land area 22 million km2 + third largest population 285 million. USA third largest land area 9 million km2 and population 250 million.
USSR had oil and gas. USA had valuable metals, forest, agricultural and industrial systems
USSR had the world’s largest army and nuclear weapons. USA had largest navy and second most powerful air force.
1991 - Collapse of communism and break up of USSR
Today: USA
Weakened by: 2001 terrorist attacks, military involvement in Iraq and Afghanistan, 2008 recession
The Future (multi-polar): USA, Brazil, Europe, USSR, Saudi Arabia, China and India
How could the European Union be classified as a Superpower?
The European Union has a population of 493 million = one of the world’s largest economic superpowers.
Most of the pop is wealthy.
EU has shifted many of its countries from dictatorial to democratic governments.
1.5 billion people rely on the EU as their main trading partner and source of foreign investment and aid. In the EU there are 27 governments with their own agendas.
The EU tires stabilize countries’ political and economic systems, E.G. in Poland and currently Serbia.
What makes the USA a superpower?
US has access to international organisations: UN HQ in New York. World Bank and Int. Monetary Fund based in Washington.
US has dominance over air, sea and land. Largest, most technologically advanced warplanes, ships, tanks and artillery systems. USA accounts for 50% of international arms sales.
Annual spending on defence exceeds $100 billion. Funding for research is $40 billion yearly, twice what is spent on health, energy and environment combined.
What makes China an emerging superpower?
Since 1978, the standard of living of most people has tripled.
1976 - Market-based reforms introduced.
Gov. allowed poorest families to keep what they produced over the state quota. Resulted in a leap in food production.
China is the largest recipient of FDI among LEDCs.
1992 - Start of business entrepreneurship.
1997 - Despite Asian financial crisis in 1997, the GDP has continued to grow by 8% a year. Fastest sustained economic advance in history.
China’s economy has caused growth of village and township enterprises. The Yangtze valley has become integrated into the Asia-Pacific trade bloc.
Developments in the Pearl River Delta Region have built upon Hong Kong’s success to create a dynamic business region in southern China.
22% of jobs are in Industry, 35% are manufacturing.
Which nations are a part of the G7/8? When did it form?
How much of the world’s GDP does the G7 make?
What two areas of cooperation does G7 target?
What areas has it improved? What initiatives have come out of it?
What 4 main global issues do the G7 discuss?
What are 3 main criticisms of the G7?
What is a strength of the G7?
An informal bloc of industrialized (HICs).
Formed in 1975 - UK, USA, Italy, Germany, France, Japan, Canada in 1976, then Russia in 1998 until 2014.
The total GDP is 50% of the global economy.
Economic and political cooperation.
Economic stability. Launched Heavily Indebted Poor Countries (HIPC) initiative in 1999, aimed to cancel the debts of LICs.
Main topics: global governance, economy, energy policy, and international security.
Finance ministers and bank governors meet annually to discuss global concerns.
Criticisms:
Reluctance to include other major countries with higher GDPs E.G. China, Russia, Brazil, India. This has led to question G7’s relevance and effectiveness.
Members only 10.5% of world’s population - seen as an elite minority governing underrepresented majority.
Non-binding, vague commitments made at meetings are seen as ineffective.
Strengths:
Have supported democracies through financial aid and sanctions.
What is the G20?
Who is a part of G20?
How much of the global GDP, population, trade and land area does it make up?
When was it formed
What 5 main things does it focus on?
What are 3 major criticisms of G20?
In 2009, G20 overtook the G7 as the primary means of economic cooperation.
It is an international forum of governors of central banks and governments from 20 leading/emerging economies.
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK, USA, EU, two African nations, the IMF, World Bank, the IMFC, ASEAN and the DAC.
The G20 is 85% of global GDP, 2/3 of global population, 80% of world trade and 50% world’s total land area.
Formed in 1999
Main focuses: Promote regulations to prevent financial crises. Climate change Global trade Developing LEDCs Tackle corruption
Criticisms:
Not being transparent as there is no existing charter and most meetings held behind closed doors.
Ineffective during the financial crisis of 2008.
Under representation of Africa.
Too many countries to make meaningful consensuses.
