Implications of superpowers

Question 1

Explain dispute over resources (Arctic ocean CS)

Answer 1

Dispute over natural gas/oil reserves especially due to territorial disputes. These resources becoming more easily accessible due to melting

Cost of extraction per barrel $37
Countries arguing over land in Arctic:
USA- law of sea treaty could claim land 1/2 size of Alaska

Russia- claims 1/2 of ocean sea not allowing TNC’s to explore here

Greenland- fighting with Russia over landmass extending between countries

Question 2

Explain the UN Law of Sea (UNCLOS)

Answer 2

Countries can claim the right to exploit resources in an area up to 200 miles beyond their coastline (Exclusive economic zone). In some areas the EEZ’s overlap

E.g Russia is claiming up to half of the Arctic Shelf, using submarine to shift their flag. Granted its own permits

Question 3

Define Exclusive Economic zone (EEZ)

Answer 3

Countries have right to claim the right to exploit resources up to 200 nautical miles beyond their coastline

Question 4

How does energy development in Arctic threatens natural environment

Answer 4

Fragile ecosystem currently under stress from climate change. Alaska wildlife refuge protects land from exploration/exploitation. But US government under pressure to extend exploitation to Alaska

88% of Alaska budget relies on oil revenues

If oil prices kept low OPEC can protect exploitation in Alaska. To prevent environmental degredation

Question 5

Define counterfeiting

Answer 5

Creating an imitation/fake products that is significantly cheaper/inferior than original and breaks patent laws

Question 6

Explain the increase of counterfeiting

Answer 6

Undermines legal system/patent system
Main culprits: China, Taiwan pharmaceuticals are highly counterfeited in Africa

Counterfeiting costs G20 countries $85 billion

Counterfeiting can have long term affects on TNC’s profit,authenticity,raises unemployment
Trade relations become affected, Nigeria tension between China for poor electrical goods

Counterfeiting is at its highest where property rights are poorly protected

32 countries signed Anti-Counterfeit trade agreement. China didn’t sign

Question 7

Case study: Dispute over South China Sea

Answer 7

Japan/China in dispute over 8 islands due to rich fishing grounds, oil/gas reserves

Growing tensions:
2010 Japanese coastguard rammed Chinese fish trawler arresting boat/crew
2012 Japan staged protest on island

Spratly Islands China established small military presence o islands causing outrage to Beijing, Phillipines due to disputed territory
Installed missiles response to US exercises
Tensions continue to grow
30% of world trade travels through here

Question 8

Define sphere of influence

Answer 8

Referred to the area of the world linked by the same culture

Question 9

Pro’s/Con’s of interdependence

Answer 9

Pro:
Rising value of metals allows economic boom of poorer countries. Metals value increased by 59.2% predicted increase a further 13%
African countries build links with other countries (Brazil)

Con:
Increase in metal value leads to environmental degradation.
Falls in commodity prices, lowering profit margins causing closure of/selling

Question 10

Case study: Mozambique resource boom (interdependence)

Answer 10

Mozambique has large reserves of coal,oil,gas. Originally couldn’t afford the extraction process

GDP growth 2013-15 was 6.9%

However, resource boom caused tensions to rise between government and businesses over permits. Concerns of land grabs, poor working conditions.

World Bank pressure on investors to take social responsibility. But frustration between companies due to waiting years to start drilling.

Attracts more companies, China created special econ. zone and built railway

Question 11

Define economic centre of gravity

Answer 11

Main location of the majority of economic activity considered on a world scale and the scale has shifted to Asia

By 2025 600 cities with the highest GDP will generate 65% of world economic growth.

Question 12

What is the purpose of economic centre of gravity

Answer 12

Aim was to help companies recognise where economic activity was occurring, creating new markets, investment

Question 13

Case study: Growing importance of India (Economic centre of gravity)

Answer 13

2015 India 3rd largest national market, growth rate 7.5%
India privatised many parts of economy allowing investment into infrastructure, health, education

India has created relations with surrounding countries China/USA. India hopes to become permanent member of United Nations

India’s young population structure will benefit the economy in future,

Question 14

Explain continuing tension in the Middle East

Answer 14

Historical past/independence/ establishment of sovereign states (Jordan, Iraq, Israeli)

Ongoing conflict over Israel expansion (Hamas) difficult to resolve. Also in region conflicts between groups (Libya, Yemen, Syria) has erupted to due lack of action from superpowers. (Sunni Muslims/ Shias)

Political alliances across globe made tensions more complex

Question 15

Name the 4 economic problems/challenges to existing superpowers

Answer 15

Debt
Unemployment
Economic restructuring
Social costs

Question 16

Explain how debt is a challenge to superpowers

Answer 16

2008 global recession created debt in rich countries. 2015 UK national debt £1.5 trillion.
Tax raises can slow economy, to pay back debts causing implementation of austerity measures.
These countries begin to rely on capital investment from emerging superpowers allowing to maintain superpower status

Question 17

Explain how unemployment is a challenge to superpowers

Answer 17

Increased competition from emerging sp led to a decline of western TNC’s
Unemployment happens due to

Rigid business plans- depending on in house supply than outsourcing (General Motors, USA)
European TNC’s- locate abroad, leaving workforce vulnerable to changing commodity prices/ consumer spending patterns. 2008 recession caused unemployment to rise to 10%

Question 18

Explain how economic restructuring is a challenge to superpowers

Answer 18

EU/USA forced to shift economies to service due to increased competition. Effects of restructuring economies is disadvantaged communities aren’t able to participate in new market

Question 19

Explain the social costs is a challenge to superpowers

Answer 19

Consequences of unemployment in disadvantaged communities caused spiral of decline/ decaying living environment. Fewer maintained recreational centres. Affects children education unable to enter service industry

Question 20

Name the 4 ways which western military power has expanded

Answer 20

Navy
Nuclear deterrent
Air power
Intelligence

Question 21

Explain how navy is being developed

Answer 21

Aircraft carriers seen as vital for projecting power
UK reduced aircraft capability because cost of defence higher than cost of attack, easy target for missiles

Question 22

Explain how nuclear deterrent is being developed

Answer 22

The threat of nuclear deterrent is an investment as it is effective. Investment made by by many emerging superpowers

Question 23

Explain how air power is being developed

Answer 23

Fighter jets are being replaced by drones, cheaper in the long term more precise targets. larger bomber technology is being developed due to increased threat from Russia/Chinese military modernisation.

Question 24

Explain how intelligence is being developed

Answer 24

Development of AI and investment into cyber security as cyber attacks becoming major threat threatening identity of Mi6 agents.