Power, places and networks Flashcards
Why can levels of globalisation be measured, and what spatial variations exist?
Levels of globalisation can be measured to show the extent to which countries participate in global interactions. Spatial variations exist, with some countries being ‘cores’ (central hubs of high interactions) and others being ‘peripheries’ (low interaction levels). Semi-peripheral regions are transitional, becoming more or less globalised over time.
What is an example of global interactions that highlights core and peripheral regions?
Global air traffic is an example of global interactions. Core regions, such as major economic hubs, have dense international flight networks, while peripheral regions have fewer connections.
Why is globalisation not inevitable or universal? Provide examples.
Globalisation is not inevitable or universal because some nations and cultures limit interactions due to political or physical isolation. For example, North Korea is politically isolated, while Tibet faces physical isolation due to its geography.
What are examples of reversals in globalisation trends?
Reversals in globalisation include the rise of protectionism in the USA and Brexit (the UK’s exit from the EU), which may reduce global interactions for these countries.
What is protectionism?
Protectionism is a set of government policies aimed at protecting domestic jobs and industries from foreign competition by imposing tariffs and quotas on imports to make them more expensive.
How does globalisation differ from global interactions?
Globalisation is primarily an economic process involving international operations of industries like TNCs. In contrast, global interactions encompass economic, social, cultural, and political exchanges between nations.
What is a TNC, and what is an example of early globalisation involving a TNC?
A Transnational Corporation (TNC) operates across multiple countries. An example is the Ford Motor Company, which became one of the first TNCs in 1911 when it opened an assembly plant in Manchester, England.
How has Ford Motor Company contributed to globalisation?
Ford expanded globally throughout the 20th century, operating in 90 countries and employing around 250,000 workers. Its practices (e.g., assembly lines) influenced industries worldwide, spreading Western economic systems and culture.
What criticisms exist regarding the cultural impacts of globalisation?
Critics argue that globalisation imposes Western systems and values on other cultures, often seen as a form of cultural imperialism where recipient societies are unwilling participants in a one-sided relationship.
What is the KOF Index of Globalisation?
The KOF Index measures levels of globalisation using a composite score (0–100), combining economic, political, and social dimensions. It allows for comparisons across countries and time periods.
What are the three dimensions measured by the KOF Index and their weightings (2016)?
The three dimensions are:
- Economic globalisation (36%)
- Political globalisation (27%)
- Social globalisation (37%).
What sub-indices are included under economic globalisation in the KOF Index?
Economic globalisation includes the volume of cross-border trade, such as imports and exports, foreign direct investment (FDI), and other revenue flows. It also considers the number of restrictions on trade, including import tariffs and non-tariff barriers.
What sub-indices are included under political globalisation in the KOF Index?
Political globalisation is measured by the number of foreign embassies and high commissions operating within a country, the number of international organisations to which the country belongs, participation in UN peace missions, and the number of international agreements signed since 1945.
What sub-indices are included under social globalisation in the KOF Index?
Social globalisation includes personal contact, which measures direct cross-border interactions such as telephone calls, letters, tourist flows, and the size of resident foreign populations. It also includes cross-border information flows, measured by access to the internet, global television services, and foreign press media products. Cultural proximity is another sub-index that evaluates how close a society is to the global mainstream. This was initially measured by the number of McDonald’s outlets but later expanded to include IKEA stores.
What were some key findings from the KOF Index in 2016?
In 2016, the Netherlands was ranked as the most globalised country with an index score of 91.70. The Cayman Islands were ranked lowest in 184th place with a score of 32.18. Smaller Western economies were among the most globalised countries, while larger economies like the USA (ranked 34) and China (ranked 73) occupied lower positions.
What are some strengths of the KOF Index?
The KOF Index provides a comprehensive overview of globalisation and allows for easy, objective comparisons over time and across countries. It incorporates a large number of variables (23 in total), covering economic, political, and social aspects of globalisation. The data is sourced from reliable institutions such as the World Bank, UN, IMF, UNESCO, and others. Additionally, five-year running mean values are used for each variable to reduce statistical outliers.
What are some limitations of the KOF Index?
The KOF Index has several limitations. Reported data may be outdated or inaccurate due to challenges in data collection. It gives too much emphasis to outdated communication methods like letters while underemphasising emails and social media. Cultural proximity is measured using Western retailers like IKEA and McDonald’s, which introduces bias. Informal or black-market economies are excluded despite their significant role in globalisation. Additionally, economic, political, and social dimensions are not equally weighted.
Why was the Kearney Globalization Index discontinued after 2007?
The Kearney Globalization Index was discontinued because it was assumed that economic globalisation had become an entrenched and unstoppable phenomenon by that time. As a result, annual updates were deemed unnecessary.
Define global superpower
A global superpower is a nation or a group of nations that is able to project dominating power and influence anywhere in the world, sometimes simultaneously in more than one place.
Define hegemony
Hegemony is cultural or political leadership and influence by one nation over others.
What is the traditional and modern concept of ‘power projection’?
Traditionally, power projection referred to the hard power of military force, such as the USA’s use of the MOAB weapon in Afghanistan in 2017. Modern power projection also includes less coercive methods like political negotiation and economic relationships, exemplified by China’s Confucius Institutes.
What is soft power, and how does it relate to superpowers?
Soft power is the non-coercive influence exerted by a superpower through cultural appeal and attraction. It spreads leadership and power by spreading elements of its lifestyle, such as media, education, and consumer products, which are perceived as desirable.
How did World Wars I and II contribute to the rise of superpowers?
World War I weakened European economies, leading to the decline of powers like Great Britain while strengthening the USA and USSR. World War II further elevated these nations, with the USSR extending its influence over Eastern Europe and both countries becoming industrially and militarily dominant.
What was the Cold War, and how did it shape global superpower dynamics?
The Cold War (late 1940s–early 1990s) was a period of geopolitical tension between the USA and USSR. It involved an arms race, political alliances like NATO (USA-led) and the Warsaw Pact (USSR-led), and competition for global influence. The USSR’s dissolution in 1991 left the USA as the sole superpower.
What are some characteristics that define a superpower?
A superpower is characterized by economic strength (e.g., large GDP), political influence (e.g., leadership in international organizations), military capabilities (e.g., nuclear weapons, blue-water navy), cultural dominance (e.g., global media reach), demographic strength (e.g., large population), and access to natural resources.
How does the USA compare to China in terms of globalisation according to the KOF Index (2016)?
In 2016, the USA scored higher overall (75.71) than China (60.73) on the KOF Index. The USA ranked higher in social globalisation (79.15 vs. 53.32) and political globalisation (92.19 vs. 84.81). However, both nations had relatively low rankings in economic globalisation, with China scoring 49.97 compared to the USA’s 59.40.
Why might a global superpower not be highly globalised according to indices like KOF?
Big Domestic Market:
- A superpower, like the USA, has a huge economy and lots of trade happening within its own borders. It doesn’t rely as much on trading with other countries, so it might seem less globalized in terms of international trade.
Big Country with Lots Going On Inside:
- Big countries have a lot of activity happening internally goods, services, and people moving around within the country. Globalization measures focus on international connections, so all this internal activity doesn’t count.
Trade Looks Smaller Compared to the Economy:
- Even if a superpower trades a lot globally, its economy is so big that trade might look small when compared to its total GDP (economic output). Smaller countries trade more relative to their size, which makes them seem more globalized.
Less Cultural Mixing:
- Superpowers might not have as many foreigners or cultural exchanges compared to smaller countries. For example, smaller nations often have more immigrants or international cultural influences, which boosts their globalization score.
What factors contribute to China’s emergence as a potential superpower?
China’s rise is driven by its large population, rapid economic growth, technological advancements, military expansion (e.g., largest active-duty military personnel), and strategic control over regions like the South China Sea. However, challenges such as low GDP per capita and exclusion from key trade agreements hinder its progress.
How does military power differ between the USA and China?
The USA leads in defense spending and advanced technologies like drones and satellites, while China has more active-duty military personnel (over two million) and is rapidly expanding its nuclear arsenal. Both nations are engaged in territorial disputes, particularly in areas like Taiwan and the South China Sea.
What role does cultural influence play in defining a superpower?
Cultural influence allows a superpower to shape beliefs, values, ideologies, and lifestyles globally through media dominance, international education systems, migration patterns introducing cultural products, and widespread adoption of its language or customs.
What historical context is important for understanding the competition between the USA and the USSR?
The competition between the USA and the USSR during the 20th century was marked by a Cold War that involved a conventional and nuclear arms race, political alliances, and efforts to expand their spheres of influence globally. This rivalry shaped international relations and had lasting impacts on global politics.
What happened to the USSR in 1991, and what was its impact on global power dynamics?
In 1991, the USSR dissolved due to economic stresses, failed foreign interventions, and political upheavals, leading to the establishment of the Commonwealth of Independent States (CIS) with Russia at its head. This event left the USA as the sole global superpower, significantly altering global power dynamics.
What is the significance of the KOF Index scores for understanding superpowers?
The KOF Index scores provide insights into how globalisation affects superpowers. Despite being a global superpower, the USA does not have the highest score on the index, indicating that global influence may not solely depend on levels of globalisation measured by interactions and exchanges.
Why is it important to be informed about current events when discussing global superpowers?
Being informed about current events allows students to provide relevant examples in their analyses of superpowers. Recent developments can illustrate ongoing trends in power dynamics and influence, enhancing understanding and engagement with the topic.
What are some potential future superpowers mentioned in relation to China?
In addition to China, other nations or groupings that may emerge as potential superpowers include India and possibly regional alliances in Africa or South America as they develop economically and politically.
What were the KOF Index 2016 scores for the USA and China, and what do they reveal?
In 2016, the USA had an overall KOF Index score of 75.71 (ranked 31st out of 184 countries), with scores of 59.40 for economic globalisation (ranked 89th), 79.15 for social globalisation (ranked 28th), and 92.19 for political globalisation (ranked 16th). China had an overall score of 60.73 (ranked 73rd), with scores of 49.97 for economic globalisation (ranked 126th), 53.32 for social globalisation (ranked 87th), and 84.81 for political globalisation (ranked 47th). These results suggest that being a global superpower does not necessarily correlate with high levels of globalisation as measured by the KOF Index, possibly due to the methodology or the limited scope of interactions considered by the index.
Why are a strong economy and currency important for superpowers?
A strong economy and currency are essential for the emergence, persistence, and global influence of a superpower. They enable economic dominance, facilitate international trade, and allow for significant foreign investments and reserve currency status.
What are the key demographic and economic indicators for the USA and China (2016)?
In 2016, the USA had a national land area of 9.834 million km² (3rd globally), a population of 0.324 billion (4th), a GDP (PPP) of $18.56 trillion (3rd), and a GDP per capita (PPP) of $57,300 (18th). China had a land area of 9.326 million km² (4th), a population of 1.378 billion (1st), a GDP (PPP) of $21.27 trillion (1st), and a GDP per capita (PPP) of $15,400 (104th).
How do the USA and China compare in terms of trade and FDI?
In 2016, the USA ranked 3rd in export value ($1.47 trillion) and 2nd in import value ($2.21 trillion). It ranked 2nd globally in FDI stock at home ($3.648 trillion) and abroad ($5.556 trillion). China ranked 2nd in export value ($2.01 trillion) and 3rd in import value ($1.44 trillion). It ranked 5th in FDI stock at home ($1.458 trillion) and 11th abroad ($1.285 trillion).
What is GDP adjusted for PPP, and how does it affect comparisons between nations?
GDP adjusted for PPP accounts for differences in national prices, reflecting purchasing power more accurately than raw GDP figures. For example, $10 in the USA buys less than $10 in Tanzania. In PPP-adjusted terms, China overtook the USA as the largest economy globally in 2014.
What is the significance of reserve currencies for superpowers?
A reserve currency is held by governments and institutions for international transactions due to its perceived safety. The US dollar has been the dominant reserve currency since World War II, enabling cheaper borrowing and significant political influence globally.
What has been the dominant currency?
The US dollar accounted for 43.3% of international payments in 2015. It is widely used as a secondary currency globally, including as Ecuador’s official currency since 2000. Its strength allows the USA to import goods more easily but makes exports more expensive.
What are some drawbacks of having a strong reserve currency like the US dollar?
A strong reserve currency makes exports more expensive and imports cheaper, which can negatively impact the balance of trade by increasing reliance on foreign goods.
What was the impact of US sanctions on Cuba during the Cold War?
The USA imposed sanctions on Cuba starting in 1960, including an arms embargo, sugar import reductions, and travel bans. These sanctions were tightened over decades to isolate Cuba politically and economically but began easing under President Obama in 2014.
When did the Chinese yuan become a reserve currency, and what is its significance?
The Chinese yuan became a reserve currency in 2015, accounting for 10.9% of global foreign exchange reserves by that year. Although it ranks fifth among reserve currencies, most transactions involving yuan occur between mainland China and Hong Kong.
How do US and Chinese companies rank among global corporations?
In Fortune’s Global 500 rankings for revenue in 2016, Walmart (USA) ranked first with $482 billion, while State Grid (China) ranked second with $329 billion. The USA had the largest number of companies on the list (134), followed by China with 103.
How have foreign TNCs contributed to economic growth in China?
Foreign TNCs have invested heavily in China’s growing consumer market due to its large population and rising middle class. Companies like McDonald’s, Apple, LG, Hyundai, Toyota, and Mitsubishi have expanded rapidly within China.
What are some key characteristics of China’s ‘go global’ economic strategy since the late 1970s?
China’s ‘go global’ strategy included diversifying agricultural output, encouraging foreign investment, privatising non-strategic industries, fostering entrepreneurship, and increasing international trade through WTO membership since 2001.
What were some domestic achievements from China’s economic reforms?
Between 1978–2013, China achieved annual GDP growth rates of up to 11%, reduced absolute poverty levels despite rising inequality, increased average wages sixfold by 2005, and became the world’s largest economy by PPP-adjusted GDP in 2014.
How has China’s economic growth impacted global commodity markets?
China’s rapid growth drove up commodity prices until around 2011 when its slowdown caused energy prices to drop by up to 70%, metals by 50%, and agricultural commodities by about 35%. This highlights China’s influence on global resource demand.
How has China’s FDI influenced its global economic position?
China has become a major consumer of resources through FDI projects aimed at securing raw materials like rare earth metals and agricultural land abroad. This strategy supports its domestic market while influencing global trade dynamics.
What are some key differences between US and Chinese exports/imports?
The USA primarily exports capital goods like transistors and aircraft while importing consumer goods like automobiles from countries such as China (21% of imports). China exports machinery like data-processing equipment while importing resources like oil from partners such as South Korea (10%).
China has higher exports and imports compared to the USA. In 2023, China’s total exports were $3.42 trillion, ranking 1st globally, while the USA’s exports were $1.86 trillion, ranking 2nd1. Regarding imports, China imported $37.8 billion from the USA in November 2024, while the USA imported $15.3 billion from China in December 202412. China’s trade balance with the USA is positive, with exports to the USA reaching $501.22 billion in 20234. The total value of US-China trade in goods was around $583 billion in 2024, with China maintaining a trade surplus.
What trading organisations or agreements are the USA and China members of?
Both countries are members of the WTO and G20. The USA participates in NAFTA with Canada and Mexico while China is part of ACFTA with ASEAN nations. Additionally, China is a founding member of the Shanghai Cooperation Organisation (SCO).
What is China’s New Silk Road initiative?
The New Silk Road is an infrastructure project sponsored by China to enhance trade routes via land and maritime connections with Europe and Asia. It includes cargo trains running from China to Western Europe as an alternative to air or sea transport.
How do aid contributions differ between China and the USA?
The USA donates large amounts of official development assistance but contributes less than UN guidelines recommend relative to GNI. China’s aid focuses on Asia, Africa, Oceania, Europe, Latin America, regional organisations like the African Union, but remains below UN targets at just 0.06% of GDP.
Define gunboat diplomacy
The pursuit of foreign policy objectives with the aid of conspicuous displays of naval power aimed against the weaker power. Examples are still found today when countries with powerful navies deploy their vessels in conflict zones far from their national territorial waters. In April 2017 the USA deployed several warships (including two aircraft carriers) to the Korean peninsular as tensions grew around North Korea’s missile and nuclear weapons testing.
In the early 1900s US president Theodore Roosevelt espoused a similar if slightly more ‘subtle’ foreign policy philosophy in the phrase ‘speak softly and carry a big stick’.
Define a free trade zone (FTZ)
A designated area (i.e. an airport or seaport) for duty-free imports such as raw materials, parts, sub-assemblies or semi-finished or finished goods. These imports can be put in storage, displayed, assembled or processed for re-export or entry into the general market of the importing country (after paying duties).
Define GDP
Gross domestic product (GDP) is the most common measure for the size of an economy, and it measures the value of total final output of goods and services produced by that economy in a certain period of time. A similar measure, the gross national income (GNI), is favoured in some analyses.
Define PPP
Purchasing power parity. Adjusts the actual GDP to take account of national prices which vary from country to country. $10 in the USA will buy far less than $10 in Tanzania.
Define FDI
Foreign direct investment (alternatively ODI, overseas direct investment). Investments made by the government, financial institutions and corporations of one country into the economic sectors of another.
What is the significance of military power for superpowers?
The ability to project military power is a crucial factor in the geopolitical influence of a superpower. While countries like the UK and France have significant geopolitical influence, they lack the extensive military strength characteristic of superpowers like the USA and China.
How do military spending levels compare between the USA and China?
In 2015, the USA spent approximately 4.4% of its GDP on the military, while China spent 2%. This places the USA in 9th position globally for GDP spending and China in 40th position. The world average for military spending as a percentage of GDP is 2%.
What are the active military personnel and equipment statistics for the USA and China?
The USA has 1.4 million active frontline personnel, 13,892 aircraft, 72 submarines, and 8,848 battle tanks. In contrast, China has 2.3 million active personnel, 2,860 aircraft, 67 submarines, and 9,150 battle tanks. This suggests that while China has more personnel and tanks, the USA has superiority in air power.
Why is naval strength important for military influence?
Naval strength is vital for global military influence because it consists of mobile weapons platforms that can be deployed rapidly around the world. The USA has a far larger surface fleet compared to China, which has only recently begun to develop its blue water navy capabilities.
What is gunboat diplomacy? Provide an example of it.
Gunboat diplomacy refers to pursuing foreign policy objectives through displays of naval power against weaker nations. An example includes the USA deploying warships to the Korean peninsula in April 2017 amid rising tensions with North Korea.
How do nuclear arsenals compare between the USA and China?
The USA possesses approximately 6,800 nuclear warheads with advanced delivery systems capable of reaching any target. China has about 260 warheads with intercontinental capabilities but these are reportedly stored rather than deployed. Both nations maintain a ‘no first-use’ policy regarding nuclear weapons.
What has been the historical military influence of the USA?
Since emerging as a superpower in the twentieth century, the USA has been involved in numerous conflicts, regime changes, and peacekeeping missions worldwide. It maintains a vast network of permanent bases and temporary deployments globally.
How many US military personnel were stationed abroad in 2015?
In 2015, over 150,000 US military personnel were stationed in approximately 150 countries worldwide, representing about 11% of total personnel. Only 42 countries hosted permanent US bases.
Where are some significant US troop deployments located?
Significant US troop deployments include Japan (48,828), Central Command Area (44,800), Germany (37,704), South Korea (27,558), and Afghanistan (9,800), among others.
How does China’s military influence compare to that of the USA?
Despite being the world’s third strongest military power, China’s military influence is more restricted than that of the USA. As of now, China has only one overseas military base located in Djibouti.
What strategic importance does Djibouti hold for China?
Djibouti is strategically important due to its location near major shipping routes. China’s naval base there will support operations and includes facilities for weapons storage and maintenance.
What roles do NATO and SCO play in military alliances?
NATO aims to safeguard member security through political cooperation and military means. The SCO focuses on regional peace and security among its members but currently lacks NATO’s expansionist ambitions.
How do US and Chinese contributions to UN peacekeeping differ?
In peacekeeping operations as of 2014, China ranked higher than the USA; while China was involved in multiple missions with significant troop contributions, the USA ranked lower despite being a permanent member of the UN Security Council.
What are some examples of recent Chinese military involvements?
Chinese troops have been present in Balochistan since 2004 due to security concerns over Chinese workers. Additionally, they have participated alongside French forces in Mali since 2012 to combat Islamist terrorism.
What is the significance of China’s naval presence beyond territorial waters?
The Chinese navy has conducted friendly visits globally and maintains a presence in strategic areas like the Indian Ocean. It also defends territorial claims in regions such as the South China Sea.
Define geopolitical
Relating to politics, especially international relations, as influenced by geographical factors.
Define ratified treaty
A ratified treaty is one which has been enforced and made active by the country that has signed the treaty.
What is the structure of the UN Security Council?
The UN Security Council consists of five permanent members (China, France, Russia, the UK, and the USA) and ten non-permanent members elected for two-year terms. The council is responsible for maintaining peace and security through binding resolutions and peacekeeping forces.
What power do permanent members of the UN Security Council have?
Permanent members can veto resolutions they disagree with, which prevents the resolution from passing. This power allows them to exert significant political influence within the council.
How often does the UN Security Council pass resolutions?
The UN Security Council passes an average of 30 resolutions each year, reflecting agreements among its members.
How has China historically voted on UN resolutions?
Since joining the UN in 1971, China typically opposed or abstained from votes on military conflicts and human rights issues, reflecting its non-interventionist stance. However, it voted in favor of resolution 1411 in 2002 regarding Iraq.
How frequently has China used its veto power in the UN?
China has exercised its veto power infrequently but has used it to block resolutions concerning Syria, Guatemala, Zimbabwe, Myanmar, and others, including two instances related to the Middle East in 2016 and 2017.
How many times has the USA used its veto in the UN Security Council?
As of 2014, the USA had used its veto power 61 times, including 30 times to block resolutions related to the Middle East.
What international environmental agreements has China signed?
China has signed treaties addressing issues like Antarctic conservation, biodiversity, climate change, and pollution. It ratified the Paris Agreement on climate change in November 2016.
What is notable about the USA’s participation in international environmental agreements?
The USA has signed treaties on various environmental issues but has many signed but not ratified agreements. It announced its withdrawal from the Paris Agreement in June 2017 after signing it.
How many international organizations is the USA involved with?
The USA is a full member or observer in 87 international organizations and maintains formal diplomatic relationships with most of the 193 states recognized by the UN.
What is China’s involvement in international organizations?
China is a full member or observer in 75 international organizations and formally recognizes all UN member states except for 21 that recognize Taiwan instead.
What are some initiatives from China’s Forum on China–Africa Cooperation (FOCAC)?
FOCAC initiatives include establishing a development fund, providing loans to African nations, debt cancellation for poorer states, building clean energy power plants, training healthcare professionals, and constructing schools.
What is “panda diplomacy”?
Panda diplomacy refers to China’s use of giant pandas as diplomatic gifts to strengthen international relationships. This practice began in earnest after President Nixon’s visit to China in 1972 and has evolved over time into a model involving financial transactions and mutual resource exchanges.
What is the paradox concerning Chinese culture’s influence?
The paradox lies in the fact that while Chinese culture is widespread and familiar globally, many Chinese brands remain unknown to Western consumers. Traditional aspects like Chinese food and martial arts are well-recognized, yet modern Chinese brands struggle for recognition.
How has the Chinese diaspora contributed to cultural influence?
The Chinese diaspora has led to the establishment of Chinese enclaves worldwide, making elements of Chinese culture, such as cuisine and martial arts, familiar to many. However, these adaptations may not reflect authentic Chinese practices as recognized in China.
Which Chinese brands have achieved global recognition?
Brands like Huawei, Lenovo, Oppo, Vivo, and ZTE have gained global recognition. Huawei accounted for 40% of global smartphone sales in 2015 and has engaged in sports sponsorships to enhance its visibility.
Why do traditional cultural elements like food and martial arts have more recognition than modern brands?
Traditional cultural elements have been maintained by migrants and accepted by other cultures over time, while modern brands are often associated with popular culture that has been historically dominated by Western influences.
How is China’s cultural influence expanding in Africa?
Over 800 Chinese companies operate in Africa, spreading business practices. Additionally, China has established 20 Confucius Institute centers across 13 African countries to promote Mandarin and Chinese culture.
What are some initiatives taken by the Chinese government to promote Mandarin globally?
The Chinese government has promoted Mandarin through Confucius Institutes and sent language instructors to various countries, including Thailand, Cambodia, and Argentina.
What is the expected economic projection for China by 2030?
By 2030, China’s economy is expected to be double that of the USA’s economy. Despite this growth, China’s soft power projection remains limited due to various complex factors.
What challenges do Chinese brands face in gaining international recognition?
Chinese brands encounter strong local competition and cultural conservatism that favors familiar local products. Nearly half of consumer goods spending goes on local or regional brands.
How does the legacy of Western imperialism impact the spread of Chinese culture?
The historical spread of English through British colonialism and the dominance of US media have created a foundation for Western cultural imperialism, making it challenging for Chinese culture to gain similar traction globally.
What role do Confucius Institutes play in promoting Chinese culture?
Confucius Institutes aim to spread understanding of Chinese culture and teach Mandarin worldwide. They serve as platforms for cultural exchange and have trained millions of students since their inception.
How much did China invest in the 2008 Beijing Olympics, and what was its purpose?
China invested a record $42 billion in the 2008 Beijing Olympics to promote itself as a welcoming country with different values from the West while showcasing its cultural identity despite human rights criticisms.
How does China engage with its overseas diaspora?
China seeks to strengthen relationships with its overseas populations through meetings, conferences, and summer camps for children, recognizing their role as tools of influence for promoting Chinese heritage.
What are some forms of Chinese mass media accessible globally?
Chinese mass media includes overseas editions of newspapers like People’s Daily and China Daily, online news services like Xinhua, and CCTV, which broadcasts in multiple languages including English and Spanish.
How has China’s film industry evolved since the late 20th century?
After years of strict government control over content, China’s film industry began importing foreign films in the mid-1990s. Today it allows an annual quota of American films and aims to increase its influence in Hollywood through collaborations.
What is “panda diplomacy”?
Panda diplomacy involves using giant pandas as diplomatic gifts to strengthen international relationships. This practice began in earnest after President Nixon’s visit to China in 1972 and continues today as a symbol of soft power.
What are some key aspects of China’s strategy for becoming a global superpower?
China’s strategy includes promoting soft power through cultural diplomacy via Confucius Institutes, enhancing economic ties through investment in developing regions like Africa, and projecting a positive image internationally through events like the Olympics.
What is the process of Americanization, and how is it perceived globally?
Americanization refers to the widespread influence of American culture, which has faced criticism and backlash. While some argue that its progress has stagnated or declined, American culture remains appealing and recognizable globally, unlike contemporary Chinese cultural influences.
Why is measuring cultural influence considered challenging?
There are no direct indices for measuring cultural influence, making it a nebulous concept. Proxy measurements, such as global sales of cultural products, can be used, but they must be interpreted with caution.
What comprises the US mass media and entertainment (M&E) industry?
The US M&E industry is the largest globally and includes TV programs, motion pictures, music, radio broadcasts, print media, and video games. Much of this content is increasingly accessed online.
How dominant is Hollywood in the global cinema market?
Hollywood accounts for over 80% of the global cinema market. In 2016, the highest-grossing film was “Captain America: Civil War,” which earned over $1.5 billion worldwide, highlighting US cultural dominance in movies.
What challenges do non-US films face in the global market?
Non-US films struggle to achieve similar recognition as American films. For example, “The Monkey King 2,” a Hong Kong production, ranked only at number 42 in global earnings in 2016.
How does American television reach global audiences?
American TV shows are broadcast worldwide through local networks or international branches of US channels. Streaming services allow direct access to American programming in many countries.
What were the most popular TV programs globally in 2016?
The most demanded TV programs included “Game of Thrones” (7.2 million daily demand expressions), “The Walking Dead” (4.7 million), and “Pretty Little Liars” (3.8 million), showcasing the dominant position of US television.
How does American sports culture compare to global sports?
While American sports like baseball and basketball have some international appeal, they do not match the global reach of soccer (association football). The NFL Super Bowl has a worldwide audience but still pales in comparison to events like the FIFA World Cup Final.
What are some top American brands recognized globally?
The top ten most recognized global brands include Instagram, Facebook, YouTube, Twitter, Apple, Google, Disney, Snapchat, Amazon, and Netflix. These brands reflect significant cultural influence and recognition worldwide.
How does Subway exemplify American fast food’s global presence?
Subway has approximately 33,679 restaurants in 93 countries and is one of the fastest-growing fast food chains globally. It offers a uniform dining experience similar to other American fast food brands like McDonald’s.
What role does Apple play in global consumer culture?
Apple is known for its premium products and has a devoted customer base worldwide. As of 2016, it operated 450 retail stores across over 20 countries and significantly influences technology trends.
What criticisms has Nike faced despite its global popularity?
Nike has been criticized for alleged child labor practices and poor working conditions in overseas factories. Nevertheless, it remains a leading brand in sports apparel with over 700 retail stores outside the USA.
How has American business culture influenced global practices?
American business culture emphasizes profit maximization and performance-based rewards. These principles have been adopted by companies worldwide but are met with resistance in some cultures that prioritize employee welfare.
How does the spread of English impact American cultural influence?
The English language’s dominance due to Western imperialism facilitates the spread of American culture through media and communication. Over a billion people speak English as a second language or have learned it as a foreign language.
What was the significance of the 2008 Beijing Olympics for China’s cultural projection?
China invested $42 billion in the Beijing Olympics to showcase itself as a welcoming nation with distinct values from the West while promoting its cultural identity on a global stage despite human rights criticisms.
Define IGO
Either intergovernmental organisation or international governmental organization. In an IGO at least two nations come together to form an entity (the ‘group’) for the purpose of working together in areas of common interest.
An IGO that requires nation states to sign and ratify a treaty of membership has a legal existence. Such IGOs are subject to international law and member states are bound by legally enforceable agreements. Member states must obey the rules and regulations of the organisation. Examples include NATO, the UN and the EU.
An IGO that consists of a group of member states not bound by a treaty has no legal status. Member states are under no legal obligation to comply with decisions made by the IGO. Examples include the ‘G’ groupings and Organization of Petroleum Exporting Countries (OPEC). In the past OPEC has had difficulty enforcing agreements over oil production quotas as member states are free to produce as much oil as they can or wish, regardless of any internal agreements.
In theory a legally established IGO should be more powerful and have a greater global influence as its members are bound to act together, en masse. A bloc of countries, especially powerful ones, have more global ‘clout’ than individual nations.
Define MGO
In the context of international organizations MGO stands for multi-governmental organisation. It is an alternative term for an IGO with at least three members.
What is an IGO?
An IGO (intergovernmental organization) is an entity formed by at least two nations to work together on areas of common interest. IGOs can be legally binding (e.g., UN, NATO) or non-binding (e.g., G7, OPEC).
What is the G7 and who are its members?
The G7 is a group of leading industrialized nations. Current members are the USA, Canada, UK, Germany, France, Italy, and Japan. The EU is also represented but not a full member.
What percentage of global GDP does the G7 account for?
The G7 accounts for 31% of global GDP (PPP) and 63% of global national wealth.
What are some criticisms of the G7?
Criticisms include lack of representation of emerging economies like China, India, and Brazil, declining share of world GDP, and perceived inability to act on global issues like HIV/AIDS and climate change.
What is the G20 and when was it established?
The G20 was established in 1999 as a forum for advanced and emerging economies to promote global financial stability through international cooperation.
What percentage of global GDP and world trade does the G20 represent?
The G20 represents 80% of global GDP (PPP) and 75% of total world trade volume.
What is a major achievement of the G20?
The G20 is credited with preventing the 2007-2008 global economic crisis from spreading further by promoting policies like reducing interest rates and increasing money supplies.
What is the OECD and what is its mission?
The OECD (Organisation for Economic Cooperation and Development) is an international economic research and discussion organization. Its mission is to promote policies that improve economic and social well-being worldwide.
How many members does the OECD have and what percentage of global GDP do they represent?
The OECD has 35 member countries, representing 59% of global GDP (PPP).
What are some of the OECD’s main aims for the 21st century?
The OECD’s aims include restoring confidence in the free market economy, ensuring tighter control of public finances, fostering new sources of growth, developing skills for future jobs, and achieving sustainable development without reliance on aid.
How has the G20’s agenda evolved in recent years?
Recent G20 summits have expanded beyond economic issues to include discussions on sustainable agriculture, green growth, social welfare, migration, refugees, climate change, and employment for diverse groups including women, youth, older people, and those with disabilities.
What criticism has the G20 faced regarding representation?
The G20 has been criticized for its exclusive membership. Norway, a major economy and significant UN contributor, is not represented. Africa and Central Asia are underrepresented, and some EU states desire direct representation rather than through the EU.
How has the G20 responded to criticisms about exclusivity?
The G20 has invited over 30 countries to observe its summits and has 11 international organizations as permanent invitees, including the African Union, APEC, ASEAN, OECD, UN, World Bank, and WTO
What was the context for establishing the G20?
The G20 was established in 1999 following the financial crises of the 1990s, aiming to promote global financial stability through international cooperation and modernization of international economic structures.
How did the G20 respond to the 2007-2008 global economic crisis?
The G20 is credited with preventing the crisis from worsening by promoting policies such as reducing interest rates, increasing money supplies (quantitative easing), and preventing a return to protectionist economic policies.
Define primary energy
The amount of energy available in the energy source before it is converted or transformed into another form of energy such as electricity.
Define mtoe
Milions of tonnes of oil equivalent. Mtoe is used as a standard measure to compare different energy sources. For example in 1994–2014 the amount of energy provided by nuclear power was equivalent to what could have been produced by about 5 million tonnes of oil.
What is an energy policy?
An energy policy is a national strategy put in place by a government to ensure that a country’s future energy requirements are met. It aims to achieve energy security.
What is the energy mix?
The energy mix refers to the variety of energy sources used by a country as a result of its energy policy. Energy mixes vary between countries and change over time.
What percentage of global oil production did OPEC control in the 1970s?
OPEC controlled 40% of the world’s oil production and 50% of all oil available for export in the 1970s.
What event triggered the 1973 oil crisis?
On October 16, 1973, OAPEC (a group within OPEC) increased oil prices from $3 to $5 per barrel, reduced production, and embargoed supplies to certain Western countries.
How did the 1973 oil crisis affect US energy policy?
It led to the Energy Policy and Conservation Act of 1975 and the creation of the US Department of Energy in 1977. The US also increased domestic oil production and sought alternative energy sources.
How did European countries respond to the 1973 oil crisis?
European countries accelerated North Sea oil and gas developments, introduced energy-saving measures, and began looking for alternative energy suppliers beyond the Middle East.
What is the International Energy Agency (IEA) and why was it established?
The IEA was established in 1974 as a result of the 1973 oil crisis. It aims to ensure member states maintain oil stocks equivalent to at least 90 days of the previous year’s net imports.
How did Brazil respond to the 1973 oil crisis?
Brazil launched its Programa Nacional do Álcool in 1975, reinvigorating its biofuel program to produce ethanol from sugar cane as an alternative to imported oil.
What factors led to OPEC losing control of the oil market from 1980?
Factors included OPEC infighting over quotas, overproduction causing a price crash, changing energy mix in response to 1970s price rises, and the 1997 Asian financial crisis.
How has OPEC’s influence on global energy policies changed since the 1970s?
While OPEC’s direct influence has decreased, the concept of energy security it sparked remains embedded in many countries’ policies. However, economic considerations and new technologies like fracking now play a larger role in shaping energy policies.
What percentage of petroleum is used for non-fuel purposes?
Approximately 12% of all petroleum produced is destined for the non-fuel petrochemical industry.
How has oil’s role in electricity generation changed since 1973?
Oil’s contribution to electricity generation has decreased significantly. In 1973, it accounted for 22% of electricity production, but now its contribution varies greatly in national energy mixes (e.g., 9% in Japan and 0.7% in the USA).
What advantages does oil have over coal and natural gas?
Compared to coal, oil has a higher energy content, is cleaner, and easier to transport. Compared to natural gas, oil has advantages in the transport sector and has established infrastructure and economies built around its use.
When was OPEC founded and who were its founding members?
OPEC was founded in 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
What was the Tehran Agreement of 1971?
The Tehran Agreement was when OPEC forced 22 oil companies to accept a 55% tax on profits or face a total embargo, marking OPEC’s growing dominance in the oil industry.
What caused the 1973 oil crisis?
On October 16, 1973, OAPEC (a group within OPEC) increased oil prices from $3 to $5 per barrel, reduced production, and embargoed supplies to specific Western countries, triggering a global supply reduction and market panic.
How did the 1973 oil crisis affect developing nations?
Developing nations suffered significantly as their development plans were based on cheap oil. As oil prices increased and the USA raised interest rates, a global recession hit, reducing demand for exports from poor nations and contributing to the world debt crisis.
What is the concept of inelasticity of demand in relation to oil?
Inelasticity of demand for oil means that demand does not significantly change even when there are price changes, as demonstrated during the 1970s oil crisis when consumption remained high despite price increases.
What factors led to OPEC losing control of the oil market from 1980?
- OPEC members frequently disagreed on production quotas, with many countries inflating their reserves to achieve higher quotas or outright cheating on agreed limits4. This internal discord weakened OPEC’s ability to control global oil supply effectively.
- The International Energy Agency projects global oil supply capacity could reach 114 million barrels a day by 2030, creating an 8 million barrels a day surplus. Meanwhile, demand is declining due to the growing adoption of electric vehicles in developed nations, with global EV sales potentially reaching 40 million cars by 2030. The shift towards renewable energy sources and improved fuel efficiency also contribute to reduced oil demand. This oversupply situation undermines OPEC’s ability to control oil prices, potentially leading to a “lower price environment” with oil prices ranging from over $90 to less than $60 a barrel by 2030.
What was Brazil’s response to the 1973 oil crisis?
Brazil launched its Programa Nacional do Álcool in 1975, reinvigorating its biofuel program to produce ethanol from sugar cane as an alternative to imported oil, an example of import substitution.
What is the purpose of intergovernmental organizations (IGOs) that lend money?
IGOs exist to lend money or extend credit facilities to national governments for various purposes, including economic stability, development projects, and crisis management.
What is the International Monetary Fund (IMF) and when was it established?
The IMF was established in 1945 with 29 member countries to help reconstruct the global economy following the Great Depression and World War II. Its goal was to prevent economic crises similar to those that led to the Great Depression.
What were the original stated aims of the IMF?
- Promote international monetary cooperation through a permanent institution that facilitates consultation and collaboration on international monetary issues.
- Facilitate the expansion and balanced growth of international trade, contributing to high levels of employment, real income, and the development of productive resources.
- Promote exchange rate stability by maintaining orderly exchange arrangements and avoiding competitive currency devaluation
How has the IMF’s role evolved since its formation?
Over the decades, the IMF has increasingly worked with low-income countries (LICs), providing an alternative source of funding for nations with limited access to private capital. It also lends to wealthier nations facing financial difficulties, such as Greece and Portugal during the Eurozone crisis.
How many members does the IMF currently have, and where is its headquarters?
The IMF has 189 members who provide funds for its operations and governance. Its headquarters are located in Washington, D.C.
What is the surveillance role of the IMF?
The IMF monitors member policies and issues warnings about risks to economic stability. It also offers capacity development, technical assistance, and training to help member states implement effective economic policies.
What is a core responsibility of the IMF?
A core responsibility of the IMF is to provide loans to member countries experiencing balance of payments problems. This financial assistance helps countries stabilize their currencies, rebuild international reserves, and restore conditions for strong economic growth.
What historical events led to increased demand for IMF loans?
Demand for IMF loans surged during several key periods:
- The immediate aftermath of the 1973 oil crisis.
- The intensifying international debt crisis of the 1980s.
- The transition of former Soviet bloc nations to market-driven economies in the 1990s.
- Economic challenges faced by Eastern European nations in the 2000s.
- The Eurozone crisis in the 2010s.
What are concessional loans from the IMF?
Concessional loans are offered only to low-income countries (LICs) on more favorable terms than those available to wealthier nations. These loans may have very low or zero interest rates and include grace periods before repayment begins.
What are Structural Adjustment Packages (SAPs) associated with IMF loans?
SAPs require recipient nations to implement specific conditions such as reductions in government spending, privatization of state utilities, expansion of primary industry, currency devaluation, removal of trade barriers, encouragement of foreign direct investment (FDI), removal of state subsidies, anti-corruption measures, and achieving a balanced budget.
What criticisms have been leveled against SAPs?
Criticisms include:
- Emphasis on austerity measures that disproportionately affect the poor.
- Increased poverty and income inequality in LICs.
- Undermining national sovereignty by requiring compliance with external conditions.
- Ignoring human and workers’ rights.
- Supporting totalitarian regimes.
- Potentially reducing food security in LICs.
- Promoting environmentally damaging practices.
How has the IMF responded to criticisms regarding its support for LICs?
The IMF has reformed its support by increasing access to concessional resources by 50% for its poorest members and permanently setting a zero interest rate on loans for LICs affected by severe external shocks since 2015.
Can you provide examples of successful IMF interventions?
Successful interventions include Turkey’s case from 2001 to 2008 when it repaid its loan successfully, as well as interventions in Jordan which have also been deemed successful.
What is the New Development Bank (NDB)?
The NDB was formerly known as the BRICS Development Bank and was established by Brazil, Russia, India, China, and South Africa during the seventh BRICS summit in July 2015. It focuses on funding infrastructure projects in low-income countries and promoting sustainable development.
What is unique about NDB’s lending compared to other institutions like the IMF?
Unlike the IMF, which does not lend for specific projects, the NDB provides loans specifically for infrastructure projects while promoting sustainable development overall.
What significant funding commitments has NDB made since its establishment?
In 2016, NDB approved seven investment projects across member countries totaling over $1.5 billion, with more than 75% dedicated to sustainable infrastructure projects primarily focused on renewable energy generation.
What are some projects approved by NDB in member countries?
Approved projects include wind and solar power initiatives in Brazil, a hydroelectric power plant in Russia, wind and solar projects along with road upgrades in India, rooftop solar panel projects in China, and renewable energy transmission projects in South Africa.
What is the World Bank’s mission?
The World Bank aims to reduce poverty and support development by providing financial and technical assistance globally. Its headquarters are located in Washington D.C., traditionally led by an American president.
What are the two main branches of the World Bank?
- International Bank for Reconstruction and Development (IBRD) - lends to middle-income countries (MICs) and credit-worthy low-income countries (LICs).
- International Development Association (IDA) - provides interest-free loans and grants specifically for poorest countries.
What are World Bank’s goals for achieving by 2030?
The World Bank aims to end extreme poverty by reducing those living on less than $1.90 a day to no more than 3% and promote shared prosperity by fostering income growth among the bottom 40% of earners in every country.
How did World Bank lending change over time?
Initially focused on post-World War II reconstruction through infrastructure loans in Europe under the Marshall Plan, it shifted attention towards funding projects in LICs starting from the late 1960s and early 1970s.
What criticisms have been directed at World Bank lending practices?
- Loan Conditionality
- The World Bank often attaches strict conditions to its loans, requiring countries to make specific policy changes (e.g., privatizing industries, cutting subsidies, or reducing government spending) before receiving funds.
- These conditions can limit a country’s ability to make its own decisions, undermining national sovereignty.
- They often promote policies that favor private businesses or foreign investors, which may not align with the borrowing country’s needs.
- In some cases, these conditions have worsened poverty by reducing spending on essential services like education and healthcare. - Structural Adjustment Programs (SAPs)
- SAPs were loans provided during economic crises, requiring countries to adopt free-market policies like cutting social spending, removing trade barriers, and privatizing public services.
- In many cases, these policies led to negative outcomes, such as increased poverty and inequality. For example, removing food subsidies made basic goods unaffordable for the poorest people.
- SAPs often failed to deliver economic growth, especially in Sub-Saharan Africa, where economies contracted instead of improving. - Debt Sustainability and “Debt-Trap Diplomacy”
- Critics argue that World Bank loans sometimes push countries into unsustainable debt. Some claim this creates a “debt trap,” where nations borrow more money just to repay old loans.
- This cycle of borrowing can leave countries dependent on external financing without solving their underlying economic problems.
- It raises concerns about whether the World Bank prioritizes lending over achieving real development outcomes. - Lack of Accountability
- The World Bank has been criticized for weak accountability in ensuring its projects achieve meaningful results.
- There is often little follow-up to see if loans actually help development goals.
- Borrowing countries sometimes fail to meet their commitments without facing consequences, leading to ineffective use of funds.
How does World Bank financing work?
The World Bank has an authorized budget of $184 billion; approximately 10% comes from member contributions while most funds are generated through lending operations charging borrowing countries or investing in global financial markets.
How do IMF and World Bank functions differ?
The IMF oversees monetary systems while not investing directly in development programs; it assists all members facing temporary financial difficulties with short- to medium-term credits. In contrast, the World Bank focuses on long-term financing specifically aimed at promoting economic development through project funding primarily targeted at LICs.
What specific actions did the G20 take during the 2007-2008 global economic crisis?
- Coordinated Fiscal and Monetary Stimulus
- Many countries were in trouble because banks were collapsing, businesses were shutting down, and people were losing jobs. To fix this, the G20 countries worked together to pump money into their economies to get things moving again.
- Governments spent billions of dollars to rescue failing banks and companies (e.g., the U.S. spent $700 billion on bailouts).
- Central banks (like the Federal Reserve in the U.S.) lowered interest rates so people and businesses could borrow money more easily.
- These actions helped prevent the global economy from completely crashing and gave people and businesses a chance to recover. - Strengthening International Financial Institutions
- Some poorer countries were struggling even more than wealthier ones because they didn’t have enough money or resources to deal with the crisis. The G20 stepped in to help by giving more money to global organizations like the International Monetary Fund (IMF).
- The G20 increased funding for the IMF so it could lend money to countries that needed help urgently.
- Development banks (which help poorer countries) also got extra funding to support projects like building infrastructure or stabilizing economies.
- This ensured that struggling countries didn’t collapse completely, which could have made the crisis even worse worldwide. - Financial Regulation Reforms
- One of the reasons for the crisis was that banks and financial companies were taking huge risks with money, which backfired. The G20 decided to change the rules so this wouldn’t happen again.
- They created a new group called the Financial Stability Board (FSB) to keep an eye on risks in the financial system.
- They introduced stricter rules for banks, like requiring them to keep more money in reserve (Basel III regulations), so they wouldn’t collapse if things went wrong.
- These changes made the financial system safer and less likely to cause another crisis in the future.
What was the outcome of the 2010 Toronto G20 summit protests?
The 2010 Toronto G20 summit resulted in riots and demonstrations, leading to the largest mass arrest in Canadian history. This event highlights the controversial nature of G20 summits and the public opposition they can face.
How has the G20’s agenda evolved in recent years?
Recent G20 summits have expanded beyond purely economic issues to include discussions on sustainable agriculture, green growth, social welfare, migration, refugees, climate change, and employment for diverse groups including women, youth, older people, and those with disabilities.
What is the Global Governance Group (3G) and why was it formed?
The 3G or Global Governance Group is a group of 28 non-G20 states formed in response to Singapore’s criticism of the G20 at the UN in 2010. It was created to address concerns that G20 decisions affect all nations, large and small, even those not represented in the G20.
Define acessability
A measure of how easy it is to reach a certain location in a network. In the diagram below, place X is the most accessible in both networks.
Define connectivity
Refers to the network as a whole and is determined by how many routes exist between all the places in the network. In the diagram below the point-to-point network is more connected than the hub-and-spoke network.
What are two key network properties determining the interconnectedness of places within a network?
Accessibility and connectivity are two key network properties determining the interconnectedness of places within a network.
What types of networks typically use a point-to-point system versus a hub-and-spoke system?
Road and some rail networks typically use a point-to-point system, while air transport networks often use the hub-and-spoke system.
What are some examples of flows in global networks?
Examples of flows in global networks include:
- Trade in agricultural products, raw materials, manufactured goods, and energy
- Trade in financial services
- Capital flows (foreign investments or remittances)
- Migration and refugee movements
- Information, data, ideas, and innovations
- Illegal flows (trafficking of people or counterfeit goods)
What are some measurements used to describe and quantify flows in global networks?
Measurements used to describe and quantify flows include:
- Volume
- Mass
- Number
- Value
- Rates of flow
- Time
- Distance
- Direction
How might “volume” be used to measure flows in global networks?
Volume can be used literally (e.g., billions of barrels of oil) or as a comparative term (e.g., air traffic measured in passenger miles - total passengers multiplied by distance traveled).
How might “time” be expressed when measuring flows in global networks?
Time is expressed in units appropriate to the distance and nature of the mode of flow. For example, container ships may take days or weeks to reach a destination, while air freight takes hours.
How is “direction” used to describe flows in global networks?
Direction describes where flows originate and where they terminate in a network.
Define trade complementarity
Said to exist when the import needs of one country match (to a greater or lesser degree) the exports available from another country. It can be thought of as the potential for trade. It is measured using the Trade Complementarity Index (TCI). The TCI is 0 when no imports or exports flow between two countries and 100 when imports and exports are perfectly balanced. The TCI can be useful for nations contemplating the creation of a free trade area or customs union.
Define trade barrier
Something that makes trade more difficult. It may take the form of tariffs (duties or taxes) imposed on imports or there may be non-tariff barriers such as quotas, health and safety regulations, quality controls or the requirement for imports to meet other technical standards. Trade barriers reduce international trade and may be part of a protectionist policy.
Define supply chain
The network between a company and suppliers, representing steps to produce and distribute a product to customers.
Define logistics
The formulation and implementation of detailed plans and strategies that allow the execution of complex interactions such as those involved in modern commercial activities. Logistics may be considered to be part of the service sectors of the economy: the tertiary sector in terms of the distribution of goods and services and quaternary sector in terms of the processing and transmission of data and other business services.
How did the value of international trade in goods, services and finance change between 1990 and 2012?
The value increased from US$17 trillion in 1990 to $26 trillion in 2012, representing a 150% increase. This accounted for 36% of global GDP in 2012.
What happened to global trade after the 2007-2008 financial crisis?
Trade levels fell sharply after the crisis, but recovered strongly in 2010 and 2011. Since 2011, trade growth has been very sluggish.
What was the McKinsey Global Institute’s prediction for trade in 2014?
Despite the slowdown, McKinsey predicted trade would double or quadruple by 2025.
How did global trade patterns change in the last decade of the 20th century?
For most of the 20th century, global trade was dominated by flows of raw materials from non-industrial nations to industrial nations, and manufactured goods from industrial nations to the rest of the world.
What factors influenced the patterns of trade shown in the 2015 global trade flows map?
Factors included: lack of trade complementarity between certain regions, persistence of colonial-era trading patterns, dominance of HICs, and trade barriers preventing full participation of LICs.
Which region showed the greatest growth in exports between 2012 and 2015?
The Asian region, including countries like China, Malaysia, Singapore, and South Korea, showed the greatest growth in exports during this period.
What trends can be observed in the trading relationships of Low Income Countries (LICs) in the 21st century?
LICs’ export share remained stable, imports rose steadily, they shifted from net exporters to net importers of goods, and the trade gap has increased since 2015.
What change occurred in LDC exports since 2012/2013?
Since 2012/2013, manufactured goods have become the most valuable export subgroup from non-oil-exporting LICs.
What are Global Supply Chains (GSCs) and how do they differ from traditional supply chains?
GSCs are international supply chains. They are more complex, flexible, and operate on a larger scale and with greater connectivity than traditional supply chains.
What factors enabled the rapid growth of Global Value Chains (GVCs)?
Factors include: removal of trade barriers, improvements in transport technologies, advances in ICT, and wage differentials between countries.
How did global trade patterns change in the 20th century?
For most of the 20th century, low-value raw materials and agricultural products were exported from non-industrial nations to industrial nations. Higher-value manufactured goods made from these materials were then exported globally to meet demand.
How can the 2015 global trade flows map be interpreted?
The width of lines and circle diameters are proportional to trade flow magnitude. Color represents trade decline from 2014 to 2015, with darker colors showing greater decline.
What is the “factory Asia” concept?
“Factory Asia” refers to the Asian region including China, Malaysia, Singapore, and South Korea, where production has become interconnected like a spiderweb, with components sourced from multiple countries.
What trends are observed in LDC trade from 2005 to 2015?
LDCs were net exporters of merchandise from 2005 to 2008, became net importers from 2008 to 2015 resulting in a trade gap, and the trade gap has increased since 2015.
How have LDC exports changed since 2012/2013?
Since 2012/2013, manufactured goods have become the most valuable export subgroup from non-oil-exporting LDCs, surpassing traditional raw material exports.
What is a Global Value Chain (GVC)?
A GVC is an international supply chain where different stages of production (design, production, marketing, distribution) are dispersed geographically through outsourcing and offshoring to maximize cost-effectiveness and profitability.
How does a GVC impact international trade?
A GVC increases international trade as intermediate goods cross and recross international boundaries multiple times as they move along the production chain.
What example illustrates the complexity of a Global Value Chain?
The crankshaft of a BMW Mini travels approximately 3200 km, crossing multiple international borders: cast in France, finished in the UK, sent to Germany for engine assembly, returned to the UK for car assembly, and potentially exported again as part of the finished vehicle.
Define raw materials
Raw materials are the basic, unprocessed substances extracted from nature that are used to produce goods and commodities. They serve as the foundation for industrial production and are essential in creating finished products. These materials can be classified into three main types:
- Mined raw materials: Extracted from the earth, such as metals (iron ore, gold), minerals, coal, crude oil, and natural gas.
- Plant-based raw materials: Derived from trees or plants, including wood, cotton, latex, corn, and grains.
- Animal-based raw materials: Obtained from animals, such as milk, meat, leather, wool, and silk.
What are raw materials and how are they used?
Raw materials are unprocessed materials used to produce energy, finished products, or intermediate goods. They are also components or feedstock for more complex finished products. Raw materials may be partially processed for marketing and distribution. They are fundamental to all Global Value Chains (GVCs). Examples include crude oil used in producing industrial chemicals, fuels, pharmaceuticals, and plastics.
What are the four types of raw materials recognized by the United Nations Environment Programme (UNEP)?
- Biomass: Harvested, plant-based biomass (crops, timber, grazed biomass, crop residues) and animal biomass (wild fish catch, hunting)
- Metallic mineral ores: e.g., bauxite for aluminum
- Non-metallic minerals: Used in industrial processing or construction (sand, clays, phosphate, salt, diamonds)
- Fossil fuels: Coal, crude oil, natural gas, non-conventional sources like gas hydrate and shale gas
How did the value of raw material exports compare to manufactured goods in 2015?
In 2015, raw material exports were worth $2.5 billion compared to just under $10 billion for manufactured goods. Exports from the Commonwealth of Independent States, Middle East, Central and South America, Caribbean, and Africa are dominated by raw materials.
How have raw material prices changed in recent years?
Raw material prices rose significantly due to increased demand, largely fueled by Chinese economic growth. The global economic crisis and slower growth in China caused prices to fall recently, but they remain well above 2000 levels.
How does the OECD recognize the importance of raw materials in manufacturing?
The OECD emphasizes that metals and minerals are crucial for producing electronics, environmental goods, and transport vehicles. For example, up to 50 different metals and minerals are used in mobile phones, and over 20 are needed to produce one hybrid car.
What is trade dependency in the context of raw materials?
Trade dependency occurs when countries rely on imports of commodities they lack or cannot exploit rapidly enough to meet their needs. For example, Europe is highly trade-dependent for many raw materials, especially fuels.
What trends are observed in EU imports and exports of raw materials between 2005-2015?
The graph shows a slow rise in both imports and exports of raw materials to and from the EU, with the EU remaining a net importer. The impact of the 2007-2008 economic crisis is clearly visible in the data.
How widespread is global dependency on commodity imports?
In 2008, over 100 countries imported a majority of their fossil fuel requirements, and 97 countries imported a majority of their metals requirements. Global dependency on trade for commodities is rising while the number of producers for many commodities is declining.
What does the pattern of EU’s main trading partners for raw materials reveal?
The pattern shows a degree of complementarity with many countries both importing to and receiving exports from the EU. However, the volumes of the flows differ significantly between trading partners.
What are manufactured goods and how have they impacted international trade?
Manufactured goods are intermediate and finished products. Intermediate goods are used as feedstock or component parts, while finished products are ready for consumers. The growth of Global Value Chains (GVCs) has led to an enormous increase in the volume of intermediate goods in international trade. In 2015, manufactured goods accounted for 70% of all exports, up from 67% in 2014.
What were the most significant manufactured goods in world trade by value in 2011?
- Chemicals: 11.2%
- Office and telecom equipment: 9.4%
- Automotive products: 7.2%
- Iron and steel: 3.0%
- Clothing: 2.3%
- Textiles: 1.6%
Which regions dominated the export of manufactured goods in 2011?
Europe, Asia, and North America were the dominant source regions or cores for the supply of manufactured goods. Other world regions, notably Africa where the world’s least developed countries are found, occupied a peripheral position in manufactured goods exports.
What types of services are included in global trade according to the WTO?
Services include:
- Transport (50% of all services exported)
- Construction
- Insurance and pension services
- Financial services (banking and investment)
- Charges for intellectual property use
- Telecommunications, computer and information services
- Other business services (legal, consultancy, outsourcing)
- Personal, cultural and recreational services (e.g., tourism)
How has the export of modern services changed over time?
Export of modern services has grown, exceeding growth in overall exports. Modern services include insurance, finance, telecommunications, intellectual property payments, and other business services. Growth has been more rapid in Middle Income Countries (MICs) and Low Income Countries (LICs) than in High Income Countries (HICs), rising from 14% in 1990 to 25% in 2011.
What are the main reasons for the growth in the tradability of services?
Advances in Information and Communication
- Technology (ICT):
- Declining telecommunication costs
- Increasing global Internet adoption
- Rapid proliferation of broadband Internet services
- Unbundling: The division of a single service activity into discrete tasks dispersed among different geographical locations, allowing for specialization.
What are some examples of countries and their specialized service activities in global unbundling?
- Argentina: Web and software programming, games development, IT support
- Bangladesh: Offshore outsourcing services, IT support
- Brazil: Network solutions, software programming
- Egypt: Customer support and programming
- India: Customer support, IT support, programming
- Russia: Programming, R&D
Who were the top exporters and importers of commercial services in 2014?
Top exporters included:
- USA ($686 billion, 14.1% share)
- UK ($329 billion, 6.8% share)
- Germany ($267 billion, 5.5% share)
Top importers included:
- USA ($454 billion, 9.6% share)
- China ($382 billion, 8.1% share)
- Germany ($327 billion, 6.9% share)
Nine countries appeared in both top 10 exporter and importer lists, accounting for almost 50% of global trade in services.
Define business process
A business process is a collection of linked tasks and activities that add value to a product or service, or that enable the delivery of a product or service to a client. GVCs are business processes. Research and development (R&D) and information technology (IT) may be considered to be part of a business process but are treated separately in Table 2.
Define international or foreign aid
The international transfer of capital, goods or services from a country or organization for the benefit of a recipient country or its population.
What are the three main types of international aid donors?
- Individual governments providing bilateral aid directly to another government
- International governmental organizations (IGOs) or multi-governmental organizations (MGOs) providing multilateral aid
- Non-governmental organizations (NGOs) such as OXFAM
What are the two main timescales for international aid and their purposes?
- Development aid: Intended to promote long-term economic and social development
- Humanitarian aid: Intended to alleviate human suffering in response to acute but short-term conditions such as famine or natural disasters
What are the five main types of development aid?
- Programme aid: Helps develop a particular sector of the economy or welfare system
- Project aid: Funds a specific purpose within a sector
- Budget aid: Provided for short-term balance-of-payment problems
- Food aid: Provided as food gifts or bought at reduced rates
- Technical support: Provided by teams of specialists from donor agencies
What is tied aid and what was the international agreement about it in 2001?
Tied aid involves conditions requiring recipients to buy goods, materials, and expertise from the donor using the aid money provided. An international agreement in 2001 was supposed to end such deals, but they are still common.
What were the total flows of official development finance in 2015 and how much went to LICs?
In 2015, total flows of official development finance amounted to US$162 billion, with 94% of this taking the form of ODA going to LICs.
How much did NGO grants amount to in 2015 and who were the main recipients?
NGO grants amounted to approximately $36 billion in 2015, made mostly to LICs.
What trends can be observed in global ODA from 1990 to 2013?
- Total ODA steadily grew from 1990 to 2013, despite a dip after the 2007-2008 global economic crisis
- Actual receipts were consistently lower than amounts promised
- ODA to wealthier LICs and MICs decreased recently, but this wasn’t matched by a comparable increase to the poorest LICs
Who were the top 3 ODA recipients in 2014 and how much did they receive?
- Afghanistan: $4.82 billion (3% of total ODA flows)
- Vietnam: $4.22 billion (3% of total ODA flows)
- Syrian Arab Republic: $4.12 billion (3% of total ODA flows)
Who were the top 3 ODA donors in 2015 and how much did they give?
- USA: $31.08 billion
- UK: $18.70 billion
- Germany: $17.78 billion
What is the UN target for aid donations and when was it set?
The UN target for aid donations is at least 0.7% of the donor’s GDP or GNI. This target has been in existence since the 1970s, but many nations do not reach it.
Define unsustainable debt
The WB defines unsustainable debt in the following way:
“Unsustainable debt refers to debt that cannot be repaid in the future without raising more debt and jeopardising the future development of the debtor country, or even sending its development into reverse.
Debt can be unsustainable if it represents a large percentage of current exports. The debt service ratio is the ratio of debt interest [to] principal payments due during a year, expressed as a percentage of exports (typically of goods and services) for that year. The World Bank considers foreign debt to be unsustainable if the ratio of total external debt to exports exceeds 150%.”
What is international or foreign aid?
International or foreign aid refers to the international transfer of capital, goods, or services from a country or organization for the benefit of a recipient country or its population.
Is aid always free?
Aid is not necessarily free. While gifts or grants do not have to be repaid, significant aid often takes the form of loans, which must be repaid with interest.
What are the main sources of international aid?
Aid can be provided by individual governments through bilateral aid, which may take the form of official development assistance (ODA). International governmental organizations (IGOs) such as the World Bank (WB) and International Monetary Fund (IMF) provide multilateral aid. Non-governmental organizations (NGOs) like OXFAM also provide aid, sometimes in cooperation with governments.
How is the timescale for aid determined?
The timescale for aid is determined by its purpose. Development aid aims to promote long-term economic and social development, while humanitarian aid addresses acute short-term conditions like famine or natural disasters.
What are the types of development aid based on their intended purpose?
Development aid includes programme aid to develop specific sectors, project aid for specific purposes within a sector, budget aid for short-term balance-of-payment problems, food aid provided as gifts or at reduced rates, and technical support from specialists to oversee projects and educate local people.
What is tied aid?
Tied aid refers to bilateral aid that comes with conditions requiring recipients to purchase goods and services from the donor using the provided funds. This practice has been linked to political agreements and arms deals.
What were the total flows of official development finance in 2015?
In 2015, total flows of official development finance amounted to US$162 billion, with 94% taking the form of ODA directed towards low-income countries (LICs). NGO grants amounted to approximately $36 billion, primarily benefiting LICs.
What trends can be observed in ODA from 1990 to 2013?
Total ODA steadily grew from 1990 to 2013 despite a dip due to the global economic crisis. Actual receipts were consistently lower than promised amounts. Recently, ODA directed towards wealthier LICs and MICs has decreased without a corresponding increase for the poorest LICs.
Who were the top three recipients of ODA in 2014?
The top three recipients were Afghanistan ($4.82 billion), Vietnam ($4.22 billion), and Syrian Arab Republic ($4.12 billion).
Who were the top three donors of ODA in 2015?
The top three donors were the USA ($31.08 billion), UK ($18.70 billion), and Germany ($17.78 billion).
What is the UN target for aid donations?
The UN has set a target for aid donations to be at least equal to 0.7% of the donor’s GDP or GNI, established since the 1970s; however, many nations fail to meet this target.
How does bilateral aid reflect political relationships?
Bilateral arrangements often show clearer political relationships between donor and recipient governments. For example, Afghanistan received over 80% of its ODA as bilateral aid in 2014.
What was the impact of campaigns like Jubilee 2000 on debt relief?
Jubilee 2000 significantly raised awareness about debt issues and contributed to some debt cancellations but was criticized for achieving only a small proportion of overall debt relief.
What is the Heavily Indebted Poor Countries (HIPC) initiative?
The HIPC initiative was introduced by the WB and IMF in 1996 as a significant attempt to address debt relief aimed at reducing poverty by focusing on sustainable debt levels.
What criteria must a country meet to qualify for HIPC debt relief?
A country must demonstrate an unsustainable debt burden (debt service ratio exceeding 150%), have a record of economic reform, develop a poverty reduction strategy paper (PRSP), and agree to implement World Bank and IMF reforms.
What is the purpose of the Paris Club?
The Paris Club is a group of creditor nations that restructures country-to-country loans and requires indebted countries to implement an IMF Structural Adjustment Programme (SAP).
How effective have debt relief initiatives been for HIPCs?
Debt reduction initiatives before the HIPC initiative saw less than a 20% decrease in debt levels. However, following HIPC initiatives and additional relief measures, total indebtedness was effectively halved or reduced by over 90%, allowing resources to be allocated more effectively towards poverty reduction efforts.
Define economic migrant
An individual who moves to another country to improve their standard of living. Economic migrants may send home a proportion of the income earned while working abroad. This financial flow is known as a remittance.
What is an economic migrant and what are remittances?
An economic migrant is an individual who moves to another country to improve their standard of living. Remittances are the financial flows sent home by economic migrants, representing a proportion of their income earned while working abroad.
How do global remittances compare to foreign aid?
In 2013, international migrants sent $413 billion home, which is three times more than the total global foreign aid of about $135 billion. By 2015, the total flow of remittances was estimated to be $579 billion.
How can remittances impact a country’s GDP?
Remittances can constitute a significant proportion of a receiving country’s GDP. For example, in 2014, remittances made up 41.7% of Tajikistan’s GDP but only 9.7% of Nicaragua’s GDP. Even when not a large part of GDP, remittances can significantly impact recipients’ standard of living due to foreign currency’s purchasing power.
What are remittance corridors and channels?
A remittance corridor refers to the flow of remittances between two countries - the host country where the migrant works and the home country of origin. The remittance channel describes the stages involved in transferring funds, including the payment instrument, access point, and receiving method.
What was the global average cost of remitting $200 in 2016?
The global average cost of remitting $200 was 7.6%, or $15.20, in 2016. The highest-cost region to send money to in 2015 was sub-Saharan Africa, at 9.5%. The most expensive corridor was South Africa-Zambia at 19%, while the lowest-cost corridors were between Russia and CIS states at 1.1-1.7%.
What is the Hawala system?
Hawala is a trust-based alternative to conventional banking, popular in some LICs. It involves no physical money transfer, relying on mutual trust between hawala agents who exchange debt. Developed in the 8th century, it’s widely used in Islamic states for international remittances but has faced criticism for potential misuse.
How is Toast innovating in the remittance market?
Toast, a Singapore-based start-up founded in 2015, offers an Android app for cross-border remittances, cutting out fees that can amount to one month’s salary annually. It works with local remittance stores and kiosks, processing over $1 million monthly from Hong Kong to the Philippines, with plans to expand to other countries.
Which countries were the top remittance senders in 2013?
The top remittance senders in 2013 were:
- USA ($56.3 billion)
- Saudi Arabia ($36.9 billion)
- Russia ($32.6 billion)
- Canada ($24.7 billion)
- Germany ($20.8 billion)
Which countries were the top remittance recipients in 2014?
The top remittance recipients in 2014 were:
- India ($72.2 billion)
- China ($63.9 billion)
- Philippines ($29.7 billion)
- Mexico ($25.7 billion)
- France ($24.6 billion)
What factors does the World Bank consider when estimating remittance flows?
The World Bank considers three main factors:
- The ‘migrant stock’ in the host country
- Host country incomes
- Origin country incomes
What are the top five migration corridors?
- Mexico - USA
- Russian Federation - Ukraine
- Bangladesh - India
- Ukraine - Russian Federation
- Kazakhstan - Russian Federation
What are the top five remittance corridors?
- USA - Mexico
- USA - China
- Hong Kong SAR, China - China
- United Arab Emirates - India
- USA - India
Define counterfeit goods
According to the OECD counterfeit goods that closely imitate an original are designed to mislead the consumer. Counterfeiting includes the copying of packaging, labelling or any other significant features of the goods such as physical design, trademarks and logos.
Define TRIPS (The Agreement on Trade-Related Aspects of Intellectual Property Rights)
The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is an international agreement between all the member nations of the WTO. Specifically, TRIPS requires WTO members to protect copyright rights, covering content producers including performers, producers of sound recordings and broadcasting organisations; geographical trademarks or brands including appellations of origin; industrial designs, integrated circuit designs; patents; new plant varieties; trademarks; trade dress (visual appearance) and undisclosed or confidential information.
Define distance decay
A geographical term which describes the effect of distance on cultural or spatial interactions. The distance decay effect states that the interaction between two locales declines as the distance between them increases.
Here this simply means that with increasing distance between origin and destination the volume of trafficked people will decline. It is a negative correlation.
How did the value of global trade change between 1990 and 2012?
The value of international trade in goods, services and finance increased from US$17 trillion in 1990 to $26 trillion in 2012, representing a 150% increase. This amount represented 36% of global GDP in 2012.
What were the key periods of global trade growth between 1995 and 2015?
There was relatively strong growth in global trade between 1995 and 2001, followed by even faster growth from 2002 to 2008. After the 2007-2008 global financial crisis, trade levels fell sharply but recovered strongly in 2010 and 2011. Since 2011, trade growth has been very sluggish.
What happened to world trade in 2015?
The value of world trade actually fell during 2015 compared to 2014 levels. Trade decreased within and between all world regions, though not to the same extent everywhere.
What was the McKinsey Global Institute’s prediction for trade in 2014?
Despite the slowdown, in a 2014 report, the McKinsey Global Institute predicted that trade would double or quadruple by 2025.
What did the McKinsey report state about cross-border trade in 2014?
The report stated that in 2014, one in three goods crossed national borders, and more than one-third of financial investments were international transactions.
What is trade complementarity?
Trade complementarity exists when the import needs of one country match the exports available from another country. It represents the potential for trade and is measured using the Trade Complementarity Index (TCI). The TCI ranges from 0 (no trade flow) to 100 (perfectly balanced imports and exports).
What are trade barriers?
Trade barriers are factors that make trade more difficult. They can include tariffs (duties or taxes) on imports, or non-tariff barriers such as quotas, health and safety regulations, quality controls, or technical standards for imports. Trade barriers reduce international trade and may be part of a protectionist policy.
How was the global trade network characterized for most of the 20th century?
The global trade network was dominated by flows of raw materials and manufactured goods. Low-value raw materials, including agricultural products, were exported from non-industrial nations to industrial nations. Higher-value manufactured goods, made using these imported raw materials, were then exported globally to meet demand.
What were the main characteristics of global trade flows in 2015?
Trade was dominated by intraregional flows between the industrial free market economies of the USA and Canada, Europe, and the newly industrializing countries (NICs). There were comparatively low flows of intraregional trade elsewhere.
What factors influenced the patterns of trade in 2015?
Factors included:
- Lack of trade complementarity between certain regions (e.g., Middle East/North Africa and sub-Saharan Africa)
- Persistence of colonial-era trading patterns
- Dominance of HICs in Europe, North America, and East Asia
- Trade barriers preventing full participation of LICs in global trade networks
How has trade between LICs and MICs changed in the last decade?
In the last decade, Middle Income Countries (MICs) and Low Income Countries (LICs) have begun to trade more with each other than with High Income Countries (HICs).
How did exports from the Asian region perform between 2012 and 2015?
The Asian region, including China, Malaysia, Singapore, and South Korea, showed the greatest growth in exports over the period 2012 to 2015.
What is meant by “factory Asia” and how does it operate?
“Factory Asia” refers to the Asian region where production has become like a spiderweb. For example, a pair of shorts made for an American retailer might have buttons from China, zips from Japan, yarn spun in Bangladesh, fabric woven and dyed in China, and final assembly in Pakistan.
What trends can be observed in LDC (Least Developed Countries) trade in the 21st century?
- The percentage share of exports from LDCs has remained relatively stable
- Imports to LDCs have risen steadily
- From 2005 to 2008, LDCs were net exporters of merchandise
- From 2008 to 2015, LDCs became net importers of goods, resulting in a trade gap
- Since 2015, the size of the trade gap has increased
What change occurred in LDC exports since 2012/2013?
Since 2012/2013, manufactured goods have been the most valuable export subgroup from non-oil-exporting LDCs (Least Developed Countries).
Define offshoring
Involves moving part(s) of a production process to another country. It may or may not involve outsourcing. When Ford first entered the UK market the company offshored but kept production within the company by building its own factory in Manchester.
Define outsourcing
Is the practice of having some part(s) of the production process (often high-volume, labour-intensive processes) carried out by another company. This is also known as subcontracting. This often reduces labour costs and allows the outsourcing company to focus on core activities such as research and design.
If the subcontractor is located abroad then this also offshoring. This is how Apple and Nike operate. Nike owns none of the East and South-east Asian factories which produce its goods, while Apple offshores and outsources assembly operations to overseas companies such as Foxconn.
Define rationalisation and retrenchment strategies
Are designed to reduce diversity and complexity, allowing the TNC to focus on its core operations and specialise its operations. This is achieved by closing some overseas branches and concentrating investment in a more limited number of locations. Ford famously retrenched after 2002, selling Jaguar-Land Rover and by closing not only overseas plants but also branches in North America.
Define network TNC
A network TNC is a term used to describe a traditional variety of large TNCs, which have gone through or are going through the growth and developmental stages outlined above. The TNC is part of an extensive operational network.
Define born-global firms
Small TNCs that are/become international very shortly after their establishment. Such firms are representitive of the opportunities created by modern communication methods that allow smaller firms access to the global marketplace; in most cases the firm is involved in niche products/services (hence the need to expand to foreign markets).
Define strategy
A plan of action designed to achieve a long term goal.
Define tactics
The means by which a strategy is implemented.
What is foreign direct investment (FDI)?
Foreign direct investment (FDI) involves international flows of capital where a company in one country invests in a business in another country. This can include establishing new operations abroad or purchasing existing operations and business assets.
Provide an example of FDI from the early 20th century.
The American car company Ford invested in the UK in 1911 by building a factory in Manchester. Over the decades, Ford expanded its operations in Europe and acquired British manufacturers Land Rover and Jaguar.
Why do companies engage in foreign direct investment?
Companies engage in FDI to improve performance through cost savings on labor and access to new markets.
How did global FDI levels change between 2000 and 2015?
The patterns of FDI show changes between 2000 and 2015, with China seeing increased levels of net FDI. However, overall investment levels were generally higher in 2000 than in 2015, as cross-border capital flows declined since the financial crisis of 2008.
What is offshoring?
Offshoring involves moving parts of a production process to another country, which may or may not involve outsourcing. For instance, Ford offshored by building a factory in the UK without outsourcing.
What is outsourcing?
Outsourcing is the practice of having some parts of the production process carried out by another company, often to reduce labor costs. If this subcontractor is located abroad, it also counts as offshoring.
What are the four stages of development for a typical TNC?
- Limited growth potential leads to exporting through independent agents.
- Establishing overseas branch plants through FDI.
- Shifting R&D and headquarters operations abroad.
- Rationalization and retrenchment to reduce complexity and focus on core operations.
What are the advantages for TNCs establishing overseas branches?
Advantages include proximity to target markets, lower labor costs, avoidance of import duties, lower environmental protection standards, and potentially lower business taxes.
What is a network TNC?
A network TNC is a large corporation that has gone through growth stages and operates as part of an extensive operational network.
What are born-global firms?
Born-global firms are small TNCs that become international shortly after inception, often producing niche products and utilizing modern communication methods to access global markets.
Describe Kia Motors Corporation’s development as a TNC.
KMC began as a domestic producer but expanded internationally after initial successes with its Kia Pride model. Following financial difficulties in 1997, KMC was acquired by Hyundai, leading to further expansion into overseas markets including Vietnam, China, Slovakia, the USA, and Mexico.
What strategic advantages does KMC seek in its global operations?
KMC seeks cost-effective locations for production that provide access to skilled labor and markets while avoiding trade barriers. It has also focused on producing cars tailored to specific markets while maintaining a sophisticated logistics system for efficient component delivery.
How does Fairphone exemplify a born-global TNC?
Fairphone was founded in 2013 as a social enterprise committed to ethically produced smartphones. It utilizes modern communication methods to access global manufacturing while focusing on social responsibility and environmental sustainability.
Describe Fairphone’s supply chain structure.
Fairphone’s supply chain involves:
- HQ in Amsterdam for strategy and R&D.
- Tier 1 supplier Hi-P manufacturing plants in China for final assembly.
- Tier 2 suppliers primarily located in Southeast Asia.
- Tier 3 suppliers from HICs providing components.
- Fairphone has outsourced most operations while maintaining ethical sourcing practices.
Compare the global strategies of KMC and Fairphone regarding their operational focus.
KMC focuses on mass media advertising, traditional offshoring with some outsourcing, profit maximization through strategic location choices, while Fairphone emphasizes social media advertising, nearly complete outsourcing aligned with social enterprise goals, and ethical sourcing throughout its supply chain.
How did the value of international trade change between 1990 and 2012?
The value of international trade in goods, services, and finance increased from US$17 trillion in 1990 to $26 trillion in 2012, representing a 150% increase. This amount represented 36% of global GDP in 2012.
What is trade complementarity and how is it measured?
Trade complementarity exists when the import needs of one country match the exports available from another country. It represents the potential for trade and is measured using the Trade Complementarity Index (TCI), which ranges from 0 (no trade flow) to 100 (perfectly balanced imports and exports).
What are trade barriers and how do they impact international trade?
Trade barriers are factors that make trade more difficult, including tariffs, quotas, health and safety regulations, quality controls, and technical standards. They reduce international trade and can be part of a protectionist policy.
How was the global trade network characterized for most of the 20th century?
The global trade network was dominated by flows of raw materials and manufactured goods. Low-value raw materials were exported from non-industrial nations to industrial nations, while higher-value manufactured goods were exported globally to meet demand.
What characterized global trade flows in 2015?
Trade was dominated by intraregional flows between industrial free market economies of the USA, Canada, Europe, and newly industrializing countries. Factors influencing trade patterns included lack of trade complementarity, persistent colonial-era trading patterns, dominance of high-income countries, and trade barriers preventing full participation of low-income countries.
What is the “Factory Asia” concept?
“Factory Asia” refers to the Asian region including China, Malaysia, Singapore, and South Korea, where production has become interconnected like a spiderweb, with components sourced from multiple countries.
What trends are observed in LDC trade from 2005 to 2015?
LDCs were net exporters of merchandise from 2005 to 2008, became net importers from 2008 to 2015 resulting in a trade gap, and the trade gap has increased since 2015.
How have LDC exports changed since 2012/2013?
Since 2012/2013, manufactured goods have become the most valuable export subgroup from non-oil-exporting LDCs, surpassing traditional raw material exports.
What is a Global Value Chain (GVC)?
A GVC is an international supply chain where different stages of production (design, production, marketing, distribution) are dispersed geographically through outsourcing and offshoring to maximize cost-effectiveness and profitability.
How does a GVC impact international trade?
A GVC increases international trade as intermediate goods cross and recross international boundaries multiple times as they move along the production chain.
What example illustrates the complexity of a Global Value Chain?
The crankshaft of a BMW Mini travels approximately 3200 km, crossing multiple international borders: cast in France, finished in the UK, sent to Germany for engine assembly, returned to the UK for car assembly, and potentially exported again as part of the finished vehicle.
Define trade creation
Occurs within FTAs and CUs when member states that are able to produce commodities more efficiently than other member states are able to sell more in the tariff-free area. Producers may benefit from economies of scale as their market increases.
Define trade diversion
Occurs when non-member states lose trade with member states, being less efficient and/or being subject to a CET.
Total trade, internal and external, may increase as lower prices for a commodity within the CU may increase overall demand. Less efficient producers may benefit but are also stimulated to increase their efficiency to gain a larger market share.
Define trade deflection
Is a form of tariff avoidance which can occur in FTAs (see Negative point 6 in Table 3). It may alter the size and direction of trade flows between countries outside and within the FTA.
Define turnaround time
Refers to the length of time taken from the arrival of a freight shipment to the departure of the same truck, aeroplane, train or ship with a new cargo and/or the trans-shipment time of cargo from one mode of transport to another in preparation for delivery. Trucks, aircraft, trains or ships waiting full or empty in port are not generating income and in fact are increasing costs and reducing profits.
What are the five main types of trading blocs or MGOs, in order of increasing integration?
- Preferential trade area (PTA)
- Free trade agreement (FTA)
- Customs union (CU)
- Common market (CM)
- Economic union
What is a preferential trade area?
A PTA is an agreement between countries within a geographical region to eliminate or reduce tariffs on a selected range of goods. It is often considered a precursor to a trading bloc rather than a trading bloc itself. An example is the 2005 PTA agreement between ASEAN and China.
What is a free trade agreement and give an example.
An FTA is an agreement between countries to eliminate tariffs on trade between member states. Members can set their own tariffs on imports from non-members. An example is NAFTA (North American Free Trade Agreement) which unites Mexico, the USA, and Canada.
What is a customs union and give an example.
A customs union is an agreement between countries to eliminate tariffs on trade between members and impose a common external tariff (CET) on imports from non-members. An example is the BENELUX customs union of Belgium, Netherlands, and Luxembourg.
What is a common market and give an example.
A common market is a customs union that also allows free movement of services, labor, and capital between member states. An example is the European Union Customs Union (EUCU).
What is an economic union and give an example.
An economic union is the highest level of economic integration, involving a common market plus unification of economic institutions and coordination of economic policies. This may include a common currency and shared policies for key industries. An example is the European Union (EU) single/internal market.
What are trade creation and trade diversion in the context of trading blocs?
Trade creation occurs when member states that can produce commodities more efficiently sell more within the tariff-free area. Trade diversion occurs when non-member states lose trade with member states due to being less efficient or subject to common external tariffs.
What is a free trade zone and what is its primary purpose?
A free trade zone is a designated geographic area, usually a well-connected transport hub, where raw materials and goods can be imported, stored, processed, and re-exported without paying import duties. Its primary purpose is to remove hindrances to trade caused by high tariffs and complex customs regulations.
What is an export processing zone?
An export processing zone is a type of free trade zone established to promote industrial and commercial exports, usually in developing countries. In China, EPZs must export at least 70% of their products.
What are some advantages of free trade zones for host nations, particularly LICs/MICs?
Advantages include:
- Diverse employment opportunities
- Development of export-driven industrial activities
- Participation in global supply and value chains
- Development of a pool of trained labor
- Source of foreign currency income
How do FTZs act as manufacturing and distribution centres in the global supply/value chain for counterfeit goods?
Several types of illegal operations have been identified by INTA as occuring in FTZs, which all contribute to illegal flows:
- Merchants import shipments of counterfeit goods into the warehouses in the FTZs and then re-export them to other destinations. To prepare the goods for re-export during their stay in the FTZ shipment details and documents are falsified, disguising the original point of manufacture or departure. In this way FTZs act as distribution centres in the global supply/value chain for counterfeit goods.
- Counterfeiters import intermediate, part-finished goods and then complete them in the FTZs by adding fake trademarks, by repackaging them and by re-labelling the goods These ‘finished’ counterfeit goods are then exported to other countries.
- Counterfeiters often completely manufacture counterfeit goods in the FTZ.
Define economic migrant
An economic migrant has left his or her place of origin and moved to another country to improve his or her standard of living. The destination is perceived to offer greater economic and financial opportunities than the place of origin.
The UN refers to economic migrants as migrant workers.
Define intervening obstacle
In migration an intervening obstacle is a feature of the human or physical environment that impedes movement, reducing migration flows or perhaps even preventing the migration completely. This can be seen in Lee’s model of migration.
In the past physical obstacles may have been significant but today human factors such as the cost involved and immigration controls are usually more important.
What is an economic migrant?
An economic migrant is someone who has left their place of origin and moved to another country to improve their standard of living. The destination is perceived to offer greater economic and financial opportunities than the place of origin. The UN refers to economic migrants as “migrant workers”.
What are the three types of economic migrants recognized by the OECD?
- Temporary labour migrants: Workers who travel for limited periods, such as seasonal agricultural workers on UK farms or construction workers on fixed-term contracts in the UAE.
- Long-term, low-skilled migrants: Often intended to be temporary but may become permanent, as seen with German gastarbeiters from Turkey.
- Highly skilled and business migrants: These may transfer within transnational corporations or be hired on the international job market. Many high-income countries focus on recruiting these migrants.
What factors have contributed to the increase in international economic migration in recent decades?
- Greater awareness of global income differences through modern communications and mass media.
- Increased knowledge of employment potential and benefits in other countries.
- Developments in transport reducing the friction of distance.
- Globalization stimulating economic migration and vice versa.
- Regional agreements allowing free movement of labor, such as within the EU.
- In 2013, international economic migration totaled over 150 million people, representing two-thirds of all international migrants.
What were the main trends in international migration between 2005-2010 according to the Vienna Institute of Demography?
The Vienna Institute of Demography study found:
- Few migrations originate in Low Income Countries (LICs) due to intervening obstacles.
- When migration occurs from LICs, it’s usually to Middle Income Countries (MICs) or for short-term contracts in High Income Countries (HICs).
- The largest flows are from MICs to HICs, such as from Mexico to the USA.
- Migrants generally only move to LICs if returning home.
What are proactive immigration policies and how are they implemented?
Proactive immigration policies aim to encourage skilled migrants to fill specific workforce gaps, especially in areas like IT, medicine, and bioengineering. Examples include:
- Relaxing laws requiring job offers before entry (e.g., Norway, UK)
- Offering tax reductions/exemptions (e.g., Netherlands’ “30% rule”)
- Using points-based systems to select migrants based on characteristics like age, language ability, education, work experience, and skills in demand (e.g., Australia, New Zealand, Canada, USA)
What are the main categories of immigrants recognized by Citizenship and Immigration Canada (CIC)?
CIC recognizes three main categories of immigrants applying for permanent residence:
- Economic class
- Family class
- Refugee class
- CIC also recognizes 13 subcategories of economic immigrants, including the federal skilled workers class. The Temporary Foreign Worker Programme grants short-term residency and
What criteria does Canada use to assess federal skilled worker applicants?
Canada assesses applicants on six criteria:
- English and/or French skills
- Education
- Experience
- Age
- Arranged employment in Canada
- Adaptability
- Applicants need 67 points or higher out of 100 to qualify.
How did economic immigration to Canada change between 2004 and 2013?
Between 2004 and 2013:
- Total immigration remained relatively constant, fluctuating slightly.
- Economic immigration consistently accounted for at least 54% of total immigration.
- Economic immigration peaked in 2010 at 66.5% of total immigration.
- There was a slight decline in economic immigration from 2010 to 2013.
- The total number of immigrants ranged from about 235,000 to 280,000 per year.
How did the source regions for Canadian economic migrants change between 2004 and 2013?
Between 2004 and 2013:
- Africa and the Middle East increased from 20.7% to 25.1%
- Asia and the Pacific slightly increased from 48.6% to 49.5%
- Europe and the UK decreased from 18.2% to 12.3%
- USA slightly increased from 2.9% to 3.3%
- South and Central America decreased from 9.2% to 6.6%
- The most significant change was the increasing importance of Africa and the Middle East as a source region.
What conclusions can be drawn about the impact of migration controls on global economic migration flows?
Based on Canada’s example:
- Selective immigration policies can maintain relatively constant overall and economic immigration levels.
- Source region flows may remain relatively stable over time.
- Other factors influencing migration patterns include geographical proximity, historical relationships, migrant characteristics, and labor market demands.
- Migration controls and rules can impact economic migration flows, but their global impact is difficult to generalize.
- Many countries seek to reduce migrant flows, indicating that controls can have a limiting effect on migration.
Define circumnavigation
To follow a route (e.g. on the globe) that follows a great circle (an arc of which would be the shortest distance between any two points on a sphere), which passes through at least one pair of points antipodal (diametrically opposite) to each other.
The equator is a great circle and so are many of the meridians but there are, theoretically, an infinite number of others. Great circles are shown in Figure 1.
Define space-time convergence
Space–time convergence (also known as space–time compression) describes how innovations in transport and related technologies have allowed us to travel and to transport goods and services over ever greater distances per unit time or to cover a unit of distance in ever shorter times.
It has also been defined as the amount of space that is ‘purchased’ with a unit of time. This has increased over time.
Figure 2 shows that rates of space–time convergence can vary. It shows:
rapid global space–time convergence between 1850 and 1875
significantly slower rates of space–time convergence between 1875 and 1950
almost no convergence from 1950 to 2000.
Space–time convergence rates vary for different modes of transport and for other reasons, as discussed below.
Define economies of scale
Economies of scale are the savings that accrue when the costs of any process, production or transportation are spread over many items.
What is circumnavigation and how does it relate to great circles?
Circumnavigation is following a route around the globe that passes through at least one pair of antipodal points (diametrically opposite). It typically follows a great circle, which is the shortest distance between two points on a sphere. The equator and many meridians are great circles, but there are infinitely many others. Maritime circumnavigation routes rarely follow true great circles due to continental obstacles.
How have circumnavigation times changed from the 1500s to present day?
- 1500s: Ferdinand Magellan’s voyage took 3 years (completed by Juan Elcano)
- 1860: Sailing ships could circumnavigate in about 1 year
- 1905: Fictional milestone of 80 days in Jules Verne’s novel
- 1925: Reduced to 60 days due to Suez and Panama canals and steam-powered ships
- 1950: Turboprop aircraft reduced time to 3 days
- 1970s: Turbojet aircraft brought time down to 48 hours
- Present day: Theoretically possible in 34 hours with connecting flights
Current record using scheduled flights: 44 hours 6 minutes (set by David Springbett in 1980)
What is space-time convergence and how does it relate to transport innovations?
Space-time convergence (also known as space-time compression) describes how innovations in transport and related technologies have allowed travel and transportation of goods and services over greater distances per unit time, or covering a unit of distance in shorter times. It can also be defined as the amount of space “purchased” with a unit of time, which has increased over time. This process has been ongoing since humans began developing new modes of transport, leading to faster, cheaper, and more efficient transportation in most respects.
How has the rate of space-time convergence varied over time and geographically?
- 1850-1875: Rapid global space-time convergence
- 1875-1950: Significantly slower rates
- 1950-2000: Almost no convergence
- Geographically: Faster in Europe and North America than in Africa or Latin America
- Economic development link: Core regions experience greater convergence than peripheral regions
- Some places may experience space-time divergence if they become less important economically
How do topological maps illustrate space-time convergence?
Topological maps drawn according to travel times offer insights into space-time convergence by distorting geographical space based on travel duration. For example, a 1970s UK map showed:
- Greatest convergence in the southeast where population and transport links to London are densest
- Northern destinations experienced greater convergence than southwest and west
- Some international destinations (e.g., Madrid, Paris) were “closer” in travel time than many UK locations
- Absolute locations are distorted to represent relative travel times
What are the key developments in road and rail networks, and how have they influenced local and regional interactions?
Transport developments, particularly in road and rail networks, have significantly enhanced local and regional interactions. These networks have expanded interactions to an intercontinental level, exemplified by initiatives like the New Silk Road. Road and rail systems are crucial for global supply chains and multimodal transport systems. Innovations in maritime and air transport have played a pivotal role in increasing global interconnectivity.
What role does maritime transport play in globalization, and what innovations have enhanced its efficiency?
Maritime transport is considered the backbone of globalization, as stated by UNCTAD, supporting supply chains and facilitating international trade. It promotes industrial development by connecting consumers with goods industries. Key innovations in maritime transport include advancements in cargo vessel design, which have increased speeds from an average of 13 knots (24 kph) in 1910 to 25–30 knots (30–56 kph) by 2010. Specialized vessels designed for specific cargo types enhance efficiency. Additionally, loading and unloading technologies such as roll-on/roll-off (Ro-Ro) facilities streamline vehicle ferry operations, while containerization revolutionized shipping by standardizing cargo handling, drastically reducing trans-shipment times from 10 days to just 1 day.
How has containerization changed the maritime shipping industry, and what are its impacts on global trade?
Containerization, introduced in 1956, involves using standardized metal boxes for shipping goods. This innovation dramatically reduced trans-shipment time and costs; containers can now be loaded or unloaded in one day. By 2015, containers accounted for 16% of maritime cargo tonnage, with over 90% of non-bulk cargo transported by container ships. The Danish TNC Maersk Line operates one of the largest fleets globally, including vessels that can carry up to 18,000 containers. Containerization has been credited with promoting globalization more than any trade agreement in the last fifty years.
What network improvements have facilitated global maritime trade, particularly regarding the Suez and Panama Canals?
The Suez Canal, opened between 1859 and 1869, links the Red Sea with the Mediterranean and accounts for approximately 19% of world maritime trade by providing a shortcut between Europe and Asia. The Panama Canal, opened between 1869 and 1914, connects the Atlantic and Pacific Oceans and reduces journey distances significantly (by about 8000 nautical miles) for transit from the East Coast to the West Coast of the USA. A comparative analysis shows that the Suez Canal is 193 km long with a capacity of up to ~20,000 TEU while the Panama Canal is shorter at 65 km but also accommodates up to ~20,000 TEU.
What technological advancements have shaped air transport since its inception?
Significant technological advancements have transformed air transport since its inception. In 1936, Pan American launched Pacific passenger flights. The first commercial jet airliner, the De Havilland Comet, was introduced in 1952. The Boeing 747 ‘Jumbo jet’ made its first flight in 1969, greatly increasing passenger capacity. By 2007, the Airbus A380 entered service as the world’s largest aircraft. Modern air transport features higher speeds ranging from approximately 480 to 510 knots compared to earlier models and greater range without refueling; modern jets can efficiently fly long-haul routes. Although air cargo represents less than 1% by weight of globally traded commodities, it accounts for around 35% by value.
Define bandwidth
Bandwidth is a measure of the magnitude of flow along electronic data networks:
… [it is] the amount of data that can be transmitted in a fixed amount of time. For digital devices, bandwidth is usually expressed in bits per second (bps) or bytes per second. For analogue devices, the bandwidth is expressed in cycles per second, or Hertz (Hz).
What has been the impact of the global recession of 2007–2008 on traditional cross-border flows, and what trend has emerged in digital flows?
Since the global recession of 2007–2008, traditional cross-border flows of goods, services, finance, and people have flattened out, leading to much slower growth compared to previous decades. This has raised questions about whether globalization has stalled or reversed. However, digital flows of information, ideas, and innovations have surged ahead. According to a report by McKinsey and Company in 2016, while traditional flows have lost momentum, cross-border bandwidth has grown 45 times larger since 2005 and is projected to increase by another nine times in the next five years.
How is bandwidth defined and what role does it play in global data flows?
Bandwidth is defined as a measure of the magnitude of flow along electronic data networks, representing the amount of data that can be transmitted in a fixed amount of time. For digital devices, bandwidth is usually expressed in bits per second (bps) or bytes per second. In the context of global data flows, bandwidth underpins virtually all other cross-border interactions. Individuals and corporations utilize online platforms to search for suppliers, conduct transactions, and track products, with logistics companies coordinating these flows online.
What were the trends in global data flows from 2005 to 2014?
In 2005, total global data flows were recorded at 4.7 terabits per second (Tbps), with the fastest rates occurring between North America and Europe at 500–1000 gigabits per second (Gbps). By 2014, total data flows had increased significantly to 211.3 Tbps. During this period, all routes experienced growth except for those between North America and Africa, Africa and Oceania, and Africa and the Middle East. The USA became relatively more central in the network while Oceania improved its connectivity with new links established to Latin America, Africa, and Europe.
How do emerging economies fit into the changing landscape of global data flows?
Emerging economies now account for more than half of global trade flows and are rapidly integrating into the network of data flows. Despite this increased participation, global data flows remain concentrated among a small set of leading countries. The gaps between these leaders and other nations are closing slowly but represent significant opportunities for lagging countries that could potentially grow by 50 percent or more over the long term through accelerated participation.
What economic impact do digital data flows have on global GDP?
Digital data flows have a substantial impact on global GDP growth. Between 2005 and 2014, various types of global flows contributed to raising world GDP by at least 10%, which was valued at approximately US$7.8 trillion in 2014. Data flows now account for a larger share of this economic impact than traditional trade in physical goods. They generate economic growth by increasing productivity, benefiting countries from both inflows and outflows of data as service providers charge for data transfer.
What driving forces have contributed to the increase in global data flows?
Several factors have driven up digital data flows beyond just hardware affordability and portability. Public digital platforms have emerged as key drivers by connecting users globally at minimal costs. These platforms include open-source operating systems, social networks like Facebook and Twitter, e-commerce websites such as Alibaba and Amazon, which facilitate international transactions. Additionally, digitization has led to mutualism where products like music and movies can be streamed or downloaded anywhere with internet access. Finally, small businesses can now participate globally through these platforms, creating micro-multinational activities that promote economic growth even in traditionally slow-growing areas.
How does digitization influence global data flow trends?
Digitization significantly influences global data flow trends by enabling products such as music, TV shows, movies, books, games, and information to be downloaded or streamed anywhere with an internet connection. Cloud computing further represents digitization in services. Future advancements like improvements in 3D printing may lead to mass digitization of tangible goods where information for producing physical items can be transmitted almost instantaneously.
Define communication infrastructure
Refers to the physical backbone of the communications system on which various broadcasting, telecommunications and internet-based services are operated. In this a network of hardware devices (the network nodes) are linked by cable or wireless systems (the transmission media or network routes), allowing flows of data to be transmitted between them, usually in digital form.
Define the Internet of Things (IOT)
This refers to devices as disparate as hairdryers and refrigerators which have embedded sensors and other components allowing them to communicate, via the internet, with each other and with remote systems and networks. The concept is discussed in this Wired article.
Define black hole
Technically a black hole in networks refers to a location where incoming or outgoing data are dropped from the network without informing the sender or recipient that this has happened. Such data outages are often temporary and caused by system failures. Like galactic black holes they can only be detected by the lack of flows across their boundaries in a surrounding space full of activity. Up to 2 million black holes of varying sizes and duration appear across the internet every day, interrupting data traffic.
In internet parlance the term black hole has taken on a wider significance and is used to describe countries where internet access is subject to censorship or restrictions due to other factors. These outages may be temporary or long term.
Define digital divide
Digital divide is a term that refers to the gap between demographics and regions that have access to modern information and communications technology, and those that don’t or have restricted access. This technology can include the telephone, television, personal computers and the internet. The term is used to highlight inequitable access to ICT in terms of hardware, software, speed and bandwidth.
Describe the 106 IDI map
- USA and Australia are 8-10
- Brazil is 6-7
- Mexico is 4-5
- Madagascar is 0-3
What are examples of countries that restrict access to Youtube, Twitter and Facebook?
- Turkey to Twitter and Youtube
- China to Twitter, Facebook and Youtube
- Pakistan to Youtube
- Iran to Twitter, Facebook and Youtube
Describe the map showing risk of internet disconnection in 2014
- Australia and New Zealand are resistant to disconnection
- India is low risk of disconnection
- Mongolia and Morocco are moderate risk of disconnection
- Mali and Ethiopia server risk of disconnection
What is communication infrastructure, and how has it evolved since the late 1800s?
Communication infrastructure refers to the physical backbone of the communications system that supports various broadcasting, telecommunications, and internet-based services. It consists of a network of hardware devices linked by cable or wireless systems, allowing data to be transmitted in digital form. Since the late 1800s, when submarine telephone cables first linked continents for long-distance telegraphic communication, there have been significant advancements. Today, digital networks enable almost instantaneous data transmission via fiber-optic cables and wireless networks. Fiber optics represent the fastest method of transmitting information over long distances, capable of carrying vast amounts of data at speeds up to 100 billion bits per second.
How has internet use evolved globally, and what are some key trends?
The internet utilizes much of the same communication infrastructure as traditional telephony and broadcasting. Since its inception, global internet use has grown exponentially, particularly since 1997 when user interaction increased significantly with the advent of Web 2. By March 2017, approximately 3.732 billion people were using the internet, representing about 49.6% of the world’s population. However, internet access varies widely by region, often correlating strongly with national income levels. For instance, Africa exhibits some of the lowest levels of internet usage compared to global averages.
What factors contribute to the slower uptake of internet use in poorer countries?
The slower uptake of internet use in poorer countries can be attributed to several factors related to capital expenditure and infrastructure development. There are fixed terminal costs for hardware that do not vary with usage, alongside variable line costs that depend on data flow volume and speed. Although costs are decreasing over time, high levels of technology remain accessible only to a small elite. This situation mirrors transport networks where initial investments are substantial and ongoing operational costs can hinder widespread access.
What is the significance of mobile phones in global communication trends?
Mobile phones have become increasingly significant in global communication since their widespread adoption in the mid-1990s. Initially popular in high-income countries, mobile phones revolutionized communications in poorer nations that lacked extensive fixed-line networks. Unlike landlines, which require physical connections for each device and involve significant installation costs, mobile networks can be established more easily through telephone masts. The rise of smartphones since 2007 has further enhanced mobile internet access, allowing users to connect anytime and anywhere.
How do trends in mobile phone penetration vary globally?
Mobile phone penetration has grown rapidly around the world since the early 2000s. In North America and Western Europe, many countries achieved nearly 100% penetration by 2003 due to existing fixed-line infrastructure. However, regions such as Latin America, North Africa, and the Middle East saw significant growth as they developed mobile networks without extensive prior investment in landlines. By 2013, most markets had experienced remarkable growth in mobile phone usage except for certain areas like sub-Saharan Africa and closed societies such as North Korea.
What are “black holes” in communication networks?
In communication networks, a “black hole” refers to a location where incoming or outgoing data is lost without notifying the sender or recipient. These outages can be temporary and result from system failures or human error. Up to two million black holes can appear daily across the internet, disrupting data traffic. The term also describes countries with restricted internet access due to censorship or other factors. For example, during protests in Egypt in 2011, the government cut off internet access entirely.
What does the ICT Development Index (IDI) measure?
The ICT Development Index (IDI), published by the International Telecommunication Union (ITU), measures the level of information and communications technology development across countries using eleven key indicators such as mobile-cellular subscriptions and internet use. The most recent IDI rankings from 2016 indicate that South Korea leads globally due to high ICT investment and innovation levels. There is a strong correlation between economic development and ICT advancement; developed countries typically score much higher on the IDI than developing nations.
What is meant by the term “digital divide”?
The term “digital divide” refers to the gap between demographics and regions that have access to modern information and communications technology (ICT) and those that do not or have restricted access. This includes disparities in hardware availability, software access, speed, and bandwidth capabilities. The digital divide highlights inequitable access to technology and its implications for social and economic development.
What were the key events during the 2011 Egyptian revolution in Tahrir Square, and how does this relate to the situation in Syria?
The 2011 Egyptian revolution, also known as the 25 January Revolution, began on January 25, 2011, as a response to police brutality and the oppressive regime of President Hosni Mubarak. Tahrir Square in Cairo became the epicenter of protests where millions gathered to demand Mubarak’s resignation. The protests escalated dramatically on January 28, known as the “Friday of Anger,” when hundreds of thousands demonstrated across Egypt. Violent clashes ensued between security forces and protesters, resulting in at least 846 deaths and over 6,000 injuries. The military was deployed to restore order after police withdrew from the streets.
As protests continued for 18 days, Tahrir Square witnessed significant acts of civil disobedience and resistance. On February 11, after intense public pressure and ongoing demonstrations, Vice President Omar Suleiman announced Mubarak’s resignation, marking a pivotal victory for the protestors who celebrated their success in reclaiming public space from authoritarian rule.
In contrast, Syria experienced a different trajectory during its own revolutionary period beginning in March 2011. The Syrian government, led by Bashar al-Assad, responded to protests with severe repression and extensive internet censorship. The Assad regime implemented strict controls over online information and communication, utilizing cyber surveillance to monitor citizens and suppress dissent. Internet access was frequently shut down or restricted, especially during periods of civil unrest. For instance, connectivity was cut off multiple times throughout the conflict, particularly during significant protests or military operations.
Syria’s situation exemplifies how authoritarian regimes can leverage technology to maintain control over information flows and restrict freedoms. While Egypt’s revolution led to a temporary opening for democratic reforms, Syria’s response involved intensifying censorship and surveillance, leading to a prolonged civil war marked by severe human rights violations.
Define renewable resources
Include all abiotic and biotic resources which can be replenished or regenerated by geophysical or photosynthetic processes. An example of the former would be water, with timber for the latter. With careful management, such resources can be used in a sustainable way.
Define non-renewable resources
Those abiotic resources which are found in the environment in fixed amounts. They are consumed or depleted by use and are finite. The concept of sustainable use does not apply to non-renewable resources. Examples include all fossil fuels and minerals.
Define pinch points
Also known as chokepoints are physical constraints on a supply route. In this case they are narrow channels along widely used global sea routes, some so narrow that restrictions are placed on the size of the vessel that can navigate through them (for example the Panamax and Suezmax size limits). Chokepoints are a critical part of global energy security because of the high volume of petroleum and other liquids transported through their narrow straits. Examples can be seen in Figure 5. Approximately 90% of oil in transit passes through these chokepoints. You can read more about oil transport chokepoints. The article includes large-scale maps of the locations shown above.
Define gravity models
Gravity models are used to predict the volume of interactions between two or more places. The volume of interaction is inversely proportional to the distance between two places and direcly proportional to the ‘mass’ of the places.
Mass is usually measured by population size and is a measure of the attractiveness of a place. More sophisticated versions of the models might incorporate accessibility, centrality and other characteristics which might have an impact on interactions.
Gravity models are based upon Newtonian physics where gravity is a function of the mass of an object and diminishes with distance fom the object.
One local use of a gravity model is given here but the gravity model can also be used to predict the magnitude of interactions on a global scale by substituting variables in the basic equation.
What are natural resources, and how are they classified?
Natural resources are materials or forms of energy that exist in the environment and are utilized by humans to meet societal needs and generate wealth. They are often referred to as natural capital, which should be managed similarly to economic capital. Natural resources can be classified in several ways, including biotic and abiotic classifications. Biotic resources encompass living organisms such as plants (timber, crops) and animals (livestock like sheep and cattle). Abiotic resources include non-living elements such as metallic and non-metallic minerals, water, air, and sources of energy like petroleum. Some resources, such as soil, contain both biotic and abiotic components.
Another common classification distinguishes between renewable and non-renewable resources. Renewable resources can be replenished or regenerated through natural processes, such as water and timber. Non-renewable resources exist in fixed amounts and are consumed or depleted with use; examples include fossil fuels and minerals. It is crucial to manage renewable resources carefully to ensure their sustainability; if consumption exceeds renewal rates, they become unsustainable.
What factors determine the availability of natural resources?
The availability of natural resources is influenced by two fundamental components: spatial availability and temporal availability. Spatial availability refers to where a resource can be found, its quality, and its quantity. This can be measured in terms of reserves or production levels. The complexity of availability is further heightened by whether reserves are proven or estimated and whether they are recoverable under current economic, technological, political, and cultural conditions.
Temporal availability concerns when a resource is accessible and for how long it remains so. For instance, fresh water from rivers may exhibit seasonal variations in availability. Both spatial and temporal factors are largely determined by the physical environment, leading to an uneven distribution of resources globally. For example, gold deposits are primarily located in regions with tectonic activity.
How does geographical isolation affect natural resource availability and global interactions?
Geographical isolation occurs when a location has limited access points to other areas, resulting in restricted interactions. While some regions may seem isolated due to physical barriers like mountains or rivers, modern transport networks have made many previously inaccessible areas more reachable. For instance, a map showing travel times to cities reveals that 90% of Earth’s land surface is within 48 hours of a city with at least 50,000 people.
However, true isolation can still exist in extreme environments. For example, parts of the Tibetan Plateau may require extensive travel to reach nearby cities. Geographic isolation often leads to reduced population density and economic activity due to extreme physical conditions that increase distance decay—the diminishing likelihood of interaction as distance increases. Despite this isolation, economic opportunities can arise from exploiting local natural resources, such as oil extraction in remote areas like Alaska.
What role do pinch points play in global oil trade?
Pinch points, also known as chokepoints, are critical physical constraints on supply routes that significantly impact global oil trade. These narrow channels along major shipping routes restrict vessel sizes and influence the flow of oil transportation worldwide. Approximately 90% of oil in transit passes through these chokepoints, making them essential for energy security.
Examples include the Straits of Hormuz and the Suez Canal, where high volumes of petroleum are transported daily. The existence of these chokepoints creates vulnerabilities; disruptions due to geopolitical tensions or natural disasters can have far-reaching effects on global oil supply chains. Understanding these dynamics helps illustrate how geographical factors influence international trade patterns.
How does the physical environment influence the global distribution of petroleum reserves?
The formation of crude oil occurs over millions of years from the remains of microscopic plants and animals that accumulate on ocean floors in sedimentary basins. Under intense heat and pressure conditions devoid of oxygen, these organic materials transform into hydrocarbons—crude oil and natural gas—trapped beneath impermeable rock layers known as caprock.
The global distribution of sedimentary basins determines where significant oil reserves can be found; however, not all sedimentary basins contain commercially viable oil fields. Exploration requires testing through drilling to confirm the presence of extractable oil reserves. Major oil-producing regions are concentrated in specific areas due to geological processes that have shaped the Earth’s crust over time.
What is the significance of gravity models in understanding interactions between places?
Gravity models are used in human geography to predict the volume of interactions between two or more locations based on their characteristics. The model posits that interaction volume is inversely proportional to the distance between places while being directly proportional to their ‘mass,’ which is typically measured by population size or economic activity.
These models help explain why larger cities tend to attract more interactions than smaller ones despite being farther away. They can also incorporate factors such as accessibility and centrality to provide a more nuanced understanding of spatial dynamics. By applying gravity models on a global scale, researchers can analyze patterns of trade flows, migration trends, and communication exchanges between regions.
What are the key characteristics and natural resources of West Africa?
West Africa is a diverse region comprising 16 countries that span from the Sahel in the north to tropical forests in the south. The region is rich in natural resources, including cocoa, diamonds, iron ore, gold, uranium, coffee, rice, cotton, fish, and petroleum. Approximately 245 million people inhabit West Africa, with about 65% living in rural areas. However, over 55% of West Africans live on less than $1 a day, highlighting significant economic challenges.
The region’s climate varies from semi-arid savannas in the Sahel to humid tropical forests. Despite its wealth of natural resources, West Africa faces issues such as limited forest cover—approximately 11% of total land area—due to agricultural clearing and population pressures. Countries like Guinea-Bissau are more forested compared to larger nations like Mauritania and Niger, which have minimal forest coverage due to dry climatic conditions.
How does geographical isolation define Iquitos as “The Gateway to the Amazon”?
Iquitos is a city located on the Amazon River in northeastern Peru and is often referred to as “The Gateway to the Amazon.” It is completely surrounded by dense rainforest and is unique as it is the largest continental city in the world that is inaccessible by road. The only ways to reach Iquitos are by boat or plane, making it a remote yet vital starting point for Amazon jungle expeditions.
Iquitos serves as a hub for Amazon tours due to its proximity to the rainforest. Visitors can embark on various tours ranging from day trips to extended river cruises. The city has frequent direct flights from Lima, facilitating access for travelers. Despite its isolation, Iquitos plays a crucial role in connecting adventurers with the vast and biodiverse Amazon rainforest.
What historical significance does Iquitos hold in relation to the Amazon and its development?
Founded in 1864, Iquitos gained prominence during the Rubber Boom of the late 19th century when it became a key center for rubber production. The city’s strategic location between the Nanay River and the Amazon River established it as an essential river port in Peru. Today, Iquitos is recognized not only for its historical significance but also for its role as a gateway for eco-tourism and exploration into one of the world’s most biodiverse regions.
Despite plans for infrastructure developments like bridges intended to connect Iquitos with surrounding areas, local communities express concerns that such projects could disrupt their traditional lifestyles and lead to negative environmental impacts. The city remains a focal point for those seeking authentic experiences in the Amazon jungle.
What are some environmental challenges faced by West Africa due to natural resource exploitation?
West Africa faces significant environmental challenges stemming from natural resource exploitation. Climate-induced resource conflicts are prevalent in rural areas, particularly in regions like the Niger Delta. Environmental degradation includes wildlife habitat destruction, pollution of potable water sources with contaminants such as arsenic and antimony, and unsustainable depletion of water tables due to intensive agricultural practices.
Deforestation is another critical issue driven by fuel use, agricultural expansion, and artisanal mining activities. Infrastructure development further exacerbates these problems. For instance, Nigeria’s efforts to harness natural gas for export through the West African Gas Pipeline aim to mitigate deforestation impacts while reducing greenhouse gas emissions associated with gas flaring.
How does geographical isolation affect interactions and economic opportunities in remote locations like Iquitos?
Geographical isolation can significantly limit interactions and economic opportunities in remote locations such as Iquitos. While isolation may reduce access to broader markets and services, it can also create unique economic niches. In Iquitos’ case, its remoteness has made it a prime destination for eco-tourism and adventure travel into the Amazon rainforest.
The lack of road connections means that transportation relies heavily on riverine routes and air travel. This situation fosters a reliance on local resources and tourism but also limits economic diversification. However, advancements in communication technology have allowed isolated communities to connect globally despite their physical barriers, enabling them to participate in broader economic networks through tourism and sustainable resource management.
What is the McKinsey Global Institute Connectedness Index, and what does it measure?
The McKinsey Global Institute (MGI) Connectedness Index, published in 2016, ranks countries based on their participation in global flows of goods, services, finance, people, and data. The index assesses both the total value of these flows and their intensity as a percentage of each country’s GDP. The report highlights that relatively few countries dominate these global flows, with advanced economies (High-Income Countries or HICs) generally being more connected than Middle-Income Countries (MICs) and Low-Income Countries (LICs). For example, the top 15 countries account for 63% of global traded goods, 62% of services, and 79% of Foreign Direct Investment (FDI). This concentration indicates that while some convergence between nations is occurring regarding physical flows, it is a slow process. The report suggests that countries lagging behind in data flows are not catching up; those at advanced stages of digitization derive significantly more economic benefits than those just beginning.
Why does Singapore rank at the top of the MGI Connectedness Index?
Singapore ranks at the top of the MGI Connectedness Index for several reasons. Its long history of globalization began decades ago when it established itself as Southeast Asia’s global shipping hub, particularly for oil and fuels. Singapore’s multicultural population is reflected in its four official languages: English, Mandarin, Tamil, and Malay. This linguistic diversity positions Singapore as a favorable location for business in the critical Southeast Asian region, with English serving as the de facto international language for commerce.
Additionally, Singapore has implemented explicit strategies to become a regional hub for services and finance. Attracting skilled international talent and establishing favorable tax policies to draw Foreign Direct Investment (FDI) have been key priorities. The country also ranks second overall in the World Economic Forum’s Global Competitiveness rankings due to its high scores in infrastructure, higher education, and training systems. By 2014, approximately 87% of households in Singapore had broadband access, making it one of the most digitally connected countries globally.
What is positive feedback in global interactions, and how does it manifest?
Positive feedback in global interactions refers to a process where initial interactions lead to further interactions, creating a self-reinforcing cycle. Once initiated, these interactions tend to take on a life of their own, resulting in exponential growth. This phenomenon can be observed in various contexts such as the rapid increase in internet use and mobile phone ownership.
In positive feedback systems, the output becomes an input that leads to increased subsequent outputs. For example, early growth in mobile phone usage may be slow due to high costs and limited users. However, as more people acquire mobile phones, the number of potential interactions increases, making phones more desirable and affordable due to economies of scale. Eventually, this leads to geometric growth until market saturation occurs.
Positive feedback can lead to both virtuous cycles—where wealth accumulates leading to further wealth—and vicious cycles—where poverty perpetuates itself. Economic interactions follow similar patterns; as trade involves more nations, more nations become engaged in global commerce.
How does positive feedback relate to economic interactions and mobile phone growth?
Positive feedback plays a significant role in economic interactions by enhancing trade relationships among nations. As more countries engage in trade, they create additional opportunities for other nations to participate. This interconnectedness fosters a network effect where increased interaction leads to further economic growth.
In the context of mobile phone growth, initial adoption may be slow due to high costs and limited user bases. However, as more individuals acquire mobile phones, the number of potential interactions increases. This growing demand makes mobile phones more socially desirable and leads to lower prices due to economies of scale. As a result, mobile phone ownership can grow exponentially until market saturation is reached.
For instance, India’s mobile phone market has seen substantial growth over time due to these dynamics. The progression from limited adoption to widespread ownership illustrates how positive feedback can drive technological uptake and economic integration across regions.
What are some implications of positive feedback loops in global systems?
Positive feedback loops can have significant implications for global systems by driving rapid change and growth but can also lead to instability if unchecked. In economic contexts, this can mean accelerated wealth accumulation for certain nations or individuals while potentially leaving others behind—creating disparities that may lead to social unrest or economic crises.
In natural systems, uncontrolled positive feedback can result in catastrophic consequences; for example, climate change exhibits such dynamics where rising temperatures lead to ice melt which further accelerates warming through reduced albedo effects. Similarly, financial markets can experience bubbles where initial investments lead to inflated valuations that eventually burst.
The concept emphasizes that while positive feedback can foster growth and development—creating virtuous circles—it can also exacerbate inequalities or lead to systemic failures if not managed properly. Understanding these dynamics is crucial for policymakers aiming to promote sustainable development while mitigating risks associated with rapid changes.
