S: 2.2 - 2.4 Flashcards
2.2 overall
- do patents create a monopoly power?
- about the idea of intellectual property rights which means superpowers have significant influence over the global economic system
Intellectual property:
• global system of intellectual property laws that manage + protect property rights.
• Patents used to prevent other businesses copying products.
• Trademarks used to protect brand images + rights.
• Copyrights used to establish ownership of artistic work.
• Royalties need to be paid by anyone who uses others’ work
Royalties
• A fee paid to the inventor or designer by anyone who wants to produce /use a product / idea.
• Over 85% of all royalty payments go to the USA, the EU and Japan
Rationale
• Inventor / creator benefits from their invention.
• Businesses guaranteed an return in investment in R&D.
• Safety – products are what they say they are.
• Consumer trust in TNCs
Counterfeit market
• Pharmaceuticals.
• Electrical goods / music / movies / software.
• Costs up to $85bn/yr (software up to $75bn).
• Counterfeiters, governments and consumers all play a role
Who runs intellectual property laws?
• WIPO, part of the UN (1976).
• Registration and database of patents and IP.
• Resolves disputes between parties.
• Encourages use of patents / IP rules to benefit creators globally
Global trade in fake goods accounted for
2.5% of world imports in 2013
And 5% of EU imports
Fake goods can be dangerous as seen in
Nigeria where inferior Chinese electrical goods cause fires
Superpower domination + could Link to which theory
• TNCs from US/developed countries paid for inventions/ artistic works created decades ago.
• Emerging superpowers + developing countries pay royalties, costs them & benefits developed world.
• Developed world TNC’s in best position to invest in R&D so patent holders also new patent developers.
• Education standards higher in already developed countries so higher skill levels.
• Westernisation spreads US and European music, film, TV- copyright and brands (trademarks)
Could link to AG franks dependency theory
Role of Chinese in counterfeit market
• China responsible for 70% counterfeit goods:
• less TNC investment in China knowing profits will lost to counterfeiting.
• Lack of action by Chinese gov. suggests not willing to follow international law.
• Damage trade agreements with China.
• Chinese companies increasingly patent holders: 2012 Chinese innovators applied for 652,000 new patents versus 542,000 in the USA.
• BUT: question marks over quality of Chinese applications and whether Chinese companies will be able to collect royalties
Pharmaceutical + IPL
• Benefits: control access to medicinal drugs, guarantees safety, promotes R&D by companies.
• Problems: pharmaceutical companies invest in developing treatments for diseases in developing countries as they can’t guarantee a profit.
• Solution: The WTO allows developing nations to import cheaper versions of essential medicines before patents expire.
• Additional help: charitable organisations such as GSK
2.3 overall
Considering the value of geostrategic alliances - NATO ANZUS NAFTA ASEAN
USA + formation of initial alliances
• USA stepped into WW1+2 (Franco-German conflict)
• USA wanted to build a rampart against an expansionist USSR (containment)
• USA wanted democracy to be embedded in Eastern Europe
• European Union / Marshall Plan / NATO were key elements of this plan
Tensions in 2018
• Pres. Trump is concerned that NATO countries don’t contribute 2% of GDP
• Pres. Trump is concerned that European countries are too pro-Iran (nuclear deal), and biased against Israel
• Pres. Trump is more interested in Asia, whilst Italy/Turkey are pro-Russia
• Pres. Trump thinks US/EU trade is unfair
• The Helsinki Summit with Pres. Putin weakened American position on security and raised the status of Russia
NAFTA
• Trilateral trade bloc - USA, Canada & Mexico.
• Elimination or reduction of trade barriers between 3 countries, however there’s strict rules on Agriculture
• Some mobility of persons - generally skilled.
• Replaced by the united States-Canada-Mexico Agreement in 2020.
• NAFTA 2.0 - but with agreements on e-commerce, Intellectual Property, automobile manufacture and better US access to Canada’s dairy market