Superpower impacts Flashcards
What are Inter-govermental organisations (IGOs)
regional/ global organisations whose members are nation states
What is free-market capitilisatism
-private ownership of property, e.g. homes & possessions
-private ownership of businesses; wages based on supply versus demand & skkill level
-right to make a profit
-examples; USA, canada, japan, western europe
What is centrally-planned economy
-government ownership of property and land
-profits taken by governments & used to provide public services
-prices controlled by government
-examples; USSR, china, eurpore
Who are the world bank
-make development loans to development countries within a ‘free-market’ model that proomotes exports, trade, industrilisation
-benefits TNCS
Who are the International Monetary Fund (IMF)
-promotes global economic security & stability
-assists countries to reform their economies
-economic reforms often mean more open access to developing economies
Name the 4 IGOs
-world bank
-international monetary fund (IMF)
-world economic forum (WEF)
-world trade organisation (WTO)
Who are the world economic forum
non-profit organisation that promotes globalisation & free trade via annual meeting at Davos
Who are the World Trade Organisation
-igo that regulates global trade
-established in 1995 it has brokered many agreements aimed at promoting open trade
Name the 2 types of TNC
-publicly traded TNCS -> owned by private shareholders (Apple, Tesco, Shell)
-state-owned TNCs -> owned by governments, examples include Bank of China
Name 3 ways TNCs dominate the global economy
-their economies of scale -> can outcompete smaller companies
-bank balances & ability to borrow money to invest -> can invest in new tech
-move towards free-market capitalism, free trade -> opened up new markets -> expansion
TNC trade routes
Their economic power influences trade patterns, and therefore the location of areas of growth through FDI.
Partially responsible for global shift. If they decide to move elsewhere, such as US car companies moving out of Detroit, they can cause economic decline.
TNC technology
They invest their large profits heavily in new technologies and patents. This earns them more money through new products and royalties paid by other companies to use their patents. It may make their products cheaper or better quality.
90% of global patent royalties are paid to EU, US and Japanese countries.
A patent is legal protection given to a new invention (new ‘intellectual property’); other companies can use it, but only after paying a royalty fee to the inventor (usually a company). The WTO enforces intellectual property rights.
