Superpowers EQ2 - Superpowers impacts Flashcards
How do superpowers have a significant influence over the global economic system?
- global economy via promotion of free trade and capitalism via a variety of IGOs
- TNCs which are dominant economic forces (cultural and economic globalisation)
- global cultural influence, namely Westernisation
What is free trade?
The exchange of goods and services free of import/export taxes and tariffs or quotas on trade volume
What is an IGO?
Regional or global organisation whose members are nation states. Uphold treaties and international law and allow cooperation on issues such as trade
Why has free market capitalism become increasingly dominant?
Alternative economic systems have weakened e.g.
- collapse of socialist economies/communism in USSR and Eastern Europe following 1990
- China’s movement away from socialist economy towards ‘state capitalism’
What are the key differences between free market capitalism and centrally planned economy?
Free market - private ownership of properties and businesses, right to make profit, competitive market with limited restrictions
Centrally planned - government ownership of property and land, most businesses state owned, profits taken by governments, prices controlled by government
What are the 4 key IGOs and their roles?
World Bank - makes development loans to developing countries but within a ‘free market’ model (benefits TNCs)
IMF - promotes global economic security and stability, assists in reformation of economics (open to TNCs)
World Economic Forum - Swiss non profit organisation promoting globalisation and free trade
WTO - regulates global trade, promotes open trade and reduction of protectionism
What are the 2 types of TNCs?
- publicly traded TNCs, shares owned by numerous stakeholders
- state owned TNCs, majority or wholly owned by government
How do TNCs influence the global economy?
- free trade
- technology developments - patents
- cultural influence
Why are TNCs dominant in the global economy?
- economies of scale means they can outcompete smaller companies and take them over
- can take advantage of globalisation by investing in new technology
- move towards free market capitalism and free trade has opened up many new markets for them
What is brand value/equity?
The value of a brand measured using metrics such as market share, customer opinion of the brand and brand loyalty
What is global cultural influence and why is it an important aspect of power?
Global cultural influence is the worldwide pattern of an emerging system of shared beliefs, values and traditions (Westernisation) involving food, the arts and the media.
It is an important aspect of ‘soft’ power and is liked to economic influence and spread of new technology
What are the common characteristics of Westernisation?
- culture of consumerism
- culture of capitalism and importance of attaining wealth
- white, Anglo-Saxon culture with English as dominant language
What are some examples against Westernisation?
Despite ubiquity of global brands like McDonalds, there is some local adaptation and hybridisation e.g. adapt menu to suit local tastes and religion
Some aspects of American culture e.g. American football and baseball have had a hard time being exported to the rest of the world
How do TNCs protect their newly developed products?
Through intellectual property law e.g. patents, copyright and trademarks
Where do royalty payments go globally?
Over 85% go to USA, EU and Japan
What does the domination of global royalties reflect?
- existing superpowers are paid for inventions and artistic works they created decades ago
- developed world TNCs in best position to invest in R&D
- education levels higher in HICs
- westernisation spreads US and European media
What is the role of superpowers and emerging nations in global action?
Powerful countries can act as ‘global police’, taking action in important issues such as crisis response, conflict and climate change
How has the USA acted as a global police?
- since 2001, led global efforts against Islamic terrorism (war on terror) in countries such as Afghanistan and Iraq
- Haitian earthquake 2010 involved in disaster relief effort via naval and air force
What is the UN?
United Nations, international organisation founded in 1945 following WW2.
Stated purposes are to maintain international peace and security, and provide a centre for harmonizing the actions of different nations
What is the UN Security Council?
The primary global mechanism for maintaining international peace and security. 5 permanent members states and 10 rotating non permanent members which change every 2 years
How can the UN Security Council maintain international law?
- applying sanctions to countries deemed to be a security risk or breaching human rights
- authorising use of military force against a country
- authorising a UN peacekeeping force
What are the main issues with the UN Security Council?
- any one of five permanent member states can veto a decision
- USA, UK and France tend to vote as one, as do Russia and China, leading to deadlock
- has been accused of passing resolutions condemning a country’s actions but then failing to act to prevent these
In which 3 ways has the USA intervened militarily in foreign countries?
- as part of UN Security council action
- together with allied countries without UN remit
- unilaterally, with no support from other countries
What is the NATO alliance?
28 member states that collectively account for most of the world’s firepower, including nuclear weapons
Mutual defence agreement
