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
How is interdependence between nations strengthened?
Economic alliances (trade blocs)
Military alliances
Creating an axis of economic and military security reflecting the ideology of each bloc
How do free trade agreements within trade blocs encourage economic interdependence?
- TNCs are able to act as international entities, moving resources anywhere within the bloc
- workers find it easier to move between countries
- TNC profits and revenues highest when economic health of trade bloc is good
What are the pillars of global security?
- Political
- Economic
- Social
- Judicial
Why is the post war global security system under strain?
- leaders are not as economically or militarily powerful as they were
- strong case for emerging powers to have more of a say in world affairs
- global financial crisis of 2007-8 strained global financial system to the limit
- ongoing threat of global terrorism
What are the main superpower resource demands?
- food
- fossil fuels
- minerals
Why do superpowers have large resource footprints?
They have to maintain a large economy, military machine with global reach and a wealthy population, which requires energy, mineral, land and water resources
What environmental issues does the high resource consumption of superpowers and emerging powers generate?
ENVIRONMENTAL DEGRADATION AND CARBON EMISSIONS
- low urban air quality (major health implications)
- demand for fossil fuels, imports and exports accounts for most of the world’s CO2 emissions from shipping
- deforestation and land degradation in emerging powers as land is converted into farmland and urbanisation is accelerated
How are carbon emissions per capita changing in emerging powers?
Rising due to the fact these countries are still developing, industrialising and urbanising
How does the willingness to act to reduce carbon emissions differ between different countries?
Some powers more willing to act and employ environmental governance than others
Europe most willing to act to reduce carbon emissions since 1990.
China’s focus is on economic development still
USA ‘climate scepticism’ means concern is low - didn’t sign up to Kyoto protocol
At the Paris climate summit (COP21) in 2015, all countries did agree on emissions reductions. China, still focused on economic development, agreed to reduce emissions after 2030
What is the middle class?
People with discretionary income, which they spend on consumer goods and perhaps holidays (annual income over $10,000)
What implications does middle class consumption have?
Implications for cost and availability of key resources:
- rare earth minerals (modern communication, medical and laser tech)
- oil
- staple grains (carbohydrates)
- water
And for the physical environment - exploitation of these resources causes degradation
