unit 6 global risks and resilience (hl) Flashcards
hacking
- threatens all internet users, from individuals, TNCs, national governments and even internet providers
- on a smaller scale, mobile devices and PCs are also vulnerable to attack - often the source of the attack is a PDF or JPEG graphic that appears harmless until it is opened
- likely that such attacks will increase in complexity in the future as more people own computers and mobile devices
previous cases of hacking on a large scale
2016 - major attack on companies such as Twitter and Paypal affecting many websites such as New York Times, CNN and the Wall Street Journal
Hackers used thousands of interconnected devices that had been infected with a malicious code, known as a “botnet” to disable the internet
one of the largest attacks ever - its complexity made it difficult to deal with
such attacks are becoming more common although not all are on a large scale
identity theft
- one of the fastest growing whit-collar crimes
- cybercrime differed from traditional crime in that the offender and the victim can be geographically separate
- expected to rise in the future because of the increase in number of computers, many of which have insufficient protection
- very low prosecution rates and lenient sentencing make identity theft appealing to criminals
- people most at risk of identity theft include people in close groups such as university student, military personnel, medical patients and even the deceased
- in a study of urban areas in Florida, whites were the most likely to be victims of identity theft (72%) and hispanics the least (1%)
implications of surveillance for personal freedom
supply risks
refer to the ability to meet the demand for goods
demand risks
refer to the changes in demand, possibly due to currency fluctuations or political unrest
operational risks
refer to the transport infrastructure required for delivering the goods
there are many risks to global supply chain flows including
risks on the supply and demand sides and operational risks
environmental factors affecting supply chain risks
natural disasters, extreme weather events and epidemics
floods in Bangladesh regularly disrupt the supply chain there, while the outbreak of ebola in west Africa limited the movement of people and goods to the region
the 2011 tsunami that affected Japan had a major impact on the motor industry: up to 150 000 fewer cars were produced in the USA as a result of disruption of the supply chain for parts
political factors affecting supply chain risks
protectionism, trade restrictions and conflict
supplies of goods from the Middle East and North Africa were severely disrupted at times following the Arab spring protests
governments with poor political and economic stability may take decisions (such as resource nationalism) that cause much uncertainty among investors
the uk’s decision to leave the EU may lead to major changes in the supply chain
economic factors affecting supply chain risks
currency fluctuations and trade restrictions imposed by governments
debt crises in Europe among the PIIGS countries (Portugal, Ireland, Italy, Greece, Spain) provided much economic uncertainty to risk managers
technological factors affecting supply chain risks
disruption to transport networks and ICT networks
transport infrastructure failures is unusual, but ICT reliability is an issue
amount of companies experiencing supply chain disruption within the previous two years of a survey conducted in 2013
three-quarters
repatriation of profits
is the movement of profits made in a business or investment in a foreign country back to the country of origin
profits are normally repatriated to protect against expropriation or to take advantage of currency fluctuation
profit repatriation is an important factor in determining whether foreign direct investment (FDI) in another country is actually profitable for the parent firm
profit repatriation laws
- vary from country to country
example:
when Volkswagen group earns profits anywhere in the world, it takes a share back home to Germany
China has slowly and successfully liberalised its economy and laws to suit FDI needs - it is possible legally to repatriate up to 90% of annual profits from china
why do some companies choose to ope subsidiaries in other companies
because corporation tax in their home country is extremely high, and significant savings can be made by being based elsewhere
tax avoidance is not confined to HICs
Oxfam estimates that LICs could be losing up to $124 billion each year as a result of tax avoidance by TNCs and wealthy individuals
what are ways for wealthy people to avoid tax
to live in countries with lower rates of tax - example being Lewis Hamilton living in Switzerland where there is a much reduced tax rate
Panama papers
is the name given to 11.5 million documents that were leaked in 2015 from the database of the world’s fourth largest offshore law firm, Mossack Fonesca
the records show the complex ways in which wealthy individuals exploit secretive offshore tax regimes
twelve national leaders were among 143 politicians, their families and close associates known to have been using offshore tax havens
drones and their advantages
are unmanned aerial vehicles (UAVs) operated by remote control, either by an operator or by an on-board computer
advantages: - can be used for surveillance in natural and man-made disasters to survey damage locate victims, help the police search for lost children and monitor large crowds
growth of the drone industry between 2015 and 2018
is expected to generate over $13 billion, and by 2025 over $80 billion
it is expected that the industry will create some 30 000 manufacturing jobs and more than 70 000 technical jobs
concerns regarding usage of drones in war and for surveillance
drones used in war are operated far from the conflict zone and may thus desensitise military personnel to war and killing - in addition, drones have caused many civilian fatalities
drones have also been linked with an invasion of personal privacy ; their powerful cameras and remote sensing imagery can be used to “spy” on people
other problems include cost, especially with drones used for military operations, breakdown or malfunction of computer software, and human error in their operation
drone deaths
in a us survey, 56% of respondents indicated that they supported the use of drones and UAVs in war
between 2006 and 2009 about 746 people were killed in attacks using drones
at least 147 of the victims were civilians, and 94 were children
Pakistan claimed that at least 400 civilians had been killed in US strikes in the country since 2006
3D printing technology//”additive manufacturing”
allows for the creation of physical objects from a digital model, by building them up in a sequence of layers
the technology is said to have great potential in engineering, medicine, the military, construction, architecture, education and computing industries
advantages of 3D printing technology
- allows manufacturers to create complex 3D objects in a shot time
- little waste involved as products are built up rather than reduced in size.
- has been used to create human body parts, organs and tissues
- those in favour argue that it could counter globalisation, as many users will do much of their own manufacturing rather than outsource or engage in trade
- could lead to the development of localised, customised production that response to demand
- some believe it could lead to a resurgence of manufacturing in HICs as highly skilled companies will be needed to develop technology and access large amounts of capital to develop technology needed for the industry
risks surrounding 3D printing technology
- the lack of legislation and regulations concerning the technology means that it can be used to create weapons and counterfeit goods
- critics argue that it will replace labour in increasingly complex tasks, as technology already has with ATMs and online banking, for example
- there are also concerns that 3D printing can enable gangs to steal money from ATM machines
what are the four possibilities in the evolution of globalisation according to Kearney?
- globalisation 3.0 which corrects for deficiencies in current globalisation
- polarisation, in which rising geopolitical tensions and economic rivalries divide the global economy into competing blocs of countries
- islandization , in which nationalism gains ground in key economies around the world, leading to protectionist measures and reduced global economic flows
- commonisation, the rise of a new global commons through manufacturing and the sharing economy and a fall of the consumer capitalism
what was the 2014-2015 increase in nationalism due to,
in part, to poor economic growth following the financial cash of 2008, rising inequality, and in Europe, rising immigration
what forms does this new nationalism take?
protectionist policies such as trade barriers, policies favouring domestic workers, anti immigration measures and resource nationalism
in most extreme cases, economic failure and a lack of opportunities for young people are fuelling resentment of globalisation and the West, and In extreme cases, terrorism
examples of renewed nationalism
the election of Donald Trump, the UKs vote for Brexit, and the growth of right-wing political parties in the EU
one country that did not share in the growth of nationalism
singapore
its 2017 strategy for the future, the Committee on the Future Economy (CFE) stated that Singapore must “remain plugged into global trade”, and “must resist the threat of rising protectionism amid anti globalisation sentiment”
nationalism
is a political ideology that emphasises the loyalty and devotion of a group of people to their nation, often defined by a common culture, language, history, or territory
what has the growth of right-wing politics led to a greater focus on?
anti-immigration and the rise of Islamophobia
according to the financial times, renewed nationalism in Europe shows
“no economic policies beyond an iconoclastic rage at the Euro, free trade and foreigners alleged to be parasites of the welfare state”
global examples of nationalism
president trump “america first”
Narendra Modi, a hindu nationalist, swept to power in india in 2014
biggest threat to Europe according to the Economist
russian nationalism
claims that it is the humiliation about the collapse of the former Soviet Union, and the nostalgia for its great-ewer status that creates a threat to Europe - the general rise in nationalism will increase international political tensions and make multilateral cooperation on climate, trade, taxation and development more difficult
transboundary pollution (TBP)
is pollution affecting a large area or more than one country
acidic deposition can be
wet or dry
dry deposition of pollution occurs occurs typically
close to the source of pollutants