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
wet deposition occurs when
the pollutants are dissolved in precipitation, and may fall at greta distances from the sources
wet deposition crosses international boundaries with disregard, and so it is a form of transboundary pollution
acid rain
is rainfall that is more acidic than normal due to human activity
acid rain has a ph of less than
5.5
why is rainfall naturally acidic
because it absorbs carbon dioxide in the atmosphere and becomes a weak carbonic acid, with a pH between 5 and 6
what are the major causes of acid rain
are sulphur dioxide and nitrogen oxides produced by burning fossil fuels such as coal, oil and gas
when sulphur dioxide and nitrogen oxides are released into the atmosphere, they can be absorbed by moisture and become weak sulphuric and nitric acids
what are major producers of sulphur dioxide
coal-fired power stations and vehicles, especially cars, are responsible for most of the nitrogen oxides in the atmosphere
how is increased car ownership affecting world wide emissions
world wide emission of sulphur dioxide are declining while those of nitric oxides are increasing
what are the effects of acidification
- weathering of buildings
- mobilisation of metals, especially iron and aluminium, by acidic water which is carried into rivers and lakes
- aluminium damages fish gills
- tree growth is severely reduced
- soil acidity increases
- lakes become acidified and aquatic life suffers
- there are possible links (as yet unproven) to the increase in cases of senile dementia
where are the effects pop acidic deposition the greatest
in areas with high levels of precipitation (causing more acidity to be deposited on the ground) and those with acidic rocks that cannot neutralise the deposited acidity
methods used to try to reduce the effects of acid deposition
adding powdered limestone to lakes to increase their pH
the only really effective and practical long term treatment is
to curb the emissions of the pollutants
how can emissions of pollutants be curbed
- by reducing the amount of fossil fuel used
- using less sulphur-rich fossil fuel
- using alternative energy sources that do not produce nitrate or sulphate gases
- removing the pollutants before they reach the atmosphere
shipping causes a great deal of pollution and environmental damage, including:
- oil and chemicals released in deliberate discharges and accidental spills
- waste dumping, including sewage and garbage
- air pollution through the release of greenhouse gases
- physical damage through the use of anchors
- noise pollution, which disturbs large mammals such as whales
shipping stats
approx. 50 000 merchant ships are sailing the world’s main routes, carrying about 90% of the world’s trade between routes
rising levels of CO2 are leading to
increased acidification of the oceans - in addition ships release sulphur and nitrogen oxide, which also leads to acidification
what does the carbon footprint of food depend on
such factors as volume of produce, means of transport, refrigeration, packaging, storage, distribution and sales
what does the flow of foodstuffs link
the main producers and consumers
environmental impact of the trade in food
use of machinery, chemicals, and pesticides
migration from “low carbon” to “high carbon countries” will lead to
an increase in greenhouse gas emissions, especially if the migrants standard of living increases following the migration
the migration of people from LICs to HICs will normally lead to
an increase in global emissions
research into the environmental impact of immigrants in the USA has shown that:
- CO2 emissions of the average immigrant (legal or illegal) in the USA are 18% lower than those of the native born American
- immigrants in the USA produce four time more CO2 in the USA than they would’ve in their native country
- legal immigrants have a much larger impact than illegal immigrants because they have higher incomes and higher resulting emissions
what has the shift of manufacturing from HICs to NICs resulted in
in the widespread pollution of air, water and soil, and has impacted the health of residents
how do HICs and NICs differ in the way they treat environmental regulations and laws?
–> HICs have stricter environmental laws, greater social supervision and more effective governments
–> pollution emissions are higher in NICs, where environmental regulations and their enforcement are weaker
–> the less regulated environments give HICs a chance to export their waste and pollution
what is the environmental vulnerability of LICs and NICs to pollution a result of?
their undeveloped systems as well as their need for the economic benefits of the polluting industries
what does the term “agro-industrialisation” refer to?
it refers to the large-scale, intensive, high-input, high-output, commercial nature of much modern farming
modern farming has intensified, increased efficiency and adopted labour saving technologies such as agro-chemicals and machinery
+ and – of agro-industrialisation
+ increased food production
– is a major consumer of energy and a contributor to greenhouse gas emissions, air pollution, water pollution, land erosion and loss of biodiversity
what have wheat increased from since 1960 in tonnes per hectare
from 2.6 to 8 tonnes per hectare due to increased inputs of fertilisers, insecticides and pesticides
what does intensive farming require and cause
- requires the heavy use of chemicals and methods
- leads to land degradation and animal welfare problems
for example, apples receive an average of 16 pesticides sprays while lettuces can be sprayed 12 times ; air pollution and greenhouse gas emissions from farming cost the UK more than £1.1 billion annually
what do land grabs result in
in there being less land available for indigenous/national populations and give access to a foreign country/multinational
examples of land grabs in recent years
in Sudan alone, South Korea has signed deals for 690,000 hectares, the United Arab Emirates for 400,000 hectares and Egypt has secured a similar deal to grow wheat
In total, between 15 million and 20 million hectares of farmland in LICs have been subject to transactions or talks involving foreigners since 2006. The deals are worth $20-$30 billion
how much does cleaning up chemical pollution and repairing damage to habitats caused by industrial farming cost a year in the uk alone
over 2£ billion
how much does it cost water companies to remove pesticides and nitrates from drinking water
up to £200 million
how much are arable farming and livestock costing the USA
- costs of agriculture (pesticides, nutrient run-off, soil loss and so on) could be as high as $16 billion (96$ per hectare) for arable farming and 714$ million for livestock
what percentage does the food distribution account for in terms of all UK road freight
33-40%
what does the concept of food miles describe
how far food has travelled before it appears on a plate
world wide fund for nature (wwf)
is an international environmental organisation (NGO), or civim society
develop
oxfam
what did the major decline in manufacturing employment during the 1970s and 1980s as a result of offshoring to LICs offer?
low-cost labour
what considerations need to be taken into account when reflecting on bringing manufacturing back to the United States,
wages, energy costs, and trade agreements
between 2013 and 2014 the US moved form losing about 140 000 manufacturing jobs per year to gaining 10 000 or more anually - increased automation reduces the wage advantage for countries such as Mexico and China, even if those countries also automate ; moreover the jobs that are automated are usually at a lower level
the value of “made in usa” stamp for a company such as K’Nex toys
they can charge up to 15% more for toys because of the uSA stamp
reasons for reshoring - push factors from overseas
- rising global oil prices and increasing transport costs
- a relative lack of skilled labour in LICs compared with HICs
- rising labour costs in LICs and NICs
- greater risk in the supply chain
reasons for reshoring - pull factors to return home
- increased demand for customization of products and smaller runs
- a tradition of manufacturing, and public demand to maintain employment in HICs
- consumers increasingly demanding quick delivery times
- higher levels of R&D
examples of reshoring
WWW.bathrooms.com
investing £2.5 million in the midlands, uk, where it will manufacture 25% of its products, cutting delivery times for its customers
sectors most likely to reshore
capital-intensive sectors with complex supply chains and rapidly changing markets
these include petroleum, chemicals and aerospace; pharmaceuticals and chemicals (R&D); textiles and leather goods
what are the impacts of reshoring
- direct impacts on output, GDP and employment
- indirect impacts in the supply chain
- multiplier effects, when the employees of the restored industries spend their earnings in the economy and increase demand for services
crowdsourcing
is a way of using a community’s best assets, namely its population, to find solutions, discuss ideas, fund projects etc
times when crowd sourcing has been used in the event of a natural disaster
following the earthquake in Nepal, crowdfunding raised over $20 million in 60 days
it also provided images of buildings, schools, and hospitals daily, to help search, rescue and relief workers
what does crowdsourcing allow organisations
–> to tap into the creativity of large numbers of people - however plans and expectations must be clearly stated because there is a danger that different people may interpret plans differently
what does the concept of resilience refer to
it refers to the ability of individuals, communities or environments to respond to shocks and changes while continuing to operate under new circumstances
what does crowdsourcing allow
it allows for rapid transmission of ideas and opportunities which would have been more difficult in the era before the internet
(ex: Wikipedia is an example of a crowd-sourced effort that enables people in most places to obtain information on most subjects very quickly, and at a very limited extra cost)
it also offers many opportunities for people to interact with each other and find solutions to old and new problems - the increased interdependence and complexity of global interactions necessitates the involvement of many ppl from stakeholder positions, to find solutions for problems as they arise
examples of how crowdsourcing can be used to find new ways of providing services
in 2011 the Bill and Melinda Gates foundation introduced the reinventing toilet challenge, a us$100,000 challenge to design a toilet that could dispose of human waste without a septic tank or an outside water system
the winning design was a solar powered system that could break down waste and water to fertiliser and hydrogen
in brief, what is crowd sourcing
a high technology bottom-up approach of empowering communities around the world
what is cybersecurity
is the protection of information systems, hardware and software from theft and damage, as well as the protection of information on computers and related technology
why is the need for cyber security increasing
as more people and organizations rely on computers and the internet
what are threats to computer security
- “phishing” the attempt to obtain personal or sensitive information such as user names , passwords, back account details and credit card details
–> most computers have some level of protection, but threats are becoming more sophisticated and protection systems need to keep ahead of the threats
what are targets of cyber security
large organisations, government departments, military computer systems and airline carriers
what are the most common prevention systems towards the threats opposing cyber security
firewalls, which stop access to international network systems and filter out different kins of attack
one of the main issues regarding cyber security
there are no international regulations to common rules to abide by
e passports
has a computer chip in it which contains data about the owner
disadvantages e passports
- if passport stole, data could be used illegally, it would be possible for someone to hack into the system and change the data; moreover, the person who owns the passport does not have access to the data
