3.2.1.2 Global Systems

Question 1

Unequal flows of people

Answer 1

1. People tend to move from countries where there are few jobs eg. LICs to HICS
2. People also leave countries to escape war, famine or persecution.
3. The people who move for economic reasons are not usually the poorest in society – money may be needed for a visa, transport and living expenses in the destination country. Countries may also only allow people with certain skills – so migrants are often more educated.
4. It is easier for people from HICs to migrate than people from LICs
5. Flows of people bring benefits e.g. immigrants can create economic growth e.g. may do jobs that a countrys citizens cant do e.g. engineering, or don`t want to do e.g. dangerous jobs like mining or poorly paid jobs
6. Many migrants send Remittances back to families, these can increase the amount of capital flowing in to LICs – can create economic growth in the home country as local people can spend more, boosting loca

Question 2

Inequalities created by unequal flows of people

Answer 2

“Brain Drain” -> skilled people move and take knowledge with them, reinforces existing inequalities between countries

Question 3

Unequal flows of people conflict

Answer 3

Low-skilled migrants are often prepared to work for less money than low- skilled locals. By employing them, companies may depress wages for the local population. This can cause conflict between local and migrants populations.

Question 4

Unequal flows of people injustice

Answer 4

Migrant workers are sometimes made to work in dangerous conditions for little money e.g. Qatar, several thousand migrants have died building facilities for the 2022 FIFA World Cup

Question 5

Benefits of unequal flows of money

Answer 5

1. Flows of money can include remittances, foreign aid- increases development/ helps in a crisis, foreign direct investment (FDI) and income from trade.
   2 Flows of money are unequal – money often flows from HICs to LICs e.g. governments and companies from HICs may invest in infrastructure or the extraction of minerals in LICs. LICs rarely have the capital to invest in other countries.
   3 Flows of money can bring benefits e.g. FDI allows foreign companies and countries to take advantage of cheap raw materials and low labour costs, while the host country can benefit from foreign capital and expertise. Foreign aid can be used to improve living stands or to build local infrastructure after a disaster.

Question 6

Inequalities with unequal flows of money

Answer 6

Foreign aid can create dependency, which gives governments little incentive to improve their own countries. FDI can force out local businesses as TNCs can make products more efficiently.

Question 7

Conflict with unequal flows of money

Answer 7

Foreign aid can find its way to armed groups and can help to fund conflict. FDI can cause conflict between foreign companies and local people e.g. FDI in farming can lead to peasant farmers being evicted to create larger plantations.

Question 8

Injustice unequal flows of money

Answer 8

Companies may pressurise governments of LICs to pass laws that make it cheaper to invest there e.g. by cutting environmental regulation/legislation or weakening laws on working conditions.

Question 9

Unequal flows of ideas

Answer 9

1 Before the 1980s most national governments took responsibility for providing welfare for their citizens and controlling imports through trade barriers to protect their national industries.
2 However, in the 1980s many HICs thought that the economy would work better without state intervention – maximum economic growth would only occur if trade barriers were removed, state- owned companies were privatised and government spending was cut.

Question 11

What is neo liberalism

Answer 11

maximum economic growth would only occur if trade barriers were removed, state- owned companies were privatised and government spending was cut.

Question 12

What have neo-liberalist ideas done?

Answer 12

Increased free trade which has led to more development within countries and less conflict between countries

Question 13

Inequalities with flows of ideas

Answer 13

Neo-liberalism started in HICs and has spread globally. It tends to concentrate wealth in the hands of a few e.g. large TNCs based in HICs.

Question 14

conflict unequal flows of ideas

Answer 14

If private companies and free trade in an LIC are threatened by the decision of that country`s government, HICs may believe that their intervention is justified. This can lead to conflict.

Question 15

Injustice unequal flows of ideas

Answer 15

Governments and TNCs may argue that free trade and privatisation are the best way to help a country to develop and that this justifies poor working conditions and environmental degradation in the LIC

Question 16

What has led to unequal flows of technology?

Answer 16

1. Globalisation has led to unequal flows of technology- mainly from HICS-LICS
2. Concentration of technology in particular places can lead to rapid innovation thay can help people all over the world

Question 17

Example of unequal flows of technology

Answer 17

Silicon Valley USA have developed innovations in communications and healthcare

Question 18

Inequalities in unequal flows of technology

Answer 18

HICs can afford the latest technology, whereas LICs cant. Countries with the latest technology can make products more cheaply and have better access to information and services due to better communication infrastructure e.g. 2016 97% of Netherlands citizens had access to the Internet, compared to 20% in Myanmar. This gives HICs an advantage over LICs.

Question 19

Unequal flows of ideas conflict and injustice

Answer 19

Repressive governments in LICs have used weapons` technology sold to them by HICs to stop protests from their own people

Question 20

How has globalisation made some countries more powerful than others ?

Answer 20

Unequal flows of people, money ideas and technology have created unequal power relations between countries with some countries having more power than others eg. USA

HICs, NEEs and TNCs with a lot of money and technology are able to drive global systems to their own advantage. These countries and companies have a lot of control over the global economy and political events.
3 Many LICs lack money and technology. These countries have limited power – so they do not control events, they can only respond to them.

Question 21

Power relations and climate change

Answer 21

Wealthy countries, major contributors to climate change, often resist emission limits due to economic concerns like job losses and higher energy costs. Meanwhile, poorer nations, like Bangladesh and Tuvalu, face severe climate impacts but struggle to influence global policies due to their limited power.

Question 22

Access to global markets and international trade of states who drive global systems

Answer 22

Eg. China
-advantages in access to markets and global trade
-outward FDI
-exploits own resources
-political strength

Question 23

States who respond to global systems access to global markets and international trade

Answer 23

Has limited access to global markets: Limited ability to exploit, transport, market and export its primary products
Inability to cope with economic shock e.g., changes in global demand and prices for primary products
Vulnerability to natural and political hazards

Question 24

Role of IMF

Answer 24

Regulator of financial flows and stabiliser of the system, it monitors the global economy and advises governments on how they could improve their economic situation. It also gives loans to countries with economic problems.

Question 25

Role of the world bank ?

Answer 25

It supports less developed countries by providing loans to reduce poverty and invest in health, education, and infrastructure. Funded by member contributions, money is redistributed from developed to less developed countries, which must repay the loans.

Question 26

Features of IMF

Answer 26

Oversees the global financial system Offers financial and technical assistance to its members Provides loans if it will prevent a global economic crisis – last resort Provides loans to help members tackle balance of payments

Question 27

How many members are in the IMF

Answer 27

2,300 staff 185 member countries

Question 28

Characterises of world bank

Answer 28

Promotes economic development in developing countries Provides long term investment loans to reduce poverty Encourages start up private enterprises in developing countries Acquires financial resources by borrowing Is a larger organisation with 7000 staff from 185 countries and always has an American president

Question 29

Unequal power relations relations with IMF and world bank

Answer 29

The IMF and world bank are both based in the USA and are led by the USA and other HICs The IMF and World Bank’s loans are conditional

Question 30

Opportunities created by trade States who drive global systems

Answer 30

Employment in a range of sectors Economic multiplier effect Development of positive political and cultural relationships with trade partners, including stewardship of the environment Ability to integrate other countries, rich and poor, into its supply chains

Question 31

Opportunities created by trade States who respond to global systems

Answer 31

Economic development and diversification Investment in key infrastructure Socio-economic development through investment health and education Human rights issues, crime and conflict Interdependent with USA and EU and so on

Question 32

Challenges arising from trade States who drive global systems

Answer 32

Pollution issues and land-use conflicts resulting from development of e.g., ports Trade disputes over “price-dumping” (when a product is exported to another country at a price below the normal price.) Managing: • a trade surplus or deficit • migration across its borders

Question 33

Challenges arising form trade States who respond to global systems

Answer 33

Achieving political stability and democracy Removing barriers that prevent integration into global systems e.g., illegal, unethical practice, limited investment in infrastructure Managing environmental problems arising from mining, deforestation Reducing socio-economic inequalities

Question 34

Inequality of power relations definition

Answer 34

Some states are able to drive global systems to their own advantage and to directly influence geopolitical events

Question 35

Gini co-efficient / index

Answer 35

The Gini co-efficient measures internal disparities of wealth (i.e. differences in wealth within countries). It is a measurement between 0 and 1. Zero would mean everyone in a place had exactly the same income (perfect equality). The closer a country is to 1, the greater the inequality (a score of 1 = perfect inequality)

Question 36

Gini index developing countries

Answer 36

the Gini index shows that inequality has worsened. Sub-Saharan Africa saw its Gini index rise by 9% between 1993 and 2008 and China’s score has increased by 34 % in the last twenty years.

Question 37

What is one political argument in favor of globalisation?

Answer 37

It promotes political stability by encouraging countries to work together toward common goals, fostering a sense of global community.

Question 38

What is the "Golden Arches Theory of Conflict"?

Answer 38

The idea that no two countries with McDonald's have gone to war with each other, suggesting economic integration reduces the chance of conflict.

Question 39

Has the Golden Arches Theory been proven true?

Answer 39

No, it has been disproven in some cases, but still highlights the idea that economic ties can reduce conflict.

Question 40

Why hasn’t globalisation led to equal prosperity?

Answer 40

Because it has benefited some regions and groups more than others, leading to inequality and feelings of injustice.

Question 41

How can trade be used as a tool in conflicts?

Answer 41

Trade can act as a "weapon," with countries or trade blocs using sanctions or trade restrictions to exert pressure during conflicts.