Global Interdependence

Question 1

List arguments for emergency aid

Answer 1

-immediate aid with necessities like food and water saves lives
-helps to rebuild housing after a disaster, some governments and charities are trying to make the world better

Question 2

List some arguments against emergency aid

Answer 2

-countries should avoid disasters through their own planning and preparedness, to reduce need for aid and damage
-corruption may occur, money might not get to people who need it

Question 3

List some arguments for development aid

Answer 3

-improving healthcare + living standards by providing medicines, vaccines (e.g. malaria)
-aid for agricultural improvement, increase production
-investment in industrial development can provide jobs, and greater export
-aid can increase power supplies, and energy availablility
-education projects improves literacy rates
-providing clean water improves life quality
-long term aid provides economic stability

Question 4

List some arguments against development aid

Answer 4

-aid can be used to put political/ economic power over a country
-aid can increase dependency on donor countries, but also aid can be with loans
-aid distorts free economic markets, free trade is the best way to develop
-proportion of profits can be sent to donor countries
-makes governments lazy, poor economic decisions

Question 5

What is globalisation

Answer 5

The set of economic, political, cultural + social processes that create, multiply, stretch + intensify worldwide interdependencies

Question 6

Examples of processes which create worldwide interdependencies

Answer 6

-economic specialisation
-entertainment industries
-growth of social media + global streaming services
-industrialisation = need for energy + resources
-consumerism
-increasing education levels (increase of English language)

Question 7

What is global inequality

Answer 7

The socio-economic and/or political and/or environmental variation in how people live between countries

Question 8

Examples of global inequality

Answer 8

-education accessibility + literacy levels
-access to electricity (appliances at home)
-GNI
-life expectancy, infant mortality, healthcare

Question 9

What are visible imports/ exports

Answer 9

-physical materials, goods, and/or products that a person a company or a country buys from a different country

Question 10

What are invisible imports/ exports

Answer 10

-non-physical services/ products that a person or a company or country buys from another country

Question 11

What is aid

Answer 11

A voluntary transfer of resources from one country to another country

Question 12

Why does aid exist?

Answer 12

-financial problems in the recipient country
-political influence for the donor on the recipient
-strengthen relationships between countries
-support after a natural disaster

Question 13

What is multilateral aid

Answer 13

-when more than one country gives money, e.g. through World Bank

Question 14

What is bilateral aid

Answer 14

When one country gives money to another

Question 15

Who can loan money to countries?

Answer 15

• the world bank
• global banks like HSBC
• global financial firms
• political blocs like EU

Question 16

What are some causes of national debt

Answer 16

• Borrowing money to create jobs + increase tax income
• Need investment in manufacturing, agriculture etc. to extract + create goods for trade
• Need investment in export infrastructure: roads etc.

Question 17

How is debt not a problem?

Answer 17

• if country has used the money well, for economic growth
• if a country can repay the amount received and interest rate

Question 18

When does debt become a problem?

Answer 18

• when a country’s economy stagnates or declines, so they can’t repay back their debt

Question 19

What is a HIPC?

Answer 19

Heavily indebted poor country

Question 20

What is socio-economic global interdependence?

Answer 20

The reliance of people on products, knowledge & resources from other parts of the world through trade

Question 21

What is environmental global interdependence?

Answer 21

The connections between local environments & activities and global processes (e.g. rural deforestation + climate change) - Global environmental agreement

Question 22

What is health global interdependence?

Answer 22

Global health depends on a decent standard of health in each country (vaccinations)

Question 23

What is trade balance?

Answer 23

The overall difference between all the costs of a country’s imported and all the money earned from exports on an annual bases. (Can be either in surplus, deficit or balance), also can be balanced between countries

Question 24

What is free trade?

Answer 24

Raw materials, goods & services can move around the world without any restrictions AKA open market

Question 25

What is protectionism?

Answer 25

Countries restrict imports of certain raw materials, goods or services by banning them completely, or imposing taxes on them to increase cost. (Trying to be self-dependent)

Question 26

What is foreign direct investment?

Answer 26

Money being spent by a company from another country to build a factory, or supermarkets, etc., from which company can earn a profit from the country.

Question 27

At what GNI is a country considered to be low-income?

Answer 27

< $1,036

Question 28

At what GNI is a country considered to be lower-middle income?

Answer 28

$1,036 - $4,045

Question 29

At what GNI is a country considered to be upper-middle income?

Answer 29

$4,046 - $12,535

Question 30

At what GNI is a country considered to be high-income?

Answer 30

> $12,535