Superpowers EQ2

Question 1

What is free trade?

Answer 1

The exchange of goods and services free of import/export taxes and tariffs or quotas on trade volume

Question 2

What is a planned economy?

Answer 2

decisions on investments, production, distribution, pricing made by gov or an authority

Question 3

What is a market economy?

Answer 3

decisions on investments, production, distribution, pricing taken according to market force i.e supply and demand

Question 4

What is an IGO?

Answer 4

Regional or global organisation whose members are nation states. Uphold treaties and international law and allow cooperation on issues such as trade

Question 5

What are the 4 key IGOs and their roles?

Answer 5

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

Question 6

What are the 2 types of TNCs?

Answer 6

publicly traded TNCs- shares owned by numerous stakeholders
state owned TNCs- majority or wholly owned by government

Question 7

How do TNCs influence the global economy?

Answer 7

free trade
technology developments - patents
cultural influence

Question 8

Why are TNCs dominant in the global economy?

Answer 8

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

Question 9

What are the common characteristics of Westernisation?

Answer 9

culture of consumerism
culture of capitalism and importance of attaining wealth
white, Anglo-Saxon culture with English as dominant language

Question 10

What are some examples against Westernisation?

Answer 10

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

Question 11

How do TNCs protect their newly developed products?

Answer 11

Through intellectual property law e.g. patents, copyright and trademarks

Question 12

What is a patent?

Answer 12

Patents give companies and individuals exclusive rights to their inventions for a period of time
-Developing nations cannot afford the high prices for patented technologies.
restricts access to essential medicines for diseases
cheaper versions cannot be produced because they would infringe on patents.

Question 13

Where do royalty payments go globally?

Answer 13

Over 85% go to USA, EU and Japan

Question 14

What does the domination of global royalties reflect?

Answer 14

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

Question 15

What is the role of superpowers and emerging nations in global action?

Answer 15

Powerful countries can act as ‘global police’, taking action in important issues such as crisis response, conflict and climate change

Question 16

How has the USA acted as a global police?

Answer 16

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

Question 17

What other examples of the USA acting as global police?

Answer 17

Ebola 2013-2016
Iran nucleur weapons- US sanctions 1995, UN sanctions 2006 (arms embargo + asset freezes)
EU sanctions 2007

Question 18

What is global security?

Answer 18

military + diplomatic measures that nations + international organisations such as the UN + NATO take to ensure mutual security + safety

Question 19

What are the pillars of global security?

Answer 19

Political
Economic
Social
Judicial

Question 20

Who are the key players in global security?

Answer 20

UN
UN security council
USA

Question 21

Who are the key players in military alliances?

Answer 21

NATO
ANZUS

Question 22

Who are the key players in economic allies?

Answer 22

EU
NAFTA
ASEAN
BRICs

Question 23

Who are the key players in environmental alliances?

Answer 23

IPCC

Question 24

What is the UN?

Answer 24

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

Question 25

What is the UN Security Council?

Answer 25

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

Question 26

What is the purpose of the UN Security Council?

Answer 26

apply sanctions to countries deemed high risk, harbouring terrorism, breaching human rights,, threatening/invading another state authorise UN peacekeepers + use of military

Question 27

What are the main issues with the UN Security Council?

Answer 27

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

Question 28

What is the International Court of Justice?

Answer 28

judicial branch of the UN, based in Netherlands 15 judges- 5 permeant settle disputes, advises on international law only deal with things brought against individual countries

Question 29

How does the EU/NATO maintain peace?

Answer 29

free trade= countries are independent free movement of people= allowed to move/work/live where ever tackles envir problems as collective powerhouse

Question 30

How do free trade agreements within trade blocs encourage economic interdependence?

Answer 30

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

Question 31

What are the main superpower resource demands?

Answer 31

food- increased pressure due to changing diets, land converted for meat and dairy fossil fuels- supply shortages due to increase demand (30%) minerals- basic metals risk of short supply, increased demand for rare earth metals, hard to meet in the future water- intensive farming leading to water scarcity

Question 32

Why do superpowers have large resource footprints?

Answer 32

They have to maintain a large economy, military machine with global reach and a wealthy population, which requires energy, mineral, land and water resources

Question 33

What environmental issues does the high resource consumption of superpowers and emerging powers generate?

Answer 33

ENVIRONMENTAL DEGRADATION AND CARBON EMISSIONS low urban air quality demand for fossil fuels, imports/exports accounts for most of the world's CO2 emissions deforestation + land degradation converted into farmland urbanisation is accelerated

Question 34

How does the willingness to act to reduce carbon emissions differ between different countries?

Answer 34

Some powers more willing than others Europe most willing to act: 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 Paris agreement (COP21) in 2015, all countries did agree on emissions reductions. China, agreed to reduce emissions after 2030

Question 35

What is the middle class?

Answer 35

People with discretionary income, which they spend on consumer goods and holidays (annual income over $10,000)

Question 36

What implications does middle class consumption have?

Answer 36

cost and availability of key resources: rare earth minerals, oil staple grains (carbohydrates), water physical environment - exploitation causes degradation