1
Q
since 1995, world trade volume and value have expanded on average by -% respectively
A
4-6%
2
Q
the services share of world trade has grown from _% in 1970 to over __% today
A
9%
20%
3
Q
how has the trading of raw materials changed (3)
A
- More accessibility due to better drilling techniques
- New materials on the market like cobalt (used in phones)
- Continuing reliance on traditional things like cotton, coal, oil
4
Q
why has raw material change been changing
A
due to industrialisation, globalisation and technological demand and development.
5
Q
crude oil exports grew from how many tonnes in 1950 to __ in 2020
A
220 million
2.5 billion
6
Q
how have lithium exports changed
A
surged from 12,000 tonnes in 2010 to 100,000 tonnes in 2022 to meet battery demand for electric vehicles.
7
Q
changes in trade patterns are driven by: (3)
A
shifting consumer demand, emerging markets, and resource scarcity,
8
Q
why are raw materials important
A
they fuel industrial growth, technological development, and global energy security.
9
Q
how has the trading of manufactured goods changed (2)
A
Rise of superpower China as a manufacturing force (shift towards cheaper manufacturing countries)
Better and increased transportation like container ships
10
Q
in 1970, global trade exports (goods and services) was about __% of global GDP
A
25
11
Q
by 2022, global trade of goods and services had risen to __ %
A
63%
12
Q
Worldwide exports of goods were about US$ ___in 2000, rising to nearly US$ ___ by 2022.
A
6.45 trillion
25 trillion
13
Q
Over six decades, trade in goods (measured in current prices) is about __ times greater now than in the mid-1960s.
A
134
14
Q
why has the trading of manufactured goods increased so much? (5)
A
Globalization & Trade Liberalisation
- technological advances
rising demand
- development of global value chains
- innovation and automation in manufacturing
15
Q
meaning of globalisation and trade liberisation
A
- Tariffs have been reduced, trade barriers lowered,
- trade agreements multiplied,
- enabling goods to move more freely between countries.
16
Q
what technological advances allowed for the trade of manufactured materials to grow so much
A
improvements in transportation (shipping, aviation), logistics, containerisation, and communication have cut costs and time of trade.
17
Q
how has the development of Global Value Chains allowed for trade of manufactured goods and services to grow
A
Production is spread across countries; parts and raw materials are produced in one location, assembled elsewhere, etc. That increases trade in intermediate goods.
18
Q
how has the rising demand (especially from emerging economies) allowed for the rise in trade of manufactured goods
A
As countries develop, their consumption and industrial production rise, driving demand for both imported inputs and exported manufactured goods
19
Q
how has innovation and automation in manufacturing allowed for the rise in trade of manufactured goods
A
More efficient machines, robotics, better management, digital tools etc., allow larger output with less cost / time.
20
Q
how has the trading of services changed (3)
A
Services have become bigger, more accessible and also more global thanks to technological advancements
English as a language more common, and also increased use of internet
Travel and other commercial services have increased the most with both being 1.7 times higher than in 2006
21
Q
what has allowed for the trading of services to increase
A
- technological advancements
- globalisation
- Growth of the Knowledge and Service Economy
- improved transport
22
Q
what technological advancements have allowed for the increase of trade of services
A
Cheaper and faster air travel facilitates tourism, international education, and business services.
23
Q
how have financial institutions allowed for better trade of services
A
Growth of multinational corporations (MNCs) in services — like banks, airlines, and consulting firms — promotes cross-border service trade.
24
Q
how has improved transportations allowed for better trade of services
A
Cheaper and faster air travel facilitates tourism, international education, and business services.
25
how has globalisation allowed for the increase of better trade in services
globalisation allowed for trade liberalisation and world trade organisation which reduced barriers to cross border service trade
26
how has the Growth of the Knowledge and Service Economy allowed for better trade of services
As economies develop, they shift from manufacturing toward knowledge- and service-based industries.
This increases both the supply and demand for tradable services (e.g. software, finance, education, entertainment).
27
what can impact global trade (4)
Human error (e.g evergreen ship getting stuck in suez canal)
Pirates/piracy (modern) (around the horn of Africa / Somalia) which means ships have to take a much longer course or have to pay extra security)
Tariffs
Political turmoil (Iran)
28
tarrifs are
Part of how global trade works and our products price depend on them
A tax on stuff that's imported
29
how do tariffs work
Tariff tax goes to the government which put the tariffs in place from the importer (from companies which are importing the goods)
30
how can we help countries develop (8)
- Free trade
- Invest in education
- Infrastructure
- FDI (foreign direct investment)
- Loans
- Charity/ Aids
- Remittances
- Debt payment (removing interest rates)
31
describe the change in trade of cocoa
(- How trade has increased over time
- Why it has increased?
- What has allowed the trade of the product to increase )
1- shifting from small-scale regional production to a major export industry dominated by west africa. Advances in transportation, containerisation, and growing chocolate demand have made cocoa a key commodity in global supply chains.
2- the trade of cocoa has increased because global demand for chocolate and cocoa products has grown.
The trade has been enabled by improved transportation, containerization, and the development of global supply chains by multinational companies.
32
describe the change in trade of car production
(- How trade has increased over time
- Why it has increased?
- What has allowed the trade of the product to increase )
shifted from being concentrated in europe, usa and Japan to a more globalised infustry with higher demand
it's increased because demand for cars has grown
due to advances in manufacturing technology containerisation, and global supply chains connecting the different parts of cars.
33
Why has the process of trade become easier?
Better technology and communication allowing containerization to happen which reduces the time taken to transport and arrange goods.
34
What is containerization?
Where containers are all exactly the same size (use of standardized shipping containers to transport goods efficiently across different modes of transport (ships, trains, trucks) without unloading and reloading the cargo itself)
35
How does it help global
trade?
Offers variety of things and is the reason we can transport cargo around the world with limited cost.
Saves time and money improving effectiveness of transportation
36
China, India, Hong Kong, and South Korea continued to be the market leaders in commercial services (what are each of them 'specialised' in?
China has a strong manufacturing base, large domestic market, and significant investment in technology and infrastructure
India has a large English-speaking population, expertise in IT and software services and competitive labour costs
Hong Kong is a strategic location for trade. It has robust financial and legal systems and is a gateway to mainland China's market
South Korea has an advanced technology sector, highly educated workforce and government support for innovation and R&D
37
what is international aid
any form of assistance provided by one country or institution to another
38
what are the 4 modes of helping a country develop
- remittances
- loans
- debt refills
- aid
39
what constitutes foreign aid?
its the voluntary transfer of resources from one country to another
40
what are some types of foreign aid (5)
bilateral aid
multilateral aid
voluntary aid
project aid
military aid
41
what is multilateral aid
when multiple governments pool resources in cooperation with organisations like the World Bank, the IMF and the UN
42
what is bilateral aid
direct government to government assistance
43
whats wrong with aid (5)
- it can sometimes be seen as patronising
- can lead to dependancy
- may be wasted on big projects
- funds can be lost in corruption
- undercuts local industry and farming
44
benefits of international aid (7)
- it supports economic development
- improve living standards
- improve healthcare and education
- reduces political or social instability
- encourages reforms and improvements
- creates new markets
- leads to healthier and better skilled workers
45
do loans from IMF need to be repaid ?
yes
45
what are loans
transfers of money or skills that need to be repaid within a set time
46
do loans from the UN need to be repaid ?
depending on the agreement and type of assistance
47
what is the benefit in loan flows
they give poorer countries access to money which can be used to build things like roads, schools, and hospitals.
48
what do loans from global organisations allow for or do
they connect countries more closely to the global eonomy, increasing trade and investment
49
overall what are the benefits of loans as a method of development aid? (3)
- provide immediate funds which allow developing countries to invest in things that drive long term economic growth
- borrowed money can stimulate economic growth
- can stabilize economies facing foreign currency shortages or trade imbalances
50
what are the negatives of loans (5)
- many developing countries fall into a debt trap (they borrow a lot of money but struggle to repay due to slow economic growth or high interest rates)
- loans usually come with high interest or varied rates, which make the repayment harder when global interests rise
- developing countries also face a fall in their currency value, so foreign debt becomes even more expensive to pay back.
- IMF and World Bank also usually attach conditions to their loans, and reliance on loans can cause governments to become dependant on the economies of their donors.
- Loans can also easily be embezzled or poorly used.
51
what dies the flow of loans mean
it refers to how money moves across borders through international lending and borrowing.
52
What are SAP and what do they stand for
Structural adjustment programmes
they're loans from the IMF
53
good thing about SAPs ? (2)
they increase liberalisation and international trade
They encourage countries to become economically self-sufficient by creating innovation, attracting inward investment and promoting growth
54
criticisms of SAP (2)
It is argued that without controls, these loans would create a cycle of dependence where countries in financial difficulties would continue to borrow without solving the issues that caused the problem in the first place
Others argue that imposing controls on an already-poor country is adding to their vulnerability and impacts women, children and the vulnerable the most
55
what is debt relief
any action that reduces, restructures, or cancels a country’s debt
56
for debt, the lower the percentage to GDP, the __ the debt
lower
57
Why do some countries find it difficult to repay? (3)
- natural disasters
- high interest rates on loans, or changes in government and policies
- social factors like high levels of population growth
58
what does debt relief do
frees developing countries from their debt service payments. They can then use these savings to contribute to poverty reduction
59
what is the heavily indebted poor countries initiative
aims to reduce the debts of the poorest and most indebted countries to sustainable levels
60
who launched and when the HIPCI
World Bank and the IMF in 1996
61
What would be done in the HIPCI
a calculation would be made to find the reduction needed in the country’s external debts to bring them below <150% of the value of the country’s annual exports
62
benefits of debt relief (4)
More money for development – More government spending on health, education, infrastructure
Boosts economic growth – Public investment increases
Reduces vulnerability – Less exposed to pandemics or climate disasters.
Helps reduce inequality – Helps close the development gap - rich and poor.
63
negatives of debt relief (5)
Encourages irresponsibility – borrowers may think they don’t need to repay future debts.
Hurts credit ratings – makes it harder or more expensive to borrow again
Creates dependency – governments may rely on relief instead of fixing problems
Seen as unfair – rewards those who don’t repay while others do.
Costs lenders or taxpayers – someone else must cover the lost money.
64
main forms of debt relief (3)
debt cancellation (forgiveness)- where debt is completely cancelled
debt rescheduling- (repayment period is extended or interest rates reduced)
debt swaps- (debt exchanged for something else)
65
how have global remittances increased since 2000 to 2022
126$ billion to 794$ billion
66
who relies mostly on remittances
low and middle income countries
67
what advantage is there to remittances
they provide direct financial support to families, helping them afford basic necessities and stay above the poverty line.
68
what do remittances allow for
investments in education, health, and entrepreneurship, which contributes to long-term poverty reduction
69
what are remittances used for
to improve housing and sewerage services
70
During economic downturns or disasters, remittances help prevent
vulnerable populations from falling into poverty
71
negatives of remittances (3)
The transfer of remittances from one country to another can be expensive and some money transfer companies charge the sender and receiver
In some countries, wages have been withheld by the employer and/or returned to the government
Influx of remittances can increase demand for goods and services, leading to inflation, especially in housing and food.
72
what's a negative of globalisation
the illegal goods trade, where organised crime gangs move a commodity from origin to destination along established routes
73
how many people are trafficked each year worldwide
over 1 million
74
a child is sold every __ seconds according to the ILO
30
75
counterfeit goods are responsible for (3) due to (3)
1:
- labour exploitation
- environmental damages
- health implications
2:
- poor quality dangerous material use
- lack of quality control
- technical training lack
76
what does drug trafficking include
the cultivation, manufacture, sale and distribution of illegal substances
77
morroco is known for what dug distribution
cannabis
78
what is FDI
an investment from one country into the structure, equipment or organisations of another country
79
FDI is a way for companies to ?
expand their operations into new markets, access to new customers, resources or talents
80
who are the largest investors of FDI
Europe and North America
81
advantages of FDI for HICs (3)
- imports are cheaper
- industrial processes are more efficient
- Enhanced job prospects lead to increased worker mobility
82
disadvantages of FDI for HICs (2)
Lack of jobs for unskilled workers, resulting in skills gap
Job losses are worse in areas of concentrated industries
83
advantages of FDI for MICs and LICs (2)
Export-generated income is higher
Wealth is spread with rise in labour-intensive manufacturing
84
disadvantages of FDI for LICs and MICs (4)
Agricultural output is reduced as people are employed elsewhere
Rural-to-urban migration increases, placing pressure on core regions
Exploitation of workers by TNCs
A narrow economic base results in overdependence
85
what are TNCs
companies that operate in multiple countries
86
positive impacts of TNCs (4)
- create job opportunities
- increase trade between countries
- introduce new methods of production
- TNCs can invest in training, apprenticeships or scholarships to improve labour skills
87
what are some illegal flows
- TRAFFICKED PEOPLE
- narcotics and drugs
- counterfeit goods
- money laundering
- weapons
- ivory
- precious stones
88
What percentage of all imports are counterfeit
2.5%
89
what percentage of imports are counterfeit for the EU
5%
90
What is the value of counterfeit goods trade
400 billion a year
91
what types of counterfeit products exist
Luxury handbags, perfumes, chemicals and produce
92
What types of threats are there for health (counterfeit products)
fake medicines
93
what types of threats for bussiness from counterfeit goods
lost company revenue
94
threats to governments of counterfeit goods
lost taxes
95
Where are most counterfeit goods coming from
China
96
what factor enable to the trade of counterfeit goods
Lack of regulation
97
example of how loans deepen l+political ties (evidence)
USA gave Argentina 20billion US dollars but only when their government of choice was elected
GEO HL IB
flashcards
Decks in class (15)
# Cards
-
Global Interactions and Power61
-
China's rise to power cs13
-
USA military industrial complex10
-
Global Flows98
-
Illegal flows Rhino Horns Ivory Case study20
-
FDI, TNCs, Outsourcing5
-
IKEA TNC8
-
ways in which global financial flows can be affected by government actions (16 marker)19
-
Trade Blocks48
-
migration controls JAPAN34
-
migration controls general47
-
NAFTA (trade block) case study6
-
our shrinking world45
-
how the physical environment or setting of a county impacts the level of global interactions a country experiences37
-
areas which need to be considered in order to reduce development gap15
