Superpowers EQ2 - Superpowers impacts

Question 1

How do superpowers have a significant influence over the global economic system?

Answer 1

• global economy via promotion of free trade and capitalism via a variety of IGOs
• TNCs which are dominant economic forces (cultural and economic globalisation)
• global cultural influence, namely Westernisation

Question 2

What is free trade?

Answer 2

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

Question 3

What is an IGO?

Answer 3

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

Question 4

Why has free market capitalism become increasingly dominant?

Answer 4

Alternative economic systems have weakened e.g.
- collapse of socialist economies/communism in USSR and Eastern Europe following 1990
- China’s movement away from socialist economy towards ‘state capitalism’

Question 5

What are the key differences between free market capitalism and centrally planned economy?

Answer 5

Free market - private ownership of properties and businesses, right to make profit, competitive market with limited restrictions
Centrally planned - government ownership of property and land, most businesses state owned, profits taken by governments, prices controlled by government

Question 6

What are the 4 key IGOs and their roles?

Answer 6

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 7

What are the 2 types of TNCs?

Answer 7

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

Question 8

How do TNCs influence the global economy?

Answer 8

• free trade
• technology developments - patents
• cultural influence

Question 9

Why are TNCs dominant in the global economy?

Answer 9

• 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 10

What is brand value/equity?

Answer 10

The value of a brand measured using metrics such as market share, customer opinion of the brand and brand loyalty

Question 11

What is global cultural influence and why is it an important aspect of power?

Answer 11

Global cultural influence is the worldwide pattern of an emerging system of shared beliefs, values and traditions (Westernisation) involving food, the arts and the media.
It is an important aspect of ‘soft’ power and is liked to economic influence and spread of new technology

Question 12

What are the common characteristics of Westernisation?

Answer 12

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

Question 13

What are some examples against Westernisation?

Answer 13

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 14

How do TNCs protect their newly developed products?

Answer 14

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

Question 15

Where do royalty payments go globally?

Answer 15

Over 85% go to USA, EU and Japan

Question 16

What does the domination of global royalties reflect?

Answer 16

• 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 17

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

Answer 17

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

Question 18

How has the USA acted as a global police?

Answer 18

• 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 19

What is the UN?

Answer 19

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 20

What is the UN Security Council?

Answer 20

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 21

How can the UN Security Council maintain international law?

Answer 21

• applying sanctions to countries deemed to be a security risk or breaching human rights
• authorising use of military force against a country
• authorising a UN peacekeeping force

Question 22

What are the main issues with the UN Security Council?

Answer 22

• 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 23

In which 3 ways has the USA intervened militarily in foreign countries?

Answer 23

• as part of UN Security council action
• together with allied countries without UN remit
• unilaterally, with no support from other countries

Question 24

What is the NATO alliance?

Answer 24

28 member states that collectively account for most of the world’s firepower, including nuclear weapons
Mutual defence agreement

Question 25

How is interdependence between nations strengthened?

Answer 25

Economic alliances (trade blocs) Military alliances Creating an axis of economic and military security reflecting the ideology of each bloc

Question 26

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

Answer 26

- 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 27

What are the pillars of global security?

Answer 27

- Political - Economic - Social - Judicial

Question 28

Why is the post war global security system under strain?

Answer 28

- leaders are not as economically or militarily powerful as they were - strong case for emerging powers to have more of a say in world affairs - global financial crisis of 2007-8 strained global financial system to the limit - ongoing threat of global terrorism

Question 29

What are the main superpower resource demands?

Answer 29

- food - fossil fuels - minerals

Question 30

Why do superpowers have large resource footprints?

Answer 30

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 31

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

Answer 31

ENVIRONMENTAL DEGRADATION AND CARBON EMISSIONS - low urban air quality (major health implications) - demand for fossil fuels, imports and exports accounts for most of the world's CO2 emissions from shipping - deforestation and land degradation in emerging powers as land is converted into farmland and urbanisation is accelerated

Question 32

How are carbon emissions per capita changing in emerging powers?

Answer 32

Rising due to the fact these countries are still developing, industrialising and urbanising

Question 33

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

Answer 33

Some powers more willing to act and employ environmental governance than others Europe most willing to act to 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 At the Paris climate summit (COP21) in 2015, all countries did agree on emissions reductions. China, still focused on economic development, agreed to reduce emissions after 2030

Question 34

What is the middle class?

Answer 34

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

Question 35

What implications does middle class consumption have?

Answer 35

Implications for cost and availability of key resources: - rare earth minerals (modern communication, medical and laser tech) - oil - staple grains (carbohydrates) - water And for the physical environment - exploitation of these resources causes degradation