Geography Unit 4 IB- Concepts

Define globalization.
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State 2 common ingredients needed for a Military influence.- large land, sea, air army which can be easily deployed - possession of nuclear power advantageousState 2 common ingredients for an Economic influence.- large national economy (high GDP) - large number of companies (MNCs)State a common ingredient for a Cultural influence.- large film industry (Hollywood)State 4 current global organizations and groups.- The G7 - The G20 - The OECD - OPECWhat is the G7?G7 stands for "Group of Seven". It is an informal grouping of 7 HICs: USA, Canada, Germany, France, UK, Italy and Japan. They gather together and discuss global economy, governance, energy policies and international security.Outline one advantage and one disadvantage of the G7.Advantage: - it enables decisions to be made Disadvantage: - it does not speak for any emerging economyWhat is the G20?G20 stands for "Group of Twenty". It is a grouping of governments of 20 major economies. They gather to discuss global financial stability.Outline one advantage and one disadvantage of the G20.Advantage: - has a lot of power and therefore is able to make changes regarding financial stability Disadvantage: - Some people are concerned about its legitimacy; some refer the "Group of Twenty" as "Club"What is the OECD?The OECD is the "Organization for Economic Cooperation and Development". It has 35 members, including Australia and Israel and their main aims are to achieve democracy and a free market economy (no government intervention)Outline one advantage and one disadvantage of the OECD.Advantage: - they are best known for publishing statistics, as well as books on topics related to the economy of nations such as economic inequality, corruption, etc. Disadvantage: - most of its members are rich countries hence it is very economically narrow based. However the OECD has been attempting to include other countries such as Lithuania and Costa RicaWhat is the OPEC?OPEC is the "Organization of Petroleum Exporting Countries". It has 12 members including Angola and Saudi Arabia and its main aim is the stabilization of oil prices; minimal price fluctuations in the international market.State 3 global lending institutions.- The World Bank - The International Monetary Fund (IMF) - The New Development Bank (NDB)What is the World Bank?An international bank that offers financial and technical assistance to LICs and NICs to end extreme poverty by providing resources and sharing knowledge. Their current goal is to help MICs incorporate the SDGs through lending.Outline one advantage and one disadvantage of the World Bank.Advantage: - It has done a lot of investment in LICs Disadvantage: - focuses too much on the GDP and less on the standards of living of the peopleWhat is the International Monetary Fund (IMF)?The International Monetary Fund (IMF) helps maintain global financial stability. Countries with balance of payment problems may request loans from other countries and in return they must sell a lot of their national assets in a high discounted price.Outline one advantage and one disadvantage of the International Monetary Fund (IMF).Advantage: - it has improved standards of living across many IMF members. Disadvantage: - the IMF may sometimes demand increase in taxes even when the economy is weak in order to generate higher government revenue and reduce spending.What is the New Development Bank (NDB)?The New Development Bank (NBD) established by BRICs focuses on infrastructure and sustainable development projects, such as clean energy through lending.Outline one advantage and one disadvantage of The New Development Bank (NDB).Advantage: - They have been able to raise a lot of money for clean energy projects Disadvantage: - They do not raise enough to meet the infrastructure development needs for emerging economies.Distinguish between Top-down development and Bottom-up development.Top-down development: - large in scale - funded by people outside the area; government and international organizations - well-funded Bottom-up development: - small in scale - funded by local communities - limited funding availableOutline two advantages of top-down development and two advantages of bottom-up development.Advantages of top-down development: - high-scale projects - decisions can be made and implement quickly; especially important if time is limited (ex: emergency relief) Advantages of bottom-up development: - emphasizes involvement of whole community - projects are run more sustainablyWhat are Structural Adjustment Programmes?SPAs are loans from the IMF which require the borrowing countries to reduce government expenditure and increase taxes instead to raise higher government revenue, promote liberalization and international trade.State 2 requirements of the IMF.- increase international trade to increase foreign exchange - decrease government interventionState forms of financial assistance.- loans - debt relief - remittancesDefine loan.A loan is a transfer of money or skills which require repayment over a set time.Outline one advantage and one disadvantage of debt relief.Advantage: - higher government revenue which could lead to improved education such as in the case of Tanzania who has built more schools and introduced free schooling. Disadvantage: - it may encourage countries to overspend.Define remittances.The money that international migrants send home to their families and communities.Outline one advantage and one disadvantage of remittances.Advantage: - remittances go directly to the family household and ca be spent in whichever way the household prefers. Disadvantage: - Many money transfer companies charge a lot of money to transfer remittances.State forms of illegal flow.- trafficked people - counterfeit goods - drugsExplain the flow of trafficked people.- Most of human trafficking originates in South-East Asia and ends up in more developed countries. The Middle East region has the highest share of trafficked people from other regions. - Poverty, corruption, monetary incentive are some of the most common factors that create vulnerability to trafficking and a higher risk of being trafficked.Explain the flow of counterfeit goods.Counterfeit medicines are fake medicines that have been contaminated or do not contain active ingredients. They are mostly imported from India and China due to their cheaper price and exported mostly to SubSaharan Africa. This is mostly due to the weak governments of many of these Low-income countries that result in lack of regulations. Many medicines are not checked or properly checked whether they are counterfeit or safe to consume. There are also several cases of illegal flows of counterfeit food and drinks. In 2013, there was a case of horse meat being passed on as beef.Explain the flow of drugs.The flow of drugs originates mostly in LICs and MICs and ends up in mostly MICs and HICs. Asia has the highest demand for drugs due to its large population. The flow of drugs is worth 1% of total global trade. There is also an increasing demand for drugs such as cocaine which has led to increase in prices, leading to an increase in its contribution to global trade and a rising industry. This illegal flow continues due to little regulation and limitation in the producing countries.Explain the flow of materials (eg. petroleum)In general, the biggest import countries tend to be the ones with largest populations and many industries due to increase in demand for materials to sustain the inhabitant's demand and the industry's demand. The biggest export countries are those that have large natural deposits of resources or fertile land. These countries then export the surplus to importing countries. The wealth of a nation also affects it imports. Nations that may have smaller population but richer population may also import more. An example of a material is petroleum which is majorly exported by countries such as United Arab Emirates and Saudi Arabia that have large deposits of oil and countries that import it are ones that have large populations that require a large amount of energy.Explain the flow of manufactured goods (eg. electronics)China is the largest exporter of manufacture goods such as electronics and the United States is the largest importer. China's large and cheap labour force as well as low regulations in regards to the working environment (working with dangerous.toxic material), allow China to be the largest exporter of manufactures goods such as electronics. On the other hand, due to the United States and many HICs having a larger tertiary sector, they do not produce as many manufactured goods (secondary sector) and instead import more to sustain their industries.Explain the flow of services (eg. tourism)The main exporting region of tourism is Western Europe whereas the main importing regions of tourism are North America and East Asia. France, a country located in Western Europe, is the current country that exports the most tourism due to its preservation of cultural heritage and development of secondary resources of tourism. China, a country located in East Asia, is the current country that imports the most tourism due to its high air pollution and desire to seek other ideologies in different countries around the world.What is FDI?FDI stands for "Foreign Direct Investment" and it is the investment done by a company into the structures, equipment or organizations of a foreign company.Outline two potential advantages of foreign direct investment.- higher employment and economic boost (more people working --> higher income --> more buying power --> economic boost) - increased productivityOutline two potential disadvantages of foreign direct investment.- large gaps develop between skilled and unskilled workers - exploitation of local workersWhat are TNCs?TNCs are transnational companies that operate in a number of countries. Generally the headquarters are located in the cores of HICs along with the research & development and decision- making. The assembly and production of products are located in LICs, NICs and the periphery of HICs.Define multi-government organizations (MGDOs) .Multi-government organizations can be international such as the IMF and the World Bank or regional such as the European Union. Most of them focus on increase of trade and trade liberalization.Define trading bloc.An arrangement between countries to allow free trade between member countries but to impose tariffs on external countries that wish to trade with them.State four types of trading blocs.- free trade areas - customs union - common markets - economic unionsWhat is a free trade area?Where all barriers are removed between members of the bloc. But individual members can still impose barriers on non-members.What is customs union?Free trade areas that impose a standard tariff on non-members.What is common market?A customs union which in addition to the free trade of goods and services between member countries, there is the free movement of people and capital.What is an economic union?Groups of countries that not only allow free trade between member countries and the free movement of people and capital but also require member countries to have common policies on sectors such as agriculture, industry, and others.Give an example of an economic union.European Union (The EU).What are Export Processing Zones (EPZ)?-areas to attract foreign factories to produce goods that will be exported to MDCs -to lure foreign factories: provide infrastructure, cheap labor, and favorable policies or taxesWhat are Free Trade Zones?An area within which goods may be landed, handled, manufactured and reexported without customs duties (taxes).Explain the term "shrinking world".Digitization has increased the interconnection and interdependence between countries and thereby increased globalization. It has allowed many more countries and businesses to compete on the global market and thereby increasing the volume of data being transmitted and and connection between them.Define frictional effect of distance/ distance decay.The situation where countries that are closer to each other tend to interact more than countries that are located further apart.Why has the frictional effect of distance/distance decay reduced?Due to improvements in transport, people are able to travel in less time as well as improvements in ICT has allowed greater communication.State two types of communication technologies aimed at enhancing global communications. Why?Optical fibre cables. They transmit signals at very high speed and high signal strength. Satellites.What are the pros of containers?- cheapest way of moving heavy and bulky goods over long distances - containerization has sped up the process of loading and unloading containers.What are the cons of containers?- much slower than air travel - some countries are landlocked, have no access to seaWhat are the pros of air travel?- major catalyst in the globalization process - helped reduce misunderstandings between culturesWhat are the cons of air travel?- major contributor of CO2 - prices pendent on price of oil (susceptible to fluctuations)What is ICT?Information and Communication TechnologyWhat are the advantages of the increase in ICT technology?- easier and faster communications - access to healthcare (for example in Bangladesh, 90% of births occur outside of the hospital as midwives get a notification as labour starts) - access to education (internet allows access to various education courses creating opportunities for people of all ages).What type of people have no access to the internet?- people living in remote areas with no service - poor people - people with disabilitiesOutline problems that landlocked countries face.They do not benefit from technological advancements. Due to their physical geography, they are not able to develop economically as fast as other countries that have direct access to the global market. For example, countries such as South Sudan have to pay tariffs to Kenya in order to get their oil to the coast and export it. They also have to pay for the use of another country's airspace.