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1. What is economic globalization?
2. Name 3 components of economic globalization
Reduction in ________ over economies
Free _______ ________ countries
Economic actors __________ by _________ __________s.
3. What has decreased as a consequence of globalization?
1. Economic globalization is the increasing interconnectedness of countries through the exchange of goods, ideas, technology etc. acrosss international borders. (what happens in one country's economic is going to affect other countries and their economy)
2. -
Reduction in state control over economies
Free trade between countries
Economic actors unconstrained by political borders.
3. Barriers to trade and to the flow of capital and labor between countries has decreased as a consequence of globalization
What is sovereignty ?
How can globalization challenge regime sovereignty/make it difficult for a country's gov to mantain it's sovereignty ?
- Increased _____ development can cause environmental __________ and accompany _____ issues
- Foreign governments can bring political and economic pressure on countries whose actions offend them. Give example.
3. Name two international organizations that challenge state sovereignty
1. Sovereignty is independent authority over a particular population or territory without intervention
2.
- Increased economic development can cause environmental degradation and accompanying heath issues.
Ex. China's emphasis on economic growth over environmental protection has led to significant problems with pollution.
- Foreign governments can bring political and economic pressure on countries whose actions offend them.
Ex. Economic growth slowed in iran after sanctions intended to stop Iran's uranium enrichment program were imposed by the United Nations.
3. United nations- iran
European union- UK
Mexico
Russia
1. Mexico's approval of nafta and cutting of subsides to farns is economic liberalization
Privitization is economic liberalization
Russia- Shock therapy (sudden and drastic change to free market economy)
- Invitations of foreign direct investment.
Adaption of social policies in iran
1. Why was there a perception of little to no rights for women in Iran?
2. What social polices were there to address this?
in Nigeria
1. What was the problem with Nigeria's education?
2. How did they address this?
1. Clothing restrictions on women
unequal inheritance laws
2. Social policies such as women being allowed to vote and run for office.
Nigeria
1. Unequal access for women in the north for education compared to the south
2. They addressed this by putting more money toward education and programs to encourage girls going to and staying in school.
the greatest demographic pressure on policy came through
developed-aging
developing- overpopulation
1. NATIONALIZATION OF NATURAL RESOURCES IN ALL COUNTRIES BUT _____
2. iran - most of iran's resources are controlled by the ________
the __________ has exerted control over some elements of the ____ and _____ industries
Mexico- _____ has been the state controlled oil/ natural gas company for decades
_______ indicates that all natural resources underground are under ______ control
NATIONALIZATION OF NATURAL RESOURCES IN ALL COUNTRIES BUT _UK____
2. iran - most of iran's resources are controlled by the ____theocracy____
the _revolutionary guard_________ has exerted control over some elements of the _ oil___ and ___gas__ industries
Mexico- _PEMEX____ has been the state controlled oil/ natural gas company for decades
_Constituiton______ indicates that all natural resources underground are under _ state_____ control
1. What are these economic organizations that promote economic globalization and liberalization?
IMF
The world bank
The world trade organization
2. How many members do these organizations have? and which countries are in it?
IMF
The world bank
The world trade organization
Purpose of organizations:
IMF- Encourages countries to collaborate on financial issues and aims to maintain a stable international financial system
The world bank- Provides financial aid and technical assistance for developing countries to reduce poverty and support economic development.
The world trade organization- Helps develop rules of trade between nations with the goal of ensuring smooth and free trade.
2. Members:
IMF- 189 members (all six countries)
The world bank- 189 members (all six countries)
The world trade organization (Uk, Russia, China, Mexico and Nigeria)
1. give one example of mnc posing challenges to state sovereignty in Mexico
2. Name two challenges that new information technologies pose to state sovereignty.
Labor (Mexico)- Most of the jobs coming from globalization have been in the northern part. There has been some protests from the southern part that have not benefited from these extra opportunities for jobs that the north has experienced.
2.two challenges that new information technologies pose to state sovereignty.
-Access to more information reduces public support
-Access to more information challenges political legitimacy
-
2. name international organizations that promote economic liberalization
3. Give two reasons or pursuing economic liberalization
4. Give two reasons for resisting economic liberalization
1. - Gov. reduces or eliminates subsides to groups. (Mexico reducing subsides to farmers)
- Gov. opens up the economy to more foreign direct invesment.
2. World bank, EU are two international organizations that promote economic liberalization.
3. for pursuing :
- To bring money into the economy through foreign direct investment
- To diversify the economy
for resisting liberalization
- increased unemployment
-environmental damage
what is the affect of globalization/liberalization on the environment?
2. give an example of gov. solutions to environmental and political problems.
1. increased pollution- more production and consumption often lead to higher levels of air and water pollution
more goods being produced and consumed result in more waste.
2. solutions
moving of factories- UK has had many MNCs move factories overseas
increase the development of infrastructure efficiency (better roads, ports, less fossil fuels)
increase of environmental regulations. (Nigeria has an environmental regulatory agency)
Nigeria- Nigeria's oil industry is technically controlled by the ___________________, but manages joint ventures with major MNCS such as shell, chevron and exxon mobil
Russia- _________ under putin. Putin pushed out _____ and has continued to consolidate gov. control of natural resources.
Wealth generated from resource revenue is heavily concentrated at the ____ of the government hierarchy, those ____ to putin, have ______ greatly.
Nigeria- Nigeria's oil industry is technically controlled by the _____Nigerian national petroleum corporation_____________, but manages joint ventures with major MNCS such as shell, chevron and exxon mobil
Russia- ___renationalized______ under putin. Putin pushed out ___oligarchs__ and has continued to consolidate gov. control of natural resources.
Wealth generated from resource revenue is heavily concentrated at the _top___ of the government hierarchy, those _loyal___ to putin, have __benefitted___ greatly.
Why do countries join these international economic organizations (ex. world bank, imf, wto)
1. To increase access to ______. (WTO for ____ & _____)
2. To be accepted into the ________ _______ (WTO for _____)
3. To grow their economy (WTO for ____ and IMF for ______ )
1. To increase access to _global trade_____. (WTO for __china__ & ___russia__)
2. To be accepted into the ___international_____ _community ______ (WTO for __russia___)
3. To grow their economy (WTO for _ china___ and IMF for ___mexico___ )
1. name 3 methods states use to maintain sovereignty in the face of challenges.
2. How do Gov.'s response to global market forces ( big economic factors that affect how stuff is bought, sold and made around the world, often lead to govs considering domestic reforms) and why?
They...
1. 3 methods states use to maintain sovereignty in the face of challenges:
Control information (China's censorship of media)
Leave the international organization (UK leaving EU)
Restrict MNCS (China's creation of special economic zones)
2. Govs respond by implementing domestic reforms in response to internal demands in order to maintain legitimacy and regime sovereignty.
They:
-Control domestic policy debates
ex. iran silencing opposition protests, as seen in the green movement
- extend regional influence to deflect criticism and improve economic conditions
ex. Mexico's participation in Nafta
1. what are consequences of neoliberalism?
2. What is the difference between a international organization and a supranational organization?
1. -political corruption (Nigeria) environmental pollution (China) Regional migration (Mexico north/south) (China east/west) both rural/urban
2. A international organization is an organization where member states work toward a common interest.
ex. IMF, UN, world bank
A supranational organization is where member states give up power and allow the organization to make decisions on behalf of member states, sovereignty is sacrificed
ex. Ecowas, EU, WTO
1.why did people want to migrate from the east to west in china? (small villages to major cities)
2. what was a consequence of migration in china?
3. What was a limited placed on migration in china?
3. why did people want to migrate in Mexico from the north to the south?
4. what was a consequence of migration in mexico?
1. China: For special economic zones along the coast
and because urban centers have more job and educational opportunities
2. a consequence of migration in china is protests, and loss of legitimacy
3. A limit placed on migration in china is the hokou system which is a domestic passport that restricts where citizens can live.
3. People wanted to migrarte from the north to the south because the north has more wealth and jobs as a result of nafta
4. A consequence of migration in Mexico is loss of legitimacy, and the weakening of the PRI and rise of PAN and PRD.
5. How does economic liberalization lead to environmental problems.
5. Economic liberalization leads to environmental problems because:
- expansion of industry
- lack of government regulation
-increased use of automobiles
1. How does membership in these International economic organizations influence economic policies?
2. What is neoliberalism?
3. What is a key component of neoliberalism?
4. What are conflicts arising from neoliberalism?
1. -Promote economic liberalization policies
(WTO for China, Mexico, Nigeria, Russia and the UK)
Requires structural adjustments/policy changes in order to be admitted into organization and receive financial assistance (WTO for China and Nigeria)
2. Neoliberalism is shifting economic control from the gov. to private companies, and cutting back government involvement in the economy. (Free market system)
3. Economic liberalization is a key component of neoliberalism.
4. Some conflict arising from neoliberalism is
-Increased demands on gov by civil society groups that may be negatively affected by neoliberal policies
- Arrests of protesters and impositions of social media restrictions (China and Iran)
1. why do govs respond to global market forces?
2. What are subsides?
3. What is austerity?
1. Govs respond to global market forces to
respond to domestic demands (citizens complaints on economic policy)
- control or influence domestic political debates to maintain or increase power.
2. Subsides are when the gov. gives money to businesses or people to help them out
( often to keep prices low or support certain industries)
3. Austerity is when you cut government spending, and raise taxes.
2. Why do countries use import substitution?
import substitution policies have been previously used by Mexico, Nigeria and the uk but when these countries have joined supranational organizations, they have reduced or eliminated ISIs.
nafta- Mexico
ecowas- Nigeria
EU- UK
1. Import substitution is when a country aims to replace foreign imports with domestically produced goods.
2. Countries use import substitution
- Encourage purchase of local products by citizens because price is cheaper than foreign products.
- want to limit imports to prop up domestic goods and products by RAISING TARRIFS
1. What is a rentier state? which countries?
2. what is the resource curse?
1. A rentier state is a country that obtains much of its revenue from the export of oil or another natural resource.
countries : iran, Russia, Nigeria
2. The resource curse is where despite the benefits of oil or natural gas, many governments that have these valuable resources struggle with:
a lack of economic diversity
- lack of accountability since many rentier states will charge little to no taxes for citizens
and energy is a volatile industry, and when the energy market takes a downturn, the economy struggles.
1. What is an MNC? Give one example
2. Why do MNCS pose the following conflicts?
-Conflict over labor/pay
-Conflict over environmental damage
-Conflict over taxation
1. A MNC is a multinational corporation which is a corporation that has facilities and assets in at least one country other than it's home country.
An example is McDonalds
-Conflict over labor/pay - Headquarters in one country but a lot of the labor and work is coming from another country.
-Conflict over environmental damage - Environmental issues in a country other than it's home country
-Conflict over taxation- Where the MNC will pay taces and how it will create taxes
China- SEZs
Mexico- PEMEX
Nigeria- NNPC Nigerian petroleum corporation
Russia- oil/natural gas industries
2. What is economic liberalization and what leads to it?
China- SEZs- Allowed for private businesses, even from other countries to come in an establish branches, and in some areas, headquarters in the SEZs
Mexico- PEMEX- Privatized aspects of the oil industry and allowed some foreign oil companies to come into Mexico and increased competition in Mexico's oil industry.
Nigeria- NNPC Nigerian petroleum corporation - State owned industries and foreign companies collaborate to extract and produce oil.
Russia- oil/natural gas industries- Renationalized it's oil/natural gas industries and imposition of foreign investment limitations
2. Economic liberalization is the reduction of state intervention in the economy.
1. what is the main goal of the EU?
2. Why did Brexit happen? why did people want to stay? Why did people want to leave?
1. The main goal of the Eu is to promote cooperations among European countries and establish a single market, where goods, services, capital and people can move freely, fostering ECONOMIC GROWTH AND INTERGRATION.
2. Brexit happened because the UK voted in a referendum to leave the EU.
Some people wanted to leave because:
sovereignty - Many people believed that being apart of the EU meant giving up too much control over their own laws and decisions to the EU
immigration- There were many concerns about the free movement of people, leading to high levels of immigration into the UK.
Some people wanted to stay because:
- Free movement, could work, live and study in other EU countries.
-Economic benefits- single market made trade easier and boosted UK's economy
what are three pros to nationalization (state/gov control of assets and industries)
what are three cons to nationalization
what are three pros to privatization - private ownership of industries
what are three cons to privatization
nationalization
pros- provides government revenue, reduce political influence of foreign gov and MNCS, reinforces political legitimacy
cons- heavy gov control, increase in corruption, wealth concentration among gov. officials.
privatization
pros - decrease gov. control, provides market price to consumers, increased innovation in industry
cons- can lead to loss of sovereignty, increases wealth inequality, bribes to gov. officials to secure contracts