Globalization: trade, aid, exchange, and flows, Peace and Conflict

Poverty

Lack of sufficient resources to meet basic needs

Absolute poverty

Unable to afford essentials

Relative poverty

Unable to meet basic standards of living

Extreme poverty

Life-threatening poverty

Sustainable development

Development that meets present needs without compromising future generations

GDP

Total economic output of a country

GDP per capita

GDP divided by the population

HDI

Measure of life expectancy, literacy rate, average income

Gini coefficient

Measures income inequality, 0= equal, 1= unequal

MEDCs

Advanced industry, technology, global market access

LEDCs

limited industry, dependent on primary products

Tariffs

Tax on imports

Advantage and disadvantage of industrialisation

Lead to economic growth, but cause inequality and environmental degradation.

Why to restrict trade?

Protect domestic industry and reduce dependency

Methods of protectionism

Tariffs, quotas, import bans, subsidies

Trade bloc

Group of countries reducing trading barriers

Free trade area

Countries remove tariffs internally

Customs union

Free trade area + same external tariff policies

Common market

free trade + free movement of capital/labour

Monetary union

Shared currency

Why is trade good?

Economic growth and access to markets

Why is trade bad?

Exploitation and unequal benefits

Bilateral aid

Support between two countries

Tied aid

Aid with restriction on resources from the donor country

National debt

Money owed by a government

IMF

Finances countries with poor economies

World bank

Provides loans to countries facing poverty

How can aid be effective?

Supports sustainable development

How can aid be ineffective?

Creating dependency and debt, corruption

Causes of debt

Poor financial management, ineffective aid

What is Dambisa Moyo’s outlook on traditional aid?

Aid programs from international communities is ineffective because government cannot be held accountable for lack of services.

Why was silk road beneficial?

Caused transfer of knowledge, culture, and technology.

What was the Opium war about?

The British wanted to trade with the Qing dynasty but due to the trading deficit they introduced Opium drug to China which caused addiction and the downfall of China’s economy.

What were the long-term causes for the Opium war?

Cultural and economic differences

What were the short-term causes for the Opium war?

Lin Zexu’s failed attempt to stop the Opium trade

What was the trigger for the Opium war?

Murder of a Chinese official by British soldiers.

Why did China’s self-strengthening movement fail?

Resistance from the empress, lack of funding, and central support

How did the Christian missionaries play a role?

They provided aid to China, but they caused cultural tensions because they wanted to turn the Chinese towards Christianity.

Geographical aspect of Nepal

Landlocked between India and China, causing high trading costs, and dependence on agriculture due to mountainous terrain.

Trading aspect of Nepal

Trading deficit, weak industry, limited access to global markets

Aid aspect of Nepal

Heavy reliance on foreign aid that helped short-term growth

Debt aspect of Nepal

Foreign loans caused long-term financial strain

Industrial aspect of Nepal

An economy based on agriculture and limited industry cannot compete with foreign competition

Development of Nepal

Underdeveloped, high poverty and unemployment rates

Colonialism

When one nation takes control of another for their own benefit

What happened to colonies?

Colonies were exploited for resources and forced labour, military suppression.

What were the after-effects of colonialism?

The former colonies remain underdeveloped and dependent on raw material exports while the colonisers flourish.

Democracy

A system of governance where the public choose their leader.

Dictatorship

A system of governance where a leader has absolute power