Geo Core 4: People, Places, and Networks

Actual Superpower: US - economic, international organisations, military

Economic: $3 trillion GDP, provides aid to 80 countries, provides 20% of the UN’s budget, 89% of trade is done in USD meaning they can easily cut off countries like Iran

Organisations: part of UN (UN HQ in NYC), G7, G20, meaning they can influence many key decisions

Military: 750 military bases in over 80 countries, spend $778 billion on defense and arms per year meaning they have the strongest military power

Emerging Superpower: China - FDI, Manufacturing, Cultural

FDI: China to Mexico FDI, $17 billion investment over 20 years, provides internet access and mobile phones through Huawei, funded 30 infrastructure projects (Baja California solar plant and light rails in Mexico City to decrease traffic congestion), in turn they can outsource and also have good links with key markets like US and Canada

Manufacturing: dubbed World manufacturing hub, 35% of total manufacturing power due to their 1978 Open Door policy which lifted 800 mil people out of poverty

• manufactures 1/3 of world electronics

Cultural: rise in Chinese religion (Confucianism), Chinese holidays more widely celebrated, Chinese films

IMF

• 191 member countries

• 1944 began, after WW2

AIM

• Provide humanitarian aid and development aid to LICs to reduce poverty and aid development

INITATIVES

HIPC (heavily indebted poor countries)

• With World Bank

• Provides debt relief to break cycle of debt

• Allows countries to focus on improving QOL and local infrastructures/services instead of struggling to repay debt

ISSUES

• Lack of transparency

• Heavily controlled by US and EU

• Increases LIC reliance, questions long term sustainability as they cannot self sustain

• Focuses on GDP/monetary assistance mainly

Global Organisations - G20, OECD, WB, OPEC

G20: 80% of world’s GDP, very globalised, work to promote sustainability and equality (Paris agreement)

OECD: 60% of trade, 60% of GDP, economic growth

WB: 17 countries, HICs supporting development of LICs, SAPs (structural adjustment program)

OPEC: 12 oil producing countries, 50% of world’s oil supply, controls market price and supply of oil

ODA: Japan and India

• diplomatic relations ever since WW2

• signed a peace treaty

• over past 20 yrs Japan has provided approx $43 bil in aid

• 95% aid Japan provides is to India

• India provides back raw materials (iron, steel)

• Japan invests in sectors like electronics, social services and financial services to aid development

FDI: China and Mexico

• created 99,000 jobs in 2024

• sent 22mil covid vaccines during pandemic

• $2 bil annual investment

• $5mil loan to Mexico’s state owned oil company to support production

• funded 30 infrastructure projects

• provides internet access and phones through Huawei (80% internet access from China)

• outsourcing —> provides jobs but gives China easier access to US and Canada market

• funded 30 infrastructure projects (Baja California solar plant and light rails in Mexico City to decrease traffic congestion)

• reduced poverty rate by 50%

Outsourcing & TNC: Samsung

• S Korea outsourcing to Vietnam via Samsung TNC

• invested $220 bil in setting up Samsung in Vietnam

• $1.2 bil generated annually in Vietnam

• 160,000 workers, 10% of which are uni graduates

• provides jobs, less environmental, health and safety concerns

Loans and Debt Relief: Guyana

• IMF provided Guyana with $410 mil in loans through High Indebted Poor Countries (HIPC) initative

• this was used to help with their fiscal burden, especially providing social services and free healthcare to the population

• links Guyana to countries like the US and EU because they heavily contribute to the IMF and also can trade with Guyana in oil

• $2.1 bil in debt due to high fiscal burden due to oil crisis, high interest rates, investment in public healthcare

• through SAP managed to save $60 mil per year

• increased social spending by 25%

Remittances - US to Mexico

• $63 bil sent back (2023) which is 41% increase in past 5 years)

• can earn up to 6x more working in similar jobs in US than in Mexico

• Mexico is 2nd biggest recipient of remittances

• this has been made possible through technological advancement (online banking)

Illegal Flows: Human Trafficking

• $150 bil revenue

• 20,000-50,000 people trafficked a year

• 50% women, 60% done internationally

• many sent to US from Asia for profit

Illegal Flows: Counterfeit Goods

• $2 tril revenue

• 5.4 mil jobs

• online sales rose by 20% during COVID (development of dark web)

• HK, SG, UAE key interception hubs (nexus) due to good transport hubs and ports - $2.9 mil intercepted in HK

CHINA

• Biggest producers of counterfeits globally

• Produces around 70% of world’s counterfeits

• Estimated 25 bil/yr

Illegal Flows: Narcotics

• $360 bil revenue

• $18 bil in Colombia

• 50% cocaine produced in Colombia due to abundance of coca leaves

• at least 130,000 families in this industry

• shipped all around world

Measuring Global Interactions: KOF Index and AT Kearney Index

KOF: composite indicator scale of 1-100 to measure how globalised a place is (42 indicators)

• social: how many ikea stores, how many tourists, mobile/telecommunication

• economic: gdp, trade

• political: number of international organisations and embassies

- doesnt take into account environmental, some countries like Switzerland are neutral

AT Kearney: composite indicator scale of 0-1 to measure how globalised a place is (12 indicators)

• economic integration: fdi, trade

• personal integration: tourism

• connectivity: internet use

• political: treaties, intl orgs

- very few factors compared to kof, bias to HICS (connectivity)

Global Strategies: Starbucks

• Operates in 80 countries 

• HQ in Seattle

• $19.8 bil revenue 

STRATEGIES

1. Social Responsibility: relationships with staff, customers, suppliers

• Customers directly involved in stages of operation - eg giving feedback, helping brand image and perception

• Works with Coffee and Farmer Equity (CAFE) to ensure sustainability in farming methods

2. Innovation: digitation of stores to maximise efficiency, reduce shipping costs, improve customer experience

3. Branding and Glocalisation: builds brand experience, things are standardised but also adapt to local tastes argued to be more suited to local cultures BUT erode culture/promote westernisation

• Canada: maple syrup and toffee flavours

• Japan: matcha and sakura

  
  

VIETNAM:

• Traditional Vietnamese coffee making process is an activity

• Use their own Robusta beans instead of Arabic (Starbucks+most companies)

• Starbucks is less than 3% of the Vietnamese coffee market

• Too expensive compared to local brands 

HOWEVER, Starbucks blamed for unethical labour in 2020

Global Strategies: Apple

1. Outsourcing and innovation: outsourcing to China for cheap labour, no env/health and safety concerns

• Making suppliers compete for business by cutting down half of their warehouses

2. Media and technology: famous for media campaigns, launching things in secret so people speculate and create media without Apple having to (whereas 90% of Google’s revenue is from ads)

3. Market centralisation: many different platforms/products, devices, iTunes (music), banking (Apple Pay)

4. Corporate responsibility (Environmental): ultimate goal to only use recycled goods

   • Apple reduced carbon footprint of each product by 50% in 2020

Supply Chains: Starbucks

• 2008 global financial crisis led to 10% sales drop an they lot $100mil

• They had to reinvent their supply chain and created a value chain model

1. Plan: centralised logistic systems, 6 storage sites 9 distribution centers globally

   
   

2. Source: sustainably source 99% of coffee beans from CAFE (coffee and farmer equity scheme)

3. Make: 6 centralised roasting centers, 1 in Netherlands, 5 in US

4. Deliver: centralised distribution system, cut down transport costs

• This process saved them $500mil 

• Demonstrates how TNCs can integrate sustainability, quality, and ethical practices

Supply Chain: Apple

• Valued at $3.5tril 

• 615 factories globally, 156 in China

• HQ in California

JUST IN TIME INVENTORY

• Closed down 10/19 of their warehouses for suppliers to compete for business and prevents surplus of products

• Designed in California

• All parts assembled in Foxconn in Shenzhen, where factories all within 50km of one another to prevent lags and increase efficiency

RESHORING

• Increased 2013 labour costs in China meant production was (temporarily) moved back to the US

Macbook Pro assembled in Texas, creating 200 jobs, but criticised for not helping people in  the US

MGO - UN

: operate in multiple different states, focusing on global interactions

• Established in 1945, 193 member states

• Fosters international cooperation on peace, development, human rights, economic stability

• Global flows of people (migration) and trade (policy guidance and equitable exchange)

PEOPLE

• Coordinates humanitarian response to refugee resettlement

• UNHCR resetted 100,000 refugees annually

SUDAN

• Over 10mil displaced by conflict, and UNHC coordinated humanitarian assistance

TRADE

• UNCTAD analyses trade dynamics

• Provides recommendations 

GHANA

• Cocas sector caused price increases during Covid, UNCTAD provided recommendations to help stabilise their exports, increased revenues by 15%

Trade Bloc - EU

: group of countries within a geographic region that protect themselves from external countries

• 27 member countries in Europe

• Similar economic and social security policies

• Same currency

• Members can freely move around and vote on common laws

ADVANTAGES

• Free travel within EU countries

• Reduced risk of internal conflict and strong military bloc

• Less developed countries can receive economic support and assistance

DISADVANTAGES

• Countries lose control of monetary policies

• Economic issues can lead to EU wide bailouts

• Imposition of regulations

• More developed countries need to support weaker countries

UK

• Brexit 2020

• Wanted independence in terms of laws/policies/regulations

• Meant they lost out on any trade incentives

FTZ - Shenzhen HK

Shenzhen HK Modern Service Industry Zone

• Only platform supported by the Chinese govt to encourage cooperation 

• Neighbours two international airports within 30km

• Two world glass ports

• Key zone for the “one belt one road” initiative to connect Asia with Africa and Europe

BENEFITS

• No tariffs 

• Indefinite storage of goods

Economic Migration - Australia

• Points based immigration framework

• Used to address labour shortages

• Economic migrants account for 2/3 of Australia’s migrant pop

1. POINT BASED SYSTEM

• Political decision for favour migrants who can immediately contribute to economy

• For critical occupations - Covid 19 meant they prioritised visas for occupations like nurses/healthcare professionals

• Migrants contribute 1.6% to GDP growth

2. BORDER CLOSURES

• Covid 19 meant border policies, only exempting skilled workers

• Political choice to prioritise public health

3. REGIONAL MIGRATION

• 2012 DAMA (designated area migration agreements) sponsored migrants to work in rural areas to boost rural economies before moving to urban areas

Physical Influences - Africa

• Geographic isolation as a continent

• Lack of infrastructure

• Vast size

RESULT

• Very little intracontinent trade and barely any container shipping - ships pass by but will not stop in Africa

• No time space convergence concept due to little development, means transport costs remain high

Physical Influence - Qatar

• 3rd largest natural gas reserve

• Has 11% of global natural resources

• Connects Qatar on geopolit scale with Asia, Europe, rest of Middle East through exports

• Petroleum and natural gas trade accounts for 27% of GDP

• Part of intl orgs like OPEC, GCC (Gulf Cooperation Council), allows them to be globally connected and protected

DUE TO:

• Abundance of natural resources

• Location → easy access to Europe and Asia markets 

Global Data/Infrastructure/Transport - China

TRANSPORT 

• China High Speed Rail

• 50,000km 

• Connects over 95% of big cities

LAOS

• China-Laos Railway since 2021, cut freight times from Laos to China → SE Asian trade

INFRASTRUCTURE

• 182 major projects announced in 2025

• $2.5tril global investment 

• Focusing on renewable energy 

• 12.4% of energy is from solar energy in China

GLOBAL DATA

• 4.55mil 5G base stations

• 42% of global 5G stations

• Deepseek Chinese AI chatbot, car tech (BYD EVs)

• Biggest producer of batteries and solar panels

CHINA LONG TERM PLAN

• 2025 Made in China project - wanting to move past their public perception of being a manufacturing hub

• Want to be world leaders in tech

• Have succeeded in 85% of their mini goals

• $1.5 tril on research grants