This is a study guide for all paper 3 content. It contains questions and answers for every syllabus point. It is all I used to study for my final IB exam and I got a 7.
Global interactions: the phenomenon includes varied economic, social, political, cultural and environmental
processes that make up globalization. It encompasses local and global movements and encompasses new
cultural forms that result from globalized forces meeting and interacting with local societies and stakeholders.
How does power play a role in globalization?
- Some powerful people and places bring changes to other individuals and societies on a global scale.
- Local societies and stakeholders differ in their power to resist or adapt to globalizing forces and risks.
Globalization as defined by the IMF: the growing interdependence of countries worldwide through the
increasing volume and variety of cross-border transactions in goods and services and of international capital
flows through the more rapid and widespread diffusion of technology.
TNCS: businesses whose operations are spread across the world and operate in several nations. They are
recognizable as ‘global brands’ that bring cultural change to the places they are consumed.
Give a brief description of the 4 different types of globalization.
Type Description
Economic globalization - Growth of TNCs accelerates the exchange
of raw materials, goods, investment etc.
- ICT supports the growth of spatial divisions
of labour or firm and a more international
economy.
- Online purchasing e.g. Amazon
Political globalization - The growth of trading blocs e.g. EU.
- TNCs merge and make acquisitions of firms
in neighbouring countries while reduced
trade restrictions and tariffs help markets
, to grow.
- Global concerns such as free trade and a
financial crisis and the response to natural
disasters.
- The IMF and World Bank work to
harmonize national economies.
Social globalization - International immigration has created
extensive networks across borders.
- Pluralistic and multi-ethnic cities exist.
- Global improvements in healthcare and
education is not uniform but is happening.
- Social interconnectivity has growth e.g use
of mobile phones and the internet.
Cultural globalization - Successful western trates e.g.
Americanization has come to dominate
parts of the world.
- Glocalization and hybridization
- Circulation of ideas through crowdsourcing
or social media.
How were global connections created in the past?
Trade
Colonialism: British Empire directly controlled ¼ of the world and its people.
Cooperation: since WW1 there have been attempts to create organizations that unite people.
How are global connections created now?
Lengthening: ships can travel further, tourists are travelling more.
Deepening: food, and products consumed are becoming more common in more places.
Faster speed: internet, air travel, shipping, technology etc. has allowed for virtual environments to be created
and for economic, political and cultural activities to take place simultaneously in different parts of the world
(World Cup, protests etc.)
How did global interactions start increasing post WW2:
- 1945 → Establishment of World Bank, IMF, WTO at the Bretton Woods conference to create a
free-market non-protectionist world economy where aid, loans and assistance could become
available.
- 1960 → Heavy industry in the west developed economies of Europe and America were threatened by
SEA and the Asian Tiger economies. Advanced economies entered a period of falling profits.
- 1970 → Rising fuel costs led to the Middle East profiting allowing them to become global hums and
China also had large economic reforms.
- 1980 → Financial deregulation in major economies e.g. U.K. and U.S. The collapse of the Soviet Union
led to the U.S. being the only superpower at the time.
- 1990→ China and India brough greater change. EU and NAFTA were established. Asian financial crisis
was a warning of risks brought by loosely regulated free market global capitalism.
- 2000 → flaws in globalization led to GFC leading to reduction of GDP and because the world is
interconnected growth worldwide slowed down. China and India are now emerging powers.
- 2010 → growth remains slow following GFC but countries are slipping out of recession. China
becomes the largest economy by PPP. Opposition to migration and free trade begin to rise with Brexit
in the UK. Social Media allows for more people to connect.
There has been a slow down of globalization recently.
Where is global connectivity/ globalization felt the most?
- In high income nations where most people are affluent consumers of global products and most
people have travelled overseas.
- In middle income nations where poorer people may still rely on local produce but work for foreign
, firms. They have global cultural awareness (football and music) and political awareness.
- Low income nations whose poorest may be isolated from global influences. Some shallow links to far
places may exist.
What was the KOF Index? What data sources were used? Which countries was it based on?
- A way of measuring globalization presented by the Swiss Institute for business Cycle Research.
- Political, Social and Economic.
- Ireland and Belgium.
Evaluate the KOF index:
Pros Cons
Comparisons: The index allows for comparisons to Data: Criticisms mainly focus on the frequency of
be made over time and between two given collection, difficulty of measuring and observing
countries at any given time. with accuracy and also the relevance of data.
Data Set: It includes data collected for a large Informal Sector: Trade can be hard to measure due
number of countries over long period of time (1970) to undeterminable size of a country's informal
sector - often the black market is highly intertwined
in global markets through illegal activities such as
trafficking, smuggling of wild animals or the
narcotics trade.
Range of Variables: It is composed of a wide range Technology: Some measures are becoming less
of variables covering the main three aspects of significant due to technological changes
globalisation (social, political, economic) (Newspapers / Mail / Books)
Availability of Data: It uses a range of data that is Alien Population: It is hard to measure the number
readily available, for example the number of of immigrants in a population due to inaccurate
McDonalds within a country. record keeping and illegal immigrants. Countries
such as the US have millions of unaccounted
immigrants.
Weighting: Employs a weighting system that Internet Users: It is hard to calculate the true
reduces the effects that missing data would number of internet users, many people do not have
otherwise have on the total score for any given a personal connection and use a workplace or
country. communal internet connection such as in an
internet cafe.
Diplomatic Representation: Some countries are
small and don’t have need for many embassies,
relying on nearby countries, such as Monaco using
consulates and embassies in France. Countries often
share embassies, especially Commonwealth
countries such as Australia and New Zealand.
Neutrality: Some countries choose not to join
international organisations, or choose not to engage
, in peacekeeping missions for a variety or reasons eg.
Switzerland is famously neutral, this doesn’t mean it
is less globalised.
Tourism: Some countries have large numbers of
domestic tourists, but not many international. In
large countries domestic tourists can actually be
very ethnically and culturally diverse (China, Russia),
but this is not accounted for.
Small Countries: Smaller countries seem to be
over-represented at the top of the rankings
suggesting there may be some bias in how the final
values are calculated. Eg distances to neighboring
countries are short making it easier to engage in
foreign travel (eg Belgium), or there are few places
to visit at home (Luxembourg).
Tax Evasion: TNCs often hide the movement of
profits through the use of tax havens such as the
Cayman Islands.
Economic Data: Economic / trade data is notoriously
complex to trace and track, so there is scope for
potential inaccuracies.
Spatial Representation: The KOF index is
represented as a choropleth map, a strength of
which is representing spatial differences at the
national and regional level, however a weakness is
its inability to represent variations at the
sub-national scale (within a country). An example of
which could be coastal areas which tend to be more
globalised and inland areas which tend to be less
globalised.
Ranking: By publishing ranking KOF seem to be
implying that those at the top are ‘better’ than
those at the bottom. This is not necessarily true as
globalisation brings problems as well as benefits to
countries.
Neo-colonial: the indirect actions by which developed countries exercise a degree of control over the
development of their former colonies. This can be achieved through aid, loans, cultural or military influence
within a developing country.
Soft power: the power of persuasion. Some countries are able to make others follow their lead by making their
policies attractive and appealing. E.g. culture, art, music etc.
Hard power: this means getting your own way by using force. Invasions, war and conflict are very blunt
instruments. Economic power can be used as a form of hard power. Sanctions and trade barriers can case
great harm to other states.
Give 3 examples of hard and soft power.
- Hard → military action, economic sanctions, trade and aid policy.
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