Global systems/governance - sample answers

From the 2021 AQA Assessment exercises

It’s time for some more questions and answers. Please note that you will need to access the data for the data questions from the AQA materials as they are subject to copyright.

Also remember my self-imposed guidelines for essay length is 600 words maximum.

Explain the concept of the ‘global commons’. (4)

AQA answer

Global commons are areas of the world that have no overall leader but are governed globally. They include Antarctica, the atmosphere, the deep seas and outer space. Everyone in the world shares the same equal access to these commons e.g. for scientific research in Antarctica or sending people to the moon. People are also able to use the resources found in these commons, but there are often treaties that protect the commons from overexploitation e.g. the Antarctic Treaty. (Awarded 4 marks)

My answer

The term ‘Global commons’ refers to the Earth’s shared resources such as the deep oceans, the atmosphere, outer space and Antarctica. The term was first used in the World Conservation Strategy, published in 1991, by the International Union for Conservation of Nature and Natural Resources (IUCN). The global commons include those parts of the Earth’s surface beyond national jurisdictions e.g. the open ocean and the living resources found there, or held in common e.g. the atmosphere. Antarctica is the only land mass classified as a ‘Commons’.

Figure 1 shows the relationship between the change in gross domestic product (GDP) per person and attitudes towards globalisation for selected countries. Information is also provided on total GDP and the percentage of foreign-born population in those countries.

Analyse the data shown in Figure 1.  (6)

There is a positive relationship between % change in GDP person and those expressing the view that ‘Globalisation is a force for good’. Over 80% of people in India think this, and there has been a 32% increase in GDP. Conversely, in France the % change in GDP has only been 7% and the attitude to globalisation is only at 35% positive. There are some possible outliers to this relationship though – for example, people in Finland have an overall rating of +56% in terms of attitude, but their GDP has hardly changed between 2011 and 2015 at only a 2% increase.

One factor influencing these attitudes might be the proportion of foreign-born in the population. The UAE has the highest proportion (over 80%) and here both attitudes and GDP growth are very positive (68% and 22% respectively) whereas again in France the proportion of foreign-born is much lower at between 10 and 20%. On the other hand, the countries with the lowest proportions (less than 10%) of foreign-born e.g. India, Vietnam and the Philippines, have high positive values in terms of both attitude and GDP growth.

It is interesting to note that in general countries with the larger GDP (e.g. USA and Germany) have lower favourability rates than those with lower GDP totals (e.g. Vietnam and The Philippines).

Figure 2a shows percentage breakdown of main tourist activities for visitors to Antarctica in 2016–17. In the 2016–17 season there were 44 202 visitors to Antarctica.

Figure 2b shows a small-boat landing party of tourists visiting a penguin colony on South Orkney Islands in Antarctica.

Using Figure 2a, Figure 2b and your own knowledge, to what extent do you agree that tourism is a threat to Antarctica? (6)

Tourism is becoming more of a threat to Antarctica as global incomes increase and ‘adventure tourism’ becomes more popular with people from the developed and emerging economies. Over 40,000 people visited the continent in 2016/17 and this number was likely to have increased before the Covid 19 pandemic. Having said that Figure 2a suggests that 53% of the tourists are just cruising, and therefore may not make landfall – but are the categories shown mutually exclusive though? This does mean though that over 20,000 will have landed and could have brought foreign species (e.g. seeds and insects) on their clothing and footwear. The photograph in Figure 2b shows people at a penguin colony and they appear to be wearing the same form of clothing (red coats) and so they could have been told to change out of their own clothing which will have reduced this threat. Cruise companies all have to sign up to the IAATO agreement that regulates the number and nature of visits to Antarctica so this is a positive sign to reduce the threats to the ecosystem including penguin colonies.

It is surprising to see that a small proportion of people engage in active sports here, such as kayaking and ice climbing. I am surprised this is allowed and certainly risks being more of a threat to the environment. Both of these will impact on any plants, such as mosses and lichen, that are seeking to establish themselves as the climate warms, such as on the Antarctic Peninsula.

It is clear that tourism does present a threat to Antarctica, but I hope that regulations and good governance will seek to reduce and maybe nullify this.

‘Transnational corporations (TNCs) are a significant factor in creating unequal flows of money and people within global systems’.

With reference to a TNC, assess the extent to which you agree with this statement. (20)

AQA answer

I agree to some extent that TNCs are the most important factor in creating unequal flows of money as TNCs such as Nike set up factories in the least developed countries due to a comparative advantage, but they send most of their profits back to the headquarters. The workers in the factory get paid very little amounts compared to the profits that they are making for the company. This creates unequal flows of money as it means money is moving from LICs into HICs. However, TNCs do help the local community by developing local infrastructure and the low paid jobs mean that the workers have more spending power that they did have before leading to the economic multiplier effect. This may reduce the unequal flows of money on a local scale but not on a global scale.

On a global scale, the free movement of people due to the lessening on border controls has also created unequal flows of money. For example, those low paid workers eventually generate enough money (often over several generations) to move to more developed countries as migrants. Although these migrants will go into the low paid jobs in developed countries as well, they often send money back as remittances to their host country. The free movement of people also creates unequal flows of people between developed countries as economic migrants move to where their work conditions may be more favourable. These economic migrants will often be well-educated and therefore the host country will experience a ‘brain drain’ as seen in Ukraine. Due to the trade bloc of the EU, Ukrainians have been able to move to other European countries such as the UK and Germany thus creating unequal flows of people. Therefore, trading blocs are more significant than TNCs in creating unequal flows of people and money.

Overall, I believe that TNCs are the most single important factor in creating unequal flows of people and money as the largest TNCs are most often more powerful than governments and aren’t regulated as well as they could be and so they can do what ever it takes to make the most profit. This would include exploiting workers thereby increasing the unequal flows of money. TNCs also make trade between countries easier and so those countries who are not trading will experience a loss of money. (388)

(Awarded. 17 marks)

My answer

Transnational corporations (TNCs) are large companies that produce or source goods and services internationally and market them worldwide. Many TNCs, such as McDonald’s, Adidas and Nestlé are household names. TNCs are the major players in the global economy: the top 500 TNCs account for 70% of world trade and generate a large proportion of all foreign direct investment (FDI), i.e. money moving from one country to another.

TNCs have enormous economic power and have been the driving force behind the globalisation in recent decades. Such a force has enabled people to migrate from one country to another to seek work. This in turn has encouraged outsourcing and offshoring of employment, and with mergers and acquisitions of foreign companies TNCs have automatically become even larger. Deregulation of capital markets, encouraged by the World Trade Organisation (WTO) has also allowed profits to be moved from place to place and so results in increased TNC activity.

Off-shoring means transferring production from developed countries to developing countries where labour and other costs are lower and where access to foreign markets is easier. The UK electrical company Dyson has done this by outsourcing its manufacturing to Indonesia. Outsourcing involves sub-contracting production to another company, which provides goods and services sold under the TNC brand. Through off-shoring and out-sourcing, TNCs from developed countries have in effect created more home-grown TNCs in order to undertake the work. Companies such as Apple and Primark subcontract the work out to other companies who may in turn operate across regions like south east Asia, into Bangladesh and Vietnam for example. These have been accused of creating ‘sweatshop’ employment, characterised by low wages, child labour and poor working conditions – resulting in marked inequality within a country.

It is often argued that TNCs locate manufacturing plants in developing countries in order to exploit weak labour and pollution laws. The USA-Mexico border region has experienced massive economic growth since the 1980s, due largely to investment on the Mexican side of the border by US, European and Asian TNCs, including motor vehicle companies such as Fiat and Volkswagen. This investment mainly comprises branch plants, or maquiladora, which manufacture a wide range of goods including clothes, cars and electronics and then export them across the border to the USA. These industries have encouraged internal migration within Mexico to them, and some international migration as shown by the caravan of people moving through central America during late 2018.

The main attractions of this border region are low labour costs and proximity to US markets. Another main factor here has been the creation of the North American Free Trade Association (NAFTA), a major example of free trade between nations. Former President Trump argued that such an arrangement has damaged industries in the USA and sought to negotiate a new trade deal with Mexico and Canada called USMCA. This came into force in 2020.

In conclusion, TNCs are indeed a significant factor in creating unequal flows of money and people within the global economic system. Companies such as Nike, based in the USA, have invested billions of dollars in over 40 countries, many in south east Asia. They have led to flows of people both internally and internationally to find work as illustrated by the maquiladora in northern Mexico. (541)