Global interactions and global power
● Globalisation indices showing how countries participate in global interactions
○ Globalisation: development of an increasingly integrated global economy that is
characterised by free trade, free flow of capital from country to country, and the use of
the cheapest labour that is available internationally
○ AT Kourney index
■ Global managing consulting firm advising large corporations on international
competitiveness
■ Political engagement, technological connectivity, personal contact, economic
integration
○ KOF index of globalisation
■ Economic, political and social globalisation
○ Maastricht globalisation index
■ Also considers the environmental aspect; whether the country is sustainable
○ Cons of these indices
■ AT Kourney index fails to consider the social/cultural aspect
■ Difficult to make the definition of globalisation clear
● Global superpowers and their economic, geopolitical and cultural influence
○ Superpower: defines an extremely powerful country capable of influencing international
events
○ Economic: investment, corporate influence, foreign aid
○ Neoliberal globalisation: embraces free and open international markets
● Detailed examples of at least two actual or potential global superpowers
○ United States of America
○ After the corruption of the Soviet Union and communism in Europe, stagnation in Japan
and Russia, USA continued to grow
○ Initiated unipolar world: one state with superpower
○ Military superpower
■ Deteriorated due to terrorist attacks (911) but regained
■ Military equipment highest in raw number and efficiency
■ Government invests a LOT on research and development
■ No foreign military bases in the USA but US bases are overseas
○ Economic superpower
■ World’s largest economy
■ Dominant position of the US dollar - most currency hold as foreign reserves,
most international transactions, other countries using the US dollar as their own
currency
■ 2nd largest manufacturing nation
■ A lot of stock exchanges
○ Technological superpower
, ■ Largest oil and natural gas producer
■ Apple, microsoft, facebook, amazon, google
○ Cultural superpower
■ Americanisation - tv programmes, food (mcdonalds), fashion
○ China
○ Economic superpower
■ A lot of potential due to its large economy
■ Fastest economic growth in the world
■ High quality and low cost manufacturing goods
■ Balanced manufacturing and service sector although it is not developed
○ Military superpower
■ Not as strong as the US
■ Competition with america over military and economic interests in East/SouthEast
Asia
● Powerful organisations and global groups
○ G7/8, G20 and organisation for economic cooperation and development (OECD) groups
■ G7 - Canada, France, Germany, Italy, Japan, the United Kingdom, and the United
States
■ G8 - France, Germany, Italy, the United Kingdom, Japan, the United States,
Canada, and Russia
■ annual meeting to foster consensus on global issues like economic growth and
crisis management, global security, energy, and terrorism
■ OECD - more formal association of advanced economies covering economic,
educational, environmental and social issues
■ Stats on globalisation, monitor economic and social performance, promote
liberalisation, deal with tax evasion, solutions to global environmental issues
○ Organisation of petroleum exporting countries (OPEC) influence over energy policies
■ 5 oil producing countries - Iraq, Iran, Saudi Arabia, Venezuela, Kuwait
■ Influence over the global oil price and energy policies
■ Restricting amount produced → high price → slow development in western
nations and developed nations OR more investment in renewable resources
■ Conflict within OPEC - restrict production so that incomes rise → as a
consequence, Iraq invaded Kuwait → shortage and insecurity in supplies of oil
○ Global lending institutions, including the international monetary fund (IMF) and new
development band (NBD)
■ exchange rate management system
■ Liberalisation and deregulation of free trade - discouragement of trade barriers
■ Improved technology increased financial mobility
● Globalisation indices showing how countries participate in global interactions
○ Globalisation: development of an increasingly integrated global economy that is
characterised by free trade, free flow of capital from country to country, and the use of
the cheapest labour that is available internationally
○ AT Kourney index
■ Global managing consulting firm advising large corporations on international
competitiveness
■ Political engagement, technological connectivity, personal contact, economic
integration
○ KOF index of globalisation
■ Economic, political and social globalisation
○ Maastricht globalisation index
■ Also considers the environmental aspect; whether the country is sustainable
○ Cons of these indices
■ AT Kourney index fails to consider the social/cultural aspect
■ Difficult to make the definition of globalisation clear
● Global superpowers and their economic, geopolitical and cultural influence
○ Superpower: defines an extremely powerful country capable of influencing international
events
○ Economic: investment, corporate influence, foreign aid
○ Neoliberal globalisation: embraces free and open international markets
● Detailed examples of at least two actual or potential global superpowers
○ United States of America
○ After the corruption of the Soviet Union and communism in Europe, stagnation in Japan
and Russia, USA continued to grow
○ Initiated unipolar world: one state with superpower
○ Military superpower
■ Deteriorated due to terrorist attacks (911) but regained
■ Military equipment highest in raw number and efficiency
■ Government invests a LOT on research and development
■ No foreign military bases in the USA but US bases are overseas
○ Economic superpower
■ World’s largest economy
■ Dominant position of the US dollar - most currency hold as foreign reserves,
most international transactions, other countries using the US dollar as their own
currency
■ 2nd largest manufacturing nation
■ A lot of stock exchanges
○ Technological superpower
, ■ Largest oil and natural gas producer
■ Apple, microsoft, facebook, amazon, google
○ Cultural superpower
■ Americanisation - tv programmes, food (mcdonalds), fashion
○ China
○ Economic superpower
■ A lot of potential due to its large economy
■ Fastest economic growth in the world
■ High quality and low cost manufacturing goods
■ Balanced manufacturing and service sector although it is not developed
○ Military superpower
■ Not as strong as the US
■ Competition with america over military and economic interests in East/SouthEast
Asia
● Powerful organisations and global groups
○ G7/8, G20 and organisation for economic cooperation and development (OECD) groups
■ G7 - Canada, France, Germany, Italy, Japan, the United Kingdom, and the United
States
■ G8 - France, Germany, Italy, the United Kingdom, Japan, the United States,
Canada, and Russia
■ annual meeting to foster consensus on global issues like economic growth and
crisis management, global security, energy, and terrorism
■ OECD - more formal association of advanced economies covering economic,
educational, environmental and social issues
■ Stats on globalisation, monitor economic and social performance, promote
liberalisation, deal with tax evasion, solutions to global environmental issues
○ Organisation of petroleum exporting countries (OPEC) influence over energy policies
■ 5 oil producing countries - Iraq, Iran, Saudi Arabia, Venezuela, Kuwait
■ Influence over the global oil price and energy policies
■ Restricting amount produced → high price → slow development in western
nations and developed nations OR more investment in renewable resources
■ Conflict within OPEC - restrict production so that incomes rise → as a
consequence, Iraq invaded Kuwait → shortage and insecurity in supplies of oil
○ Global lending institutions, including the international monetary fund (IMF) and new
development band (NBD)
■ exchange rate management system
■ Liberalisation and deregulation of free trade - discouragement of trade barriers
■ Improved technology increased financial mobility
