6.1 Geopolitical and economic risks

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6.1 Geopolitical and economic risks

IB Geography HL 

Unit 6: Global risks and resilience

This presentation is for a large extend based on: Matt Podbury -ibgeographypods  

and Oxford IB Prepared

Hacking, identity theft & the implications of surveillance for personal freedoms. 

With the enormous growth in global interactions including online activity, there has also been a massive increase in online crime including hacking and identify theft. Due to perceived increased weaknesses in international borders and the flow of people, including terror networks, there has been an increased surveillance of people in many societies. See two casestudies below. 

 Part 1 - Political & Economic Risks to Supply Chains.

There has been much in the news recently about the arrest and detention of Meng Wanzhou, the Chinese tech company's chief financial officer. There is the suspicion that Huawei backed by the Chinese government has implemented a surveillance programme on many devices to monitor internet, mobile phone and other communication usage. 

The tech giant has had a meteoric rise over the last ten years. It has overtaken Apple in the global smartphone market, and its equipment is in telecommunications systems in 170 countries worldwide. But Huawei now finds itself at the centre of a global scandal.

Its chief financial officer - the daughter of the company’s founder - is under house arrest in Canada, accused of selling telecom equipment to Iran in contravention of US sanctions.

A week later, a US court charged the whole company with bank fraud, obstruction of justice and theft of technology from rival T-Mobile.

The company has been banned in New Zealand and Australia, and there are moves in the US to stop government employees from buying their products.

Critics say if it wins the contracts for the new 5G network being created globally, it could give the Chinese government control over everything from smart phones, to cars, to pacemakers in other countries.

So why has the success story soured? This week, we ask: what’s so scary about Huawei?

Podcast: What’s so scary about Huawei?

The tech giant has had a meteoric rise over the last ten years. It has overtaken Apple in the global smartphone market, and its equipment is in telecommunications systems in 170 countries worldwide. But Huawei now finds itself at the centre of a global scandal.

Its chief financial officer - the daughter of the company’s founder - is under house arrest in Canada, accused of selling telecom equipment to Iran in contravention of US sanctions.

A week later, a US court charged the whole company with bank fraud, obstruction of justice and theft of technology from rival T-Mobile.

The company has been banned in New Zealand and Australia, and there are moves in the US to stop government employees from buying their products.

Critics say if it wins the contracts for the new 5G network being created globally, it could give the Chinese government control over everything from smart phones, to cars, to pacemakers in other countries.

Presenter: Kavita Puri

Producer: Jordan Dunbart

https:

The BBC podcast: What’s so scary about Huawei?

Listen to the podcast on the previous slide en take notes. Write down the political and economic risks described. 

Two more video's if you are interested in this case study: 

video 1 

video 2

Part 2 - Physical Risks to Supply Chains

First of all, think about the Corona virus, and write down all physical risks to supply chains you can think of. 

Physical risks to Chinese supply chains due to COVID-19

Look at the map, watch the video and take notes on the effects of this physical interruption to global supply chains. Give examples from two different industries. 

Table 6.1.1. Political, economic and physical risks to global supply chain flows. 

Try to add examples to each of the risks. 
Think of local examples (for example from the Netherlands), so that you can use them in an essay on risks to global supply chain flows. 

(The table comes from the IB prepared book, page 185).

New and emerging threats to the political and economic sovereignty of states...

Part 1 - Tax avoidance by TNCs and wealthy individuals.

https:

Oxfam Inequality and poverty: the hidden costs of tax dodging

Read the article from Oxfam and take notes of 5 key pieces of 'memorable data'. as well as notes under the subtitles 'winners' and 'losers'. 

Define:

• Profit Repatriation
• Tax Avoidance 
• TNC

If you want to know how the Netherlands plays a big role in this whole tax-avoidance story, whatch this video. 

Disruptive Technologies... 

Drones and home printed guns for example. 

Example essay question: 

Using examples, analyse how disruptive technologies can threaten the security of states (12)  

The correclation between increased globalization and renewed nationalim

The opposite of globalization is nationalism, and it is becoming widespread in North America and Europe, which previously had been considered among the main winners from globalization. However, people from around the world are now looking to their nation state to protect them from global competitors, which are often TNCs rather than other countries. 

For the next section I recommend you to read page 187 and 188 in the Oxford IB prepared book. (I took pictures in case you don't have it at home).

Yes, you made it until the end! 

Big thanks to:

Matt Podbury -ibgeographypods 

www.ibgeographypods.org/

and Oxford IB Prepared