IB Geography 4.3.1 Political Factors Affecting Global Interactions Notes

Policy Frameworks Enabling or Restricting Globalization

1. Imagine a world where goods, services, and people move seamlessly across borders.
2. Now, contrast this with a world where barriers slow or even stop these flows.

Policy frameworks - the rules and agreements set by governments and organizations - determine which of these worlds we live in.

Multi-Governmental Organizations (MGOs)

1. Regional MGOs are established by national governments to regulate cooperation between countries.

Different Levels of Economic and Political Integration

1. Rather loose political cooperation allowing for discussing and coordinating policies, e.g. African Union.
2. Free Trade Area (or Trading Bloc): member states have no internal tariffs on trade, but can keep separate trade policies to third-party countries, e.g. NAFTA/USMCA.
3. Customs Union: the same as Trading Bloc enhanced by common external trade policy, e.g. MERCOSUR.
4. Common Market: the same as Customs Union enriched with freedom of movement of the factors of production, e.g. European Economic Area: the EU + Norway, Iceland, and Liechtenstein.
5. Economic and Monetary Union: the same as Common Market, but with a common currency, e.g. the Euro zone within the EU.
6. Economic and Political Union: deeper integration that goes beyond economic relations, e.g. the EU.

The European Union (EU): A Single Market and Beyond

1. The EU is a unique example of economic and political integration.
2. It operates as a single market, allowing goods, services, capital, and people to move freely among its 27 member states.
3. The EU's single market is a comprehensive free trade area that goes beyond abolishing tariffs to include the free movement of people and capital.

Key Features of the EU

1. Common Political Institutions: the European Parliament coming from free elections, the European Commission playing a role of quasi-government, the European Council bringing together prime ministers and heads of states to make strategic decisions.
2. Common Symbols: the flag and anthem.
3. Free Trade: No tariffs or quotas on goods traded within the EU.
4. Common Policies: Shared regulations on agriculture, environment (including climate) competition, and consumer protection.
5. Free Movement of People: Citizens can live, educate and work in any member state.

How It Enables Globalization

1. By removing internal barriers, the single market creates a large, unified economy that attracts investment and fosters innovation.

Challenges and Restrictions

1. The EU's common external tariff imposes duties on goods from non-member countries, which can restrict trade with the rest of the world.
2. Policies like the General Data Protection Regulation (GDPR) can create barriers for non-EU companies operating in Europe.