What Are External Pressures?
- External pressures are forces that originate outside an individual, community, or country but still influence what people can do, what they choose to do, and the outcomes they experience.
- A useful way to study any case is to ask:
- What is the pressure (economic, political, environmental, social)?
- Who experiences it (which groups, where, and when)?
- Through what mechanism does it operate (prices, laws, borders, access to resources, social attitudes)?
- Who benefits, who loses, and who is affected even though they are not part of the decision?
How Are External Pressures Classified?
External Pressure
A force or influence that comes from outside an individual, group, or society and affects decisions, opportunities, or outcomes.
- Real-world situations rarely involve only one pressure.
- For example, a drought (environmental) can reduce harvests (economic), which may trigger protests (political) and increase tension between groups competing for scarce resources (social).
Pressures, mechanisms, and impacts
- When you study a scenario, separate the pressure from the mechanism:
- A pressure is the broad category (for example, conflict, recession, climate hazard).
- A mechanism is how it changes real life (for example, price rises, restricted border crossings, loss of jobs, shortages of water).
- When writing explanations, use a "because… therefore…" chain.
- "Rainfall levels decreased because olive harvests dropped, therefore supply decreased, therefore prices rose."
What Are Economic Pressures?
Price Mechanism
The way prices in a market adjust to changes in supply and demand, guiding producers and consumers toward an equilibrium price and quantity.
- Economic pressures often show up as changing prices, shortages, surpluses, and changes to employment and wages.
- A key model is supply and demand, which explains how markets adjust through the price mechanism.
Supply and demand creates pressure
- A change in market conditions can shift either supply or demand:
- If supply decreases (for example, poor harvests), the price tends to rise and quantity traded tends to fall.
- If demand increases (for example, a trend or population growth), price tends to rise and quantity traded tends to rise.
- Economic Pressure: A Change in Crop Conditions
- Scenario: "Italy experiences a particularly good season for growing olives."
- Explanation using the price mechanism:
- 1. Olive harvest increases.
- 2. Supply shifts right (more olives available at each price).
- 3. Market price falls, quantity sold rises.
- 4. Consumers gain from lower prices, some producers face lower income per unit.
Surplus determines who gains in a market outcome
Even when a market reaches an equilibrium, different participants benefit by different amounts.
Consumer Surplus
The difference between what consumers are willing to pay and what they actually pay at the market price.
Producer Surplus
The difference between the market price and the minimum price producers would accept to supply a good.
- At the market price, some consumers would have been willing to pay more, so they receive consumer surplus.
- Similarly, some producers could have supplied at a lower price, so they receive producer surplus.
- These surpluses help explain why markets can increase welfare for participants.
- Surplus here does not mean "extra goods left unsold."
- It means a welfare gain (a benefit) for buyers or sellers compared to their minimum or maximum willingness to pay.
What Happens When Markets Create Spillovers?
Market Failure
A situation where the market outcome is not efficient, often because prices do not reflect all social costs or benefits.
Externality
A positive or negative impact on someone outside the transaction between buyers and sellers. If an externality exists, the market outcome may be inefficient because private costs and benefits do not match social costs and benefits.
- Markets do not always improve lives for everyone affected.
- Sometimes the actions of buyers and sellers impose costs or benefits on people who are not part of the transaction.
Marginal thinking distinguishes private from social
Economists often compare marginal (additional) costs and benefits:
Marginal Private Benefit (MPB)
The additional benefit received by the consumer from consuming one more unit.
Marginal Private Cost (MPC)
The additional cost to producers of producing one more unit.
- If there are no externalities, private and social values match, so markets tend toward an efficient outcome where marginal benefit equals marginal cost.
- If there is a negative externality (for example, pollution), then the social cost is higher than the private cost. Society would prefer less of the good than the market produces.
- A common mistake is to say "markets always fail when prices change."
- Price changes are normal adjustments.
- Market failure refers to inefficiency, often because some costs or benefits are not included in the market price.
- When using a diagram to explain an externality:
- Label MPB (or demand) and MPC (or supply).
- Add MSC (marginal social cost) or MSB (marginal social benefit) if relevant.
- Show that the market quantity differs from the socially optimal quantity.
- Use one sentence to state who is affected outside the market.
What Are Political Pressures?
- Political pressures include war, persecution, government policy, and border controls.
- They can rapidly change safety, access to resources, and population distribution.
- One major political pressure is conflict-driven displacement. In the Syrian conflict, many people were forced to leave their homes.
- Some remained within Syria as internally displaced people, while others crossed borders and became refugees.
Internally Displaced Person (IDP)
A person forced to flee their home who remains within their country's borders.
Refugee
A person forced to leave their country to escape war, persecution, or natural disaster.
Asylum Seeker
A person who has left their home country and is seeking protection (asylum) in another country.
- In many real situations, people may move through these categories over time.
- For example, an IDP may later cross an international border and become a refugee.
Political pressures changes societies
- Political pressures reshape societies by:
- Changing population size and structure (for example, a loss of working-age people).
- Increasing demand for housing, schools, and healthcare in receiving areas.
- Raising political debates about responsibility, identity, and security.
Forced Displacement Under Conflict (Syria)
- Conflict led to large-scale internal displacement within Syria.
- Violence also caused cross-border refugee movements into neighbouring countries.
- Humanitarian needs increased sharply, including food, clean water, schooling, and medical care.
- Ongoing conflict often restricted access to humanitarian aid, especially in contested or besieged areas.
- The case shows how political and military pressures produce immediate human impacts.
- It also demonstrates how conflict can result in long-term population change through displacement and migration.
What Are Social and Cultural Pressures?
- Social pressures include attitudes toward newcomers, discrimination, changes in community cohesion, and the challenge of integration.
- These pressures can affect both migrants and host communities.
Migrant
A person who moves from one place to another in order to find work or better living conditions.
Immigrant
A person who comes to live permanently in a foreign country.
Emigrant
A person who leaves their own country to settle permanently in another.
Mixed Impacts of International Migration (Mexico–USA)
- Host society (USA): can gain cultural diversity and new skills brought by migrants.
- Migration has contributed to wider use and education in the Spanish language in the United States.
- However, host societies may experience social tension, particularly during periods of high unemployment.
- Country of origin (Mexico): can benefit from remittances, which provide income for families and support local economies.
- At the same time, emigration can lead to the loss of working-age population.
- This increases the dependency ratio, placing greater pressure on those remaining in the workforce.
What Are Environmental Pressures?
- Environmental pressures include droughts, storms, earthquakes, and long-term climate patterns.
- These pressures often act as strong push factors for forced migration, because they can remove basic needs such as water, food security, and safe housing.
- Environmental pressures frequently become economic pressures (reduced supply of crops, higher food prices) and political pressures (conflict over resources, state capacity to respond).
- Think of a society like a household budget.
- If an unexpected expense hits (a flood destroys homes), money and attention must be redirected.
- That creates trade-offs: rebuilding may mean less spending on education or healthcare in the short term.
How Can You Analyze an External Pressure Scenario?
- A reliable method is to:
- Identify the external pressure (economic, political, environmental, social).
- Describe the mechanism (prices, availability, border rules, access to aid, job competition).
- Explain winners and losers (which groups gain or lose, and why).
- Check for spillovers (are outsiders affected, suggesting an externality?).
- Evaluate short-term versus long-term effects (immediate shortages versus long-run demographic change).
- Answer in 2 to 3 sentences each:
- Give an example of an economic external pressure and explain how it changes price and quantity.
- Distinguish an IDP from a refugee.
- Describe one potential benefit and one potential tension created by international migration.