International Relations: Developing Nations & Globalization

• International relations are evolving, especially regarding developing nations becoming more globalized.
• There are challenges in navigating a global and interconnected scenario.
• Instructor: Grecia Denisse Eguía Cuevas.

Paradoxes

• Globalization and sovereignty present paradoxes.

Developing Countries

• Developing countries are becoming more globalized.

Classifications

• Various organizations classify countries based on different criteria.
• The UN uses the Human Development Index.
• The IMF assesses a country's economic status.
• The World Bank considers income levels.

Examples of Developing Nations

• China
• Russia
• Brazil
• India
• South Africa

Global Challenges

• Addressing the challenges of a global, interconnected world involves:
• Negotiating free trade agreements like TMEC.
• Pursuing free trade negotiations and political ties like MERCOSUR.
• Forming economic, cultural, and political integrations such as the European Union.
• Participating in and integrating with organizations like the UN.

PIA assignment

• There is a country assignment for developing a PIA, assigned by the instructor.

Theme 2

• Underdeveloped economies versus major world powers.

Underdeveloped Economies

• They are characterized by:
• Unequal income distribution.
• Informal labor markets.
• Productivity gaps among businesses.
• Corruption and vague governmental decisions.

Key Differences

• Substantive axes exist between both types of countries.
• Power imbalances lead to economic, political, and cultural subordination, impacting trade and dependency.
• Underdeveloped nations supply developed nations with resources, cheap labor, and a destination for obsolete technology.
• Developed nations perpetuate dependency through their political, educational, and cultural systems.
• Developed nations suppress resistance from dependent nations via economic sanctions or military force.

Emerging Nations

• Emerging nations show:
• Increased social freedoms and civil rights.
• A shift from primary or agricultural economies to industrial ones, especially in manufacturing.
• Greater openness to the global market.
• National corporations operating across continents.
• Attraction of foreign capital and investment.
• Political leadership in their regions.

The Four Asian Tigers

• These are significant emerging economies.

BRICS

• This includes developing countries.

Gross Domestic Product

• GDP per capita at current prices in 2023 varies by geographic area, measured in USD.
• North America: $78,675.48
• European Union: $40,823.88
• Central Asia and Europe: $29,483.44
• East Asia and the Pacific: $12,927.68
• Latin America and the Caribbean: $10,681.73
• Arab countries: $7,377.4
• South Asia: $2,308.72
• Sub-Saharan Africa: $1,636.81

GDP Growth

• Annual GDP growth rates are projected from 2020 to 2027 for the world's 20 richest countries.
• India's growth is projected to remain high. China's growth shows moderation.

Country Classification

• The World Bank classifies countries by income level for 2024-25.

Income Categories

• Several countries are projected to shift income categories in 2025.
• Bulgaria and the Russian Federation are expected to move to high income.

PIA Material

• Material for Project Investigative Analysis requires to determine.
• Is the country underdeveloped.
• Is it a world power, and analyze its potential to be considered an emerging economy.

State Region Analysis

• A region in the state's territorial organization.

European Union

• Business opportunities:
  • Infrastructure and construction.
  • Automotive and components.
  • Environment.
  • Pharmaceutical sector.
  • Logistics services.
• Internal risks:
  • Unresolved issues in Greece.
  • Brexit aftermath.
  • Immigration.
• External risks:
  • Concerns about China's slowdown.
  • Uncertainty regarding the U.S.
  • The Russia-Ukraine war.

North America (United States)

• Protectionist policies in foreign trade are present.
• There's ongoing tension with China and Russia.
• Migration is a significant issue.
• Opportunities:
  • Relations with the Middle East.
  • Renegotiation of TLCAN.
  • Represents over 25% of global production, with a substantial Hispanic market.

Latin America

• Identified as "Emerging Economies."
• The continent holds 40% of the world's biodiversity.
• It possesses 30% of the planet's water resources.
• There are 25% of the Earth's forest reserves.
• 85% of the world's lithium reserves are in Bolivia, Argentina, and Chile.
• 43% of the planet's copper reserves are in Mexico, Chile, and Peru.
• 40% of the world's nickel reserves.
• Latin America holds 30% of global silver reserves.
• 30% of the world's bauxite reserves.
• There are 20% of global oil reserves.
• It possesses 4.5% of natural gas reserves.

Economy

• Argentina and Brazil focus production and exports on raw materials.
• Mexico and Central America have more diversified production models
• The Caribbean benefits from strong external demands and export services.
• Venezuela faces an economic and humanitarian crisis, causing migration.

Risks in Latin America

• Current account deficits in countries like Argentina, Bolivia, Nicaragua, or Panama.
• Fiscal adjustment needs in Argentina and Brazil.
• Drug trafficking in Mexico and Colombia.
• Stability in Central America.

Sub-Saharan Africa

• South Africa: A major economy with a well-diversified industrial sector.
• The country's per capita income is relatively high for the region.
• Low employment levels.
• Rising inflation.
• Pressures on the balance of payments.
• Major oil producers Nigeria and Angola.
• The economies of Nigeria and Angola are reliant on oil exports
• They have been dramatically affected by crude oil price reductions.

Investment

• Macroeconomic and governance reforms have improved investor confidence in various countries such as Angola, South Africa, and Zimbabwe.
• Increased mineral production in metal exporting countries like the Democratic Republic of Congo and Zambia. Mining boosted by rising metal prices.
• High public debt levels impede growth in Mozambique and Sierra Leone.
• South Africa's mineral production undermined by expectations.

Prospects

• Natural gas production is expected to increase in Angola.
• A better business climate will help revitalize economic activity.
• Business confidence rebounds South Africa supporting continued investments.
• Mining production will likely increase in Congo and Zambia, spurred by stable metal prices.
• Oil exporters will experience moderate growth, fading high production advantages in Ghana, slower recovery in CEMAC region.

PIA Topic

• The Project Investigative Analysis should focus on analyzing how the assigned country has consolidated as a State Region.

Theme 4

• Strategies for nation-states to improve their position in a global scenario.

Need for Strategies

• Strategies arose after WWII, as international law evolved and international organizations formed.

Economic Characteristics

• Four features of the international economy transform the nation-state:
  • Investments are not restricted by geography.
  • Industries are globally oriented.
  • Information technology facilitates international investments.
  • Consumers desire better, cheaper international products.

Challenges to Sovereignty

• Legitimacy of states is affected by regional and global interconnectedness.
• Political authority also becomes displaced and compromised.

Military Spending

• The US spends the most on their military globally.

Nuclear Warheads

• Russia and the USA hold the most nuclear weapons.

Russian Strategies

• Russia is aiming to pursue an independent foreign policy.

US Strategies

• Includes the idea of the American Century which is a claim to global leadership.

Global Suprmacy

• The US struggles between idealism and global hegemony.

PIA evidence

• Evidence is gathered through country selection and policy analysis.

PIA Alliances

• Assess alliances and strategies a country uses for international presence.

Theme 5

• The theme is on which policies affect new business models.

Business Models

• A Model entails a plan where a company generates revenue.

Business Model Types

• Franchising.
• Multicomponent, Freemium, Eyeball, Market Leader, Virtual Product, Bait, Subscription, and Affiliation.

Legal Considerations

• When targeting a country to set up businesses the level of Corruption, Freedom of the Press and Employment laws are considered.

War Impacts

• Conflicts and wars impacting Business models.

Netflix

• Netflix's subscription model has been impacted by geopolitical issues.

Starbucks

• Starbucks which runs a franchising has been impacted by war

McDonalds

• War has had a significant impact on profits and brand perception.

Exit

• Various major companies have left the the Russian Economy with huge losses..

Reasons

• The reasons for these business impacts relates to economics and politics.

War and Economy

• Instability can cause huge drops in financial gains.

Trade

• In terms of Trade the World's greatest exporters is China and the world's greatest importer is the USA.

International Trade

• International trade helps nations with resourcing by increasing market capacity.

Organizaitons

• Organisation that helps to regulate International Trade.

CCI Functions

• The International Chamber of Commerce promotes and facilitates trade and investment worldwide.

CCI

• It creates trade standards between counties.

Members

• Membership consists of millions of different business types.

Trade Policies

• Free Trade enables open border for Commerce whereas protectionism protects producers from outside economies. A balanced approach helps to facilitate growth,

CCI Ratings

• How the CCI rates counties on trade.

Protectionism

• Protectionism has risen and fallen throughout history since the 1300's.

PIA Material

• Analyze a selected Countries trade Policies and how they impact their countries finances.