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Date November 2015 Marks available 15 Reference code 15N.3.hl.1
Level HL only Paper 3 Time zone
Command term Discuss Question number 1 Adapted from N/A

Question

Using examples, analyse how global financial flows can be affected by the actions of governments.

[10]
a.

Discuss why anti-globalization movements/groups are found in most countries.

[15]
b.

Markscheme

Financial flows include movements of money/credit/investment. Strictly, they should not include movements of goods/raw materials, although in reality there is some overlap (investments by TNCs underpin to flows of goods) and where appropriate the benefit of the doubt should be given.

National governments may directly transfer money via international aid programmes (bilateral or multilateral contributions), loans (including sovereign wealth funds) and investment (state-owned companies may purchase assets abroad). They indirectly affect financial flows through their policy-making. This can impact on migration (and thus remittances) and the investment patterns of TNCs (and thus flows of FDI, including investment, acquisitions, outsourcing). National governments also protect their economy from financial currency inflows/outflows. Money laundering is another possible theme.

Also credit use of multi-governmental organizations (and the way flows can accelerate with removal of tariffs/market expansion) and the intergovernmental nature of financial institutions/global governance (IMF and World Bank).

For band C, at least two financial flows should be described with some exemplification and a link established with government(s) (do not expect balance).

For band D, either more than two flows should be analysed and exemplified, or two flows analysed in a structured way that conceptualizes different types of influence (direct and indirect) or governments (national, MGOs, IGOs).

For band E, expect both.

a.

Credit all content in line with the markbands. Credit unexpected approaches wherever relevant.

The focus is on the ubiquity of resistance to globalization. The statement is not intended as a challenge and no counter-argument is required.

Different reasons for resistance need to be identified; the reasons are not the same for all countries. To achieve the highest band (a well-developed answer), details of one or more actual anti-globalization movements/groups must be included as part of the account (rather than just reasons why globalization might be resisted by people in general).

Possible anti-globalization themes (expect examples of actual movements/groups for some but not all) include:

Good answers scoring highly at AO3 may discuss globalization as a complex process, the effects of which are felt everywhere, albeit in varying ways, giving rise to movements/groups. Another approach may be to discuss how the veracity of the statement depends on what local effects of globalization are most strongly felt/perceived in a different locale (and perspectives may vary on this, even within the same locale).

For band D, there should either be a structured synthesis of several well-evidenced themes taken from the subject guide, or a properly evidenced conclusion (or ongoing evaluation) that critically discusses the statement.

At band E, expect both of these elements.

b.

Examiners report

[N/A]
a.
[N/A]
b.

Syllabus sections

HL extension: Global interactions » Economic interactions and flows » Financial flows

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