Using examples, explain how two types of financial flow connect different places together.

“The environmental costs of global economic growth outweigh the social gains.” To what extent do you agree with this statement?

Marks should be allocated according to the paper 3 part A markbands. These can be found under the “Your tests” tab > supplemental materials.

Financial flows link places, societies and environments together to varying degrees and at varying scales: a good geographical response may explain links between particular urban or rural localities in addition to international linkages. One flow can generate multiple connections / links / interdependencies, which could be economic, social, cultural or political in character. Flows between places are sometimes asymmetric (one-way flows, for example the sending of aid) or more balanced (two-way flows, for example remittance flows accompany migration in the other direction, with both flows connecting together host and source countries).

Possible themes include:

• Foreign Direct Investment (FDI) by transnational corporations (TNCs) — links are economic but may become cultural too, as cultural traits are exchanged alongside flows of money and commodities (particular local places may become highly connected e.g. export processing zones)
• global trade in financial services — particular trading centres / cities / hubs (Zurich, Singapore) may become especially well connected (flows may also connect two hubs within the same country (New York and Los Angeles)
• international aid, loans and debt relief – aid may be targeted at particular places inside countries e.g. disaster relief aid flows; the connections are economic but also political (this can be a soft power strategy used by some states to build friendship with other countries)
• global/international flows of migrant remittances — linking together local-scale places (e.g. particular cities and rural villages) within different countries.

Credit material dealing with trade in commodities (where return flows of money from sales/profits can be inferred) if the account serves to further the geographic analysis of how places become connected together by flows.

Good answers may apply (AO2) a wider range of knowledge and understanding (AO1) in a well-structured way (AO4). One approach might be to explain connections at varying scales (local places and states, for example). Another approach might be to provide a structured systematic explanation of the different kinds of connection which the two chosen flows create (migration can foster economic, cultural and political linkages for example). Another approach might be to analyse the strength/symmetry of the connections (for example, analysing the relative strength and significance of migration and remittance flows for two linked countries).

For 4–6 marks, expect some weakly-evidenced outlining of one or two flows (most likely using narrow supporting evidence such as a very basic or general remittance or trade study)

For 7–9 marks, expect a structured, evidenced explanation of:

• either the connectivity which is fostered by the two chosen financial flows (may begin to explain cultural and political connections in addition to economic connections)
• or the varied dimensions/geography of place connectivity (e.g. explains connections at different national and more local scales, or asymmetrical connections).

For 10–12 marks, expect both of these traits.

Credit all content in line with the markbands. Marks should be allocated according to the paper 3 part B markbands. These can be found under the “Your tests” tab > supplemental materials. Credit unexpected approaches wherever relevant.

Environmental costs stem from industrialization, agribusiness, transport, urbanization — i.e. the totality of economic growth and development. Global economic growth can be viewed as the rise over time in global gross domestic product (GDP) per capita and increased industrialization/urbanization. Social gains of economic growth include improved life expectancy, health and diet; access to education; and changing social attitudes e.g. empowerment of women and minority groups.

Possible applied themes (AO2) include knowledge and understanding (AO1) of:

Environmental costs:

• Global shift of polluting industries and transboundary pollution (6.2)
• Food production system and agribusiness issues (6.2)
• Localized pollution and waste (Unit 3)
• Climate change impacts (Unit 2)

Social gains:

• Improved HDI scores (5.1)
• Gender equality progress (5.1)
• Affirmative action is support of diversity (5.1)
• Progressive cultural changes e.g. attitudes towards the environment (6.3)

Do not credit poorly focused writing about environmental benefits and/or social costs — the question does not ask for these to be debated. Any such material may be marked as ‘irrelevant’ if its inclusion cannot be justified (e.g. see point below about differing perspectives).

Good answers may synthesise (AO3a) three or more of the above (or other) themes in a well-structured (AO4) way.

Good answers may additionally offer a critical evaluation (AO3b) of the statement, and the balance of costs and gains in particular place contexts (for example in relation to global shift). Another approach might be to critically evaluate different environmental costs (climate change, transboundary pollution, biodiversity loss, etc.) and the extent to which they are experienced at local and/or global scales. Another approach might be to evaluate differing perspectives on whether social changes are viewed as ‘gains’ or problems (such as the spread of cultural traits via social media). Another approach might be to evaluate the possibility of problems being mitigated (new technologies and changing attitudes). A good discussion may conclude with a substantiated final judgement on the overall balance of newly-created and solved problems.

For 5–8 marks, expect weakly-evidenced and/or imbalanced outlining of two or three relevant themes.

For 9–12 marks, expect:

• either a structured synthesis which links together several well-evidenced themes from the Guide
• or a critical conclusion (or on-going evaluation) informed by geographical concepts and/or perspectives.

For 13–16 marks, expect both of these traits.

This question was well-answered in the majority of cases. Candidates analysed the statement using case studies of financial flows, sometimes augmented with their own personal knowledge of cryptocurrencies or online purchasing. The best answers used evidence well and were fully focused not only on financial flows but also on connectivity between places. Remittances were written about by many. There was also widespread analysis of outsourcing investment and the role that the internet plays supporting FDI strategies by TNCs. Wherever possible, credit was awarded for work which focused on legitimate global flows, such as sales of goods and trade movements, that in turn generate transfers of profit or sales payments.

The most thoughtful answers correctly developed their responses in ways which highlighted the connectivity between different places that financial flows often foster. For example, the best answers dealing with remittances were able to explain that financial connectivity between migration host and source countries can be a starting point for cultural and even political connectivity. Other good answers analysed the concept of place at a variety of geographic scales. For example, remittance flows between eastern and western Europe have helped to connect individual countries together within the European Union; at the same time, remittance flows can link together rural and urban localities within a single country.

The two examples below are typical of the contrast which existed between answers reaching the top mark band (10-12) and answers which did not [Using examples, explain how two types of financial flow connect different places together]. While example B contains more recalled migration facts than example A, it does not analyse connectivity between places nearly as well. In example B, the words "place" and "connection" are not used at all.

Example A (extract from response reaching the 10-12 mark band)

"India receives billions of dollars of remittances from its diaspora population of 23 million people each year. Remittances sent from local places like east London can then be used by the migrants' families to help pay for their mobile and phone services, like those provided by BharatNet in rural India. This further increases connectivity between different local places, allowing even more exchange of ideas and information."

Example B (extract from response reaching the 7-9 mark band)

"Another major financial flow today would be remittances. There is an influx of people migrating to different countries where there is higher pay. This is prevalent in the Middle East especially in Qatar with its hosting the 2022 World Cup. They have attracted many migrants to work in the construction industry. The migrants who moved to Qatar contribute to its economy. Every year billions of dollars are earned in this way."

This question asked if the environmental costs of global economic growth outweigh the social gains. The best answers did three important things. Firstly, they provided a discussion focused on environmental costs and social gains without deviation into lengthy discussion of environmental benefits and social costs, neither of which are strictly part of the discussion. Secondly, they focused on the global dimension of the question, for example by writing about the global-scale growth of the middle class, or global progress towards the Millennium Goals and Sustainable Development Goals. Thirdly, they provided a proper evaluative conclusion, for example by noting that some of the economic harm done may yet be reversible if action is taken quickly enough (and the social gains of education mean there are more scientists than ever before who can work to provide solutions). Whatever position is taken, the hallmark of a high-scoring answer is an evaluative discussion which goes beyond simple listing of impacts and can provide a more sophisticated weighing-up of evidence.

In contrast, weaker answers omitted any global-scale overview of the issues and instead listed a series of local environmental problems. Popular themes included air pollution and oil spills. Often, there was very little explicitly said about social gains other than rising incomes. Some candidates provided lengthy descriptive case studies dealing with social challenges created by the global economy, such as the Rana Plaza disaster. Little credit could be awarded to these studies if they were presented as standalone items with no justification for their inclusion in a response that is meant to focus on social gains.