influence of superpowers

• superpowers influence global economic systems

  • capitalism=private ownership of industries, goods and services competitively traded on free market where value is based on demand
  • has a global outlook and forming trade connections eg USA, Japan,eu
  • capatalism dominated for last century
• superpowers influence global economic systems


  centrally planned economy= government owns all industry and profits, land and property, citizens work for state rather than privately owned businesses, no competition so prices of goods remain stable

  • eg cuba or vietnam
  • extreme= north korea, aim to be entirely self sufficient
• examples 


  during cold war- USA capatilist and USSR centrally planned economy worked alongside eachother

  • dominant superpower promote one type of economic ideology and other countries influenced
• superpowers extert influence via IGOs

  • world bank
  • IMF
  • WTO
  • many igos promote free market capitalism and free trade inorder to increase volume of free trade- helps countries grow economy whilst ensuring USA remains a superpower
  • however support capatilist ideologies over other economic systems as their members are mainly capitalist
• TNCs influence the global economic system


  10 largest TNCs either public tncs or state-owned

  public=privately owned, global brands eg apple

  state owned=owned by government of countries, well recognised within country of origin
• how tncs influence global economic system

  1. size means they can dominate market of goods and services
  2. expansion of free market capitalism allowed them to grow profitd and expland on greater scale
  3. TNCs often grow by merging with other companies or aquiring smaller ones- reduce compeition for raw materials and labour
• westernisation

  • tncs create global brands known world wide
  • Apple, mcdonalds, nike all from american and helped promote western culture
  • western culture also reinforced through arts, food and media
• movement of culture= western countries influenced by others

  • glocalisation
  • cultural elements from emerging economies influence western superpowers eg popularity of indian food
  • some american culture had limited impact on rest of world eg American football