IB Geography • HL6.1

Geopolitical & Economic Risks

How technological change and global interdependence create risks for individuals, businesses, places and states.

Syllabus link

How technological and globalising processes create new geopolitical and economic risks

01
Digital systems

Hacking, identity theft and surveillance

The same networks that create convenience and opportunity expose personal data, infrastructure and freedoms to new forms of control.

Cyber risk is geographical because exposure, technical capacity and political power are uneven. WannaCry (2017) showed how ransomware could spread across borders and disrupt health services; the Colonial Pipeline attack (2021) connected a digital breach to physical fuel shortages. In Xinjiang, facial recognition, connected cameras and large databases demonstrate how surveillance can reshape state power and individual mobility.

WatchIdentity theft and personal vulnerability
Case studyFacial recognition and state control

Enquiry 1 — From convenience to control

Map the data, actors and vulnerabilities in one cyber incident, then compare individual, corporate and state risk. Use Xinjiang to evaluate when security becomes surveillance and whether mass monitoring can ever be geographically and ethically justified.

02
Interdependence

Supply chains transmit disruption

Efficiency depends on specialised suppliers, clustered production and rapid flows—but these same connections create bottlenecks.

The 2011 Thailand floods inundated industrial estates producing automobiles, electronic components and hard drives. Just-in-time systems and supplier concentration meant a physical hazard in one place raised prices and interrupted factories worldwide. Resilience may require inventories, diversified suppliers, nearshoring and better risk mapping, although each sacrifices some efficiency.

Located case studyThailand’s 2011 flood shock
Original presentationSupply-chain risk

Enquiry 2 — Follow the shock

Trace one Thai factory disruption to a distant producer and consumer. Separate hazard, exposure and vulnerability; classify direct and indirect impacts; then recommend three resilience measures and evaluate their costs.

03
Global finance

Profit repatriation and tax avoidance

The geography of production and consumption may be very different from the geography of recorded profit and taxation.

TNCs organise subsidiaries, intellectual property and internal payments across jurisdictions. Profit repatriation returns earnings to a parent company; legal tax avoidance differs from illegal evasion, but both raise questions about sovereignty and lost public revenue. The Paradise and Panama Papers made hidden offshore networks visible.

ConceptTax havens explained
DebateRutger Bregman at Davos

Enquiry 3 — Map where value is created and taxed

For a global firm, trace sales, royalties, reported profit and tax. Compare the perspectives of the company, host state, home state and civil society, then judge whether international coordination can protect national tax sovereignty.

04
Disruption

Drones and 3D printing

Technologies change the costs, locations and relationships that organise production and movement.

Drones support logistics, mapping, agriculture, research and disaster response while creating privacy, safety and security risks. Additive manufacturing may reduce inventories and some traded components by moving production nearer to consumers, yet increases flows of data, software and intellectual property. Distance does not disappear; the network changes form.

TechnologyHow drones may change cities
Technology3D printing and production

Enquiry 4 — Is distance becoming less important?

Identify which stages of a supply chain shrink, move or disappear. Construct optimistic and pessimistic scenarios for workers, firms, transport and places, then decide whether disruption reduces interdependence or creates new connections.

05
Geopolitics

Globalisation, nationalism and tension

Uneven benefits, perceived loss of control and identity politics can turn global connection into political resistance.

Brexit

Sovereignty and uneven places

Migration, deindustrialisation, identity and distrust of distant decision-making combined differently across the UK.

US–China

Trade, technology and strategic power

Tariffs and export controls reveal the tension between national security and deeply integrated production networks.

Tribalism

The geography of belonging

Fear, disinformation and polarisation can strengthen in-group loyalty and weaken cooperation across borders.

Paper 3 synthesis

“Globalisation creates nationalism rather than replacing it.” Discuss, linking scale, place, power and perspective. Your answer should distinguish evidence of renewed sovereignty from continued economic interdependence.