7.1.21 (HL)—Economic globalization

Syllabus
First assessment 2026
Objective
7.1.21
Level
HL

More Connections, More Exposure

HL only

Economic globalization can increase supply through trade and shared technology, while deeper interdependence can reduce national control and transmit distant shocks.

Context Supply benefit Security exposure
Food imports diversify season and source export specialization, price shocks or transport disruption can reduce local access
Water virtual-water trade and cross-basin systems move water-intensive goods or water dependence hides external water stress and infrastructure risk
Energy traded fuels and renewable technology widen options import concentration, price shocks and component dependence propagate disruption

A port closure can raise food or energy prices inland even when local production continues; diversified sources and reserves can reduce but not remove exposure.

Map origin, route, processing, substitutes and concentration before deciding whether connectivity increases resilience or dependence.

More trade is neither automatically secure nor insecure; outcome depends on diversity, control, redundancy and equitable access.