IB outcome: Discuss the links between the diminishing effectiveness of political borders and the flow of goods, capital, labour and ideas, and the role of one multi-governmental organization such as the European Union (EU), the Association of Southeast Asian Nations (ASEAN), the North American Free Trade Agreement (NAFTA) and MERCOSUR (the common market of South America). Discuss the shift of power from nation state to TNCs as a result of their economic size and dominance. Compare the wealth of TNCs with that of nation states.

1. Define:

  • Cultural imperialism
  • Regulations
  • Sovereignty
  • Hyperglobalist
  • Nation State
  • New World Order
  • Economic hitmen

2. Read one of the following article:

3. Together, read the passages in Guinness p. 181



4. Discuss:

  • Has the creation of consumer culture increased the power of TNCs?
  • Has the creation of consumer culture decreased the power of governments?
  • Explain why it has become very important for nation states to adopt a regional identity
  • Will increased immigration result in a loss of sovereignty?
  • What if a major TNC’s main revenue is war-related?
  • Will the increased flow of idea, capital, goods and labour decrease the sovereignty of nations?
    • Think of past CS to support your answer – Aid, Jamaica, Ethiopia, NAFTA, economic hitmen etc


Using Guinness p. 188 – 192 and these articles for this section:

In groups, write a detailed outline for this IB question:

(a) Explain how one multi-governmental organization has led to a loss of sovereignty. [10 marks]

  • Make sure to include a detailed account of NAFTA’s main lines
  • Consider all 3 countries involved
  • While your main focus will be on the negative impact of NAFTA on sovereignty, include a counter argument
  • Include at least 10, underlined vocabulary terms from this unit