All CASE STUDIES Needed - GLOBALISATION Flashcards
Attracting TNCs Case study - China
- declared open door policy to international business in 1978
- they wanted western tech and investment to develop
- china set up SEZs to attract FDI
- SEZ is a special ecnomic zone whihc used subsides and tax incentives to attract FDI from TNC s to a region
- companies from Europe and USA saw this opportunity and used this to their advantage to relocate and outsource their business
- China has 4 SEZs now known as export processing zones whihc offer tax inactives and lots of cheap labour
- chinas economy has grown rapidly and has become member of WTO
- by 2005, 8% of export come form foreign companies with connections ot these zones
- china is the largest recipient of FDI
- china is a major player in both of inflow and outflow of FDI
Attracting TNCs CASE STUDY -UK
- remove trade barriers in 1980 and let some industries collapse ( coal etc) - trade liberalisation
- tax break and subsidies to attract large oversea firms to relocate to London and the UK
- grants and subsidies to encourage inward FDI especially in manufacturing
- privatisation gave opportunities for FDI in assets and industries close before
- by 2015, Uk was te the 4th larges recepaient of FDI in the world
- outside of FDI the UK is very liberal and open to global flows
Trade blocs Case study - NAFTA
- is a trade bloc which includes USA, Canada and Mexico
- Began in 1st Jan 1994
- removes trade barriers
- can make deals and allows free tarde within members ( does not allow free movement of ppl )
Impacts of NAFTA on its members - USA
ADVANTAGES:
- Better with free trade as they can specialise what they are good at
- US firms can set up factories in Mexico and benefit form low labour costs
- environmental laws not as strict
- TNCs gain higher profit as costs are lower
- Profits are made in Mexico return to US
DISADVANTAGES:
- Mercian manufacturing jobs lost to Mexico leading to higher unemployment
- Mexican trucks are allowed on US roads but are not limited so accidents can occur
Impacts of NAFTA on its members - Canada
ADVANTAGES:
- trade increased by 80% in first 5 years
- trade with Mexico doubled to reach $9 billion in 1998
- US investment in Canada grew by 63% from first 5 years
- more than 1 million new jobs created
- in 1998, 68% of FDI was from the US and Mexico
DISADVANTAGES:
- environmental groups concerned about damage
- Canadian manufacturing jobs lost to Mexican leading to higher unemployment
Impacts of NAFTA on its members - MEXICO
ADVANTAGES:
- companies adopt higher foreign standards and business practices
- Keeps country politically modern ( influenced by US + Canada )
- has zero or reduced tariff’s with 60% of the world
DISADVANTAGES:
- dependent on USA or 80% of exports
- mnay jobs made by TNCS are poorly paid
- many jobs do not put in high standards of health and safety
Switched off places CASE STUDY - North Korea
- chose deliberately to remain politically isolated for from the rest of the world
- ordinary citizens do not have access to internet or social media
- North Korea divided from South Korea in 1948
- South Korea is more developed
- the comparison between the two countries and policies illustrated how political decisions affect globalisation
Switched off places CASE STUDY - THE Sahel region
- poverty affects majority of people
- one of the worlds leats developed countires
- mismanagement of natural resorruces and Human Resources is one of the reasons it is considered as a switched off place
- lacks a coastline so struggles to attract FDI
- arid conditions an desertification
- extreme enviroment conditions increase cost on infrastructure such as railway
- wages are low
- substances farmers rely on flow of food aid from charities global brand’s do not yet view these places as viable markers leaving them relatively switched off
Megacity problems CASE STUDY - New Delhi
- high birth rates or low death rate
- one of the worlds fastest rates of rural - urban migration
( pg 172- 173)
Development gap CASE STUDY - China
- have a structural problem
- mot of this economic growth is based on industries exporting low value products. The income declines the further inland u go
- chinas inequality is increasing
- GII index is 47% in 2010
- environment in very bad / air is very poor
- doing well economic all but at expense of the environment
Censorship CASE STUDY - great firewall of China
- 2014 china has the largest number of imprisoned journalists and cyber dissidents ( opposing ppl ) in the world
- 60 internet regulations and estimated 2 million people monitors intent for Chinese governments. They block or restrict website content and access to individuals
- media is state monitored
Limiting migration - CASE STUDY - China
- made immigration n 1900s which defined certain groups as undesirable and not allowed to settle
- 1914 - all entrants to UK had to produce evidence of identity and entry permits
- 2020 - points based y them considered minium salary, specific skills, qualifications and UK skills need requirements
Trade protectionalism CASE STUDY - USA
- economic policy of limiting tarde between countires through tariffs on imported goods and regulations that disdavanted foreign companies
- restrict imports of foreign producers and media in roder to limit cultural Erosion
- ticket sales are taxed 11%
Diasporas CASE STUDY - EU MIGRANTS
Poland to the Uk
- polish migrants joined diasporas community in Balham in London and local people worry that young migrants have increased birth rate beyond capacity of areas.
Meditarrean To UK
- Uk residents began to relocate to the Mediterranean coastline
