Biddle- globalisation

Question 1

Economic causes of inequality

Answer 1

Countries with mineral deposits and energy resources are more likely to develop first industrially
This is because they’re able to provide more jobs, improve transport systems and develop technology.

Question 2

Social causes of inequality

Answer 2

The more a country develops the more they have to spend on education, health and better quality housing.

Question 3

Political causes of inequality

Answer 3

Countries are more likely to develop if they have a stable government who invests into the country/economy and avoids civil war.

Question 4

Environmental causes of inequality

Answer 4

Countries are more likely to develop is unaffected by severe natural frequent hazards such as drought and floods. Also those with clean water supplies are less likely to be affected by disease.

Question 5

Causes of povery

Answer 5

1. Bad growing conditions
   poor countries more likely to have poor quality soil and therefore farming practices are made worse, reducing agricultural activity and increasing poverty.
   Also there more likely to have little or seasonal rain, disrupting growth of crops, increasing food shortages.
2. Subsistence farming
   Farmers that only produce enough food for themselves and their families.
   Therefore survive on the food they produce, don’t have any surpluses to trade/sell so no income- so can’t afford an adequate lifestyle.
3. Overpopulation;
   space and resources not enough for the population.
   So strain of resources = poverty.
4. War
   Destroys crops and buildings, creating water and shelter shortages and decreases productivity.
5. Natural hazards;
   Destroys buildings and crops.
   Floods can reduces access to water
   Drought can reduce supply of water and increase soil erosion causing crop failure and death of livestock.

Question 6

Bangladesh Facts and compared to the uk

Answer 6

1. Total fertility- 3.2%
2. infant mortality- 41/1000
3. GNI per capita- $400
4. Bangladesh is located in south Asia

COMPARED TO THE UK
1. health expenditure; 
UK) 9.32%   B) 3.72%
2. Infant mortality 
UK) 4            B) 33
3. Birthrate 
UK) 25.8       B) 88.7
4. Death Rate 
UK) 12            B) 240

Question 7

Issues of Bangladesh; Quality of life

Answer 7

Many life on less that $2 a day and most live on less than $1 a day.
Severe poverty, overcrowding, poor housing and unsafe disposal of waster plays a major role in the water and sanitation crisis.

Question 8

Issues of Bangladesh; Debt

Answer 8

There is a wide spread indebtedness of farmers, as farmers wanted to commercialise farming by using fertilisers and more machinery.
However due to high/ frequent flooding they were unable to pay back debt due to crops being destroyed and therefore they had no income.

Question 9

Social problems Of Bangladesh

Answer 9

There is a poor provision of education and healthcare.
80% attended elementary school whilst less than 20% attended secondary school
Contributing to the literacy rates of 41 per 1000 15+
Only 2.7% of GDP is spent on education and 3.35% on healthcare.
4 hospital beds per 10,000 people.
Women find it hard to right jobs outside of immediate confines.

Question 10

Strategies for development in Bangladesh

Answer 10

1. UK, NGOs and govt are working to address situations.
2. main priority is described as the pro poor growth where development spending is being concetrated on market intervention to try and reduce the cost of food for the poor.
3. countries are developing due to trade liberations.
4. Rural areas need aid from Govt to help develop and feed the growing populations.
5. Govt set up export processing zones to raise income.

Question 11

Malawi Physical details

Answer 11

1. In the southeast Africa
2. Left is zambia
3. northeast is tanzia
4. south east is mozambique

Question 12

Malawi- development indicator

Answer 12

1. One of the poorest countires.
2. lowest GDP per capita- 179 per head
3. HDI of the country is ranked 165 out of 177
4. Densely populated 115km squaredpeople
5. high population growth- 2.6%
6. Births per women- 5.7%

Question 13

Malawi social issues.

Answer 13

One of the biggest problems is HIV

2. More that one million are affected by it- and are HIV +
3. 90,000 deaths occur due to it
4. More than one million orphans- direct result of HIV
5. Life expectancy fallen below 40

Question 14

Malawi Debt

Answer 14

Classified as the lowest income country by world bank

2. Ration of export to debts is over 300%
3. Eligible to debt relief more than 2 billion of debts cancelled.

Question 15

Countries at low level of economic development

Answer 15

Located in subsaharan Africa- 33 countries
10 countries in Asia
identified as those with
- low income
- limited opportunities for economic development
- extremely vulnerable to external shocks such a floods and droughts and shifts in the global economy which increase food prices and decrease trade and aid.

Question 16

Countries at low level of economic development

ECONOMIC FACTORS

Answer 16

characterised where countries worldwide where 1.2billion live on less than 1.25 a day and where the GNI is less than 900.
Resulting in children and adults lacking food + water so their main nutrients- making them prone to illnesses.
Also shows these countries have low income so limited opportunities for economic development- such as schooling or healthcare systems.
E.G bangladesh where less than 20% attend school and only 2.7% spent on them and 3.35% spent on healthcare.

Question 17

Countries at low level of economic development

HEALTHCARE FACTORS

Answer 17

healthcare is another indicator as poor healthcare there are
high illness rates eg hiv and aids.
increase death rate and lowers life expectancy rates .
negative economic impact = low economic productivity= low income increasing poverty.
MALAWI; more than 1 million of popluation suffer hiv resulting in 90,000 deaths and life expectancy falling below 40.

 AND BANGLADESH 
there are only 4 hospital beds per 10,000 population resulting in them having 240 compared to 12 in uk. 
 poor health care also results in 
poor quality of life as 
diseases wide spread like malaria
preventable dieseases like diarrea kill 11 million infants yearly.
lack of schooling 
lack of sanitations

Question 18

Countries at low level of economic development

LACK OF SCHOOLING

Answer 18

poor provision of education due to low literacy rates.
situation most likely to be
kids don’t attend schools- mainly girls
economic value of work
discriminations of girls
BANGLADESH - where only 20% enrol to secondary school. and women find it difficult to find work outside confine areas.

Question 19

Countries at low level of economic development

DEBT

Answer 19

• extremely vulnerable to external shocks such a floods and droughts and shifts in the global economy which increase food prices and decrease trade and aid.
  = rise in food prices and climate change undermines ability of farmers to feed themselves.
  BANGLADESH- face debt due to external shocks= debt cant be repaid
  Debt decreases opp to spend money on food and development.

Question 20

Millennium development goals

Answer 20

1. REDUCE CHILD MORTALITY;
   - A child born in a developing country is 13 times more likely to die within the first 5 years of its life than a child born in a industrialised country.
   - Annual death of children below 5 dropped below 10 million for the first time in 2006.
   SOUTH ASIA;
2. The reaching every district strategy plays a central role in improving children’s survival rates through vaccines.
3. Through community outreach, training and monitoring massive immunisation campaigns have reached vast amount of children.
4. IMPROVE MATERNAL HEALTH;
   - more than 500,000 women in developing countries die yearly in childbirth or during pregnancy.
   - in 2006 nearly 61% gave birth with the help of midwifes compared to 55% in 2004.
   RURAL INDIA;
5. over 100,000 women die due to childbirth related causes
6. poor health, unsafe home conditions and inadequate access to good health made them more vulnerable.
7. UNICEF work with govt and health partners to address this situation.
8. Womens right for life + health programme aims to ensure women and kids receive adequate healthcare.
9. COMBAT HIV/MALARIA AND OTHER DIEASES;
   - in 2007 33.2 million lived with HIV
   - malaria affects 300-500 million killing 1 million.
   - 99% of malaria occurs in Africa
   MOZAMBIQUE;
10. More children die of malaria than any other disease. reason why they have high mortality rates.
11. To prevent malaria the govt distributed insecticide treated nets to pregnant women and kids.
12. Bed nets fight malaria by preventing mosquito bites and killing them.
13. since 2000 1.7million bed nets distributed through the health system.
14. Global distribution increased from 1.35million in 2004 to 18million in 2006
15. Due to hiv programmers fewer people are infected down from 3 million in 2001 to 2.7 million in 2007.

Question 21

1. REDUCE CHILD MORTALITY;

Answer 21

1. REDUCE CHILD MORTALITY;
   - A child born in a developing country is 13 times more likely to die within the first 5 years of its life than a child born in a industrialised country.
   - Annual death of children below 5 dropped below 10 million for the first time in 2006.
   SOUTH ASIA;
2. The reaching every district strategy plays a central role in improving children’s survival rates through vaccines.
3. Through community outreach, training and monitoring massive immunisation campaigns have reached vast amount of children.

Question 22

2. IMPROVE MATERNAL HEALTH;

Answer 22

2. IMPROVE MATERNAL HEALTH;
   - more than 500,000 women in developing countries die yearly in childbirth or during pregnancy.
   - in 2006 nearly 61% gave birth with the help of midwifes compared to 55% in 2004.
   RURAL INDIA;
3. over 100,000 women die due to childbirth related causes
4. poor health, unsafe home conditions and inadequate access to good health made them more vulnerable.
5. UNICEF work with govt and health partners to address this situation.
6. Womens right for life + health programme aims to ensure women and kids receive adequate healthcare.

Question 23

3. COMBAT HIV/MALARIA AND OTHER DIEASES;

Answer 23

3. COMBAT HIV/MALARIA AND OTHER DIEASES;
   - in 2007 33.2 million lived with HIV
   - malaria affects 300-500 million killing 1 million.
   - 99% of malaria occurs in Africa
   MOZAMBIQUE;
4. More children die of malaria than any other disease. reason why they have high mortality rates.
5. To prevent malaria the govt distributed insecticide treated nets to pregnant women and kids.
6. Bed nets fight malaria by preventing mosquito bites and killing them.
7. since 2000 1.7million bed nets distributed through the health system.
8. Global distribution increased from 1.35million in 2004 to 18million in 2006
9. Due to hiv programmers fewer people are infected down from 3 million in 2001 to 2.7 million in 2007.

Question 24

Sustainable development goals

Answer 24

1. NO POVERTY ;
   - ‘end poverty in all its form everywhere’
2. End extreme poverty by 2030
3. in 2000 the world commited to cutting the numbers of living in extreme poverty by half in 15 years- this has been met.
4. However more than 800 million people still live on less than $1.25 a day
5. ZERO HUNGER ;
   - ‘ End hunger, achieve food security and improve nutrition’
6. In the past 20 years hunger has dropped by almost half
7. Many countries that used to suffer from hunger and famine can now meet nutritional needs for vulnerable people.
8. Go further by promoting sustainable agriculture and promoting small famers - reality by 2030.
9. QUALITY EDUCATION;
   - ‘ ensure equitable quality education and promote life long opportunities for all’
10. Poverty, armed conflict and other emergencies kepy kids out of school.
11. Since 2000 theres been enormous progress in providing primary education to all children.
12. Primary school enrollment rate in developing countries has reached 91%.
13. CLEAN WATER AND SANITATION;
    ‘ ensure available and sustainable management of water and sanitation for all’
14. Goal for 2030 is for everyone to have access to clean safe water.
15. Water scarcity affects more that 40%
16. Take a new path- more international corporation protecting wetlands and rivers and sharing water technological treatment.

5 DECENT WORK AND ECONOMIC GROWTH;
‘ promote sustainable economic growth and a full and productive workforce’
1. In 2015 theres widening inequalities and job growth isn’t keeping up with growing labour force.- over 200million without jobs.
2. should promote policies that encourage entrepreneurship and job creation
3. Also to eradicate forced labour, slavery and human trafficking.
4. Achieve goals of decent work for men and women in 2030.

Question 25

1. NO POVERTY ;

Answer 25

1. NO POVERTY ;
   - ‘end poverty in all its form everywhere’
2. End extreme poverty by 2030
3. in 2000 the world commited to cutting the numbers of living in extreme poverty by half in 15 years- this has been met.
4. However more than 800 million people still live on less than $1.25 a day

Question 26

2. ZERO HUNGER ;

Answer 26

2. ZERO HUNGER ;
   - ‘ End hunger, achieve food security and improve nutrition’
3. In the past 20 years hunger has dropped by almost half
4. Many countries that used to suffer from hunger and famine can now meet nutritional needs for vulnerable people.
5. Go further by promoting sustainable agriculture and promoting small famers - reality by 2030.

Question 27

3. QUALITY EDUCATION;

Answer 27

3. QUALITY EDUCATION;
   - ‘ ensure equitable quality education and promote life long opportunities for all’
4. Poverty, armed conflict and other emergencies kepy kids out of school.
5. Since 2000 theres been enormous progress in providing primary education to all children.
6. Primary school enrollment rate in developing countries has reached 91%.

Question 28

4. CLEAN WATER AND SANITATION;

Answer 28

4. CLEAN WATER AND SANITATION;
   ‘ ensure available and sustainable management of water and sanitation for all’
5. Goal for 2030 is for everyone to have access to clean safe water.
6. Water scarcity affects more that 40%
7. Take a new path- more international corporation protecting wetlands and rivers and sharing water technological treatment.

Question 29

5 DECENT WORK AND ECONOMIC GROWTH;

Answer 29

5 DECENT WORK AND ECONOMIC GROWTH;
‘ promote sustainable economic growth and a full and productive workforce’
1. In 2015 theres widening inequalities and job growth isn’t keeping up with growing labour force.- over 200million without jobs.
2. should promote policies that encourage entrepreneurship and job creation
3. Also to eradicate forced labour, slavery and human trafficking.
4. Achieve goals of decent work for men and women in 2030.

Question 30

Rostow- modernisation theory

Answer 30

STAGE 1- TRADITIONAL SOCIETY

1. Characterised by a subsistence economy, output not traded or recorded.
2. existence of bater
3. High levels of agriculture and labour intensive agriculture.
4. Vast majority of employment in primary employment

STAGE 2; PRECONDITIONS TO TAKE OFF;

1. development of mining industry
2. Increase in capital use in agriculture
3. Necessary of external funding
4. Some growth in savings and investment
5. Use of capitalism equipment helps increase productivity and generate small surpluses
6. few in secondary sector.

STAGE 3 - TAKE OFF

1. Increasing industrialisation;
2. further growth in savings and investing.
3. Some regional growth
4. Numbers employed in agruculture decline
5. at this stage industrial growth may be linked to primary industries.
6. level of technology required is low.

STAGE 4 ; DRIVE TO MATURITY;

1. growth becomes self sustaining
2. Wealth generation enables further investement in value adding industry and developement
3. industry is more diversified
4. increase in technology utilised.

STAGE 5 ; HIGH MASS CONSUMPTION;

1. High output levels.
2. Theres mass consumption of consumer durables .
3. High proportion of employement in service sector
4. Service industry dominates the economy
5. very few in primary sector
6. Secondary sectors declining to tertiary sectors

Question 31

criticims of Rostows Model

Answer 31

1. too simplistic

2. necessity

Question 32

Andre gunde Frank ‘The development of the underdevelopment’

Answer 32

He argued;

1. The development of the rich country was achieved by the exploitation of the developing country.

Question 33

Why has the dependency grown greater since Franks argument?

Answer 33

1. Many countries owe debt to developed countries or international banks.

Question 34

What are TNCs

Answer 34

Transnational corporations;

1. A corporation that has production establishments or delivers services in at least two countries.
2. The organisation is heirarchal with headquarters and R+D in the country of origin and centres of production overseas.
3. As the organisation becomes more global, regional headquarters and regional R+D will develop in the manufacturing areas.

Question 35

Reasons for TNC growth;

Answer 35

1. They take advantage of spatial differences in factors of production at a global scale. They exploit differences in the availability of capital, low labour costs and low land/building costs. E.g they take advantage of cheap labour costs. In 2002 the household appliance manufacturer moved its productions from a plant in Wiltshire to Malaysia to take advantage of cheap labour, However the company did still retain several jobs in Wiltshire where the research is carried out.
2. To take advantage of govt policies such as low subsidies, grants and taxes. Also for less stringent legislation on employment and pollution.
3. To get around trade barriers by locating production in markets that they want to sell in. E.g Japanese motor firms wanted to locate in the EU. They produced motor vehicles in the EU and were seen as European manufacturers and gained entry in the European market.
4. Also to acquire geographical flexibility by shifting resources and production between locations at a global scale in order to maximise profit.
5. The large scale and size of TNCS enables them to achieve economies of scale, allowing them to reduce costs, finance new investment and compete in world markets.

Governments are keen to attract TNCs as they bring in inward investment, creating jobs, booting exports and assisting trade balance.
TNCS have financial resources allowing them to take advantage of the best communications, cheap labour, low cost land, buildings and govt subsidies.

Question 36

Positive effects on host country

Answer 36

ECONOMIC;
1. exports increase- helping the balance of payments situation- creating more buying power for the host country.
2. As companies make more money, the govt receives more taxes allowing it to improve the economy in which way they see fit- due to more inward investment.
3. In 2007 FDI generated over 50,000 jobs in the UK which were financed through foreign companies rather than the UK govt.
4. creates a positive multiplier effect, boosts the economy, raising personal incomes. This creates more buying power for consumers goods, leading to the growth and development of service industries.
SOCIAL;
1. TNCs may bring in the transfer of new technology which creates a new skilled workforce.
2. they also bring in new ways of working to a country. Expertise and management skills are introduced such as just in time and quality management systems.
3. Infrastructure developments are required by TNCs which locals benefit from. e.g new roads, airports and water and power supplies.
4. Local services also improved by the local economy such as health and education.
5. Many shift administrative work to developing countries such as barclays have done so to countries like india. creating employment.

Question 37

Negative effects on the host country/

Answer 37

ECONOMIC;
1. profits often go back to the country of origin, therefore not used to improved the local economy.
2. Competition, TNCS take customers away from the local businesses, who then lose out on trade resulting in employers loosing their jobs. E.g This occurred when western chocolatiers moved into Russia causing traditional Russian chocolate to stop selling.
SOCIAL;
1. Outside decision making; Big decisions about TNCS are often made by the head office in the country of origin, therefore employees in the country of origin cannot make major local calls affecting them the most.
2. Labour exploitaiton;
Some TNCS exploit cheap, non unionised labour forces in developing countries they move to. In some instances this can be using child labour, with long hours with low pay rates.
3. Urbanisation;
Big companies being based in city encourages younger workers to migrate to the city to be closer to work. This can cause a rural area to obtain an ageing population and a loss of economic prosperity. It can also cause overcrowding in the urban areas.
ENVIRONMENTAL;
1. TNCS may cause damage to the atmosphere, land and water. This is often through pollution and letting of toxic gases which could lead to animal and plant life to be ruined. Alternatively big factories or shops involve a lot of people and generate noise pollution. It also results in loss of agriculture and and loss of habitat.

Question 38

Positive impact on the origin country;

Answer 38

1. increase profitability; Through paying lower wages and reducing costs companies make more money which pleases shareholders as they receive large dividends\profits. Most of these tend to be in the country of origin.
   SOCIAL;
2. its common for the most high powered, high salary jobs to stay in the country of origin as this is where the head office remains. E.G Dyson retained hundreds of R+D jobs in the Wiltshire.
   ENVIRONMENTAL;
3. Decline in local manufacturing industry may reduce pollution

Question 39

Negative impact on origin country

Answer 39

ECONOMIC;
1. Unemployment; as jobs are off-shored from the country of origin, workers at the company and at supplies will lose jobs.
Thus the reverse multiplier effect occurs, people have less disposable income, demand falls meaning there is less money in the local economy and so firms don’t want to move. a vicious circle ensures.
e.g Dyson vacuum cleaners cut 800 jobs from Wiltshire as they moved to Malaysia. They justified this by saying production costs would go down by 30%.

Question 40

TNCs case study - tesco

Answer 40

1. Tesco is the uks biggests retailer and the third largest in the world.
2. The company has expanded its global influence opening stores in many countries and sourcing goods from around the world.
3. Its very aware of its public image and has a big corporate social responsibility programme to address negative impacts caused by its business.

Tesco in the UK;

1. 30% of the uk supermarket share
2. sells over 1billion work of goods each
3. in a week annual profit is around 3billion
4. 6814 stores in the uk
5. employs over 500,000
6. immense benefits to the British economy, directly through taxes and indirectly though the multiplier effect.

Tesco around the world;

1. as a global economy Tesco directly employs a further 182,000 people.
2. the company operates stores in 12 countries outside the uk and in 2009 this totalled over 2000 stores- mainly in two continents which were Asia and Europe. This included Thailand, Turkey, India and Poland.

As well as direct jobs, it has indirect effects on thousands of people who work to supply it with goods ;

1. Tesco is the biggest buyer of south African fruit
2. service centre in Banglore provides It and financial service to the business worldwide.
3. Tescos company sources 170million worth of products each year from India.
4. Factories in Bangladesh provides clothes.

Question 41

Criticisms of Tescos increased globalisation

Answer 41

1. Action aid found women working on Tesco’s accredited farms in south Africa received poverty wages and exposed to pesticides.
2. Tesco supplying factories in Bangladesh employers worker 80hrs a week for 7p an hr and lived in small crowded shacks lacking adequate washing facilities.
3. Environmentalists have criticised Tesco for wasting energy through inefficient buildings, adding to climate through green house gas emissions and overuse of packaging.

Question 42

Tescos corporate social responsibility;

Answer 42

1. Tesco has made huge efforts to increase its corporate social responsibility programme by working with charities both uk and overseas
2. supports cancer research
3. promised to moniter its global supplies to ensure that workers are not being abused.
4. Tesco has made efforts to cut sdown on its environmental impact, using less polluting forms of transport and decreasing the use of aeroplanes to move its products.
5. Tesco have also cut down on waste due to it introducing green labelling and started to design more environmentally friendly shops and home and abroad.
6. Their ambition is to be a zero carbon business by 2050 and asked help of the carbon trust.
7. Also to use water as efficiently as possible and address water quality risks.
   2013/14 = 6,7million tonnes of co2e
   2014/2015 = 5.62 tonnes of co2e

Question 43

Nike - TNC case study- background and facts ;

Answer 43

1. Nikes global headquarters are in Beaverton, Oregon, USA
2. Employs over 700,000 people in 700 factories worldwide.
3. Nikes suppliers have changed rapidly since 1989 and south korea has declined as a supplier from over 60% to less than 10% due to it becoming an NIC and so wages are higher and production more expensive.
4. Vietnam has just become a supplier
5. Indonesia has increased its supplies to over 40% due to it being an LEDC with poor control on labour and the environment.
6. Like many TNCS nike subcontracts or uses independently owned factories in different countries to produce its products.
7. Often this takes place in LEDCS where labour costs are lower such as in Asia where 75% of the workforce is based.

Question 44

Nike impacts on the host country;

Answer 44

positive

1. Outsourcing creates substantial employment.
2. Nike pays slightly higher than local companies
3. improves skills of the local people
4. exports are a positive contribution to the balance of payments.
5. contribution to the local tax- improving local services and infrastructure.

negative

1. Workers at 9 plants in Indonesia have found to suffer from sexual and verbal abuse, lack of medical care and compulsory overtime.
2. Suspicion raised on child labour
3. Huge demand on water resources and use of fossil fuels.

Question 45

Nike impacts of the country of origin

Answer 45

+

1. 95million to community projects
2. positive employment impact and stimulus to the development of high skills levels in design marketing and development in Beaverton.
3. Direct and indirect contribution to local and national tax base.

• 1, Nike doesn’t manufacture in the US leading to a indirect loss of jobs and negative impacts on the balance of payments as footwear is imported.
  2. Trade unions complain over an uneven playing field because of the big contrast in working conditions between LEDCS and MEDCS.

Question 46

Grouping of nations - world economies

Answer 46

World economies are divided into 4 groups;
group 1- affluent countries- having their supremacy contested by new emerging economies.
group 2; emerging economies
group 3- coutries with vital resources
group 4; poorest countries who continue to stagnate and decline economically.
Many of these countries tried to achieve economic improvement relative to the rich north; Tried to;
Pursue autonomous industrial policies
Alter trade
Get greater development assistance
Encourage a more equitable economy.

Question 47

Why do countries have social groupings;

Answer 47

1. Make trade flow between members more easily.
2. Allow free movement of people; bringing the advantage of a greater flexible labour force.
3. Sharing knowledge to allow growth in all members.
4. Freedom of movement for tourists
5. Legal framework.

Question 48

Why do countries have economic grouping;

Answer 48

As countries sought to further their economic growth, they looked for alliances to stimulate trade between countries (tradeblocks) and provide other economic benefits.
There are 4 types of alliances;
1. FREE TRADE AREA:
Countries agree to abolish tarriffs and quotas on trade between themselves but maintain restrictions on goods coming from outside the area.
e.g NAFTA and European free trade association.

2. CUSTOM UNIONS;
   Member countries operate tarrifs on imports outside the group. E.g South American Regional Trade Agreement is such a union.
3. COMMON MARKETS;
   Like common unions except they allow the freer movement of labour and capital
   EU once was in this form.
4. ECONOMIC UNION;
   required to do all the above but also adopt common policies in such areas. e.g European union.

Question 49

Major trade blocs

Answer 49

European union;
Designed to improve the economic integration within Europe but with the overall aim to improve standards of living in member states.

ASEAN;
aims include; economic growth, social progress, cultural development and regional peace.
e.g. thailand, indonesia and malaysia.

NAFTA:
immediate objective was to reduce tarrifs in hope of higher employment and economic growth. e.g Canada and Mexico.

Question 50

Positive consequences of grouping of nations

Answer 50

1. Greater chance for peace and international co-operation.
2. increased trade as trade barriers are removed and so the local economy improved leading to living standards improved.
3. greater overall democratic function
4. Particular sectors in the national economy can be supported e.g agriculture in the EU supported by common agricultural policy.
5. remote and declining rural areas receive extra support from larger organisations within those countries. E.g european regional fund helps regions such a southern italy and western ireland.
6. developing the common currency; which prevents large fluctuations and makes simpler transactions. e.g the euro
7. Smaller nations have a greater political voice in world affairs.
8. people seeking work can move between countries easily.

Question 51

negative consequences;

Answer 51

1. a loss of soverignty as decision making powers are lost.
2. loss of financial control to centeral authorities such a bank; european central bank oversees the eurozone monetary policy.
3. pressure to adopt legislation - social chapter
4. certain economic sectors are damaged by having to share resources; uk fishing grounds with Spain and France.
5. Large countries hold most political power through voting systems.
6. the drive towards federalism from some country is opposed by others causing conflict.
7. smaller regions in larger countries was a greater voice which leads to separatism
   8 centralisation

Question 52

EU

Answer 52

key schemes
3 central acitivies 
economic benefits
euro
constistution 
consequences

Question 53

Trade v Aid

Answer 53

sine the 1940s there have been efforts to create development in the poorer countries of the world; it has been focused around to approaches;

1. the use of trade to promote economic growth.
2. The provision of aid from medc to ledc.

Question 54

Trade

Answer 54

Trade is dependent on 3 factors;

1. Adoption of the western style capitalism
2. creation of a trickle down effect= positive mulitiplier effect
3. promotion of free trade
4. Developing countries were encouraged to use the same kind of model that the western countries adopted. - a capitalist system of trading coupled with powerful industrial sector.
5. Economic growth is essential for economic development. Growth increases the amount of wealth being generated = increased living standards. Economic growth therefore creates the trickle down effect as more trade = more revenue flowing into the country = more wealth = living standards raised. = positive multiplier effect.
   Increased wealth = more industries= more goods = more wealth.
6. Neoliberalism became popular as an answer to problems with global market.
   Idea is that free trade is essential for economic growth - markets show be as open as possible- no restrictions.
   IMG are supporters
   In support many economists point to the growth of NICs such as singapore, malaysia who experienced huge rate of growth and industrialisation as they opened up their markets.
7. However critics point out that there were many factors that enabled this development, among the fact that their govt applied protectionaist policies.
8. exploitation
9. 16 countries in subsahran

Some economists doubt that poor countries that face problems such as hiv and drought can ever be developed through trade and economic growth as they argued

1. cannot be competative in global market
2. agriculture
3. wealth generated

Question 55

Aid

Answer 55

aid is the help or assistance given to improve the quality of life of the recipent
- aims to help develop poor countries economies, however giving aid is complex and contriversial and doesn’t always benefit the recipient.

Question 56

types of aid

Answer 56

bilateral aid
multilateral aid
NGOs

Question 57

How is aid districuted

Answer 57

long term
short temr
top down aid
bottom up scheme

Question 58

Strenghts of aid

Answer 58

1. diversity
2. save lives
3. humitarian purposes
4. different kinds with different objectives

Question 59

weaknesses of aid

Answer 59

1, reach
2. poor infrastructures
3. aid dependency
4 strings attached.

Question 60

trade v aid

Answer 60

development linked to aid

2. govts less generous
3. aids causes problems with farmers
4. trade more effiecient
5. bob geldoff

Question 61

Nics

Answer 61

Nics are countries whose economies have not yet reached development or first world status but have outpaced other countries in terms of their economic growth.
Growth is usually export orientated.

Phase 1 - asian tigers;
- when TNcs looked for areas where labour and other costs were lower- the countries of south east asia were targeted.
Japanese among first to seek new areas for their operations
- therefore south korea, Taiwan, singapore and hongkong collectivly became known as asian tigers.

Tncs set up maunfacturing parts of business in asian tigers due to ;

1. cheap labour
2. lost cost and availsabilty of raw material and land
3. less strict enviornmental and labour and planning laws.
4. reduced tarrifs and making import and export cheaper
5. favourable govt polices

Aid loans, investment and technology

similar patterns of developement reaching fully developed status;
during period of development number of characteristics in common;
labour
development drive
education
domestic consumption
high tariffs

Question 62

South korea

Answer 62

1. rapid growht 1960-90
2. grew by 9% with lg and samsung selling nd exporting worldwide
   3 growth due to serveral factors

Manufacturing been at core
labour intensive consumer goods
capital intensive industry
technology

High rate of growth been sustained by expansion of exports 40million to 195 milion
- more than 90% of exports are manufactured goods.
life expectancy increase 65 - 70

Question 63

Third generation china

Answer 63

1. worlds 2nd largest economy terms of GDP
   fastest growing economy 10%
2. second largest trading nation and largest exporter and 2nd largest importer of goods

In 1998 number of economic reforms and changes in govt policies led to economic growth.
this is because chinease leadership ……….
Opening china to tncs who wished to ……

4. foreign investment
   14 open cities
5. significant step in economic progression was entry into WTO - gave access to larger markets allowing businesses to export more easily. 266 - 969
6. allowed develop huge current surplus
7. other preconditions
   education
   investment in infrastructure
   stable policital system
8. Main industry behind growth was motor cars - 3rd largest where exports increased from 13,000 to 900,000 in 2001

Question 64

Negative impacts of chinas growth

Answer 64

1. income gap
2. environment deteriating
3. driven by exports
4. poor working condidtions
5. chinas industries require a vast amount of resources and energy - 55% of world cement
6. Relies heavily on fossil fuels which supplies 70% of the manufacturing industry.

Question 65

globalisation

Answer 65

Globalisation is the increasing interconnection in the worlds economic, cultural and political system. Therefore refers to the process by which the worlds economies, societies and cultures have become integrated through a global network of communication, transportation and trade.

Question 66

Forms of globaisation

Answer 66

economic
cultural
policitcial

Question 67

Globalisation can be seen in terms of

Answer 67

Urban
Demographic
linuistic
environmental

Question 68

four factors which promote globalisation

Answer 68

1. Flows of capital
2. Flows of production
3. Flows of services
4. Flows of labour

Question 69

Flows of capital

Answer 69

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Question 70

Flows of production

Answer 70

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Question 71

Flows of labour

Answer 71

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Question 72

Flows of servics

Answer 72

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Question 73

positicve outcomes of globalisation

Answer 73

1. increased economic prosperity
2. increased opp
3. economic
4. cultural
   5, demographic
5. linguistic

Question 74

negative outcomes of globalisation

Answer 74

1. loss of culture
2. Abuse resources
3. utilisation
4. outsource of service work
5. opp in rich countries = brain drain
6. environment
7. competition

Question 75

sustainable development

Answer 75

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Question 76

Environmental objectives

Answer 76

maintain ecological proccesses and life support systems
2. preserve genetic diversity
3. ensure the utilisation of species and ecosystems without destroying them
Therefore environmenteal sus acheived when…

Question 77

e v e

Answer 77

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