Case Studies Flashcards
what are IMF, WTO, the world bank known as
bretton woods institutions
what was the aim of bretton wood institutions
The main aim was to re-stabilise the world economy and avoid another great depression like the 1930s
what is the EU
a trade bloc thats turned into a multi-government organisation
European Union
TRUE or FALSE does the EU have its own currency
TRUE
the euro €
what was the original political aim for the EU
The original political aim was to integrate economies, so that interdependence prevents war.
examples of shared policies within the EU
common agricultural policy (CAP) in 1962, transportation, tax, environment, consumer telecommunications, social energy and research/science policies.
how does the EU promote tourism
EU also helps cities seem desirable globally by awarding prestigious titles such as ‘capital of culture’ to ‘european capital of innovation’
what is something UNIQUE to the EU that allows members to do
EU is the only group of nations that grants all citizens freedom of movement
how many members are in ASEAN
A free trade area with 10 members with a population of 625 million
aim of ASEAN
tariff is applied between members for specified goods. It’s working towards the elimination of tariffs sector by sector.
is ASEAN more political or economical
political
when did china begin its open door policy
1978
what was china like pre 1978 (pre open door policy)
china was a poor and politically isolated country, switched off, it was under communist ruling and many died due to famine
what does the open door policy allow china to do
allowed china to be open to globalisation but still remained communist
how did china change after the open door policy
China transformed into an urban, industrialised nation
Over the next 30 years, 300 million people left rural areas in search of a better life in cities – ‘hukou’ is a strict regulation system prevented complete abandonment of rural life
how did china get the nickname ‘workshop of the world’
Initially urbanisation fuelled the growth of the low wage factories that gave china the nickname ‘workshop of the world”
where did TNCs go in china
TNCs were quick to establish branch plants/trade relationships with chinese owned factories, within coastal special economic zones (SEZ)
in 1990, 50% of china’s GDP was being generated in SEZs
advantages of chinas open door policy
people working in iphone factories were earning $40 a day in 2015
400 million people have escaped poverty since its open door policy
Chinas success supports ‘hyper-global’ view that global-scale free trade can sometimes decrease poverty
how has china had an open door approach to global flows in terms of exporting and FDI
China agreed to export more rare earth minerals to other countries in line with WTO
Foreign TNCs are now allowed to invest in some sectors of china’s domestic markets, including its rail freight and chemical industries
how has china had a closed door approach to global flows
Google and facebook have little access to China’s market
China’s government sets a strict quota of only 34 foreign films to be screened in cinemas each year
Strict controls on foreign TNCs in some sectors, coca-cola is blocked by chinese gov by making an acquisition of Huiya an Juice in 2008, that was not allowed
how have 4 factors influenced the increasing amount of FDI in India
-Attractiveness of the country
-Potential market, high GDP levels
-A skilled worker force, low labour costs
-Tax is lower
how has indias attitude towards FDI changed
First india’s FDI proposal had to be accepted by 2 bodies, the foreign investment promotion board and the reserve bank of india
FDI was allowed but it used to only be for tech
Now india has a more liberal attitude to FDI
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chinas vs indias attitudes towards FDI
INDIA: Foreign retailers are accepted with no prior approval
Have to also invest with local businesses this has led to 90% of businesses still being family owned
CHINA: FDIs accepted must follow strict policies
China’s economy began to mature as a result of the open door policy