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 are 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
how has DISNEY glocalised to foreign markets
-Disney released the film based on a russian fairytale, using russian based animators (the film was the book of masters)
-Disney’s Marvel has glocalised, spiderman by changing the original storyline about a new yorkie teenager called Peter Parker to a Mumbai teen Pavitr Prabhakar given his super power by a mystic being instead of a spider.
how has MCDONALDS glocalised to Indias market
Mcdonalds glocalised towards India, a country that does not consume Pork by altering the menu to have chicken and vegetarian burgers e.g McVeggie and McSpicy paneer (indian cheese patty)
how has LEGO glocalised to foreign markets
Lego however has not glocalised
Lego has sold identical products to all global markets, including China
Lego creates products with genuine global appeal, without taking local tastes into account
It has made more complex designs however in Denmark, Hungary, Czech Republic and Mexico
what are examples of ‘switched off’ countries
north korea
the sahel region
who currently rules north korea
Kim Jon-un
For 70 years North Korea has been ruled as an autocracy by a single family
how is north korea ‘switched off’
Politically isolated
Ordinary citizens do not have any access to the internet or social media
There are no undersea cables connecting North Korea with anywhere else
what is the history of why north and south korea split
political decisions affecting globalisation Korean War made split more permanent but the cold war caused the initial split between North and South Korea at the end of WW2
why are the sahel regions switched off
-Countries like Chad are land locked and do no have access to the sea to import and export goods.
-Its extreme environmental conditions increase the cost of providing infrastructure such as railway or ICT networks.
-Global brands do not yet view these places as viable markets, leaving them relatively switched off from consumer networks
-The mismanagement of natural resources and human resources has played a role, dating back to colonial times
Could the sahel regions ever become ‘switched on’
Change may come soon as rapid economic growth has occurred in neighbouring country, Nigeria
how has outsourcing of services in India occured
India experiences lots of FDI particularly for call centres as many indian citizens are fluent in english, giving them a comparative advantage when marketing call centres are centred towards an english speaking world
why has bangalore become the tech hub
Bangalore has a higher broadband capacity allowing the city to become a technological hub
benefits of outsourcing services in India for Indian workers
India’s call centre workers earn good middle class wages
Nightclubs and 24 shopping malls give high purchasing power earning 3500 rupees a week (£40)
Indian outsourcing has become very profitable
negatives of outsourcing services in india
Some call centre workers complain they are exploited
Despite FDI the country is poor and lacks infrastructure with half a billion indians living in home that lacks toilets