case studies Flashcards
what is the India case study
The call centres
why is India a good place to invest
large workforce
low cost of wages
world class infrastructure
coastline
politically stable
SEZs ( special economic zones )
why do the people in the call centre like to work there
pays them as much a doctor would in india ($5000)
provides for their families
lots of hours
why is it bad to work in the call centres in India
have to speak fluent English
lose their accent which can make them loose their identity and also their Indian name
where is the coffee trade case study
Ethiopia
what is the ICA and why did it exist
international coffee agreement (1945-1990)
- America fixed the coffee prices meaning coffee farmers can live off a decent liveable wage
- stop these countries becoming communist
- price collapsed by 60% once agreement over
What are the advantages of the trade for Ethiopia
increases employment levels
improves living standard
improves global popularity
what could be done to help Ethiopia
drawbacks of them?
- Reintroduce the ICA (but it goes against free trade)
- refine the coffee in Ethiopia (not developed enough)
- increase the tax on TNCS (may drive them out)
- coffee tax
- Buy fair trade coffee (more expensive)
why is it so difficult for Ethiopia to use the coffee as a spur for development
- They don’t decide their prices ( London and new York stock exchange )
- coffee farmers get paid 0.01% of their sales prices
- There imports are higher than their exports
what are the historical contexts of the Jamaica case study
1962 - Jamaica gained independence from the British empire
1973 - Economy struggles during an oil crisis
1975 - lome conversation signed to protect former British colony’s (Uk and Jamaica banana deal)
late 1970s - IMf loan $800 million
what was the banana war in Jamaica and the details
what IGO was involved
1975 - Uk agreed a deal saying they would buy there bananas from Jamaica to help farmers
mid 1990s - USA approached the WTO to stop the trade dispute around bananas. They said the agreement wasn’t ‘free trade. WTO backed the USA meaning they has access to European banana markets and because they are cheaper Jamaica bananas were no longer brought
What did the banana wars do in Jamaica
Caused the bankruptcy of of 150,000 Caribbean farmers
What was the IMFs involvement in Jamaica
They loaned Jamaica $800 million
however it has a 23% interest and now because Jamaica kept renegotiating they now owe the IMF $8 billion
What was the World banks involvement in Jamaica
what were the negatives
They made kingston free trade zone ( A SEZ )
They invest $200 million in free trade this attracted company’s due to tariff free trade
It bring many Jamaicans jobs 30,000 ‘
however
- The employees complained of low wage and exploitation so they got sacked and replaced with international workers
- Also many farmers lost profits and there for there crops and jobs
Where is the garment industry and what are the positives and negatives of the TNCs operating there
Bangladesh
positives - 3.6 million have been directly employed.
. 43% increase in exports in a one year period
. 10% of the nations GDP is made up from the garment industry
negatives - Safety regulations are often not enforced in factory’s (over 2000 injured in a year)
. child labour occurring
. the Bangladeshi economy has become reliant on the garment TNCs
. 80% of worker are uneducated women so they put up with the conditions and low pay
what are some facts/context about Coca Cola
and why is Coca Cola not available in North Korea and Cuba
- Available in over 200 countries
- 1.7 billion sold a day
- directly employs 150,000
-secret recipe only know by 7 people at one time - Invented in Atlanta, USA
- They own 4/5 of the best soft drinks ( Coca Cola, Diet coke, Fanta, Sprite )
It isn’t sold in North Korea because it is highly communist and doesn’t trade with the rest of the world. It isn’t sold in Cuba because they don’t trade with America