ch3 SA

Question 1

distinguish betw developing & emerging eco

Answer 1

developing

• low LS
• agri based
• poor infrastructure

by contrast, emerging

• process industrialisation
• sustained EG

Question 2

discuss impact of TNCs on emerging ecos

Answer 2

• global companies w/ prod facilities 2/+ c’s, owned by residents of 2/+ c’s
• bring adv tech & PPs to emerging ecos, ^ EG & incomes
• but large prop profits repatriated to owners in other c’s, not spent on emerging c
• gvts in emerging ecos reduce labour & enviro regs & corp tax rates to attract TMCS –> reduce QOL

Question 3

descrube the global distr of income & wealth

Answer 3

• high lvl inequality in global distr income
• HI ecos (US, AUS) ~15% global pop but earn ~50% GWP adjusted for PPP
• wealth distributed more unevently than income (over 90% world’s wealth held by inds in EUR, NAmerica, AsiaPacific, far lower lvls in India, Africa, Latin America
• but recent yrs improved global inequality income (Measured betw c’s bc strog growth in c’s

Question 4

analyse the reasons for differences in income levels between nations

Answer 4

• diffs bc structural factors in global eco & characteristics of ind ecos.
• global lvl: rules global trade system less favourable to poorer c’s since hightest trade barriers exist for agri commodities rely heavily export revenue, intellectual proporty rules favour welathier c’s
• rules GFS reflect priorities of larger wealthier ecos most influential in int orgs (IMF, WB)
• many developing ecos large foreign debt burdens incur dig interest repayments –> reduce ability gvt fund instrastructure to ^EG.
• c’s lower labour supply & quality due to worse health standards & edu lvls less productive –> lower EG & income lvls

Question 5

assess the potential impact on the enviro of EG

Answer 5

• continued EG –> higher GWP, –> ^ production –> ^ use natural resources & produce pollution & waste –> degrade enviro
• poorer c’s ^ lvl dev can be more willing to impose enviro regs even if deters some FDI –> improve enviro sustainability
• global eco grows by usign more sustainable energy sources & techs –> possibly strengthen EG w/o neg consequences
• hence, continuing world eco development mixed impact enviro

Question 6

for China, analyse the strats gvt used to respond to globalisation

Answer 6

this for indonesia tho

• recent decades, gradually adopted policies embracingglobalisation
• since 1980s shifted from policy of … towards (export led?) development, reducing tariffs..
• member of WTO
• TNCs attract FDI, companies est manuf operations
• liberalised financial flows but pos & neg effects (financial crisis 90s, currency depreciated)
• emerging from recession caused by covid, policy priorities included investments in infrastrutrue & skills to make more attractive destination for foreing investment

Question 7

positive & neg impacts of globalisation on EG

Answer 7

POSITIVE

• EG generally higher in c’s opened their markets to global trade & foreign investment

NEGATIVE

• Adv ecos msot globally integrated but comparatively weak growht last 2 decades
• globalisation era: many destabilising events (GFC, COVID)

Question 8

positive & neg impacts of globalisation on ED

Answer 8

POSITIVE

• emerging & developing ecos benefit from ^QOL (resources for edu &hc)
• some c’s, convergence in LS

NEGATIVE

• globalisation –> ^income inequality w/n c’s –> lower ED & accelerate CC

Question 9

positive & neg impacts of globalisation on income inequality

Answer 9

POSITIVE

• ^pay & expand int. emp opps benefits highly skilled workers
• pops of emerging ecos ^ income lvls w/ sig falls absolute poverty

NEG

• inequality w/n c’s widen
• adv ecos, betw highly skilled workers vs import competing sectors
• emerging ecos: cities & manuf sectors vs rural areas

Question 10

positive & neg impacts of globalisation on FMs

Answer 10

POS

• ecos ^ access overseas funds for investment –> ^EG & income/wealth

NEG

• lower FDI for less developed c’s relative to adv ecos
• ^ST financial flows destabilising impact c’s

Question 11

epositive & neg impacts of globalisation on enviro sustainability

Answer 11

POS

• opps c’s to collab on enviro preservation (int mechanisms eg. exchange carbon credits)
• ^ global scrutiny of enviro practices
• facilitate transfer new tech to improve energy efficiency

NEG

• some c’s seek attract foreign investment may not consider social costs prod
• gain ST eco adv by attracting investors want lower costs by neglecting enviro impacts of prod –> more companies harm enviro