CM 1

Question 1

mondialisation

Answer 1

generalisation of geographical interconnections between products, economies, markets & firms

involves an increasing number of countries, including developing ones

Question 2

globalisation

Answer 2

internationalisation of productive, commercial, & financial operations

characterised by a new set of actors (firms, states, institutions) who immediately conceive their goals at a global level

Question 3

glocalisation

Answer 3

globalisation + localisation

adaptation of global strategies to local conditions

does not ignore the reality of “territories”

Question 4

rise of international trade

Answer 4

311-fold increase in world trade from 1948 - 2017

recurring oscillations - uncertain evolution with points of drastic declines

Question 5

ever-changing shape of international trade

Answer 5

small group of countries responsible for majority of trade

developed market economy countries (PDEM) dominate, but hierarchy is changing

US & UK replaced by China + Germany

Developing countries in continuous decline

Asia strongly orientated towards South, compared to other developing areas who are orientated to North

Question 6

Overview of the South

Answer 6

Asia’s success contrasts with decline of other continents

Influence of southern countries fortified by contribution of emerging countries

Africa remains in spiral of “difference” trade

Increasing number of developing countries

Raw materials remain important to Global South, but they are longer as important of a source

Middle East highly specialised in hydrocarbons, depending on global energy demand & prices

Question 7

Main exporters

Answer 7

China
US
Germany

Question 8

Main importers

Answer 8

US
China
Germany

Question 9

Multinational corporations (FMN)

Answer 9

Representative of ‘mondialisation’

Include a parent company (SM) & branches (F) abroad

SM exercises control over foreign firms by owning at least 10% of their capital

Number of FMNs increased almost twice in 30 years

3/4 originate from developed & 1/4 from developing countries

Question 10

Top global FMNs

Answer 10

Walmart
China National Petroleum
Toyota Motor

Question 11

Top French FMNs

Answer 11

Total
Axa
Carrefour

Question 12

Favour in growth of ‘mondialisation’

Answer 12

international investments are slowing down, but maintained by business relocations

reduction of trade barriers began under GATT (now WHO) & continues bilaterally and regionally

FMNs manage competitiveness by exploiting internationalisation of supplies & production processes and international division of labour

Asia-Pacific industrial revolution achieved in several decade vs a century in US & Europe

End of Cold War decreased North-South confrontations

serves the dynamism of the world economy

Question 13

factors working in opposition to ‘mondialisation’

Answer 13

lasting depressed economic context since 2009

global demand growing slower than global supply

increase in international rivalry

return to commercial clashes & use of ‘stealth’ commercial protections

interwar period marked by decline in growth & trade

alternation between periods of liberalisation and protectionism, overlapping with periods of prosperity & crisis

Question 14

paradoxes

Answer 14

‘mondialisation’ as a threat to industrialised countries - deindustrialisation

job destruction with reorganisation of companies - layoffs & relocations

‘local’ purchasing - French buyer not aware of the beyond border sourcing of an apparently ‘local’ product

Question 15

specialisations in North

Answer 15

relevant

domination in processed, manufactured, or innovative products

strong incorporation of research & development activities

export of products with high technological content & added value

coordinated activism of firms & states

Question 16

specialisations in South

Answer 16

predominance of mono-activity and first-time exports or sale of minimally processed products

slow & dependent industrialisation

low attractiveness - difficulty in appealing to foreign direct investment (IDE)

Question 17

Change in multilateral trading system

Answer 17

commercial system that’s not advantageous for developing countries

consistent deflated level of commodity prices reflects strong erosion of terms of trade

imperfect global markets

increase in supply & decrease in demand

upstream - commodity markets become oligopsony (small no. of buyers)

downstream - markets become oligopolies (small no. of FMNs control distribution of most finished products)

Question 18

Northern trade policies under attack - N. public policies support their economy

Answer 18

developed market economy countries subsidies represent over 1/2 the value of imports form developing countries & 10x amount of public development assistances

N. protectionism cost S. economies - transfers from S. to protected sectors of Organisation for Economic Co-operation and Development (OCDE) are $500b

Giving up subsidies could save developed market economy countries 2.2% of their GDP

Question 19

Northern trade policies under attack - proven violations of international trade rules

Answer 19

quotas & anti-competitive practices from the N. create distortions, harming exports of developing countries

highest duties are targeted on exports from sensitive sectors: textile, leather, fishing products

Question 20

paradox of French trade - ‘Keynesian’ foreign trade

Answer 20

pre-2004 : foreign trade reacted negatively to growth

resumption of growth brought deterioration in foreign trade balance

post-2004 : deficits become lasting

France faces decline in structural competitiveness

Question 21

paradox of French trade - 2015-18 commercial situation

Answer 21

post-2004 : trade balance slipped

French external competitiveness underminded

2015/16 : deficit decrease due to reduction in energy bill

2017/18 : deficit increase due to rise in $

Question 22

why French competitiveness undermined

Answer 22

steady decline in France’s share of world trade value, but stable since 2014

“price competitiveness” generally decreased

rise of emerging countries

poor geographical specialisation of foreign trade