EQ 1 Case Study/ Example Stats Flashcards
When did steam power emerge in Britain?
1800’s- steamships and trains, transported goods and armies quickly along trade routes into Asia and Africa.
When did railways become essential in supporting globalisation?
1800’s- railway networks expanded globally. Railway networks connected multiple countries at a time and in the uk; proposed ‘high speed 2 railway’ (linking London and northern eng) will halve journey times
When was containerisation introduced ?
When? - 1956
Advantage of container shipping in terms of money?
It’s now possible to shift $500,000 worth of consumer electronics from shanghai to Felixtowe for up $3,000. And now China is accountable for the manufacturing of 96% of the world’s containers as country with worlds largest manufacturing output in 2020.
Jet aircrafts; when did the intercontinental Boeing 747 model arrive?
1960’s- made travel more commonplace and held title of worlds largest passenger capacity plane.
EasyJet- when was it found?
Found in 1995 and started with only 2 aircrafts but successful as it ‘made flying as affordable as a pair of jeans’
How many passengers did it gain in 2002 and 2014
2002- 11,000,000
2014- 65,000,000
By 2014 easyJet owned 200 planes also consisting of the Boeing model, and brought in revenues of how much?
Of nearly £4 billion
How many individual container movements take place each year?
200 million
Disadvantages of Containerisation; What is its effect on the environment?
The worlds merchant fleet are responsible for 4% of greenhouse gas emissions - bunkerfuel
INFLUENCE OF TECHNOLOGY; When was Facebook launched?
2004
How many Facebook likes are registered globally?
More than 4.5 billion users likes- extensive global networks of people surround the most popular twitter feeds aswell, such as lady gaga (40 million) and Taylor swift (36 million)
When was Skype launched?
2003
ICT & Tech; economic globalisation; how much dollars worth of currencies are exchanged every year worldwide?
$2,000 trillion exchanged using online banking.
ICT & cultural globalisation;
During 2017, what proved that ICT was accommodating cultural globalisation?
2017, Song Despacito by Luis Fonso and daddy yankee has now clocked up over 6.9 billion views and holds it’s current place as the most watched youtube music video of all time
POLITICS AND ECONOMIC ORG’S CONTRIBUTION TO GLOBALISATION;
When was the Bretton Woods institution established?
After the Second World War in the USA
Purpose of the Bretton Woods institution?
To restabilise the world economy and avoid a return to conditions that prevailed during the Great Depression of the 1930’s.
Now they have grown to persuading developing countries to embrace free market economics and glob.
What is the purpose of the IMF?
purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other.
Criticisms of the IMF?
- Voting rights are not proportional to the amount of money invested by a member country into the fund - for e.g; USA has 17% of the voting rights due to a larger and wealthier economy = more power
- IMF has controversial rules and regulations imposed on recipients called the SAP’s- they are meant to encourage development through the structural adjustment of the economy but they sometimes worsen economy because recipients are insisted to cut spending on services like health and infrastructure
WTO; purpose?
To draw up rules for international trade and to persuade countries to remove tariffs and taxes on foreign imports & subsidies to domestic products so trade is free without barriers
In summary; to LIBERALISE trade
TWB; purpose?
Lends money on a global scale
Criticism of TWB?
Same proportional voting system based on amount of money each country has invested
US- 16%
Power lies within the hands of the wealthiest economies
Structural adjustment in Cochabamba Bolivia;
Historical and economic build up to privatisation ?
Succession of governments attempted to wrench Bolivia out of poverty through structuralist measures; SAP set up by TWB and IMF collapsed in 1981 in attempt to take Bolivia out of poverty = 6 years of negative economic growth.
When did the Bolivian gov grant a 40 year contract SEMAPA in Cochabamba to aguas de tunari?
1999
1999- What did TWB state about Cochabamba in an economic report ?
“No public subsidies should be given to ameliorate the increase in water tariffs in Cochacamba “ - suggesting TWB knew far back that citizens of Cochabamba would be hit with price hikes
What problems occurred after the water privatisation in Cochabamba ?
- Water tariffs increased by 200-300% just weeks after Aguas del tunari took over
- family incomes in cochabamba were halved due to increased spending on water
When was the public protests staged in response of the burden of new water prices?
Feb 2000- effectively shut down the city for 4 consecutive days
TRADE BLOCS; EU
How many member countries?
28
ASEAN ; how many members?
10
When and How much did TWB lend to the Philippines?
2014- $470 million loan granted for poverty reduction programme
USMCA; what does usmca stand for?
US-Mexico-Canada Agreement
Benefits of trade blocs for TNC’s ; What did British owned tesco gain from EU?
Ten extra nations joined in 2004 and Tesco gained 75 million extra customers.
Globalisation has affected some places more than others;measuring glob.
Define the KOF index
A multi strand approach to measuring glob. using economic, social and political glob.
Achievements of ASEAN?
Overall trade has grown from $10 billion to $2.4 trln in 2020
up to 60 percent of total growth since 1990 has come from productivity gains, as sectors such as manufacturing, retail, telecommunications, and transportation which grow more efficient as their young population continues to grow.
Since when was KOF used?
1970
What are the 4 main indicators used to calculate the AT KEARNEY index?
Economic integration
Personal contact
Technological connectivity
Political engagement
What was the KOF index’s most globalised country results mostly European?
Ireland and Belgium were the world’s most globalised countries - both of which are in the European Union = free movement of people without having to apply for a visa and wealthy countries due to the vast amount of trading of materials opportunities with countries within trade bloc (28 countries)
when was the Kearney index first published?
2008
Where does the USA and Canada place on the Kearney index?
USA; 4th
Canada ;6th
How much of the world’s GDP and population does Kearney account for?
World pop. 84%
World’s GDP. 96%
GLOCALISATION BY TNC’s MCDONALDS INDIA; when did McDonald’s open its first restaurant in india?
1996 after open door policy in 1991
Give examples of food that caters to Indian diet ,sold by McDonald’s India
Mc Aloo tikki
Mc veggie burger
When did McDonald’s prove that it was glocalising it’s food according to religious diet restrictions ?
opened a vegetarian restaurant for Sikh pilgrims visiting Amritsar (home to the Golden temple)
Proof of the effect of McDonald’s localisation combined with increased wealth via outsourcing of services to India?
Eating out has gone up 9-10x from just 3x per 100 meals
How many employeees does McDonald’s India have at present?
Nearly 4000
What are the other fast food restaurant competitors up against McDonald’s?
Dominos pizza has more than 500 restaurants across India
SWITCHED OFF LOCATIONS; NORTH KOREA ; since when has NK followed the junche ‘self sufficiency policy ?
Since 1955 - minimising trade with other countries
Why may critics argue that North Korea is beginning to slowly open up to globalisation?
NK trades with China - and the Kaesong SEZ was set up - employing 52,000 ppl on the border of South Korea
COUNTRIES THAT HAVE RECEIVED FDI FOR YEARS AND ARE STRUGGLING TO SWITCH ON ; ZAMBIA (former British colony); give 2 reasons for why Zambia struggles economy wise.
- Landlocked - has to rely on good political relations with its neighbours to access ports
- Chinese investment in the Benguela rail link that carries CU for exports to the Angolan coast aswell as many others have risen the rate of CU exports since 2008 however the value of CU has fallen in recent years as fibre optic cables increasingly replace it in telecommunications
How much of Africa’s CU production does Zambia account for?
70%
How much FDI has been invested into Zambia’s CU industry ?
$20 bln- to part process the ore and add value to it
TANZANIA; what percentage of its population is employed in agriculture?
80%
When did the HIPC initiative lead to the cancellation of Tanzania’s debts?
2001
What happened to Tanzania’s econ. From 2006-2016
The global market price of just one of its main crops; raw cotton fluctuated from just $0.40 per pound to $2.00 dollars (a high price). Encouragement
Global overproduction
Fluctuations of cotton prices
No guarantee if income due to fluctuation GDP
Give proof of the EU protecting its own member states manufacturers
2006- bra wars- EU blocked imports of underwear by Clothes manufacturers from China on basis that the annual quota had been exceeded - thus jeopardising sales of EU clothing makers
ranks for 2020 most globalised countries?
1) switz
2) neth
3) belgium
4) sweden
5) Uk
Summarise the significance of technology to globalisation?
Reduce costs of transportation and communication across nations and thereby facilitate global sourcing of raw materials and other inputs. Also contributing to emergence of global village - attracting investment and cultural globalisation.
advantages of technological advancements for countries?
A fair platform on which countries can compete; A large number of firms in advanced countries are now outsourcing labour intensive services from developing countries like India using technology, in past made up for 15%, now in 2017 - 50% of India’s annual GDP
How does USMCA adjust to 21st century economy?
includes a digital chapter that provides stronger protection and stimulation of intellectual property rights and digital trade.
benefit of USMCA and NAFTA for mexico?
attracts FDI
NAFTA = tripled investment by US companies up to $100 bln worth
USMCA lower operating costs = FDI from 10 Major chinese companies - projected to increase GDP of Mexico.
Trade between all 3 countries quadrupled after NAFTA
