Financial systems and economic strategies (government ideology)

Question 1

Free trade zones

Answer 1

Xiaoping’s 1978 open door reforms with coastal SEZs that generated 50% GDP by 1990s

Question 2

Low tax regimes

Answer 2

May move where lower, may not e.g. 2008/9 General Motors and Chrysler supported US

Question 3

Laissez-faire economics

Answer 3

Allows market forces to operate, UK world’s second biggest foreign takeover market (2010 Kraft) but recent protests, France and Italy monitor and halt if strategically important, US ‘poison pill’

Question 4

Neoliberalism, deregulation, and privatisation

Answer 4

No government intervention, use trickle down, City of London under MT in 1980 world’s second financial centre but Electricite de France important

Question 5

Non-participation

Answer 5

Venezuela’s Hugo Chavez rejected IMF and WB, reclaimed oil, stopped investment, 10% migration, hyperinflation, devalued currency