global gov (3.2.1.3) Flashcards
why have trends and patterns in trade changed?
due to globalisation
what has happened since 1980s to the volume and value of trade?
increased
what type of country is the largest exporter and importer?
HICs and most export production in NEEs/ LICs
who are the largest exporter?
china
what are the 4 main reasons there has been a change in patterns/ trends of trade?
- trade blocs= increased free trade
- free market (neoliberal ideas (WTO))
- increase of fair trade
- increase of middle class in NEEs
what has happened since 1980 to investment?
the volume has increased
what is the changing pattern from 1980-now
investment went HIC>HIC
now with chinas open door policy HIC>LIC
what is FDI attracted by? 3
- size of market
- stability of market
- resources (minerals)
what case study is used for world trade in one food commodity?
bananas
where are bananas mainly grown? (3)
- Asia
- Latin America
- Africa
who is the largest producer of bananas?
India and china (larger international Market)
who is the largest exporter of bananas?
Latin America- carribean
who are the biggest consumers of bananas?
EU (50%) and US (18%)
the banana market is dominated by TNC who is the largest TNC in the banana market and what %?
Chiquita (45%) or market share
what is the issue with large TNCs dominating the market?
leads to inequality of products
what is a trade war?
ban on trade (often a political move)
give an example of a trade war?
- 1973 oil crisis
- OPEC proclaimed an oil ban on US and so the oil prices in US ^x4
- Trump puts in sanctions today against china
- increased tariffs to encourage consumers to buy American products
what does TNC stand for?
transnational corporation (companies in 2+ countries)
what do TNCs dominate?
world trade
what are TNCs responsible for?
developing a global supply chain
what is the common spatial organisation of TNCs? 3
- most research and development in HICS (silicone valley)
- manufacturing where labour is cheaper/ less enviro regulations
- factories where market is (less tax)
what is the common production of TNCs?
-offshoring/outsourcing to increase profits (cheaper labour) this creates a global supply chain
what are linkages?
TNCs make links to expand their operation
what are the different types of linkages? 5
- mergers
- acquisition
- FDI
- vertical integration
- horizontal integration
what is a merger?
two companies of similar size join (exon+mobile 1998 oil)
what is an acquisition?
where a company buys another company (Facebook/ instagram)
what is an FDI?
investment of money into a company/ country includes merges/ acqusitions
what is vertical integration?
takes over supply chain (shell)
what is horizontal integration?
similar stage/ size of production
at the TNC host country what are the social pos/neg (1 each)?
√ skilled jobs
x poor working conditions
at the TNC origin what are the social pos/neg (1 each)?
√ high skilled jobs
x deindustrialisation
at the TNC host country what are the £ pos/neg (1 each)?
√ multiplier effect (FDI)
x eco leakages
at the TNC origin country what are the £ pos/neg (1 each)?
√ low prices
x TNC dominate (clone town)
at the TNC host country what are the enviro pos/neg (1 each)?
√ sustainable technology
x environmental pollution
at the TNC origin country what are the enviro pos/neg (1 each)?
√ renewable technology
x environmental pollution
what TNC case study can you use?
APPLE
where are the apple HQ/ R+D
when built
apple park, silicone valley, Cupertino, California
started building 2013 opened 2017
where/when is the apple EU headquarters and online support?
Hollyhill, Cork, Ireland 1980
how many employees are housed at cork, Ireland HQ?
6,000
how many employees are housed at California HQ?
12,000
where are most of the apple assembly factories?
china o
where is production outsourced to for the making of apple products?
Foxconn- Taiwanese company
how many jobs does apple provide across the whole 50 states of America?
2,000,000
how many treaties stores does apple have world wide?
511 (2021)
what are the total assets of apple 2021?
$351 billion
what are 3 main factors that have brought apples success?
- well designed products
- innovative products
- slick marketing
name 3 positive of apples impact on Ireland?
- attracted highly skilled workers
- contributed to infrastructural improvements of the city
- has enhanced the republics reputation for hosting high tech TNCS which contributed to the ‘Celtic tiger’ economy
what is the main negative of apples involvement in Ireland?
most of the highly skilled workers in Hollyhill are foreign nationals so apple is accused of not creating sufficient work for the local people
what is the issues with chinas working conditions?
-working conditions: 2006 reported that 200,000 workers who lived in the Shenzen factory were regally working more than 60 hr per week for $100 a month which half was taken for living expensive (38p per hr) “sweatshop conditions”
what is the issues with chinas health and safety conditions?
2010 50 workers from Lianjian technology were poisoned by a toxic chemical used to clean iPad screens and sued apple
what is the issues with chinas student and child labour practises?
Foxconn used students and children as a way of maintaining low costs and a flexible labour force
what was a result of a the stress caused by the apple workers?
suicide- in 2009 a Foxconn worker committed cuicide after coming under pressure following the disappearance of a prototype model of the iPhone 4. by the end of 2010, 14 suicides had occurred due to the severe working conditions
what was apple criticised on environmentally by Greenpeace?
- its reliance own non-renewable resources
- use of toxic chemicals
- discharge of toxic chemicals into local water supply
- lack of recyclability of apply products
how did apple respond to its environmental criticisms? (4)
-uses 75% renewable energy
-investing in large solar panels to power its data centres
-remove PVC plastics form products
-promotes recycling of products
as a result it has moved up the green flag electronics ranking form 11th in 2006 to 6th in 2012
