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)