Global Groupings Flashcards
What is an economic grouping?
A group of nations that are categorised together according to their overall levels of wealth
What does LDCs stand for?
Least developed countries
How many countries are classed as LDCs?
Around 50
Give 3 examples of LDCs?
Sudan
Ethiopia
Afganistan
What does NICs stand for?
Newly industrialised countries
What are NICs?
Middle Income nations where exports and average earnings have risen at unprecedented rates since 1970.
Give 3 examples of NICs
‘Asian Tigers’ = Hong Kong,Singapore,South Korea
South America = Brazil,Mexico, Argentina
What are RICs?
The second wave of NICs, called RICs to distinguish them from NICs
What does RICs stand for?
Recently Industrialised countries
Give 2 examples of RICs
China and India
What are Ex-soviet states?
States that once belonged to the USSR and are now classed as middle/low income with poor GDP and HDI figures.
Give 3 examples of Ex-soviet states
Ukraine
Kazakhstan
Russia
What does OPEC stand for?
Organisation of Petroleum Exporting countries
What is the OPEC ?
Countries that display above average levels of wealth and are the worlds major producers of oil
Give 3 examples of OPEC’s
Saudi Arabia
Nigeria
UAE
What does OPEC do?
Controls the amount of oil produced to sell to the market, the countries involved produce only enough to meet demand, not exceed, it in order to maintain a profit.
What does OECD mean?
Organisation for Economic Cooperation and Development
What are OECD nations?
Nations that have high levels of wealth that is evenly distributed among its citizens, with a good standard of living
Who belongs to the OECD?
The G7 = USA,Canada,UK,Germany,France,Italy and Japan
What is a Political grouping?
They are trade blocs which have 2 main features:
1) Agreements/laws are drawn up to allow national borders to be crossed by flows of goods,money and workers.
2) Trade Blocs can contain nations with varying levels of wealth as it allows for the sharing of resources known as a spatial division of labour.
Give 3 examples of trade blocs
EU= European Union
NAFTA= North American Free Trade Agreement
ASEAN= Association of South East Asian Nations
Who are members of NAFTA?
Canada, USA , Mexico
Name 5 members of the EU
UK, Romania,Poland,Germany ,France Italy
Name 5 members of ASEAN
Indonesia, Philippines,Thailand,Malaysia, Singapore
Why do nations belong to Trade Blocs? (4 reasons)
1) Market growth, eg when 10 new nations joined the EU Tesco gained 75 million more customers.
2) Firms and businesses have a comparative advantage due to the removal of internal tariffs.
3) Increased demand due to an enlarged market, raising production and lowering costs.
4) Small national firms within a trade bloc can merge with TNCs making their operations more cost effective.
What is a TNC?
A company that has operations in more than one country
How do TNCs build their business?
By buying up foreign firms in mergers or acquisitions
How do TNCs keep manufacturing costs low?
Manufacturing work is subcontracted to third parties, usually in developing countries, this means wages can be kept low and good working conditions hard to maintain.
How to TNCs manufacture things?
Through assembly industries meaning TNCs rely on a chain of suppliers both independent or part-owned from all over the world to manufacture separate parts of a product.
What does TNC stand for?
Transnational Corporation
How do TNCs contribute to Globalisation
1) They act as a bridge between different nations and cultures through their brand(s)
2) They bring together different economies through their supply chains and marketing strategies
3) They work in partnership with local governments to offer financial assistance and improved infrstructure
What is Glocalisation?
When TNCs customise their products to meet local taste or to attract new consumers eg Disney films like Mulan/the Lion King and Mcdonalds selling sushi in Japan
