Globalisation Flashcards
What was an effect that the Tohoku tsunami had on the UK?
Staff at a Honda factory in Swindon had to work 2 day weeks due to parts shortages.
When was the trans-Atlantic telegraph cable set up?
The 1860s
How much does it cost to ship an iPhone from China to the UK
£1
What % of the world’s population has access to the internet?
66%
What does the world bank do?
Lends money with the purpose of funding economic development and reducing poverty.
In 2014 how much did the world bank loan the Philippines and what for?
470 million USD for a poverty reduction programme
What does the World bank require borrowers to do to secure a loan?
Adopt trade liberalisation policies and adopt a structural adjustment programme
What is the AIIB?
The Chinese-led Asian infrastructure investment bank
Why might some developing countries seek loans from the AIIB as opposed to the World Bank?
It doesn’t impose the same requirements to secure a loan as the world bank does.
In 2010 how much money did China Loan?
110 billion USD
How does the World Bank promote globalisation?
It allows developing countries to develop deeper ties with the global economy
Why is the World Bank subject to criticism?
It’s policies sometimes put economic development before social development
What is the IMF?
The international monetary fund.
What are the main aims of the IMF?
To encourage global monetary co-operation, reduce poverty and promote sustainable economic growth
What is the IMF’s main function?
To monitor global economic trends and provide short-term loans to countries with balance of payment issues.
What are the successes of the IMF?
Hong Kong, South Korea, and Taiwan have all been opened up to trade and many people now live above the poverty line thanks to the IMF.
Why doesn’t the IMF threaten sovereignty?
Countries have a choice as to whether or not they accept a loan and its conditions from the IMF
What is a shortcoming of the IMF with respect to voting procedure?
The number of votes a country has is linked to financial contribution to the fund.
How much of the IMF’s vote share is owned by the US and the EU
18% to the US and 31% to the EU.
What is a shortcoming of the IMF with regards to the economics it promotes?
High interest rates on the loans can trap countries in a poverty cycle as large amounts of the GDP are used to repay the loans.
What are SAPs?
Structural adjustment programmes, these dictate how the loans are allowed to be spent, undermining sovereignty.
How can SAPs cause problems to employment rates?
They can cause a country’s economy to become liberalised too quickly.
What year was the British Airports Authority privatised?
1987
What % of Heathrow airport is owned by the Saudis?
10
What is the world trade organisation?
An IGO that facilitates trade and promote trade liberalisation.
How many members are there of the WTO?
160 member states.
What are the main functions of the WTO?
To enforce agreements made by member nations and provide a forum for trade negotiations and settlement of trade disputes.
What % of the world’s trade is through the WTO?
98%
What are the main principles of the WTO?
Tax and Tariff free trade making it accessible to all nations.
What is the EU?
An organisation advocating for free movement of workers and services between countries.
How many countries are in the EU?
27
What financial support can countries get from the EU?
EU structural funds to help develop economies.
What is ASEAN?
The association of south east Asian nations a trading block.
How many member states are there in ASEAN?
10
What year was ASEAN founded?
1967
What does ASEAN work towards?
Promotes collaboration, economic social and cultural development, and peace and stability in the region.
How is ASEAN expected to develop?
Expected to develop into the ASEAN economic community allowing free movement of labour and capital similar to the EU.
What was China like before 1978
China was isolated and switched off from globalisation.
What happened in China in 1978?
The open door policy caused agricultural communes to be dismantled and allowed farmers to make a small profit.
Over the 30 years after 1978 how many people migrated from rural areas of China?
300 million.