Globalisation 💻🌎 Flashcards
TNC case study: TOYOTA
What is the current position of Toyota, and how has it developed over time?
Toyota is now the largest producer of cars in the world.
In 2006, there were profits of $11 billion.
There are now 250,000 workers employed in 20 countries.
It began to develop overseas in the 1950s, in Brazil.
In the 1990s, it developed in the UK: in 1992, UK’s Burnaston factory started.
TNC case study: TOYOTA
Why did Toyota choose to open a car plant in Burnast, Derby?
- Room for expansion on a greenfield site 8km from the centre of Derby.
- Large expanse of flat land available; over 100 hectares.
- Central position in UK for home market
- Lots of unemployed, skilled workers living nearby, recent job losses at Rolls Royce in Derby.
- Many car component firms located near by in the West Midlands.
- Good road access
- Near to National Rail network
- Support from the government available
TNC case study: TOYOTA
What are the reasons for Toyota developing in the UK?
- Strong history of vehicle manufacturing in the UK.
- Large domestic market for cars in the UK
- Car components are already made by many firms
- Excellent workforce and favourable working practices
- Supportive positive attitude to inward investment from British government
- English= second language in Japan.
- Good communications with the rest of Europe.
TNC case study: TOYOTA
What are the benefits of Toyota production in the UK?
More jobs created (MULTIPLIER EFFECT)
Many parts supplied from the UK- 220 suppliers from European countries.
Improved transport- new rail station at nearby Wellington, new M1.
More people are attracted to the area (MULTIPLIER EFFECT: house prices rise)
4700 new houses built
TNC case study: TOYOTA
What are the problems to the area and UK due to Toyota development?
More people—> more traffic —> higher risk of accidents + increased air and noise pollution
More demand for local services- lack of space in schools, more demand for health services
More houses built—> more habitats destroyed.
Reasons for China’s rapid growth:
General facts !
In 30 years, China has gone from being an agricultural economy to a strong manufacturing economy. —> 3rd largest in the world.
Number of products produced has increased rapidly eg:
1978: China sold 4000 TVs
2004: China sold 75 million TVs.
Many TNCs have factories in China, like Nike and Disney
Reasons for China’s rapid growth:
How has GOVERNMENT LEGISLATION lead to rapid growth?
In 1977, Děng Xiaoping sought to end China’s isolation and stimulate Chinese industry. Foreign investment was encouraged but the government maintained overall control over the economy so that China would gain maximum benefit.
Between 1980 and 1994, special economic zones (SEZ’s) were set up. These paved the way for foreign investment by providing tax incentives to foreign companies.
Reasons for China’s rapid growth:
How has THE HOME MARKET lead to rapid growth?
As families become wealthier, consumer demand INCREASES.
Today China has a large and relatively rich Urban population demanding electrical household goods, air conditioning, cars and computers. The one child policy reduced population growth and resulted in wealthier families…
China’s home market will continue to grow.
Reasons for China’s rapid growth:
How has THE OLYMPICS FACTOR lead to rapid growth?
In 2008, the Olympics were in Beijing—> this provided China with the perfect opportunity to showcase the nation.
The opening ceremony, based on the theme ‘One world, One Dream’, was important in an attempt to convey China as a modern, open and friendly country.
Reasons for China’s rapid growth:
How has ENERGY lead to rapid growth?
Industrial development on a large scale demands large energy resources.
China currently generates 2/3 of its electricity at coal- fired power stations.
Many new plants are being built.
2010: HEP accounted for 13.9% of energy produced.
China produces more HEP than any other country in the world and is keen to develop new sources of energy.
The Three Gorges Dam is the largest dam in the world, generating 22,500mW. Along with the development of navigation along the Yangtse, the dam has lead to much development.
Reasons for China’s rapid growth:
How has LABOUR lead to rapid growth?
CHEAP LABOUR !!!
This is a key reason why the economy thrives.
Wages are 95% lower than in the USA—> can be $140 per month.
China’s rapid growth:
What are the negative impacts?
- 16 of the top 20 most polluted cities in the world are in China.
- 30% of China now suffers from ACID RAIN due to unregulated factory outputs.
- 70% of China’s freshwater is now polluted- rivers and lakes.
- 20% of the population still live on less than $1 a day and this remains low due to TNC’s.
- The need for skilled labour means that many children are still exploited in unregulated factories.
TNC case study: TOYOTA
When and where was Toyota initiated?
In Toyota, Aichi, Japan in 1937.
The Kyoto Protocol:
What is it?
An international directive on pollution control and carbon reducing initiatives.
It extends the 1992 United Nations Framework Convention on Climate Change (UNFCCC) that commits State Parties to reduce greenhouse gas emissions.
The Kyoto Protocol:
Explain the protocol.
The Protocol recognises that developed countries are primarily responsible for the current high levels of greenhouse gas emissions in the atmosphere as a result of more than 150 years of industrial activity, and places a heavier burden on developed nations to reduce emissions. 191 countries agreed to the treaty.
The United States signed but did not ratify the Protocol and Canada withdrew from it in 2011. Many governments signed the Kyoto Protocol, committing them to reducing greenhouse gas emissions.
Some researchers doubt the commitment of some countries to this agreement. It is hoped that a new, more stringent agreement will be reached and applied from 2020.
