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Globalisation and development > Globalisation and Development > Flashcards

Globalisation and Development Flashcards

1
Q

Give two economic indicators of development

A

GDP

GNI

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2
Q

Give 5 social indicators of development

A 
People per doctor
Access to safe water
Literacy rate
Life expectancy
Emancipation of women
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3
Q

Give 3 demographic indicators of development

A

Infant Mortality Rate
Birth rate
Death rate

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4
Q

Give 1 political indicator of development

A

Governance

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5
Q

Define the term development

A

The process of social and economic advancement in terms of the quality of human life.

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6
Q

What are the advantages of GDP as a development indicator?

A
  • Shows relative wealth

- An increase in GDP is normally indicative of development

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7
Q

What are the disadvantages of GDP as a development indicator?

A
  • Hides inequalities
  • Manipulated by governments
  • Doesn’t account for informal economies
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8
Q

What are the advantages of birth rate as a measure of development?

A

Clear- LDC’s have high brith rates due to a lack of contraception, education and gender inequality.

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9
Q

What are the disadvantages of birth rate as a indicator of development?

A
  • Impact of population policies not considered.

- Doesn’t consider the proportion of children who are of child bearing age.

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10
Q

What are the advantages of using the death rate as an indicator of development?

A
  • Indicates level of care, water quality, sanitation and living conditions.
  • Easy to use
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11
Q

What are the disadvantages of death rate as an indicator for development?

A
  • Doesn’t give information on what is responsible for the death rate.
  • Developed countries have an ageing population.
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12
Q

What are the advantages of IMR as a indicator for development?

A
  • Indicates health care, water quality and food supply.

- Is a significant aspect of development.

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13
Q

What are the disadvantages of IMR as a indicator for development?

A
  • Doesn’t give a cause

- Hard to calculate an actual figure

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14
Q

What are the advantages of people per doctor as an indicator for development?

A

Gives info on education, health care, death rates and political awareness.

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15
Q

What are the disadvantages of people per doctor as a indicator for development?

A
  • Some countries have poor education but sufficient doctors.
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16
Q

What is the Human Development Index?

A

A comparative measure of development taking into consideration life expectancy, adult literacy, enrolment in education and GDP per capita.
1=developed
Less than 0.5 is undeveloped

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17
Q

What is the Brandt Line/ North-South divide?

A
  • The imaginary line separating the richer north and the poorer south.
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18
Q

What is the development gap?

A

The difference in affluence between poorer and richer countries. In the North there exists just 20% of the world’s population, but 80% of wealth. As this gap has increased, the focus has become to reduce it.

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19
Q

Give 4 characteristics of an LDC

A
  • High mortality rates
  • Undeveloped infrastructure
  • Primary employment
  • High density and low quality housing
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20
Q

How can we classify LDCs?

A

1) Low income… When the GDP per capita is less than $800
2) Human resource weakness… When it doesn’t meet the minimum of indicators like health, nutrition and education.
3) Economic vulnerability… When there is a low level of economic diversification of the share of manufacturing and labour force. It can also be measured by the percentage population displaced by natural disasters.

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21
Q

Give 2 social problems in LDCs

A

Poor sanitation

War and conflict

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22
Q

Give 2 economic problems in LDCs

A

High levels of debt

Produce and export low profit goods

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23
Q

Give 2 demographic problems in LDCs

A

High birth and death rates

High IMR

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24
Q

Where is Malawi?

A

South East Africa

Borders Zambia, Tanzania and Mozambique

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25
Q

Give some economic information about Malawi?

A
  • GDP is $224
  • Over 85% live in a rural area
  • 80% live below the poverty line
  • Has Uranium, oil and gas reserves
  • Economic growth since 2007
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26
Q

Give some social information about Malawi?

A
  • HIV/AIDS prevalent
  • Precarious food supply network
  • Prone to natural disasters
    Health care, education and environmental conditions have started to improve.
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27
Q

Give some political information about Malawi

A
  • Gained independence from Britain in 1964
  • Followed by 30 years of dictatorship
  • Currently a democracy
  • Large amounts of corruption
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28
Q

Give some demographic information about Malawi?

A
  • Rapid population growth means there is increasing pressure for farm land
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29
Q

What is the life expectancy in Malawi?

A

58 for men

61 for women

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30
Q

What are the literacy rates in Malawi?

A
  • 72% for men
  • 42% for women
  • Only 6% go to secondary school
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31
Q

What is globalisation?

A

The increasing interconnection of the world’s economic, cultural and political systems.

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32
Q

Give some examples of globalisation?

A
  • International companies with influence all over the world can potentially change people’s lifestyle e.g. McDonalds in Mexico
  • London 2012 spread and showed British culture and united the world through sport.
  • The EU combines and unites a group of countries to help deal with conflicts and problems which promotes world peace.
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33
Q

What are the environmental impacts of globalisation?

A
  • Waste + garbage in LEDCs
  • Activity in one country impacts on another
  • LEDCs lack of enforced laws e.g. pollution, poor conditions and low wages.
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34
Q

What are the social and economic impacts of globalisation?

A
  • MEDC opportunities drive talent from LEDCs- Brain drain
  • ‘Electronic sweatshops’
  • Outsourcing of service work e.g. India
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35
Q

What are the social impacts of globalisation?

A
  • Easier to catch criminals
  • Spread of fast food chains
  • Ability to cross borders aids criminals e.g. 9/11
  • Loss of culture
  • International migration and multiculturalism
  • Global awareness e.g. 2004 tsunami
  • Innovations from LEDCs/ MEDCs like Yoga/Antibiotics
  • Allowed spread of disease e.g. AIDs and Ebola
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36
Q

What are the positive economic effects of globalisation?

A
  • WTP- Rapid expansion
  • Domestic companies have to fight foreign competition- raise standards
  • Inward investment by TNCs creates new jobs and skills for locals
  • TNCs bring wealth which can be invested in education, health and infrastructure
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37
Q

What are the negative economic effects of globalisation?

A
  • TNCs exploit workers in LEDCs
  • Rich countries exploit the poor, LEDCs provide MEDCs with cheap labour and raw materials.
  • TNCs send wealth to MEDCs, close local businesses ad then may switch to a cheaper country.
    Industry may thrive in LEDCs at the expense of MEDCs
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38
Q

What is capital?

A
  • Money thats invested in order to generate profit.
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39
Q

What are the different types of flows of globalisation?

A

Capital
Production
Services
People

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40
Q

What is flow of capital?

A
  • Over time, the amount of capital invested in foreign countries (FDI) has increased allowed by improvements in ICT. Economies are now dependent on flows of investment between countries.
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41
Q

What is flows or production?

A
  • Rather than making things in the country where the products are sold, lower labour costs have caused companies to shift manufacturing to developing countries. Consequently, international trade is increasing.
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42
Q

What is flows of services?

A
  • Improvements in ICT have allowed services to become global industries e.g. banking, insurance, customer support
  • High level services= e.g. financial services remain in MEDCs
  • Low level services= e.g. customer support is being outsourced to LEDCs
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43
Q

What is flows of people?

A
  • Improvements in transport mean people are moving to different countries. They do this in order to look for a better life and it includes both skilled and unskilled workers. As a result there is increasing diversity and multiculturalism.
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44
Q

What is a NIC?

A
  • A LEDC which has recently undergone rapid industrialisation and has an average economic growth of at least 6%.
  • In addition, you find the % of people working in primary industries decline and secondary increases.
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45
Q

What were the 1st phase NICS?

A
  • In the 1960s TNCs began to look or places with lower labour costs.
  • Japanese TNCs were the first to do this and the first NICs became South Korea, Taiwan, Singapore and Hong Kong collectively known as the Asian Tigers.
  • These countries are now fully developed.
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46
Q

What were the 2nd phase NICs?

A
  • As the Asian Tigers developed and wages increased, TNCs began to look for cheaper locations.
  • These became Malaysia, the Philippines and Thailand.
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47
Q

What are 3rd phase NICs?

A
  • In recent years BRICS as emerged as NICs.
  • South Africa and Brazil have huge resources of minerals such as gold and diamonds but also forests.
  • Mexico’s proximity to the USA gives it many trading advantages.
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48
Q

Where was industry concentrated in the 19th and 20th century.

A
  • North America and Western Europe
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49
Q

What happened to industry in the 1970s and 80s?

A

Many countries experienced deindustrialisation and there was a shift in manufacturing to LEDCs.

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50
Q

What has the global shift of manufacturing been like?

A
  • Very uneven.
  • Some countries have experienced rapid increases in manufacturing while other LEDCs have in fact experienced a decline e.g. Zimbabwe
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51
Q

Why would strong political leadership and State planning encourage development?

A
  • Triggers a reaction.

- By keeping wages low, TNCs are able to make a bigger profit.

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52
Q

Why does having a large, flexible and cheap labour supply encourage growth?

A
  • TNCs want to maximise their profits so produce their goods there which helps the NIC economy.
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53
Q

Why does a large and developing population encourage the growth of NICs?

A
  • Provides a bigger potential domestic market and therefore a greater demand for products.
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54
Q

Why does welcoming FDI and setting up export processing zones (EPZs) encourage development?

A
  • TNCs want to manufacture their products there because they don’t have to do a great deal or invest much money.
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55
Q

Why does a lack of trade union activity encourage development?

A
  • Trade unions campaign and strike for better working conditions and wages. If a country doesn’t have this workers aren’t going to make demands because they fear losing their jobs.
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56
Q

Why does governments granting concessions on pollution regulation and import taxes offered encourage development?

A
  • Means factories don’t have to worry about the pollution they produce and can maximise their profits.
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57
Q

Why does being close to the developed Japanese and developing Chinese market encourage development?

A
  • Provides good trade links which encourage TNCs to invest there because they don’t have to transport things as far.
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58
Q

Why does a strong education system encourage development?

A

Improves peoples chances and allows countries economies to develop with the expansion of secondary and tertiary industries.

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59
Q

What is the case study of a mature NIC?

A

South Korea

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60
Q

What were the reasons for South Koreas rapid economic development?

A
  • End of Korean war in 53
  • Reserves of coal, iron and copper
  • Investment from the USA
  • Well- educated workforce with cheap wages
  • Talented entrepreneurs
  • Strong government who crushed opposition and prevented the formation of trade unions
  • Tariff barriers to protect industry
  • State intervention
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61
Q

What economic changes did South Korea experience as it developed?

A
  • More than 90% of the country’s exports were manufactured goods.
  • Since 1998, trade surpluses had been recorded each year.
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62
Q

What political changes did South Korea experience has it developed?

A
  • Development of democracy
  • Policy decisions take much longer and reform is slow
  • South Korea has a very strained relationship with its counterpart North Korea
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63
Q

What social changes did South Korea experience as it developed?

A
  • During the 80s, life expectancy rapidly increased from 66 to 71 yrs.
  • Availability of health care has improved
  • Over 80% urbanised
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64
Q

Which industries developed in South Korea?

A
  • Textiles
  • Steel
  • Shipbuilding
  • Motor vehicles
  • Electronics
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65
Q

How did industry develop over time in South Korea

A
  • Manufacturing is at the core of S. Koreas growth
  • Initially, manufacturing concentrated on labour-intensive consumer goods such as textiles, clothing and footwear.
  • In the 70s this progressed to capital-intensive industries such as electronics, machinery and ship-building
  • Since the 80s the emphasis has changed to high-technology industry.
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66
Q

What is the role of textiles in S. Korea?

A
  • 3rd largest exporter
  • S. Koreas 2nd largest industry
  • 16% of the workforce
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67
Q

What is the role of steel in S. Korea?

A
  • Ranks alongside Japan, China and the USA as one of the biggest steel producers
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68
Q

What is the role of ship-building in S.Korea

A
  • By 1990, S Korea was producing 20% of the worlds ships

- Now under threat from other countries like China and Brazil.

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69
Q

What is the role of motor vehicles in S. Korea?

A
  • 5th largest producer

- Hyundai company- Factories in 11 countries

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70
Q

What is the role of electronics in S. Korea?

A
  • Foreign capital and technology encouraged and electronic components were manufactured in the 70s
  • Later in the decade, televisions, calculators and watches were produced.
  • Computers followed in the 80s
  • Since the digital age they have begun producing digital TVs and MP3s
  • Samsung electronics has an international reputation.
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71
Q

What is a case study for global marketing?

A
  • McDonalds
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72
Q

What is burgernomics?

A

The amount of time an average worker in a given country must work in order to buy a big Mac.

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73
Q

How has McDonalds been successful in global branding?

A
  • Global marketing but with local specialities

- Recognisable brand in all countries

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74
Q

Facts about McDonalds?

A
  • 35,000 restaurants
  • 118 countries
  • 1.5 million people employed
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75
Q

Give some of McDonalds local specialities?

A
  • France… Croque McDo- Cheese and Ham
  • India… Chicken Mahajara Mac- Non-beef
  • Norway… McLaks- Grilled Salmon and dill sauce
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76
Q

What is a case study for a 3rd generation NIC?

A

China

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77
Q

Give some facts about China

A
  • 2nd largest GDP and trading nation

- Fastest- growing economy- 10% per year

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78
Q

What was the first stage in China’s development?

A
  • 1978 was a pivotal year as the government decided to move from a centrally-planned to a more market orientated economy. Therefore people started setting up businesses and foreign companies wanted to manufacture their products there.
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79
Q

What was the second stage of China’s development?

A
  • FDI was encouraged in several small economic zones (SEZs) which were concentrated on Coasts.
  • Therefore there was easy access to countries in order to export goods and encourage investment from NICs and TNC manufacturing.
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80
Q

What was the third stage of China’s development?

A
  • In the 1980s they increased the no. of areas which could accept FDI.
  • They improved infrastructure and ensured investment with minimum red tape.
  • 14 coastal cities were designated ‘open areas’ for foreign investment providing tax and other advantages.
  • Therefore TNCs continued to move there and NICs invest.
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81
Q

What was China’s fourth stage of development?

A
  • China entered the WTO in 2001 which opened up new trade links and created a catalyst for more foreign investment and prevented the tariffs China had imposed previously.
  • This meant they could trade more securely and attract new investment with favourable tariffs.
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82
Q

What are the industries which dominate China?

A
  • High Technology
  • Steel
  • Consumer goods
  • Cars
  • Petrochemical industry
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83
Q

What role has high technology played in China’s industry?

A
  • Concentrated areas e.g. Beijing
  • Near most prestigious universities where most of China’s students and millionaires can be found.
  • 4000 companies e.g. Nokia
  • Low cost but educated workforce
  • Special development zone with tax incentives and reduced rents.
  • Development of infrastructure
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84
Q

What role has steel played in China’s industry?

A
  • During the 1960s government policy was to develop blast furnaces and steel making facilities.
  • Production quadrupled between 2000 and 2006
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85
Q

What role has consumer goods played in China’s industry?

A
  • Emphasis on textiles and clothing.
  • Textiles 10% of the industrial output.
  • Important textile centres e.g. Shanghai
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86
Q

What role have cars played in China’s industry?

A
  • Car assembly attracts a number of suppliers e.g. wheels, tyres
  • Cumulative causation in economy
  • Fastest growing vehicle market in the world
  • 4th largest manufacturer
  • China has a growing consumer market
  • Road-building programme
  • Foreign investment e.g. Ford
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87
Q

What role has petrochemicals played in China’s industry?

A
  • Expansion of fertilisers, plastics and synthetic fibres

- Encourage improvements in farm activity and stimulate consumer goods industry.

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88
Q

Explain the distribution of call centres in the UK

A
  • Geordie and Scottish accents considered more trustworthy

- Areas of industrial decline and high unemployment

89
Q

Why are UK call centres being outsourced to India?

A
  • Indian workers are £140 cheaper a week
  • 40% cheaper
  • 1/3 population in poverty
  • Many Indians speak good English are more educated than their British counterparts.
90
Q

What are the impacts of the outsourcing of call centres to India on their economy?

A
  • Leader writer says graduates are reduced to ‘cyber-coolies’
  • Teacher earns 1/2 of a person working in a call centre
  • Decrease in child and infant mortality.
91
Q

What 3 factors have caused BRICs to develop?

A
  • Population
  • Land mass
  • Resources
92
Q

Give some facts about the impact and influence of BRICs on the global economy?

A
  • BRICs expected to catch up with other MEDCs.
  • 25% world growth came from BRIC in last decade.
  • Middle class becoming big consumers
    By 2050:
  • China’s GDP will be $45 trillion
  • BRICs will be economically greater than the G8
  • Exchange rates will increase by 300%
93
Q

What are the economic impacts of new markets and technologies?

A
  • Improvements in transport increase trade
  • By 2025, China will be the biggest exporter of cars
  • China is set to overtake USA as apple’s biggest market
  • China’s demand for raw materials has led to growth in LEDCs e.g. Africa
  • In Brazil, grain productivity has doubled since 1990.
  • Brazil has a huge wealth of natural resources
  • By 2021, BRICs will make up 25% of world economy
  • Thousands of British workers in call centres and IT services have lost jobs.
94
Q

What are the social impacts of new markets and technologies?

A
  • China and Gulf countries are buying millions of acres of farmland in Africa and South-East Asia.
  • Globalisation of services
  • Increased technology has increased manufacturing efficiency
95
Q

What are the political impacts of new markets and technologies?

A
  • China has invested in the oil industry in other countries around the world
  • The relocation of TNCs to BRICs has negative impacts e.g. unemployment
96
Q

What are the environmental impacts of new markets and technologies?

A
  • In 2010, BRICs made up 1/4 of the worlds territory
  • In 2003, China consumed a 1/4 of the worlds steel
  • 30 years ago, the pearl river megacity in China was a village but is now home to 15 million people and hopes to become a tech nirvana for hardware.
97
Q

What are the demographic impacts of new technologies and markets?

A
  • In 2010, BRICs made up 40% of the worlds population.
98
Q

What is a TNC?

A
  • A company which operates in at least 2 countries. The organisation is hierarchical with R & D and headquarters in country of origin and production overseas.
99
Q

Why is R & D located in the country of origin?

A
  • Supply of highly skilled workers with links to local universities..
100
Q

Why are TNC headquarters located in the country of origin?

A
  • Good communication and transport links- connection
101
Q

Why are factories located in LEDCS?

A
  • Government policies, cheaper labour costs and undeveloped land.
102
Q

Why is resource extraction done in LEDCs?

A
  • Rural areas
103
Q

What are the reasons for the growth of TNCs?

A 
Labour
Trade Barriers
Markets
Government
Legislation
Economies of sale
104
Q

How does labour encourage growth of TNCs?

A
  • Spatial differences in factors of production (cheaper)
105
Q

How do trade barriers encourage the growth of TNCs?

A
  • Get around trade boundaries e.g. Japan in EU
106
Q

How do markets encourage the growth of TNCs?

A
  • Demand e.g. China
107
Q

How does government encourage the growth of TNCs?

A
  • Taxes, subsides and grants
108
Q

How does legislation encourage the growth of TNCs?

A
  • Less stringent employment and pollution laws
109
Q

How do economies of sale encourage the growth of TNCs?

A
  • Consumer markets
110
Q

What are the positive impacts of TNCs on the host country?

A
  • Employment
  • New technology and expertise
  • Infrastructure
  • Increase in exports
  • Multiplier effects
  • Social improvements
  • Decrease racism and nationalism
111
Q

What are the negative impacts of TNCs on the host country?

A
  • Exploitation of workers
  • Foreign decisions
  • TNC grants- could be better spent
  • Health and safety
  • Environmental laws
  • Competition with local industry
  • Increase in urbanisation
112
Q

What are the positive impacts of TNCs on the country of origin?

A
  • High-salary employment
  • Return of profits to shareholders and taxes=government revenue
  • Cheap goods
113
Q

What are the negative impacts of TNCs on the country of origin?

A
  • Unemployment

- Reverse multiplier effect

114
Q

What are the positive impacts of Walmart on the host country?

A
  • Provides employment
  • Local companies, farmers and suppliers can supply goods
  • Invest in environmentally technologies and sustainable development e.g. solar panels
  • Skilled jobs
  • Reliable wages
  • Donates money for local area
115
Q

What are the negative impacts of Walmart on the host country?

A
  • They force their suppliers to accept lower prices
  • Local companies suffer
  • Profits returned to USA
116
Q

What are the positive impacts of Walmart on the country of origin?

A
  • Low prices
  • Provides employment
  • Operating ‘green stores’ which run on renewable energy
  • Wide choice of goods
117
Q

What are the negative impacts of Walmart on the country of origin?

A
  • Poorly paid jobs mean employees have to rely on state benefits
  • Decline in manufacturing
  • Loss of businesses and jobs
  • Greenhouse gases
  • Large and out-of-town=land lost and pollution
  • Had to pay million os dollars in compensation for poor working condiitons.
118
Q

Give some general economic facts about apple

A
  • Nearly $250 profit per phone
  • Worth 1/2 trillion dollars
  • In 2014, 169 million iphones and nearly $40 billion profit
119
Q

Give the negative economic impacts of apple in China?

A
  • Working 80hrs a week, employees wouldn’t earn enough to be taxed
  • 2 months wages=the cheapest ipad
  • $1 a hour
  • $11 a month for shared dormitory
  • Income inequality
120
Q

Give the positive economic impacts of apple in China?

A
  • Employs 1 million people in production
121
Q

Give the environmental negatives of apple?

A
  • Factories + transportation cause pollution
  • Mining damages sea be and coral which has an adverse effect on sea life
  • Loose sediment in sea
  • In China air pollution kills up to 1.3 million people a year
122
Q

Give the social negatives of apple in China?

A
  • Suicide nets
  • Refusal to return IDs
  • 80,000 at one plant- 12,000 in a room
  • Treated as replaceable and inhuman
  • Culture of intimidation
  • Exhaustion- 12 hr shifts
  • Same treatment for under 18s
123
Q

Give a demographic impact of apple in China?

A
  • In rural areas only the very old or the very young are left. Young adults have left for the cities and factories.
124
Q

What are some negative political impacts of apple in China?

A
  • Capitalist TNCs disagree with the idea of communism

- Issues with bribery and corruption

125
Q

What is a positive impact of apple in China?

A
  • More international awareness of issues
126
Q

What does NAFTA stand for?

A
  • North American Free Trade Agreement
127
Q

What does OPEC stand for?

A

Organisation of petroleum exporting countries

128
Q

What does ASEAN stand for?

A
  • Association of South East Asian Nations
129
Q

What is a trade bloc?

A

A group of countries that share trade agreements between each other

130
Q

What is a quota?

A

The introduction of a set figure for the amount of imports from a particular source

131
Q

What is a tariff?

A

A duty or tax imposed by one country on the imports from other countries

132
Q

What are the consequence of quotas on the import country?

A
  • Increase in prices
  • Fewer products
  • Decrease in trade
  • More employment within that country
133
Q

What are the consequences of quotas on the export country?

A
  • Decrease in trade
  • Loss of trade and jobs
  • Product surplus- limited market
134
Q

What are the consequences of tariffs on the import country?

A
  • People buy food and products from their own country as they are cheaper
  • Other countries may put tariffs on their goods, decreasing trade
135
Q

What are the consequences of tariffs on the export country?

A
  • Loss of business and employment
  • Less competitive
  • Forced to relocate manufacturing in order to avoid tariffs
136
Q

What is a free trade area?

A

Countries agree to abolish tariffs and quotas on trade within the bloc, but maintain independent restrictions on goods coming from outside the trade bloc- More competitive market with lower prices maintained

137
Q

What are custom unions?

A

Member countries operate a common agreed tariff on goods from outside the trade bloc- More powerful for negotiations and can maintain higher tariff rates

138
Q

What are common markets?

A

These are custom unions which, in addition to free trade in goods and services, also allow the free movement of labour and capital- Allows movement of highly skilled workers which can boost the economy.

139
Q

What are economic unions?

A

Organisations which have all the characteristics of a common market but also require members to adopt common economic policies on such matters as agriculture, transport, industry and regional policy- everyone has even competition.

140
Q

What is an example of a free trade area?

A

NAFTA

141
Q

What is an example of a custom union?

A

Mercosur

142
Q

What is an example of a common market?

A

EU in the past

143
Q

What is an example of an economic union?

A

EU

144
Q

What are the 4 reasons nations might group together?

A

Economic
Social
Development
Peace

145
Q

What economic reasons might encourage nations to group together?

A
  • Larger market
  • Reduce trade barriers=cheaper products=more trade=more profit
  • Comparative advantage- countries specialise in different areas= more production
146
Q

What development reasons might encourage nations to group together?

A
  • Working together to tackle issues like disease and poverty

- Globalisation means these issues are no longer contained by boundaries- international issues

147
Q

What social reasons might encourage nations to group together?

A
  • Freedom of movement for tourists
  • Legal frameworks
  • Human resources/ rights
  • Employment conditions e.g. Working time directive
148
Q

What peace reasons might encourage nations to group togther?

A
  • Less likely to go to war if it will damage the economy

- Agree to policies to increase regional + global security e.g. ASEAN to ban nuclear weapons

149
Q

What was the purpose of NAFTA?

A
  • Came into effect in 1994 with the aim to eliminate tariffs and other restrictions between USA, Canada and Mexico
150
Q

What prompted the formation of NAFTA?

A
  • Combat economic challenge from Western Europe and Asia
  • Combat competition from internal market of the EU
  • Growing concern that nations not in trade bloc would be commercially disadvantaged.
151
Q

What were the advantages of NAFTA for America?

A
  • Country specialisations meant increased production

- ‘Win-win situation’- popular with TNCs

152
Q

What were the disadvantages of NAFTA for America?

A
  • American companies exploit cheap labour in Mexico with in 1999 a US factor worker costing 8x as much
  • European and Asian TNCs set up their businesses in Mexico to avoid tariffs and quotas
  • Significant number of American Workers are worse off
  • ‘Trade agreement from hell’
153
Q

What were the advantages of NAFTA for Canada?

A
  • Visible trade with USA increased 80% and doubled in Mexico in just one year
  • 1 million new jobs
  • Very beneficial
  • Doesn’t share a border with Mexico so doesn’t share the same problems
154
Q

What are the advantages of NAFTA for Mexico?

A
  • New market is forcing Mexican companies to adopt higher foreign standards
  • Increase business competitiveness
  • Numerous trade agreements- with USA and EU
  • Being used as a springboard for trade with USA and Canada
155
Q

What are the disadvantages of NAFTA for Mexico?

A
  • Swapped one kind of trade dependence for another
  • Government didn’t prepare the country for such enormous change
  • Farmers have been hard hit by the loss of quotas and tariffs
156
Q

Give a brief history of the EU

A
  • Formed after WW2 to ensure future peace
  • 6 countries working on heavy industry
  • Became a common market in 1957
  • UK joined in 1973
  • Economic union formed in 1993
  • Euro established in 2002
157
Q

What are the negative impacts of the EU?

A

1) Democracy
2) Drain on economy
3) Bail
4) CAP
5) Reduced ability to make decisions
6) Environment
7) Success without
8) Immigration
9) CAP on developing countries

158
Q

What are the positive impacts of the EU?

A

1) Security
2) Investment
3) Trade
4) Individuals
5) Business
6) Environment
7) Agriculture
8) Education and health care
9) Consumer benefits

159
Q

How does the EU drain the British economy?

A
  • Money spent on bureaucracy and wasteful spending e.g. CAP. In 2006, 1/2 spending was on CAP which is unnecessary and unfairly distributed with France benefiting most. The UK paid more to the EU than it spent on railways.
160
Q

How is CAP damaging?

A
  • Inefficient
  • Subsidies farmers to produce unnecessary goods. The dumping of the excess supply created falling prices and incomes for world farmers. Some reforms have been made but its difficult to end the culture of subsidisation
  • CAP adds £800 to an average UK families food bill
161
Q

What is the effect of a reduced ability to make decisions in the EU?

A
  • EU law has primacy over British law and is partly ruled by unelected euro-functionaries and the EU now has characteristics of a state.
  • Political alienation has increased and election turnouts have fallen and it is estimated 85% of domestic policy comes from Brussels.
162
Q

Give two contrasting facts about world spending?

A
  • $19 billion to eliminate world hunger

- $33 billion spent annually on makeup and perfume

163
Q

What are the aims of the millenium development goals?

A

1) Eradicate extreme poverty
2) Universal primary education
3) Promote gender equality
4) Reduce child mortality
5) Improve maternal health]
6) Combat HIV/AIDS, malaria etc
7) Environmental sustainability
8) Global development

164
Q

What is long term aid?

A
  • Aid that is given over a period of time to help promote economic development.
165
Q

What are the advantages of long term aid?

A
  • New industries can develop, leading to long term employment and skills.
  • Improvements in farming can lead to new crops and better land management
  • Trade with donor country
  • Schools, hospitals, roads, dams and other infrastructure projects improve lives over time.
166
Q

What are the disadvantages of long term aid?

A
  • Some foreign aid is given as military and weapon gifts, potentially increasing global wars.
  • Funding for big projects is often for construction but not maintenance e.g. hospitals.
167
Q

What is short term aid?

A
  • Aid that is given to help a country that has experienced a disaster.
168
Q

What are the advantages of short term aid?

A
  • Gives help which saves lives immediately e.g. food

- Can develop into long term aid

169
Q

What are the disadvantages of short term aid?

A
  • Reduces country’s ability to produce items they get from donor country e.g. crops.
170
Q

What is bilateral aid?

A
  • Aid that is given from the government of one country to the government of another.
171
Q

What are the advantages of bilateral aid?

A
  • Recipient country gets the money it needs for projects that will benefit the country and further boost the economy.
172
Q

What are the disadvantages of bilateral aid?

A
  • Sometimes tied
  • Large scale not benefiting ordinary people.
  • Corruption
  • Management of funds e.g. Zimbabwe
173
Q

What is multilateral aid?

A
  • Aid given by governments to international agencies e.g. World bank to fund development projects
174
Q

What are the advantages of multilateral aid?

A
  • Help government to generate money. Dam generates electricity, power factories, create jobs
175
Q

What are the disadvantages of multilateral aid?

A
  • Corruption

- Do not consult local people and they may not benefit.

176
Q

What is NGO aid?

A
  • Aid which comes from charities such as action aid who raise money
177
Q

What are the advantages of NGO aid?

A
  • Work on smaller community- based projects that help those who need it most.
  • No political ties
  • Projects using technology appropriate to the area.
178
Q

What are the disadvantages of NGO aid?

A
  • Reliant on generosity of the public- cash flow isn’t guaranteed.
179
Q

What is top down aid?

A
  • A responsible body directs the aid operation from above e.g. dams
180
Q

What are the advantages of top down aid?

A
  • Projects aim to solve large scale problems and are well coordinated with financial backing.
  • Large scale projects such as dams and superhighways improve infrastructure.
181
Q

What are the disadvantages of top down aid?

A
  • Capital investment and poor countries may have to add to the money given.
  • Tied and unsustainable
182
Q

What are bottom up schemes?

A
  • Grass roots initiatives that work closely with local communties
183
Q

What are the advantages of bottom up schemes?

A
  • Work with local people and is more sustainable with less corruption
184
Q

What are the disadvantages of bottom up schemes?

A
  • Only a small number of people benefit and it doesn’t necessarily help the country’s development.
185
Q

Give some background on aid

A
  • Has been around since the 1950s
  • Seen to begin with the US’ Marshall plan which was a programme designed to provide money to help Eastern European countries economically devastated by WW2.
  • Aid is important for development because it allows recipient countries to invest in things that improve people’s health and quality of life.
186
Q

Give some background on trade

A
  • Exchange of goods and services . Increasing trade within a developing country promotes development.
  • It increases economic growth- increased trade creates employment and generates wealth, which leads to a rise in the GDP of the country and the country’s living standards.
  • Increases the amount of money a country has to spend on social development e.g. education and health.
  • Increases the amount of money a country has to spend on development projects e.g. transport and infrastructure.
187
Q

What are the advantages of trade?

A
  • Creates domestic jobs which increases tax revenue and reduces welfare costs.
  • May attract FDI which generates jobs and infrastructure.
  • Reduces dependency
  • Long-term solution
  • Compete on equal footing
  • Ability to access products that they don’t have.
  • Improve relations between countries.
188
Q

What are the advantages of aid?

A
  • Vital in saving lives
  • Expensive infrastructure
  • Construction of schools and hospitals
  • Many aid agencies employ local peopl
189
Q

What are the disadvantages of trade?

A
  • many countries have protectionist policies which made it difficult to compete.
  • LEDCs trade in low value primary products causing the build up of a large trade deficit.
  • Some lack raw materials
  • Emerging markets may be flooded with cheap foreign import, destroying local business.
  • Exploitation and destruction of culture by TNCs
  • Dependency on TNCs
  • Environmental damage
190
Q

What are the disadvantages of aid?

A
  • Dependency
  • Corruption
  • Tied aid
  • Food aid can cause collapse of food production industries.
  • May fund harmful or unsustainable technologies e.g. nuclear power
  • May take the form of loans which can lead to huge debts.
191
Q

What is mass tourism?

A
  • Tourism on a large scale
192
Q

What is sustainable tourism?

A
  • A ‘greener’ form of green tourism, that as well as preserving the environment is also very concerned about the well being of local people.
193
Q

What is eco tourism?

A
  • The greenest form of tourism: a form of sustainable tourism that involves conserving the environment for future generations. Whilst it seeks to be sustainable, it is more focused on conservation of the natural environment than other forms of sustainable tourism and places greater emphasis on education.
194
Q

What is green tourism?

A
  • Embraces all brands of tourism where a conspicuous effort is made to reduce the environmental and ecological impacts of tourism.
195
Q

What are the impacts of tourism?

A
  • One billion tourists crossing international borders in 2012.
  • 5-6 billion people travel within their own country each year.
  • One of world’s fastest growing industries.
  • Accounts for 9% of world GDP and 6% of world trade
  • Greenhouse gases, water consumption and waste management.
  • Accounts for 5% of global emissions.
  • Demand for air travel is set to double by 2050.
196
Q

Give some background about Ibiza?

A
  • Balearic islands
  • 210 km of shoreline and 53 beaches
  • Population growth of nearly 50,000 in ten years.
  • 6 million tourists every summer.
  • Mediterranean climate
  • Famous nightlife
197
Q

What are the impacts of tourism on Ibiza?

A
  • Transformed coastlines and inland landscapes.
  • Infrastructure- plans to expand airport and port is a threat to the World Heritage site Posidonia meadows
  • Loss of habitats and biodiversity- Balearic Shearwater bird
  • Water scarcity and pollution
  • Increased pollution- energy use increased 70% in the last decade.
  • Increased waste
  • Loss of rural landscapes and traditional activities
  • Loss of cultural heritage- Dalt Vila
198
Q

What is the background to rainforest expeditions?

A
  • 4 award winning Amazon locations
  • Partnership between RFE and local community infierno in 1996 called the Ke’eway Association in Participation where by decisions are made equally with profits split in a ratio of 60:40 in the community’s favour.
199
Q

How is Rainforest expeditions socially sustainable?

A
  • 20 year contract which infierno have no obligation to renew.
  • Rota to ensure that everyone in the village has the opportunity to work.
  • ‘Communicators’ to learn about how the local people feel about everything.
  • Improvements in literacy, nutrition and healthcare.
200
Q

How is rainforest expeditions economically sustainable?

A
  • Local people are the owners and decision makers
  • In 2005, local families experienced a 25% rise in their annual incomes.
  • 60,000 foreigners in 2014
  • Multiplier effect- development of other smaller businesses.
201
Q

How is rainforest expeditions environmentally sustainable?

A
  • Works with local farmers to obtain eggs, and is establishing a chicken farm
  • No electricity or hot water
  • Constructed from local materials like clay, wild cane and palm fronds.
  • Recycling
  • Rules for tourists when out walking
  • Education on ecology and diversity
  • Conservation efforts- eagle nests.
202
Q

Give some background to Ayers rock?

A
  • Located in Uluru Kata Tjuta National Park.
  • Aboriginal owners are the Anangu
  • Partnership between the Department of Environment and Heritage and the Anangu.
  • Monolith.
203
Q

How is Ayers rock socially sustainable?

A
  • Share culture and beliefs
  • Don’t have to move away to find employment
  • 1985- land was officially returned to the Anangu by the government.
  • Mutitjulu foundation
  • Learning Anangu language and etiquette
204
Q

How is Ayers rock economically sustainable?

A
  • Provides people with employment meaning they don’t need to move away.
  • Purchase of indigenous artefacts and tours.
205
Q

How is Ayers rock environmentally sustainable?

A
  • Resource management is done by the Anangu
  • Camping ground, hotel and shops, were removed from the base of the rock.
  • New facilities 10Km away outside the national park with low rise architecture and desert colours.
  • Roads improved and walking tracks constructed to protect sensitive areas.
  • Use of camels to conserve water
  • Not allowed to climb on the rock, feed animals but must take rubbish away.
  • World heritage site.
206
Q

What is sustainable development?

A
  • Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
207
Q

What environmental objectives are associated with sustainability?

A
  • maintain ecological processes and life-support systems.
  • Preserve genetic diversity
  • Ensure the sustainable utilisation of species and ecosystems
  • From this, the concept of economic sustainability followed, because it examines the ability of economies to maintain themselves when resources decline or become too expensive and when populations dependent on the resources are growing.
208
Q

What is environmental sustainability?

A
  • Using the environment in a way that doesn’t permanently damage or alter it so that future generations can still get what they need from it.
209
Q

What is economic sustainability?

A
  • making sure that the economy keeps running and growing in the future, even if resources run out or the population grows.
210
Q

What is true sustainability?

A
  • Must take into consideration environmental, social and economic factors.
211
Q

What is the environmental performance index EPI?

A
  • Constructed through the calculation of 20 indicators reflecting national environmental data.
  • Switzerland has the best score.
212
Q

What is a case study for unsustainable development?

A
  • Sarawak, Malaysia
213
Q

Give some background info on Sarawak?

A
  • Population of 2.6 million
  • Economic growth of 7%
  • 35% of wealth generated from the environment
214
Q

How is logging in Sarawak unsustainable?

A
  • Policy of logging removes species that take 100s of years to grow e.g. Mahogany
  • Threatens diversity
  • Forest is a finite resource
  • Cash crops such as palm oil are planted.
215
Q

How are cash crops in Sarawak unsustainable?

A
  • Removes key nutrients from the soil.
  • Soil erosion
  • Reduction in yields
  • Too much reliance on agriculture
216
Q

What is an example of a sustainable country?

A
  • Sweden
217
Q

How is Sweden sustainable?

A
  • Ranked 9th in world
  • Renewable energy 50%
  • 33rd best air quality
  • Local fisheries
  • 1st for health
  • Education on conservation and sustainability
  • Eliminate Co2 by 2050.
218
Q

How is sweden trying to make its housing and energy sustainable?

A
  • By 2021, Sweden aim to have lessened oil consumption with a reduction of 40% in industry.
  • Geothermal energy and waste heat provides heating nationally
  • Vaxjo has 60,000 residents, 150Km bike paths, buses run on sewage and the ciy aims to have no CO2 by 2025.
  • Passive housing
  • 33% tax increase for cars running on gases.

Globalisation and development (1 decks)

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