Globalisation case studies Flashcards
1
Q
How did EasyJet start off?
A
- Founded in 1995
- Flights from London to Glasgow cost £29
- 1996, flights to Barcelona became available
2
Q
What is EasyJet like now?
A
- Now has around 300 flight routes
- 65 million passengers in 2014 from 30
thousand in 1995 - Own 200 aeroplanes in 2014
- £4 billion in income in 2014
3
Q
What is the EU?
A
- Trade bloc of 27 European countries
- Has its own currency the Euro
4
Q
What benefits do members of the EU gain?
A
- Member countries gain access to funds to help develop
- Farmers subsidised through the Common Agriculture Policy
- Award titles such as ‘capital of culture’ to attract global attention
- Right of free movement across borders when Schengen agreemnt removed borders.
5
Q
What is ASEAN?
A
- Association of South East Asian Nations
- Ten member states
- Population of 600 million people
- Founded in 1967
- Include HICs like Singapore and NEEs like Indonesia
6
Q
What benefits do members of ASEAN gain?
A
- Worked to eliminate taroffs to encourage free trade
- Enlarged ASEAN market improved Indonesia’s secondary economy
- The development of the ASEAN economic community will allow free labour and capital movement across borders.
- Members have pledged to not have nuclear weapons
7
Q
What is China’s open door policy?
A
- Pre 1978, China was underdeveloped due to Mao Zedong, many died in famine and lived in poverty.
- Open door policy, 1978 opened by Deng Xiaoping embraced globalisation while also remaining a dictatorship
8
Q
What were the social impacts of the open door policy?
A
- Biggest migration in history took place
- One child policy
- 300 million people left rural areas in search of better jobs
- 200 Chinese cities with 1 million inhabitants
9
Q
What were the economic impacts of the open door policy?
A
- China named the workshop of the world
- The largest TNCs began to branch out into SEZs such as Yangtze and Shanghai
- 1990’s 50% of China’s GDP is being produced in the SEZs
- 2015, average worker earns $40 or more a day
- 400 million people escaping poverty since reforms began
10
Q
Which parts of China are still ‘closed’?
A
- Google and Facebook have no access to China’s market
- 34 films to be screened every year
- ## Strict controls on TNCs such as blocking foreign acquisition of Huiyan juice by Coca Cola
11
Q
Which parts of China are more open to globalisation?
A
- FDI in China is valued at $1.25 trillion between 2015 and 2025
- Agreed to export rare Earth materials after pressure from the WTO
- Foreign TNCs allowed to invest in China’s domestic markets.
12
Q
What is a switched off place and an example?
A
- An area against globalisation and for censorship.
- South Korea is an autocracy run by one family (switched off by choice)
- The Sahel (switched off against its will)
13
Q
What makes Korea a switched off place?
A
- Citizens do not have access to the internet or social media
- No undersea data cables linking Korea and other countries
- South Korea is a developed country home to places such as Samsung and it completely juxtaposed to its North counterpart
14
Q
What makes the Sahel a switched off place?
A
- The Sahel region contains countries such as Chad, Mali and Burkina Faso which are some of the world’s poorest countries.
- Was colonised meaning many natural resources were stolen
- Lacks a coastline
- Extreme environmental conditions meaning cost of extra infrastructure
- Due to poverty there is no market meaning it is not attractive to TNCs
15
Q
Why do people outsource services to India?
A
- India has a big English speaking population due to colonialism
- Broadband capacity is unusually high in Bangalore thanks to early investment in the 1980’s meaning many call centres are built here
16
Q
What are the positives of services being outsourced to India?
A
- Call centre workers earn Indian middle class wages
- Outsourcing companies became profitable, Infosys earning $9 billion a year in 2015
17
Q
What are the negatives of services being outsourced to India?
A
- Call centre workers being exploited
- Work can be highly repetitive and due to time differences work has to be conducted at night
- Gap between rich and poor has widened, India has more billionaires than the UK but more people living in poverty than all of Africa. 2015 half a billion Indians lacked toilet