Globalisation Case Studies Flashcards
Trade Bloc - NAFTA
- Jan 1994 - eliminates tariffs and restrictions on free trade between USA, Canada and Mexico - Limited to trade so does not allow the free movement of people
Trade Bloc - NAFTA - USA
- US firms can set up factories in Mexico and benefit from lower labour costs
- American manufacturing jobs are lost to Mexicans
- Environmental laws are not strict in Mexico = Companies don’t care for the local environment
Trade Bloc - NAFTA - Canada
- Trade with USA increased by 80% in 5 years
- US investment into Canada grew by 63%
- More than 1 million new jobs created
- Environmental groups concerned about damage
Trade Bloc - NAFTA - Mexico
- Forced to adopt higher standards and better business practices
- Has zero or reduced tariffs with 60% of the world
- Mexico dependent on the USA for 88% of exports
- Many of the jobs created by TNCs are poorly paid
India and TNCs
Until 2013 foreign retailers could only have a presence on the high street by agreeing to a partnership with a local Indian business - 90% of shops are family owned
China’s open door policy
- allows China to embrace globalisation
- Dismantled the agricultural commune = allowed farmers to make a profit
- 30yrs, 800million people moved to the cities
- Called the ‘workshop of the world’
- Special economic zones were located on the coastline
- Worlds largest economy
- agreed to trade more rare earth minerals
China’s open door policy - is China closed off
- Facebook and google have little access
- only 34 foreign films can be shown annually
Switched off places - Gambia (Why)
- Lack of natural deposits
- Limited agriculture due to climate
- Lack of skilled workforce
- 75% of pop. rely on subsidence farming
- Electricity is very expensive = only 35% of the population has access to electricity
- Wildlife attracts most of the tourism in the area
Switched off places - North Korea (Why)
-70 years run by the same family = Autocratic regime
- Citizens don’t have access to the internet
- No under sea cables connecting hem to other countries
- Racially biased - Koreans taught they are superior
- Many sent to prison camps
- Tour guides do not allow for photos of poverty etc to be taken
Globalisation and TNCs - Disney
- New economy = Revenue is earned through expertise and services rather than manufacturing etc - Seen in Disney
- 2014 Turnover = $48.8 billion - $37 billion in merchandise sales
- How may employees - 120,000 in 70 countries
- Glocalised - Films show different parts of the world e.g. the Lion king shows Africa
- Merchandise Just in time System - Means it doesn’t have to operate it’s own production lines - However Overseas workers are often paid low wages - Products from China recalled for unsafe levels of Lead in their paint`
Megacity case study - Mumbai, India
- 22 million inhabitants
- Pop. doubled since 1970
- People move from impoverished states such as Pradesh
- Jobs are in global brands such as Starbucks and in retail
- Inequality = wealthy areas such as Bollywood and slum areas such as Dharavi
Megacity case study - Karachi, Pakistan
- 24 million inhabitants
- People move from all over the country e.g. Punjab province
- Jobs are in the industrial sectors, shipping, banking and manufacturing
- The university has helped the city become a global hub as it produces skilled workers who help the city become a media and software hub
Deprivation in the North East of England
- Most deprived region of the UK
- Avg. Income = £26,000
- 32,000 jobs lost due to cuts in government spending
- Most deaths caused by Smoking in the UK
- Domino effect - Area employed 55,000 in coal mining and had lots of ship yards etc - With Coal becoming too expensive too mine it became more expensive to create steel which uses Coal in the production process - Steel industry in the UK couldn’t then compete with foreign competition - Shipbuilding closed in 2007
Impacts of Deindustrailisation in Detroit
- High unemployment - didn’t replace high numbers of jobs which were lost to the global shift as the car industry left the city
- Crime - Rise in gun crime - life expectancy became 30 years less than the national average - Drug crime created an informal economy
- Depopulation - lost 1 million residents since the 1950s - called the ‘white flight’ - has prices dropped significantly
- Dereliction - all of the above led to a drop in environmental quality - arson was common etc
Environmental challenges in Developing countries - China
- Problem = Dec 2016 pollution levels 6 times greater than recommended - Poisonous smog caused schools to shut etc
- Caused by coal burning
- Steel producer had an average air quality index of 780 = record breaking
- Linked to global shift as power plants hadn’t scaled back operations to meet new regulations and new metal plants were opening without approval
Impact: - 1300 children poisoned
70% of children had unhealthy levels of lead in their blood - Gov. had to introduce regulations such as the odd-even license plates which reduced the number of cars allowed to be on the roads
Environmental challenges in Developing countries - Ivory Coast
- Company’s dumped toxic waste in the Ivory Coast which produced Hydrogen Sulphide
- British Oil firm, Trafigura was aware the dumping of the materials was illegal in Europe but claimed it was ‘not dangerous’
- The firm was fined 1 million Euros
Impacts: - 31,000 Africans hospitalised and 15 killed
Environmental challenges in Developing countries - Indonesia
- 2012 = 840,000 hectares of rain forest lost (only 460,000 in Amazon)
- Global shift has caused Indonesia to need more land for farming, mining and palm oil plantations
Impacts: - Smoke pollution has impacted neighbouring
states (lot’s of the forests are burnt instead of being cut down) - Indonesia has the highest number of mammal species under threat than any other countries
Changing Diets - Asia
- Traditional diet = Low in meat and high in vegetables
- Changes = More meat and fast food being consumed - 1990s China’s meat consumption per person rose from 5 to 50kg
- Became worlds biggest market for processed food in 2015
- This change is leading to a rise in methane emissions as Livestock farming becomes the new focus for Asian agriculture
- Chinese government plans to overcome these problems by a programme of land acquisition in poor countries e.g. Cuba which stops rain forests being destroyed
- A rise in income is one of the main reasons for this shift in diet
China’s Economic and Environmental inequalities
- Most of China’s economic growth = Industries exporting low-value products
- East - west divide in terms of wealth with areas on the East coast being much wealthier than the west due to connections with major cities and industrial zones on the coast
- Breathing air in Beijing for 1 hour can reduce life expectancy by up to 2 mins
France’s reaction to Globalisation
- 40% of television must be of French Origin
- French music heavily promoted on radio stations
China’s reaction to Globalisation
- ‘great firewall of China’ prevents internet users from accessing the BBC or Facebook
- Gov. only allows for 34 foreign films to be shown
- Western Culture is emerging though e.g. Christmas is widely celebrated as a time to meet family
Nigeria’s reaction to Globalisation
Degradation of land due to oil spills - The man who led protests over the matter was executed
Global Paralympics
- 1983-1992 = called decade of the disabled people by the UN - disabled people given equal rights
- Wasn’t always the case = USA had sterilisation programmes in the twentieth century
- Global media as turned the Paralympics into one of the world’s biggest sporting events
Internet Censorship In China
- Tienanmen square 1988 = Chinese students gather against Communism - Hundreds shot and killed by army
- Google withdrew from China as the Gov wanted Tienanmen square to be censored
- Great firewall of China blocks Facebook, Twitter and YouTube
- 400 million chinese interact via local social media services e.g. Youku Todou