globalisation case studies Flashcards
Spread of containerisation -
*Patent for modern container granted 1960
-Standardised size
- before loaded by human labour -now cranes
- 17 mill containers in the world
-costof transport from 30%. 0f retail price to 1%. shipping is 3.5%.- 41% 0f climate change emissions
uks internet economy -
- worthover £250 billion/ year
12% 0f national GDP - 5th largest industry
*78% 0f adults made purchases in 2017
world Bank (P and N) -
world Bank -
- to relbuild after wwIl
-fights pot by offering developmental support
- helps people help themselves
Positives
-Ioans and financial support
-provides billions of dollars a year in developmental assistance
- lends to worlds LIDC’S
-many successful projects
Negatives
-conditionality - requires open markets
- richcountries hold power
-goverened by Acs
IMF including positives and negatives-
-encourages expansion of trade
- achieve sustainable growth for al members
-reports each year on what countries do well + which are not
*stabilises exchange rates
Positives
-provide independent advice to members provide loans - financial support address issue of TNC tax avoidance
Negatives
-dominated by wealthy members
- politics in the way
- richest 10 nations 60%. 0f Voting rights
WTO including positives and negatives
- promotes global free trade
- mediates trade disputes
- Financial support when needed
-stabilises exchange rates - 164 members and others waiting to join
POSITIVES
-disputes have declined by 400%
-World trade has increased
-500 million lifted out of poverty
-China experienced rapid growth.
NEGATIVES
-led to mass protests
-rules still unfair to developing countries
-Africa became poorer
-huge inequalities
trump and free trade
- pursuing an increasingly protectionist policy
- he wants to protect US jobs from imports
-tariffs on Chinese imports
-Trade war has started - tariffs on EU and threatened to leave world trade organisation.
Jamaica-
-Island north of South America
-independence in 1962
-financial difficulties as a result of oil crisis
-IMF for loan, but due to conditionality
-forced to open markets to foreign products
-Many farmers went bankrupt
-banana wars.
Banana wars Jamaica
-Lome agreement- UK would buy bananas from Jamaica
- Most producers were small scale Farmers
-big American companies started dispute with world trade organisation
-US demanded access to European markets
-UK bananas now dominated by US
-smaller Caribbean companies can no longer compete
EU ( positives and negatives too)
-established in 1958
-originally six members, then UK and Ireland joined
-free movement of all members
-removal of border control
- free movement of business
-no restrictions of trade
POSITIVES
- people take advantage of the free movement
-saves people money and businesses
-huge increase in trade
NEGATIVES
-tensions as all countries agree to the same laws
-Still huge inequalities in the EU for example, Greece
-free movement of people is main reason why people voted to leave due to level of migration
car industry in Slovakia
include positives and negatives
-joined EU in 2004
- opened new markets
- had high unemployment rate of 18%
- low labour cost of $4 per hour
-Had a well educated skilled workforce
- Land Rover moved
-now produces 200,000 cars per year.
POSITIVES
- huge number of jobs created
-local infrastructure improve
-diversified employment structure
NEGATIVES
-could move in future as foreign owned
-unfair incentives
KOF index
include positives and negatives
-measures extent to which countries are linked socially politically and economically
-measurements include FDI, Internet users and number of embassies
-23 measurements
-in 2017 Netherlands at top of rankings
POSITIVES
-measures a wide range of variables
-One of the few that includes political
-emphasis on culture and contact between nations
- allows direct comparisons
NEGATIVES
-favours AC countries
-may not be a true measure of globalisation
-easier for smaller European countries.
Kearney global cities index
include positives and negatives
-measurements include level of business activity, quality of workforce level of culture and political
-2017, New York and London were at the top
- given a score between zero and one
-also features future city predictions
POSITIVES
-allows for comparisons between cities shows how they change over time
- change variables over time as tech changes
NEGATIVES
-Only 64 countries submit data for index
-weightings have been criticised
-places too much emphasis on tech.
Global reach of the iPhone
-raw materials sourced from Nigeria, Saudi Arabia and Australia
-98% of iPhones assembled in China
- small factories in Texas and Cali
-software technicians work in Tokyo San Francisco and Paris
-HQ in California wages double us average
-sale in over 150 countries
Nike in vietnam
-positives and negatives
- largest sportswear company
POSITIVES
- does not employ anyone under 16
- average wage 5x average wage in Vietnam
- sports and leisure activities
- micro loans for local businesses
- pays taxes
NEGATIVES
- little control over factory conditions
- 19 hour days in some factories
- wages still relitively low
India call centres
include positive and negatives
- industry is worth $90 bill a year in IT
- service sector now accounts for 50% of GDP
- attractive because large educated workforce
- skilled in English
- unis produce 1mill grads per year
- between 10-13 hours ahead of US- solved in US evenings
- SEZ
POSITIVES
- huge contribution to GDP- 90bill per year
- employs approx 2 mill workers
- wages above national average
- working conditions tend to be good
- major source of employment for women
- encouraged infrastructure development
NEGATIVES
- dilution of local culture- western
- often expected to work and behave in western manner
- businesses return to uk and us due to poor customer feedback
- resulted in overcrowding and urbanisation
North Korea (switched off)
- war ended and Korea split
-strict communist regime - adopted policy of self reliance as a way of preventing outside influence
-Most TNCs not permitted to invest in country
-Korean citizens are not allowed to leave the country - 90% of imports from China
-Media is heavily censored citizens have limited access
-Tourists are allowed to visit but under strict supervision and cannot contact citizens
-No private property. No ownership of land no private business.
ethiopia ( switched off)
-switched off for economic, physical and political reasons
-only a democracy since 2004
-history of civil war
-largely monsoon climate
- poor agricultural productivity
-bordered by Somalia and Sudan Islamic extremism
-55% illiteracy
- landlocked so trade is restricted
-overdependence of coffee,
- average wage $90 a month
- 90% of nations roads on mud and track
-15% of population can access the Internet
-international coffee agreement fixing prices collapse in 1989
Zimbabwe (switched off)
-became British colony in the 19th century
-nicknamed breadbasket of Africa by the British
-exported grains, coffee, tea and tobacco
-British were 1% of population but controlled all the resources
- racial segregation for white British
-Mugabe takes over and gains independence
- Black farmers took land back from white farmers
- violence from military and farmers lost jobs
- agricultural production collapsed
-tobacco crop fell, 90% in 10 years
-famine due to drought and flood
-80% unemployment
-25% of population is HIV positive
-life expectancy 39.5 years
-27% of children on malnourished
- landlocked.
Venezuela ( switched off)
- Global oil prices collapsed in 2010
-too much spending an international loans caused economic issues
-Chavez died replaced with authoritarian leader
-huge inflation rates left many in poverty,
-farming bankruptcies
-currency devalued by 96%
Positives and negatives for china (rise of china)
POSITIVES
- economy grown by 600%. Since joining the World Trade Organisation
- Average wages have tripled
-third largest economy in the world
-moved to secondary and tertiary employment
-Shanghai worlds busiest port with 40 million containers per year
- Largest high-speed rail network
-95% of population own mobile phone
-signed Paris climate change agreement
-Africa’s biggest trading partner
-GDP US$12.2 trillion
NEGATIVES
-100 million living in absolute poverty
-still lots of cheap labour
-mass migration rapid development
-wildlife habitats threatened
-air pollution accounts for 17% of all deaths
- 1.6 million deaths per year, due to air pollution
-largest producer of greenhouse gases
-one third of Chinese river species are extinct.
Congestion in Beijing
-population of city increased from 9 mil in 1980 to 19
- 4.8 mil vehicles in city
-increased wages and low parking fees
-worst congestion in world
-2010 -100 km traffic jam
-air pollution exceeded legal safety limits.
south Korea (AC)
include negatives
- after Korean War received economic aid from US
- received reparations from Japan after World War II,
-skilled and well educated workforce
-Park introduced education and more decisions
-citizen obliged to give up spare time to improve the community
-textiles, Steel shipbuilding, motor vehicles
-rise in the life expectancy
-education system, regularly class as best in the world
-over population due to mass urbanisation
-pollution
-house shortages
Deindusrtialisation in NE uk
- house prices lowest in England
-low weekly earnings
-lowest population in England, 4%
-20% of all residents receive income support
-highest unemployment in the UK in 2013 - Poor connectivity.
Uk car industry (ac winner)
- Industry collapsed in nineteen eighties to nineties due to poor productivity
-seven major TNC manufacturer plants - production from 750,000 to 1.65 mil in 20 years
-90% exported
-industry attracted huge levels of investment Indian company that owns Jaguar and Land Rover
-fourth largest producer in Europe, home to many globally, recognised brands - good workforce and skilled
