Globalisation Case Studies Flashcards
China and SEZs
- the government has created SEZ’s near the coast ( beneficial for trade) with tax incentives in order to gain FDI through TNCs, and investment into industries as well as little government intervention
- Shenzen in 1992 attracted 14% of China’s total FDI.
- China now receives over $100 bn in FDI each year which has led to cumulative causation.
China’s investment into infrastructure
- investment into transport has enables accessibility to global markets making it an idea place for industries to locate for flows of good through exportation and importation.
- 12,000 km freight train from China to Europe was built along the silk road for containerised goods.
Trade, trade agreements and international investment
- China has invested into a nuclear power plant called hinkley point
- China has also invested $4bn in African industry,, estimated to contain 90% of the worlds supply of platinum and cobalt and half of the world’s gold supply.
- Chinese exports exceed 2.3 trillion and imports total 1.84 trillion meaning that China has a trade surplus.
- In 1979, one child policy, reduced workforce pool, slow growth rate, ageing population.
Pollution in China
- The Chinese government came up with a car lottery scheme that aims to nullify the effects of a rising urban population on pollution.
- one in 725 were granted a licence plate.
- the number of cars has more than quadrupled in the last 15 years, in 2010, 800,000 new cars hit the capital’s streets.
Westernisation in China
- KFC is the most popular restaurant Chain in china.
- Social media sites such as Facebook and Instagram are disallowed.
- We Chat- has enabled the owner to become the 30th richest man in the world, with a net worth of $23.9 billion.
Globalisation in China
-Starbucks have made Cantonese style pancakes and two types of coffee blended with tea during the spring festival in China
Rural to urban migration in China
- there was a plan which was to implement a classification system to keep record of all Chinese as rural or urban citizen. The government then tied all social benefits to a persons province.
- this would therefore limit the amount of rural to urban migration.
- in more recent times, economic motivation is still unquestionably the primary motivation behind rural-urban migration.
- 145 million rural to urban migrants which accounts for 11 percent of the total population.
- the average age for migrants is 17.2
Social impacts of globalisation in China
- Life expectancy has risen from 45-75 since 1960
- 96.4 of the population is literate
- 95% of the population has access to basic health insurance cover.
- 1.2 million people die from smoke inhalation related illnesses, due to the increase of trade and globalisation.
Economic impacts of globalisation in China
- GDP $11tn meaning that China now has the second largest economy in the world.
- GDP per capita 7,574
- labour force of 806 million.
- 300,000 foreign companies have invested into China, little money is given back to China, this is known as leakage.
Environmental impacts of globalisation in China
- 70% of China’s rivers and lakes are now polluted.
- 360 m individuals do not have access to clean water
- Carbon emissions are at their highest. They were 1.17 metric tons per capita in 1960 and 7.551 in 2013
Inequalities in China
- The rapid growth of China’s economy over the past three decades was believed to increase affluence leading to a happier, wealthier and more equitable society.
- The poorest 25 percent own only just 1 percent of the total countries wealth.
- China’s Gini coefficient for income, a widely used measure of inequality, was 0.49 in 2012, according to the report. The World Bank considers a coefficient above 0.40 to represent severe income inequality.
Privatisation in the UK
- Margaret Thatcher in 1979 started a process of deregulation and privatisation.
- privatised British Gas, British Rail and British Telecom
North Korea- an isolated country
- President Kim il sing adopted a policy of diplomatic and economic self reliance as a way of stopping outside influence.
- after years of economic mismanagement and resource misallocation, the country now relies heavily on Chinese aid to feed its population.
China’s Role in the global shift of manufacturing
-IN 1990 Chinas share of global trade in manufacture was just 2 percent, by 2010 it was 10 percent.
The benefits of the global shift in Mumbai, India
10th largest city in the world
- it is home to clusters of key industries music, film, texts, power generation and finance.
- THe Chhatraparti Shivaji International Airport is one of the main aviation hub’s for the city and the second busiest in terms of traffic
- its capacity is set to increase to 40 million annually.
- strain is going to be relied after government sanctioned a new airport.
- The Jawaharlal Nehru Port, which currently handles 55-60 percent of Indias containerised cargo, is a hub port fro the city, and for India and for the Arabian Sea.