Globalisation + China Case Study Flashcards
Globalisation
The interconnectedness of the world. As things become more developed we find more efficient ways to communicate and spread goods and services across the world.
Cultural Globalisation
Westernisation , Americanisation , mcdonaldisation.
Political globalisation
Spread of political ideas , particularly from america to lower income countries.
Environmental globalisation
Global warming
Economic globalisation
Global finance organisations (IMF , World Bank + WTO) and Trans National Corporations outsourcing abroad.
The five global flows
Capital (Money) , Commodities (raw materials) , Information (internet etc) , Tourists and Migrants
Time-Space compression
Travel time falling due to to new inventions creating quicker methods of transport and shipping. Key example , containerisation.
Special Economic Zones (SEZs)
An industrial area (often on the coast) set up by national governments to attract investment from foreign TNCs. They often include low tax rates and exemption from tariffs and export duties. (China)
Subsidies
Grants given by governments to increase the profitability of key industries. (Agriculture)
FDI
Foreign Direct Investment (China to Kenya)
Deng XiaoPing
An economist who set up Chinas open door policy in 1978.
Tax incentives
Reduced income tax (down to 15% in SEZs and 33% everywhere else), elimination of corporate tax (profitable after 5 years), exemption of local taxes in certain industries.
Special Economic Policies
Duty free export and lowering import tariffs.
Cities that are SEZs
Shenzhen , Beijing , Shanghai and Xiamen
Offshoring
TNCs move parts of their own production process (factories or offices) to other countries to reduce labour or other costs.
