Globalisation EQ1 Flashcards

Question

Free market liberalisation example

Answer 1

Promoted by Margaret Thatchers government 1986 Deregulation of the City of London Global financial firms relloacted to London, essential to the regeneration of Canary Walf, nom dom billionaies and businesses. leading hub for global financial services.

Answer 2

Allow foreign firms to gain influence in once state owned services, e.g gas electric Foreign ownership create competition and increase FDI. Hoped to reduced government and consumer cost. Reality = worse services and lack of accountability, can’t be reversed

Answer 3

French company Keolis has large stake in British railways network and EDF energy company.

Answer 4

Methods include low business taxes, susidies, to changes in the law allowing local and foreign owned businesses to make more profit. Often a method used in science parks with free wifi, reduce building cost, located near skilled graduates.

Answer 5

1994 Sunday trading, Burger King and Disney Store opened in England Italy eased restrictions on Chinese textile companies, City of Prato now has the largest Chinese population in Europe.

Answer 6

Special Economic Zones Attitudes to FDI

Answer 7

An industrial area, often near the coast, with favourable conditions (e.g low tax/ exampt from tariffs) to attract foreign TNCs. Become areas of rapid urbanisation and industry growth

Answer 8

Communist government became more open to international trade and foreign investment. TNCs can invest in China’s domestic market e.g rail China exports rare earth mineral world wide after abandoning resources nationalism.

Answer 9

FDI Exports expected to reach US$1.25 trillion by 2025

Answer 10

Mega industrial area caused by rapid urbanisation. Large, low-wage work force attracted TNCs to the ‘workshop of the world’ Now industrial powerhouse for elctronics, toys and garments.

Answer 11

1990s, 50% of China’s GDP was generated in SEZs.

Answer 12

Abandoned thursday and Friday as official weekend in favour of Friday and Saturday.

Answer 13

Method of measuring globalisation Measures the extent to which countries are connected to others considering 24 weighted variables to give a score out of 100 economic: trade, FDI tarrif rates social: number of Mcdonalds, telephone use political: membership in international organisations

Answer 14

wide range of variables weighted by significance compares countries with each others and historically

Answer 15

not all data available due to weighting small countries with large amount of FDI are over represented 2015 Ireland ranked 1st Does not consider internal interaction or informal economies

Answer 16

Identifies how globalised cities are giving a rank based on weighted variables. Index indentifies global cities now. Outlook identifies emerging cities Considers business activity, human capital, cultural + information exchange and political involvement

Answer 17

weighted so balances types of globalisation, considers wide range of data allows prediction over time

Answer 18

city data not always available who determins weighting cultural exchange is difficult to measure.

Answer 19

Contribute to spread of globalisation through GPN, glocalisation and development of new markets. Take advantage of economic liberisation Do not locate in areas not suitable for production or with low market potential.

Answer 20

BMW mini has over 2500 different suppliers ranging from EU to Brazil

Answer 21

chain of connected supplies through offhsoring and outsourcing that contribute to the manufacturing/ supply of consumer goods for a TNC Reduced due to difficult to monitor, natural disasters can disrupt chains, UK horsemear scandal, Bangladesh garment factory collapse Walmart.

Answer 22

Adapting global products to suit local tastes, maximise profit and maximise market potential Caused by local variation in taste, laws, religion, culture, interest and raw materials.

Answer 23

2009 gained the rights to Marvel and created ‘Spiderman India’ with Aunt Maya and Uncle Bihm

Answer 24

stores in 120 countries Opened vegetarian resteraunts serving McVeggies for Muslims, Hindus and Sikhs in India.

Answer 25

Vulnerable to disruption along GPN Accused of exploiting workers Outsourcing jobs leads to job losses in domestic markets ‘Americanisation’ causes erosion of local culture in favour of western ideals.

Answer 26

Employs 130,000 people 40,000 suppliers over 50 countries. Macthing theme parks in Europe and America.

Answer 27

citizens have no access to internet or social media political autocracy mobile phones were temporarily banned for memebers of the public 2004 to 2008.

Answer 28

Arid conditions, desertification and extreme environmental conditions limit potential agricultural production and infrastructure. landlocked so limited trade Poverty from low cash crop wages, limited consumer market for TNCs. 80% of population live on less than $2 a day One of the heavily indebted countries from intrest rate rise in 1980s.

Answer 29

2/3 the size of Europe with only a 17 mile coastline. Limited infrastructure between major cities, lacking motorways and airports.

Answer 30

1994 to 2003 Africa’s First World War, 5 million deaths high levels of poverty and disease. Rebel groups such as M23 still cause conflict. TNCs are concerned about disruption to supply chains and the safety of workers.

Answer 31

Shell Niger Delta oil spill and bunkering causing fires and environmental damage Wintek in China workers poisoned by chemicals used to treat glass on IPhone screen

Answer 32

Shell employs over 400,000 NIgerians directly 90% of workforce NIgerian 1/4 million people have access to shell healthcare and infrastructure Primark, Asda and Tesco signed the ethical trade initiative setting out basic rights for workers in the supply chain.