Globalisation (have some paper flashcards on this too)
Sovereign wealth fund and purpose
government owned investment funds and banks to diversify revenue scheme
special economic zone and conditions
an industrial area, near the coastline, where favourable conditions are created to attract foreign TNCs. Conditions include low tax rate, exemption from tarrifs and export duties
what is required for a special economic zone
good infrastructure, subsides, gov support, large, skilled and cheap workforce
Neoliberalism
idea that government intervention disrupts economic growth
Privatisation
To raise money and reduce gov spending by the transfer of a business, industry, or service from public to private ownership and control - encourages FDI from one business into another country
Start-ups
lowering taxes and changing regulations and laws to encourage new businesses
open door policy
started by USA about china, encouraging equal privileges for all the countries trading with China
china using strict controls e.g birth n. to curb population growth
China and SEZ
china has 550 SEZ’s nowdays and in 1990’s SEZ’s were 50% of chinas wealth
First step of the open door policy china aggreed to
set up four special economic zones e.g shenzen with tax incentives to attract foreign business
What was a result of the open door policy in china
Has had one of the fastest periods of economic growth in world history, huge numbers of entrepreneurs in china
GDP in 1998 4x higher than in 1980
whats the cumulative causation model
model showing that the introduction of a new industry, creates more jobs, an improved workforce, increased demand in services, increased population, increased income and tax, new construction, becoming a growth pole
what are hubs and why are they relevant
they are cores that are highly connected, transport and communication usually focuses on these cores, which increases investment and production of goods- globally significant activity is focused on cores
what do upward transition areas benefit from
offshoring and outsourcing
what do downward transition areas lose out on
FDI, due to negative impact of offshoring and outsourcing
What is the KOF index and whats its purpose
its a measure of globalisation and is used to identify trends
What is KOF index made from
economic, social, political globalisation
What is A T Kearney index made from
-political engagement(participation in treatys, peacekeeping etc) -technological connectivity (number of users, servers etc)
-personal contact (telephone calls, travel, remittance payments)
-Economic intergration (volume of international trade and FDI)
difference between KOF and AT Kearney
A T Kearney uses more holistic indicators and includes a ranking based on a weighting system
global shift
the relocation of companies from OECD countries to NIC countries predominantly from N america and western europe to latin america and SE aisa
OECD
organisation of economic cooperation and development
NIC
newly industrialised country
Benefits in developing nations for people and environment
-economic benefits (higher wages, loans from foreign companies, economic reform, etc)
-improved education and healthcare
-culteral shift, empowering human rights
-social impact, gov spending on social projects
example of empowering human rights
SDG5 ( United Nation’s Sustainable Development Goals) gender equality
costs in developing nations for people and environment
-diet, nutrition transition (access to fast food, things they never had before), health issues
-reduce biodiversity
-increase population and carbon footprint
-more waste, wealthy people consume more
-social impact- women dont have kids due to time spent at work and new found individuality
why is 2001 relevant to china
when they joined the WTO (world trade organisation), growth exponentially in GDP
what is the IMD
index of multiple deprivation
what is the IMD comprised of
-income
-employment levels
-education
-health
-crime
-barriers to housing and services
-living environment
what is the IMD split into
deciles and rank- 1st is most deprived and 32,844th is least deprived- ranks and 10 deciles
what country is IMD applicable to
just england
what are social and environmental problems as a result of economic restructuring
economic restructuring
what does it mean by industries moving from blue collar to white collar industries
manual to service sector (office) industries
