Governments In New World Regions 😊

Question 1

Case study?

Answer 1

China

Question 2

What changes started in 1978? X5

Answer 2

'Open door' policy 
Allowed china to trade under one-party authorisation rule
Farmers were allowed to make profits 
One child policy was introduced 
Earliest reforms in rural areas

Question 3

How did those changes affect the population distribution in china?

Answer 3

300 million people left rural areas
SEZ’s were created by the coast generating 50% of China’s GDP in 1990
2015 workers earn $40 a day

Question 4

Why has china also spent money on new transport links?

Answer 4

Made transporting goods abroad cheaper easier and quicker benefitting china and foreign companies with connections to china

Question 5

Example of a TNC

What does it do?

Answer 5

Foxconn
Cheap labour costs and so set up companies
Created more jobs but in poor conditions

Question 6

Statistics for China’s open door policy? X4

Answer 6

FDI from china (2015-2025) predicted $1.25 trillion
400 million escaped poverty
50% of GDP comes from SEZ’s
Workers on average $40 a day

Question 7

TNC tactics X11

Answer 7

• economies of scale= make everything larger
• foreign takeovers= buy out other countries abroad
• global production networks= use factories all around the abroad and assemble in one place
• glocalisation= adapting same brand to a local market
• horizontal integration= expanding services selling own products using other businesses
• JIT production (just in time)= deliveries made when needed
• new markets= created new market for animal feed
• offshoring= set up factory abroad and make profit
• outsourcing= get other companies to make your product
• transfer pricing= transactions may occur abroad as it is cheaper
• vertical integration= own production and chain