H Geo Case Studies Flashcards
Global Systems: Coca Cola: Spacial Organisation
- no. 1 manu of soft drinks globally
- manu in 44 different countries
- sold in over 200 countries
- 1.9 billion products globally / day
- 70% of sales outside the USA.
- headquarters: Atlanta, USA.
- employs ~ 70,000
- outsources
Global Systems: Coca Cola: history
rapidly growth: two bottlers in 1900, thousand by 1920
expanded overseas 1923-28 via US team in Olympic games
Global Systems: Coca Cola: Key Facts
one of most globally recognized brands - 94% of world in 2015
commissioned Haddon Sundblom to develop + shape Santa Claus’ image known today
brand value: US$79.21 bil (2015)
100,000 mil fb fans
soft drink market share: 25.9% (2015)
Global Systems: Coca Cola: Production Process
- manufacture drink concentrate in US
- sell concentrate to bottlers across world
3, bottlers mix it with water + sweetener - finished product bottled
Global Systems: Coca Cola: social impacts
positive:
- trains + educates
- runs community schemes in LICs e.g. the ‘empowering 5 million women entrepreneurs by 2020’
- provides 2 mil across Africa with safe water
- grants companies worldwide e.g Rwanda focusing on soc development + enviro sustainability
negs:
- harsh working conditions like without air con in tropical co
- poor pay (10$ a day) + no benefits ie have to pay for own health treatment etc
- corrupt - charged for murder, rape and torture of union leaders and their families in Guatemala
- promotes controversial obesity research foundations like £4.86 mil on the European Hydration Institute that recommended consuming sports and soft drinks
Global Systems: Coca Cola: econ impacts
pos:
- invests in new plants, expanding markets US$90 mil R&D centre in Shanghai
- invests in new markets, driving econ growth + local infrastructure $2 bil India, $1.5 bil Russia
- creates jobs like 22,000 in Burma after $200 mil bottling plant
negs:
- builds reliance, now risk of ‘top down’ decisions - unemployment etc
- LICs earn $10 per day
- repatriate profits
Global Systems: Coca Cola: Enviro Impacts
pos:
- collabs with celebs + national events to spread importance of recycling etc for sustainable future + disaster relief
- bottles + cans are 85% recyclable
- now began to replenish water supplies
- initiates agric schemes e.g constructing rainwater harvesting system at tea suppliers in China.
neg:
- exhausts local water supplies - 2012: used more water than 25% of world pop
- lowered the water table, N India.
- 2004: $16 mil bottling plant in Kerala, India lead to water pollution
- products identified with pesticide residue (~30x greater than EU standards)
Global Systems: world commodity (bananas): industry
5th largest agric ind
Largest fruit industry
steady growth of ‘sustainable’ fair trade + organic (ethical HIC consumers)
production: lowland trop regions, 27℃+, 2000-2500 mm/yr, e.g Brazil, India, central Africa.
consumption: globally
Global Systems: world commodity (bananas): importance
4th most important food commodity industry in LICs
a staple food for 400 million people
provides large quantity of energy (90 calories per 100 grams) + adults daily potassium requirement
Global Systems: world commodity (bananas): pattern of world trade
5th most traded agric product
total export 2015: 16.5 mil tonnes
80% exported from L. America + the Caribbean
1. the ACP group (Africa, Caribbean and Pacific)
2. the ‘dollar producers’ in C. America (mainly Ecuador + Colombia) controlled by large TNCs like Chiquita + Del Monte
low value primary products to HICs
USA + EU import 27% of total 2013 exports - mostly, consumed domestic like India, Brazil + Philippines
Global Systems: world commodity (bananas): trade war
- ‘dollar producers’ initially exporting 75% of EU market’s banana imports, the ACP only 7%
- 1975: EU made SDT with 71 ACP countries called the Lome Convention, giving tariff free access to the EU markets, smaller family run farms became protected from large L. American TNC producers (cheaper via eos + mechanized plantations)
- 1992: TNCs filed complaint to the WTO about the EU’s unfair trade practice.
- 1997: WTO ruled against EU, forcing tariff reductions on L. American TNCs
- EU resisted + failed to satisfy TNCs –> disputes + trade war.
- 2005: compromise reached + EU agreed to gradually reduce tariffs on L. Americans
SDT
Special and Differential Treatment)
Big Five Bananas producers
i) Dole, ii) Del monte, iii) Noboa, iv) Fyffes, v) Chiquita
2002: 60% of global banana market. Today: control 45%
Global Systems: world commodity (bananas): fair trade
initially monopsonists exploited banana producers
now 69 certified co-operatives participate in Fairtrade
FAIR TRADE Mark -ethical consumers
standards:
- protection of workers rights + enviro
- payment of the Fairtrade Minimum Price
- additional Fairtrade Premium to invest in business or community projects
LICs families can now afford homes, education etc
2013-14: £15 mil Fairtrade Premiums
Fair Trade
social movement to try and achieve better trading conditions and promote sustainability