HL Extensions - Global Networks Nd Flows Flashcards
What type. Of exports do LIC usually specialize in? (3)
Agricultural produce, timber, raw materials and minerals
What exports do high income countries specialize in?
Manufactured goods (motor vehicles and machinery)
What exports do emerging economies (china and Taiwan) specialize in? (Low-cost but well-educated workforces)
Electronic equipment such as computers, mobile phones, and semi conductors
What led to the expansion of global trade? (2)
- Fall of the Soviet Union —> single capitalist world market
- Saved of neo-liberal policies
Which 3 continents (areas) make up the global trade triad?
North America, Europe, East Asia - especially China, Japan, South Korea, Hong Kong
Aid definition
Grants or loans at below normal market interest rates to low-income countries.
How do governments (of HIC) leverage aid vs the citizens?
Governments use it as an economic instrument —> aid comes with accountability and conditions
Citizens put money in civil societies (usually unconditional grants)
What are the problems of short-term emergency aid? (3)
- ex. Food aid alleviates immediate threat of malnutrition but local farmers cannot compete.
- destroys country’s farming sector
-long-term, chronic dependence on imported food
What are some solutions for the large amounts of debt that some LIC have? (One neoliberal solution, one solution that criticizes neoliberalism, and one organization/initiative that was launched to give debt reduction support.
Neoliberal: increase exports of goods and services
Critics of neoliberalism: wealthy countries ease the debt burden, lower or eliminate interest charges
Heavily Indebted Poor Countries Initiaitve (HIPC)
What is the process of international remittances (why does it occur)?
Labour migration from labour surplus to labour deficit. Transfer money from foreign worker to home country.
Illegal flows (4)
- undocumented migrant workers
-human trafficking —> sexual slavery - narcotics
- counterfeit goods
Negative impacts of narcotics trade
- less productive activities, ruined relationships that enable society to function
- higher crime rates
- students drop out of school, less educated workforce
- raises rates of infectious diseases (HIV) —> more costly for healthcare
- low exchange rate
- encourages large scale money laundering
What about free trade zones make it play a key role in the illegal trafficking of counterfeit goods, narcotics, and even human trafficking?
goods are landed, handled, manufactured, processed, reexported without any customs regulations, duties, or taxes
What is a for-profit enterprise that is registered or operates in several different countries using a system of decision making that lows coherent policies and common strategies?
Transnational corporation (TNC)
What are the positives, advantages, that TNCs bring to host countries (4)
- Jobs (that increase technical skills and educational opportunities for the local population).
- lower prices (economies of scale) for local population
- develop unexploited resources (ex. Expensive equipment to being mining)
- higher quality goods
Negatives, cons, of TNCs for host countries (5)
- goal is to maximize profit for shareholders, not the welfare of the local population. Meaning that th profits are returned overseas,
- local companies cannot compete with TNCs
- TNCs have large control, therefore can force wages down
- import cheapest resources (minerals and fuel), not supporting local economies.
- when local resources are used, they can use their economic strength to buy the resources for lower price or they can drive up the demand and $$$
What is it called when a TNC makes an invest of funds into a foreign country? Can be a businesses operation from the ground up or acquiring another business by taking over its operations and assets.
Foreign Direct Investments (FDI)
What is it called when people pay an overseas firm to perform work in the name of a TNC (ex. Nike pays a locally owned factory in a development countries to make shoes under a formal agreement, and Nike then buys the shoes for resale)
Outsourcing
What are the problems that arise with Apple outsourcing their raw materials in Rwanda and the DR of Congo? (The materials are coltan). Think environmental and ethical issues (2)
- land eroded by mining pollutants (close to habitat of mountain gorillas.)
- child labour
Does Apple outsource its production? How does its supply chain work? (From design, to collecting raw materials like coltan, to manufacturing and assembling)
Yes, it outsources most of it from China and Taiwan. Design is in Silicon Valley, raw materials obtained in DRC and China and Taiwan manufacture and produce.
Which continent is Airbus mainly centered around? Why did the company chose to do this?
Global strategy of creating jobs in Europe.
What is it called when old planes/airbuses are reused for their parts?
Cannibalisation
What are organizations that operate across a number of different states? (Ex. World Bank, IMF, the UN)
Multi-governmental organizations (MGOs)
What is an area within which goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of the customs authorities.
Free trade zones
The primary purpose of a ____________ is to remove from a seaport, airport, or border those hindrances to trade caused by high tariffs and complex customs regulations. Among the advantages of the system are the quicker turnaround of ships and planes through the reduction in formalities of customs examinations and also the ability to fabricate, refinish, and store goods freely.
Free trade zone
What is causing the “shrinking world”? (like how is the world shrinking and what data is now being transferred)
globalization, better transportation technology and non-physical goods. e-,commerce, think netflix.
what is the idea that areas that are close together are usually more likely to interact with one another?
distance decay
which transportation vehicles have largely contributed towards the shrinking world? (2) and what simplifies the transition from one mode of transportation to another)
- commercial jet aircraft
2 development of larger ocean-going vessels - containerization (simplifies the transition from one mode of transportation to another)
Which transportation vehicle is quickest (good for agricultural products)
jet