International Trade Flashcards
What is China’s Umbrella City an example of?
Comparative advantage
What % of umbrellas are made in China?
70%
How many factories are there and how many umbrellas does an employee make a day?
1200 factories
300 per day
Why is umbrella cute successful?
Access to domestic and international markets (port and road network). Specialism, tax incentives as it is a single product city and cheap production costs.
In 1948 and 2013 what was the total world exports in $?
1948 = $59
2013 = $18301
In what year did the WTO replace the General Agreement on Tariffs and Trade?
1995
Who accounts for 25% of global trade? When you include the other G7 countries how much do they account for?
USA, Germany and Japan.
They account for 50%
What type of economies are challenging and which country has the largest growth rate?
Emerging
China
By 2020 what did they expect the total in world trade of goods has the largest growth rate?
Goods arounds US$35 trillion and services around US$6 trillion
Give an example of a country with a high share of FDI for a natural resource development
Democratic Republic of Congo - missing corporations attracted
Give an example of a country with a high share of FDI for financial business services
Singapore
What % of Windwash Island banana crops are fair-trade?
85%
How many Fairtrade certified producer organisations are there in how many countries? How many people does this benefit?
1210 in 74 countries
Benefits 6 million people
When was the El Guabo Association of small band producers in SW Ecuador set up?
1997
How many Fairtrade bananas do they export a week to the USA and Europe?
30,000 boxes
Before Fairtrade how many family farms sold bananas at a prices that was too low to cover basic costs?
339
Give an economic benefit of the Fairtrade scheme
Producers able to raise capital to invest e.g. banana washing tanks
Give a social benefit of the Fairtrade scheme.
Improved educational facilities, school for children with special needs.
What does NAFTA stand for and when was it formed?
North America Free Trade Agreement - 1994
How much potential does the Transatlantic Trade and Investment Partnership (TTIP) have to boost the EU and US economy?
Potential to boost the EU’s economy by 120 billion euros and the US by 90 million
What does TPP stand for?
Trans-Pacific Partnership
What forum was set up in 1964 when China was seen as a LDC?
Group of 77 and China
In which African country was China exploiting natural resources? What were they mining?
Zambia - copper and cobalt
How many African workers were shot by Chinese managers in 2011? What were they protesting about?
11 shot dead.
Poor working conditions
Why was a Chinese manager then killed in 2012?
Pay dispute and the mine was seized by Zambian government due to poor health and safety
Hoe much steel produced each year comes from China?
Half of the 1.6bn tonnes produced globally
What is Chinese steel dumping?
Steel is sold at a rate below the construction cost, creating an oversupply of steel
What year did TATA steel announce its intentions to sell its UK business and what impact would this have?
2016
Unemployment in the UK
How many Africans have a mobile phone?
4 in 10
Name the trading blocks in Latin America.
Mercosure and Pacific Alliance
Who are Mercosur’s main trading partners?
EU and North America
Who are the Pacific’s alliance main trading partners?
Asia Pacific and USA. (TPP)
When were special and differential treatment (SDT) agreements set up?
1970s
Give an example of a trade preference scheme?
EUs everything but arms agreement in 2001. Accept access to products from LDCs (except ammunition/arms) on a duty reduced/ quota free basis.
Why did Nissan decide to produce cars in Sunderland?
To escape trade tariffs by gaining access to the EU market
Why is BP in Azerbaijan?
To exploit minerals and other resources
What is the biggest TNC in 2011?
General Electric (US)
What was the largest British TNC in 2011?
BP
Where is the most manufacturing taking place in the secondary sector of production?
South, South east Asia
Which country does Kia originate from and where do they have factories to access markets?
South Korea
EU and USA
How is BP an example of horizontal integration. Give evidence
Own the whole supply chain. Has 40 oil and gas fields, owns shipping fleet and refiners. UK has over 1100 retail stations.
Give an example of horizontal integration.
Kraft foods takeover Cadbury in 2010. Kraft then merger with Heinz in 2015. To access a more diverse base in the grocery and confectionery market.
How many firms control 28% of global food production.
10 firms
How many people are overweight and how many are undernourished?
Around 1.9 billion are overweight and 800 million are undernourishes
What has adapted to cope with overcoming a Malthusian crisis?
TNCs and Agrotechnology
In the UK how many tonnes of palm oil is consumed every year?
320,000
What % of palm oil is grown in Malaysia?
90%
In Indonesia how many hectares of rainforest have been transformed into palm oil plantations?
13 million hectares (3x the size of Switzerland)
What does RSPO stand for?
Roundtable of Sustainable Palm oil
Between 2015-2016 what happened to sales of RSPO palm oil?
Increased 3 fold
What have RSPO plantations still been criticised for?
Forced and child labour
What is a negative of the Green Palm certificates?
Producers sell to TNCs, even if it isn’t in their profits (Unilever)
How many members does the RSPO represent?
1700
What % of palm oil produced globally is certified sustainable?
20%
In Indonesia how much of the Orangutan population has been wiped out in 16 years?
Half the population
Where are Apple’s headquarters?
Cupertino, Northern California, USA
When did Apple start business?
1976, grown rapidly from 2000
Apple is the number one global brand, what is the value?
US$145billion
How many full time employees does Apple have?
98,000
How many retail stores does Apple have and in how many countries?
450 stores in 16 countries
In 2014 Apple was the 11th largest TNC what was its total assets?
US$207billion
Which IT company is Apple second to?
Samsung
In 2011 what % of sales were from the USA regarding Apple?
44%
Over the past 5 years where has Apple’s most rapid growth been, outside the USA?
Asia - Pacific region (iPhone demand)
Where are their main main products designed and why?
Silicon Valley (California). Agglomeration
Where are Apple’s assembly of main products outsourced to?
Foxconn
Of Apple’s 453 retail stores how many are in Europe/Middle East and how many are in China?
Europe/Middle East = 110
China = 25
Where is Apple’s European headquarters and why were they lured there?
Cork, Ireland. Government have 12.5% corporation tax (second lowest in Europe)
How many people are employed in Apple’s European headquarters and what has it attracted?
4000 and attracted FDI from other high tech firms.
What is a negative of Apple’s European headquarters?
Many of the highly skilled workers are foreign nationals (EU)
What has Apple been accused of?
Corporate tax avoidance
In 2010 how many workers were poisoned by a chemical to clean iPad screens and sued Apple as factories were not correctly ventilated?
50 workers
In 2006 what was reported in Chinese factories?
200,000 workers lived and worked in the factory. 60hr week, $100 month - half covered living expenses
How many suicides occurred in 2010 as a result of working conditions?
14
Why did Greenpeace criticise Apple?
Non-renewable energy/lack of recyclability of products and chemicals polluted water supplies.
What did Apple launch to respond to Greenpeace?
Green My Apple campaign. 75% renewable energy. Moved up to 6th from 11th in Green Electronics ranking
