L3 - On Trend (Shanghai's Global Growth) Flashcards
Why is globalisation and FDI causing Shanghai to grow so much?
How much did China’s exports to other countries increase by from 1997 to 2002? (Fold)
6
What is the average annual growth rate of China’s economy over the last 3 decades? (%)
9.2%
What is the total value of trade between Japan and China?
$133.5 billion
What was the total value of FDI coming into China each year between 2006 to 2010?
$100 billion
Approximately, how much did China’s GDP per capita increase by between 1990 and 2012?
$10000
Approximately, how many people were working in China’s secondary sector in the year 2000?
160 million
Which international organisation did China join in order to enable it to trade more easily with other countries? What year?
World Trade Organisation. 2001
Which sector dominates China’s economy?
Primary
What number is China ranked in terms of GDP?
Second in the world - closing in on the USA who is at number one
Which sector is experiencing a significant increase in its number of people?
Manufacturing (secondary) and service sectors
China’s economic boom has led to an increase in what flow of people?
Rural-to-Urban Migration (RUM)
What does China import?
Raw materials and components
Has China’s economic development benefitted everyone?
No. There is rising inequality and uneven development across the country
What affect does the ocean have on China’s ability to trade?
The coast is the E/S China Sea.
But it has to get round to the Malacca Strait (near Singapore), past Thailand, Philippines, Indonesia, Taiwan, Malaysia, Vietnam, and Japan
What does China export?
Manufactured goods. China is the leading producer of clothes and electrical components.
What’s the economic attraction of FDI/TNCs to China?
A huge labour pool (work force) -
And high supply means…
Low wage rates (cheap labour),
What class of people has experienced an increase in numbers? Why? What impact does this have?
The middle class has grown due to the growth in China’s economy. This means that they are now consuming an increasing proportion of China’s manufacturing output.
How do rivers help China’s developing global trade?
Its bodies of water such as the Yangtze River, Yellow River, Mekong River - goods can be transported from inland to the coast
What political action attracts FDI/TNCs to China?
Special Economic Zones (e.g. the Shanghai Economic Zone) - therefore…Favourable tax rates,
What are the flows of globalisation into/out of China
Flows of People
Money
Goods
Ideas
What do governments provide to attract FDI?
Capital investment - they spend on infrastructure, e.g. electricity, railways, telephone/internet connections
Why does outsourcing create a multiplier effect
Companies create jobs in China.
Income means wealth for those workers
They spend on other services
Other companies choose to locate there too
How does outsourcing change China?
Bilateral trade grows - e.g. Britain and China import/export to each other
Income can be taxed to pay for government spending, e.g. health / education
What’s the long-term benefit of outsourcing for China?
Better trained and educated workforce
More employable - more companies want to move there
More consumers with more income
What’s the impact of Shanghai Maths?
Students are 3 years further ahead in their maths skills than UK students
Name a company that has outsourced its operations to China?
Intel
IBM
HP
Apple…. (Foxconn)
What did Deng Xiaoping want for Shanghai, as an ‘Open City’
Economic reform - companies to compete with each other
To be open for foreign investment / TNCs investing
Lower Tax and Tariffs
The government to focus on getting companies that innovate / research and develop (R&D) to move to China
Better education
Infrastructure
What does economic growth / change mean?
More jobs Rising income More wealth, more consumer spending More investment Change in type of jobs (primary/secondary to tertiary/quaternary)
What do more airports / more runways do for emerging countries
Higher flow of people / tourists / businesspeople - more outsourcing
Global shift of TNCs
Higher flows of goods - more imports / exports
