P2 Section A (TNCs And Global Commons ) Flashcards
What is a TNC
TNC is a company that operates across multiple countries
What does the spatial division of labour show
Spatial division of labour shows TNC HQ and research and development is usually in HICs with skilled professional and manufacturing is in LICs with low labour costs
What is global supply chain
Global supply chain is where production occurs globally and HQ and quaternary sectors are in HICs
What is vertical integration.
Vertical integration is when a company takes ownership of part of the supply chain like buying a plantation
What is horizontal integration
Horizontal integration is when a company takes ownership of another company
What is the multiplier effect
Multiplier effect is when initial capital investment in an economy creates income, like increasing employment, which increases wages, which increases spending and then tax revenue
Where is Apple’s EU HQ based
Apple’s EU HQ is based in Cork, Ireland
Where is Apple’s outsourcing of parts
Apple’s outsourcing of parts is in Foxxcon City in China
What happened to Apple in 2014
In 2014, Apple was ordered to pay €13 billion to Ireland as they’d breached standardised corporate tax practices.
How many people work for Apple in Cork
6000 people work for Apple in Cork which are mainly immigrants in high-skilled jobs
How much of Apple’s Irish workforce in Cork work in production line
60% of Apple’s Irish workforce in Cork work in production line (low-skilled job)
What is Ireland’s corporate tax
Ireland’s corporate tax is 12.5%, 2nd lowest in Europe
What were the conditions in Apple’s shenzen factory found to be like in 2006
the conditions in Apple’s shenzen factory were found in 2006 to be very bad with 200,000 workers regularly working 60 hours a week for around $100 a month in sweatshop conditions
How many suicides occurred in Apple’s shenzen factory in 2010
14 suicides occurred in Apple’s shenzen factory in 2010
How does Apple pose environmental threats
Apple poses environmental threats as it relies on non-renewables to supply electricity to its data centres and also uses toxic chemicals like PVC in manufacturing and factories in China have been found to discharge pollutants in water supplies which threatens public health
How much revenue did Apple make in 2020
Apple made $274 billion revenue in 2020
What is economic leakage
Economic leakage is where profits from a TNC are sent abroad (like back to origin country)
How are bananas grown by TNCs
Bananas are grown by TNCs in Ecuador and Colombia with vertical integration as they own plantations and have ripening and distribution facilities in consuming countries
Where are the main importers of bananas
The main importers of bananas are USA and EU
Where are the main consumers of bananas
Main consumers of bananas are in domestic markets like Brazil, India and the Philippines
Where are main exporters of bananas
Main exporters of bananas are Latin America and Caribbean with 80% of exports
How much money gets back to producer after consumption
Around 10% of cost paid by consumers will get sent back to producer as it will stay in HIC where most of the profits are kept by the retailer
How is Cambodia experiencing brain drain
Cambodia is experiencing brain drain as 7.6% of its population in 2016 emigrated and between 2018 and 2021, there was a 11.4% increase in remittances
What is global governance
Global governance is the ways in which global affairs affecting the whole world are managed by multiple nations
How has globalisation changed global governance
Globalisation has changed Global governance as increasing economic integration means TNCs are gaining more power to control resources, so global governance acts to regulate this
What is the aim of global governance
Aim of global governance is to regulate power of TNCs and manage the challenges of concerns like climate change, energy provision and trade.
What are issues with global governance
Issues with global governance are that countries may interpret laws differently, lower income countries will have less influence and also some argue global governance doesn’t address all serious issues like food security and water security
What are global institutions
Global institutions are groups who oversee the maintenance of global systems and represent all nations and protect them
What does the UN do
The UN enforces international laws and policies to maintain world peace
How has UN been successful
UN has been successful as there’s been no world wars since it’s setup in 1945, and over 170 UN settlements have ended regional conflicts
What are issues with the UN
Issues with the UN are that some powerful military states ignore UN Security Council mandates like China and North Korea and also there is unequal influence as China, Russia, France, UK and USA all have permanent membership of security council so have leadership role in solving conflict
What does WTO do
WTO reduces global injustice and inequalities through trade liberalisation and it removes protectionist policies used by some governments
What does WHO do
WHO aims to eradicate and combat global disease
How has WHO been successful
WHO has been successful as they’ve reduced global mortality rates, eradicated smallpox in 1976 and nearly eradicated polio through global vaccination programmes
What are issues with WHO (delayed)
Issues with WHO are that in 2014 they offered delayed guidance on how to contain Ebola virus in West Africa and also they were unable to prevent the spread of HIV/AIDs across Africa
What does UNDP do
UNDP aims to eradicate poverty and reduce inequalities and exclusion
How has UNDP been successful
UNDP has been successful in operating in 170 countries to meet the millennium development goals in 2000 and then 17 sustainable development goals after
What are issues with UNDP
Issues with UNDP are that although progress was made in most areas of the millennium development goal, very few targets were actually met
What are NGOs
NGOs are non-governmental organisations which encourage democratic decision making, protecting humans rights and the environment and reducing poverty
What are issues with NGOs
Issues with NGOs are that they rely on donations and membership subscriptions, so lack of funding often limits the scale of improvements they can make
What did NGOs do in 2013
In 2013, NGOs worked with UNI global union to create legally binding Bangladesh accord on fire and safety to protect working conditions in garment factories following the collapse of 8 storey Primark building in Dhaka. 200 companies signed it
What was Rio Earth Summit
Rio Earth Summit was meeting to create Agenda 21 to develop strategies for sustainable development
Why was rio earth summit unsuccessful
rio earth summit was unsuccessful as there was opposing religious groups who are against population control (even though it’s advised for sustainability) and also not all countries signed up and the goals were not mandatory
How many members does UN have
UN has 193 members
How has UN exacerbated injustice in DR of Congo
UN exacerbated injustice in DR of Congo by failing to provide peacekeeping forces in Mavivi during an attack which killed 30 people
How has UN exacerbated injustice in Bangladesh
UN exacerbated injustice in Bangladesh as they failed to prevent the 1971 Bangladesh Genocide
What are sustainable development goals
sustainable development goals are set of 17 goals made by UN to transform the world between 2015 and 2030
How have sustainable development goals been successful
sustainable development goals have been successful as every goal is above 40% achieved according to a UN tracker
How have sustainable development goals been unsuccessful
sustainable development goals have been unsuccessful as energy-related CO2 emissions increased 6% in 2021 (the highest ever increase), 17 million metric tonnes of plastic entered ocean in 2021 and this is projected to double or triple by 2040 and also working poverty rate increased for first time in 2 decades when it rose in 2019 and 2020
What are global commons
Global commons are parts of the world which belong to no one
What are the four global commons
Four global commons are international waters, the atmosphere, outer space and Antarctica
What is the exclusive economic zone
exclusive economic zone are areas inside a coastal nation
Why are global commons beneficial to humanity
global commons are beneficial to humanity as they provide untouched environments for research and wildlife growth
What is the idea of the tragedy of the commons
The idea of the tragedy of the commons is that the commons are vulnerable to exploitation for their rich resources and countries will face fewer consequences since they own the commons together
What is in place to protect the oceans
United Nations convention on the law of the sea is a treaty to protect the oceans by managing activities and its use
How do exclusive economic zones help protect the oceans
exclusive economic zones help protect the oceans by allowing countries to use 200 nautical miles of their coastal territory to explore and use resources
What is in place to protect the atmosphere
Montréal protocol is in place to protect the atmosphere by regulating ozone-depleting substances like hydrofluorocarbons which damage ozone layer
What is in place to protect outer space
Committee on the peaceful uses of outer space is in place to protect outer space by governing exploration and use of space for the benefit of all humanity
How much of earths surface water does Antarctica hold
Antarctica holds 90% of earths surface water
What natural resources does Antarctica have
Antarctica has natural resources like marine life, oil in the southern ocean and iron ore deposits in the transAntarctic mountains
Why is Antarctica vulnerable
Antarctica is vulnerable as it is a common in a time of demand in resources like fossil fuels minerals and fish and also climate change can alter extreme fragile environment
How does climate change effect Antarctica
climate change effects Antarctica as melting ice sheets will cause sea level rise which increases flooding, co2 released in ice sheets enhances global warming and also lessened albedo effect due to less white ice sheets which increases absorption of solar radiation in oceans
How does fishing and whaling effect Antarctica
fishing and whaling effects Antarctica as the overfishing of krill damages whaling populations, destructs habitats and also unregulated fishing is unsustainable
How does mineral and resource exploitation effect Antarctica
mineral and resource exploitation effects Antarctica not at all since it’s banned, but it’s possible and can pose issues like destroying habitats through oil spills and building infrastructure like drilling and pipelines and quarrying and mining
How does tourism and scientific research effect Antarctica
tourism and scientific research effects Antarctica by fuel emissions and cruise ship crashes such as MS Explorer crash in 2007 which disrupted penguin breeding ground with a mile long diesel spill and previous use of huskies for travel threatened seals with infection but this was banned
What is international whaling commission
IWC is an enforcer of regulations over whaling in the southern ocean to 89 members states and they set catch limits, study whaling and provide funds for research and conservation
How has IWC been successful
IWC has been successful in the whaling moratorium of 1982 which banned commercial whaling until further notice and saved several whole species from extinction but Norway and Iceland have agreements with IWC to still commercially whale
How has IWC been unsuccessful
IWC has been unsuccessful as there are loopholes in revaluations like Japan commercially whaling under the purpose of “scientific research” but they have now left
When was the Antarctic treaty signed
Antarctic treaty was signed 1959
What is the Antarctic treaty
the Antarctic treaty is an agreement of 53 countries that Antarctica should only be used for peaceful means and all research must be shared and all nuclear activity is banned
What are issues with the Antarctic treaty
issues with the Antarctic treaty are that it’s not mandatory and inspections don’t occur often
What is the Madrid protocol
Madrid protocol is an extension to the Antarctic treaty and is signed by 45 nations to ban all mineral resources, monitor to minimise human impacts and reduce any interference with natural environment
What are issues with Madrid protocol
Issues with Madrid protocol are that it expires in 2048 so all nations will be free from its restrictions
What is Antarctic and southern ocean coalition (ASOC)
Antarctic and southern ocean coalition (ASOC) is an NGO formed in 1978 to protect the environment of Antarctica and monitor and extend marine protected areas
How are NGOs involved in Antarctica
NGOs are involved in Antarctica like WWF and Greenpeace to enhance protection through monitoring reliability and validity of governmental data on the continent, report on issues to spread awareness and donate and also create campaigns and petitions for change like Greenpeace’s “protect the Antarctic”
