Politics Flashcards
Define ‘tariff’
A tax imposed on imports
Define ‘subsidy’
Financial assistance to a business by the government to make it more competitive to prevent it from collapsing
Define ‘quota’
A limit on the quantity of goods a country allows in
Define ‘protectionism’
Policies to protect businesses and workers in a country by restricting or regulating trade with foreign nations
Define ‘free-market economy’
A market economy based on supply and demand with little or no government control
Define ‘free-trade’
A policy where a government does not interfere with imports or exports
Define ‘privatisation’
Transferring ownership of a service/ agency or property to private ownership run for profit
Define ‘neo-liberalism’
A political philosophy of free markets, free trade, privatisation and increasing the role of business in society and decreasing influence of the government. It is thought that by making trade more accessible, there will be more of it and so poverty reduction
Name three NGO players in trade and capital
- WTO
- IMF
- World Bank
How many members are in the WTO, IMF and World Bank?
WTO - 161
IMF - 188
WB - 452
What is the aim and role of the WTO in globalisation?
A - free trade between all members
R - restricts protectionism and took over the general agreement on trade and tariffs in 1995
Name an achievement of the WTO in 2014
China was persuaded to lift export restrictions on rare earth minerals
What is the aim and role of the IMF?
Control loans from wealthy to poor nations making the receiving governments agree to free market economies for TNC investment and make restrictions on spending elsewhere e.g. schools/ healthcare
Who controls the IMF and why is this a problem?
Controlled by the USA who exert major influence despite European president
What is the approximate worth of the IMF?
$755 billion currently holding
What is the aim of the World Bank?
Finance the development of nations through loans to promote shared prosperity
What did the World Bank do in 2014?
Distributed $65 billion in loans and grants, $470m went to the Philippines for poverty reduction
In what six ways does free trade increase globalisation?
- Gov takes away barriers that make trade costly and difficult
- As costs reduced TNCs invest
- TNCs bring new ideas, products, cultures etc
- TNC generates wealth
- Wealth develops increases SoL and demand for foreign products
- As an economy has more TNCs they become interconnected and interdependent
What is a positive and negative impact of a developing country receiving a loan
+ temporary debt relief
X not permanent solution also LEDCs may become reliant
What is a positive and negative impact of a developing country receiving debt relief?
+ Can prioritise and develop fundamental services
X increases debt and reliance
What is a positive and negative impact of a developing country stoping protectionalism and adopting the free-market?
+ increases places they can trade
X reduces profit from tariffs
Give a positive and negative impact of the IMF restructuring loans
+ spend less time in debt
X lower profit margin for IMF
Give a positive and negative impact of the developing country privatising services such as water
+ improves national economy as they pay less to provide services
X makes government inferior and increases cost to people
Give a positive and negative impact of the developing country having to be cut on education
+ gov can prioritise money elsewhere
X reduces youth prospects and less people in high earning sectors
Give a positive and negative impact of the developing country having to privatise it’s drilling facilities
+ gov spending elsewhere
X less profits to national economy and makes gov inferior
What are structural adjustment programmes? (SAPs)
Economic policies promoted by the World Bank and IMF to provide loans conditional on the adoption of policies since the 1980s
SAPs aim to achieve long-term or (1) economic growth by (2) and reducing gov (3) including currency (4) through public spending cuts and (5) state owned industries
1 - accelerated 2 - restructuring the economy 3 - intervention 4 - devaluation 5 - privatising
What is the biggest criticism of SAPs?
Policies have slowed improvements/ worsened health services especially nutritional status of children, maternal mortality rates and infectious diseases
‘The great (1) of China prevents internet users from using (2) services, the government sets a strict quota of (3) foreign films a year, Western culture is still gaining a foothold by many Chinese people celebrating (4)
1 - firewall
2 - BBC and Facebook
3 - 34
4 - Christmas
Reports of serious degradation of Nigeria’s (1) due to (2). The leader of protests was executed by the government in (3) causing international outcry, Since then companies like (4) have been accused by (5) for environmental damage
1 - Ogoniland 2 - Oil spillages 3 - 1995 4 - Royal Dutch Shell 5 - Amnesty International
France is fiercely protective of its culture and language, the government is supportive of (1) and subsidies for films in (2), (3)% of TV output must consist of French productions
1 - French film makers
2 - the French language
3 - 40%
