Resources 2.0

Question 1

Examples of China advancing towards more sustainable energy imports;

Answer 1

• Sino-Myanmar

- ESPO

Question 2

What is the position of most Chinese businesses which allows them to advance foreign policy? Give an example

Answer 2

High number (155,000) state owned companies

e.g China’s National Petroleum Company
= state owned
= owns Sino-Myanmar pipeline

Question 3

Example of China ensuring constant supply of iron ore demand

Answer 3

bought 10% stake in Rio Tinto

Question 4

Consequences of increased resource consumption for China;

Answer 4

• long term debt
• militarisation
• dependency
• environmental degradation

Question 5

What view suggested that the west may take China’s increased militarisation to protect resources as expansionist?

Answer 5

Guardian (View 5)

Question 6

How much had China invested into Africa by 2011?

How many Chinese companies in Africa?

What is this compared to USA?

Answer 6

Invested $70billion+ by 2011

800,000 Chinese companies in Africa

only 1/3 of the USA’s investment

Question 7

Why is aid well received in Africa from China?

Answer 7

• no colonial legacy

unlike much of Europe

Question 8

Investment examples

• Nigeria
• Ghana
• Ethiopia
• Zambia

Answer 8

• Nigeria : $10billion for oil fields
• Ghana - $11billion for infrastructure investment
• Ethiopia : market for military hardware
  HEP / Dam construction
• Zambia :
  copper mining

Question 9

Example of China taking action towards securing agricultural resources;

Answer 9

• 5% of Ukrainian land

- Chinese State Owned Chemical Company bought SYNGENTA

Question 10

China purchasing Syngenta suggests their belief in what philosophy

Answer 10

Boserup’s

necessity is the mother of invention

Question 11

What is the current status of GM in China?

Why may China have purchased Syngenta?

Answer 11

GM currently banned

China may want to hold valuable patents

Or may relax ban on GM as under pressure to provide agriculture for growing population (until 2030) and growing demand

Question 12

How many state owned companies;

India :

China :

Answer 12

India : X190 fewer than China

China : 155,000

Question 13

Response to foreign investment;

• China
• India

Answer 13

China : required to set up joint ventures

India : difficult for foreign companies to gain market access due to protectionism

Question 14

What has been the rate of increase in Fortune 500 companies since 2004?

Answer 14

China : X6
now 95

India : X2
now 8

Question 15

What does the increase in Fortune 500 companies suggest?

Answer 15

increasing global dependence

increasing cultural influence potential

potential to advance political agenda

Question 16

What does a high number of state owned businesses allow for?

Answer 16

companies to invest in areas which help to advance the country’s political agenda

Question 17

Why may India’s growth in F500s not be as great as Chinas?

Answer 17

• not supported by increased education spending - so less innovation
• less reliable power supply
• lack of just in time infrastructure

Question 18

Who devised the ‘Ease of Doing Business’ rankings?

Answer 18

World Bank

Question 19

Why is the Ease of Doing Business ranking important to TNCs?

Answer 19

important when determining where to outsource or to set up operations

Question 20

Where does China rank in the ease of doing business ranking?

India?

USA?

Answer 20

84th : China

123rd : India

7th : USA

Question 21

Lowest categories ease of doing business rankings :

China :

India :

Answer 21

China : access to electricity & in most recent report “getting construction permission”

India : enforcing contracts

Question 22

What does India’s ‘enforcing contracts’ weakness suggest?

Answer 22

• weak legal system

- presence of corruption

Question 23

Why does India have difficulty enforcing contracts in relation to its history?

Answer 23

series of socialist governments post-independence

set up of LICENSING RAJ
= government would issue licenses to businesses

Question 24

What improvements has India recently made to improve ease of business?

Answer 24

• new online registration schemes
  = easier to pay taxes / set up businesses
• abandoned minimal capital requirement to set up businesses

Question 25

Examples of SEZs in India and China;

Answer 25

India : Goa

China : Shanghai

Question 26

Trade relationship : Indo-Chinese

C’s exports to India

I’s exports to China

Answer 26

C–>I = $150billion

I–>C = $17billion

Question 27

Why is India in a long-term trade deficit with China?

Answer 27

• weak manufacturing
• restrictive land laws
• inadequate power
  = doesn’t produce goods to provide for its 1.29billion population

Question 28

What is China’s increase in F500 companies not necessarily a reflection of?

Answer 28

Not necessarily decline in Westernisation

China purchasing SYNGENTA showed adoption of Western technology + innovation

Question 29

What is the trade relationship between China and USA?

Answer 29

USA = China’s largest market

USA increasing trade deficit with China

Question 30

What has China been accused of doing in order to provide it with advantageous trading positions?

Answer 30

Artificially keeping its currency low

flooding the market

Question 31

What did China’s economic engine to in relation to geopolitical tension in Asia?

What potential does India have in this regard?

Answer 31

transformed its relationship with its neighbours in the 1990s

India’s economic growth may provide foundations of prosperity and regional cooperation in Southern Asia