Superpowers 2.3 Flashcards
Who are G20
The G20 (or G-20 or Group of Twenty) is an international forum for the governments and central bank governors from 20 major economies.
What is trade
The exchange of goods and services which generates wealth
Superpowers and emerging pwoers have a significant advantage when it comes to world trades because…
Most TNCs originate in rich developed countries and 70% of trade is to do with TNC activity
NAFTA and the EU are examples of…
Trade blocs here there is internal free trade while maintaining aspects of protectionism
Positives of China’s embrace of capitalism within a free market
The creation of special economica cones such as Shenzhen, has increased the economy by 10% each year for 20 years. THis has lifted 400 million out of poverty
What is Frank’s dependency theory?
Less powerful countried export low value commodities to developed countried, but import costly manafactured goods. Long term the value of commoditied has fallen relative to cost of goods ands services which worsened ters of trade creating a trade gap.
How large is cocoas to Ghanas GDP
Most important export crop, which accounted for 8.2 percent of the country’s GDP and 30 percent of total export earnings in 2010.
Cocoa marketing?
All cocoa beans are sold to Licensed Buying Companies (LBCs), which in turn sell to the only authorized exporter in Ghana, the COCOBOD (Govt. Agency) or to domestic industries for local processing
Employment in the cocoa industry?
In terms of employment, the livelihood of about six million people (25 – 30 percent of the population) depends on the cocoa sector
The weak currency of Ghana has led farmers to..
The sharp fall in the cedi, Ghana’s currency, also meant that it is more lucrative for farmers to smuggle their cocoa rather than sell to Cocobod. Weak cedi inadvertently provided incentives for farmers and extension workers to resell pesticides and cocoa in neighboring countries where they could earn more for their product.
Problems of cocoa being the largest export?
Bad or inadequeate weather means bad crops or no crops. THis has a spiral effect in that therefore there is less money and cuts must be made elsewhere such as to the staff. Farmers are better off smuggling.
Who benefits the most from cocoa exporting?
WHen Ghana sell the cocoa, it is not yet proceesed. Countrie it is sold to, process the cocoa and add substantial value to the product making cocoas powders or chcocolate.
Advantages of trade alliances for member states:
Encourages trade between member countries.
Provides a much larger market to sell goods to and make larger profits.
Helps to safeguard the industries of member countries.
Free trade between member countries means that there are no tariffs or quotas imposed on them. This is good for member states as it means that the goods they are buying will be cheaper, but - it is a disadvantage for non-members, as they will be charged taxes or a limit will be put on how much they can export to countries within the alliance.
Member governments also subsidise their own industries so that they can produce cheaper materials and goods.
The removal of border controls, eg lengthy customs checks, means that it is easier and cheaper to import and export goods throughout different countries in Europe.
The EU provides a much larger workforce for industries so people can live and work in different member countries as they choose.
Individual countries have more power, as they are part of a ‘superpower’ which has enormous influence on the world market.
Effects of China and India’s growing economy and industry
substantial Increased need for oil and gas
How much of the world;s natural gas reserves did Gazprom control
50% stake in Gazprom control 1/3
