superpowers EQ2 Flashcards
what are the top 3 biggest companies (2019)
1- ICBC (major bank) in China
2-JP Morgan & Chase (major bank) in the USA
3- China Construction Bank in China
how many top companies does China have out of the 10 biggest companies
5
how many top companies does America have out of the 10 biggest companies
4
China has many major bank companies, what does this display?
that they have a great level of economic power
Within the USA, they have the company apple which is the 6th biggest company, why is this advantageous.
- shows that they have advancements in technology
-outsourcing can occur
-they are able to gain a global influence (soft power) through apple TV and apple apps.
Based in the Netherlands is the 9th largest company, Royal Dutch Shell, what are the advantages and disadvantages of this.
advantages:
-they have energy resources which they can export
disadvantages:
-oil is a finite source and non-renewable
-exploitation of environment (environmental degradation)
-taints the country of the Netherlands
why did Lego end their partnership with shell
Greenpeace showed the negatives of shell and the oil spills occurring which ruins the environment.
what are the 2 types of TNCs
-publicly traded TNCs
-state owned TNCs
whats a publicly traded TNC
- TNCs whose share are owned by numerous stakeholders (usually other TNCs, banks and large financial institutions such as pension funds) across the world.
what are state owned TNCs
-TNCs that are majorly or wholly owned by the government
what are most well-known? publicly traded TNCs or state owned TNCs
publicly traded TNCs
what TNCs would China have most of? publicly traded TNCs or state owned TNCs
state owned TNCs
Why do TNCs support free market capitalism
as FDI can occur which = more profit / reduction in tariffs and taxes // cumulative causation* and comparative advantage
how do TNCs ensure dominance of the global economy
by diversification of products to appeal to many markets
what are the criticisms of TNCs
cultural diffusion (homogenous culture*) / environmental impacts (synoptic link to water- Aral Sea Case study/ Globalizations EQ2/
explain why the media (a global cultural influence) is an important aspect of power linked to economic influence and technology (4)
The media is an important aspect of power as it enables a country or particular TNC to exert its influence. This form of power is a soft power. through the media such as movies, entertainment and apps such as Facebook and insta, ideas from particular countries and TNCs can be promoted, this can be in the form of advertisement. The media can generate a feeling of needing a certain product. This can lead to certain brands and products to be bought into (consumerism). Through the means of technology such as iPhones, TNCs can easily promote themselves and a large economic influence allows for FDI to occur n poorer countries to build infrastructure based around brands making a country dependent on these services
what are the 4 roles of TNCs
-outsourcing, offshoring-> global flows (labour and employment)
-glocalisation
-cultural influence-> global culture
-wsternisation
where are most TNCs found
North America
how many of the worlds largest TNCs only originate from 7 countries
400
how do TNCs reinforce economic and cultural power
-through production and sales allowing them to affect the price of commodities, affecting the trade and controlling technologies
-TNCs also exert control of technology globally through patents
-TNCs invest in developing countries, TNCs and may influence government policies, both directly and indirectly. Global brands (e.g. Disney and McDonalds) cause the spread of western culture through the rest of the world
state information about the case study: Tata Steel
-Tata Steel is one of the worlds largest steel companies with a steel production capacity of 27.5 million tonnes per annum.
-The company is a diversified steel producer with major operations in India, Europe and South East Asia.
-Tata steel is the 2nd largest steel producer in Europe
what facts show that the world is becoming Disneyified
- it owns 40 Spanish speaking radio stations
-it supplies materials to help teach English in Chinese and African schools.
-retail/leisure locations around the world are becoming clones of Disneyland
-14 theme parks
Simply, what is Tata Steel
An Indian multinational steel making company
How has Tata Steel shown reverse colonialism
-they are specialising
-They have a partnership with British TNCs
-also provide steel for Ford cars
how have TNCs expanded
-By outcompeting smaller companies and taking them over
-Their bank balances and ability to borrow money to invest has allowed them to take advantage of globalisation by investing in new technology
-The move towards free-market capitalism and free trade has opened new markets allowing TNCs to expand.
what is free market capitalism
an unregulated system of economic exchange
whats a patent
a gov authority or licence conserving a right or title for a set period. excludes others from making, using or selling a particular invention*
examples of “arts” as a soft power
-Spotify
-amazon music
-The West End (lion king shown in many places)
-broadway/ hollywood
-fashion week> showcase designs across cities
-galleries showcasing art (sponsorships)
examples of “food” as a soft power
-McDonalds- introduction and fusion of MCD into restaurants and countries around the world (glocalsiation)
-KFC
-coca-cola is the parent country for many drinks around the world (fanta and sprite)
-innocent smoothies
examples of “media” as a soft power
-Facebook
-Netflix (online streaming of TV around the world in a multitude of languages)
-Insta
-Hollywood, Bollywood, Nollywood (fusion of American culture here)
-love island, married at first sight, disney
-Youtube
-Sky Sports, world cup, Olympics
what are IGOs owned by and what do they promote
IGOs are owned by western countries and promote free trade and capitalism
what IGOs have uneven votes on global decisions
IMF and World Bank
describe the voting system for WTO
although one country one vote consensus, countries will be influenced by whats in their economic interest to vote for
whats the role of WEF
- brings together leaders from diff backgrounds
-multiple stakeholders (collaborative)
-celebs, businesses, artists…
whats the criticisms of WEF
-conflicts between stakeholders in WEF
- celebs/ industry players in TNCs have more power
what is the WEF and what’s its aim
-its an IGO
- it promotes public-private co-operation
-it meets annually at Davos
-Established in 1971 to help resolve disputes and promote global thinking
-discusses corruption, terrorism and social issues (health)
whats the IMF and whats its aim
-Founded in the USA
-aim to stabilize global currencies after 1930s and devastation of ww2.
-help countries facing debt thus helping to stabilise currencies
negatives of the IMF
-not all members are equal, their individual voting rights are proportional to the amounts they have invested in the fund
-may force developing countries to cut spending on health & education (saps)
-47% of the votes lie in the hands of the 8 largest contributers
World Bank Aims
-aims to finance development
-focuses on the effects of natural disasters and humanitarian disasters
-main role= to help capitalism function
-aims to eliminate poverty and implement sustainable goals.
-gives loans for development
negs of the World Bank
-gained a bad rep for environmental damage
-costly so developing countries cant repay loans
aim of the WTO
to promote free flow of trade and prompt economic growth, especially in the least developed countries
-advocates for free trade/ trade liberalisation
what are the 4 global policemen (1945) post ww2
-USA
-UK
-Soviet Union
-China