THEME 4 Flashcards
Overdependence on exports
Saudi Arabia oil and gas sector makes up 50% of real GDP
Overdependence on imports
UK reliance on Russia for gas imports - now problem due to war
Globalisation improving living standards
In 1950, 75% of world in absolute poverty, now less than 10%
Structural unemployment
Hartlepool and steel, now most china produced in steel
Dumping
2018 Chinese washing machines and American washing machine firms (whirlpool) - 30% tariff imposed
Quota
Algeria car quota 83,000 (to protect domestic car industry)
Protect infant industries
Malawi 2006 - agricultural input subsidy programme
Health and Safety regulations
After fukushima nuclear disaster, Taiwan imposed health and safety regulations on imports from Japan, due to contamination of food
Common external tariff
EU tariff of 30% on milk from NZ
Current account deficit
UK £111bn in 2016
Con of capital and financial account
US owe China $1.2trn via government bonds
Depreciation
June 2016 (brexit) £1 from $1.48 to $1.20
Cons of competitive devaluation
currency war - thailand and china 1994 (china devalued, thailand responded)
Number of people in absolute poverty
2013 estimated over 767 million
Corruption
70% of the $1.3bn aid to Somalia had disappeared 2011
Income inequality
US average CEO paid 271 times more than average production worker 2017
World bank
lent £833m (due to high shipping costs and thus little profit in Burundi) and also debt relief
IMF
$147bn bailout to Greece 2010
Brexit - students
- EU students enrolling in UK halved since Brexit
- £9000 fees and student finance available now up to £38000
Fiscal deficit
UK £318bn (14.7% of GDP) (pandemic 2020-21)
FDI
Microsoft opened tech hubs in Kenya, Nigeria
FDI relocation (footloose)
Apple shifted manufacturing of iPhone 13 away from China to Chennai in India
