Trade relationships and patterns Flashcards
issue for the EU and NAFTA of new trading blocs such as ASEAN becoming more dominant
EU and NAFTA may lose out from manufacturing in ASEAN trade bloc
trade competition
more political players- have to listen to their opinion
power demand in Asian countries if we become reliant on their products
issues of new trading blocs such as ASEAN becoming more dominant for china
china may lose out because manufacturing may move to Thailand, Vietnam, etc
FDI move away from china, companies may choose to invest in up and coming countries like Thailand - loss of jobs in china
outsourcing
what does ASEAN stand for
Association of South East Asian Nations
china is a member of what trade bloc
APEC (Asia-Pacific Economic Co-operation)
the banana wars were between which 2 entities
EU and USA
why have tensions arose between trading entities
they all want to ensure the best deals for their citizens, their workers and businesses based within the group (including TNCs)
examples of trade deals in the works
Trans-Pacific Partnership involving free trade between the USA and countries in Asia and South America
Transatlantic Trade and Investment Partnership between the USA and EU
what type of economy has the USA traditionally been
protectionist
why do conflicts arise over free trade
as there is always one country that loses out in the long or short term
there is no such thing as free trade due to imposed tariffs which can cause conflict or even outsourcing in an area as people don’t want to lose jobs- causes skills based unemployment
what is the aim of the trans-pacific partnership
to deepen economic ties between these nations, slashing tariffs and fostering trade to boost growth
how many countries are in the negotiation for the trans-pacific partnership
12 (includes USA, Australia, Japan and Vietnam)
what topics does the trans-pacific partnership also cover
investment, patents, labour and environmental standard
example of liberalist and protectionist POTUS’
Barack Obama- liberalist
Donald trump- protectionist
arguments from US citizens against the trans-pacific partnership
fear it will favour big businesses and other countries at the expense of American jobs and national sovereignty
what is the aim of the transatlantic trade and investment partnership (TTIP)
cut tariffs and regulatory barriers to trade between the US and member states of the EU
why would the TTIP threaten the NHS
we rely on other countries for staff
argument against the TTIP
argue that it will undermine democracy as it will give more power to TNCs above all democratically elected governments
what is required to be a member of the G7 nations (according to the IMF)
high net national wealth
high HDI
countries involved in the G7
Canada, France, Germany, Italy, Japan, the UK and the USA
what is the G20 group (how is it different from G7)
is an international forum for the governments and central banks of 20 major economies. G20 was created to give a voice to the major developing economies
examples of countries in G20
Australia, india, Italy, mexico, south Africa, EU (as a single member)
what is china’s role in Africa
extract a range of primary resources including metals to support industrial expansion in china
in 2014 how much was the value of trade between Africa and china
$200 billion
how much of china’s foreign aid is distributed in china
over half
what is flooding African markets
cheap Chinese goods
benefits for Africa due to Chinese assistance
numerous infrastructure programs to build much needed roads, bridges, railways, schools and hospitals (help to bridge the development gap)
example of how china aided healthcare in china in 2015
Chinese doctors played an important role in addressing the ebola outbreak in 2015
how does trade with Africa benefit china
Chinese companies get new business investments
country as a whole gets steady access to much needed natural resources
top 3 main exporters in 2016
- china
- USA
- Germany
top 3 main importers (2016)
- USA
- china
- Germany
location of top 3 FDI donors
- USA
- UK
- Germany
location of top 3 FDI receivers
- USA
- China
- UK
