Unit 10 Mini Case Studies Flashcards
Major exporters of goods
China: the largest exporter in the world with exports valued at about $3.59 trillion accounting for 18% of global exports (electronics, machinery, textiles)
Germany: exports totaled $1.66 trillion representing 34% of GDP (cars, machinery, chemical products)
US: exported valued at $2.1 trillion representing 9% of GDP (aircraft, machinery, pharmaceuticals)
Major importers of goods
US: largest global imported worth $3.96 trillion mainly from China (electronics, machinery, consumer goods)
China: valued at $2.69 trillion which accounts for 17% of global imports (raw materials and high tech products)
Germany: totaled $1.56 trillion representing 32% of GDP (machinery, vehicles, energy products)
Trade in services
India: exports valued at $323 billion contributing to 13% of GDP (IT and business outsourcing)
US: financial services, entertainment and education exports are worth $914 billion with services contributing to 80% of the economy
UK: export financial services, legal expertise and insurance with service exports totalling $418 billion, about 15% of GDP
Key global trade flows
High volumes of electronics and consumer goods flow from China, Japan and South Korea to the US and Canada. China exported $583 billion worth of goods to the US in 2022
Machinery, pharmaceuticals and luxury goods from from Germany, France and Italy to the US with Germany exporting $146 billion in goods to the US in 2022
Africa’s exports of raw materials to China totaled $106 billion in 2022 due to China’s demand for resources
Trade imbalances
US has a significant trade deficit importing $900 billion more than it exported in 2022 driven by imports from China
Germany operates with a trade surplus exporting $100 billion more than it imported in 2022 due to its strong manufacturing sector
Regional trade agreements
EU facilitates free trade between member countries like Germany, France and Italy. Intra-EU trade is 64% of total EU trade
NAFTA/USMCA strengthens trade between the US, Canada and Mexico with trade within the bloc reaching $1.5 trillion in 2022
ASEAN promotes trade within Southeast Asia including Indonesia, Thailand and Vietnam reaching $3.6 trillion in 2022 or 7.5% of global trade
Emerging markets
Vietnam: rising as a key exporter of electronics and textiles with exports valued at $372 billion and 94% of GDP
Brazil: a major exporter of agricultural products worth $335 billion and 19% of GDP
South Africa: a leading supplier of minerals and precious metals with exports valued at $123 billion and 24% of GDP
Challenges in global trade
Tensions between the US and China have led to tariffs on hundreds of billions of dollars of goods affecting global supply
COVID-19 and the Ukraine conflict have disrupted trade flows. Global container shipping costs increased by 200% during the pandemic
Many developing nations rely heavily on exporting low value raw materials while importing expensive finished goods limiting economic growth potential
Examples of product reputations
German cars
Scotch whisky
Swiss watches
Japanese high tech products
Belgian chocolate
Manufacturing industry in Canada
The manufacturing industry in Canada benefits from the proximity of the large American market
Tourist industry in France
The tourist industry in France benefits from the large populations of neighbouring countries that can reach France relatively quickly and cheaply
Singapore strategic location
Singapore, at the southern tip of the Malay peninsula is situated at a strategic location along the main trade route between the Indian and Pacific Oceans
Rotterdam strategic location
Rotterdam in the Netherlands is located near the mouth of the River Rhine. Many goods brought in by large ocean carriers are trans-shipped onto smaller river vessels and other modes of transport at Rotterdam or refined or manufactured in various ways in the ports industrial area
Examples of colonial ties
The UK still maintains significant trading links with Commonwealth countries because of the trading relationships established at a time when these countries were colonies. Other European countries such as France, Spain, the Netherlands, Portugal and Belgium also established colonial networks overseas and have maintained these ties in the post colonial period
Australia terms of trade
In December 2014 the Australian treasurer stated that Australia was in the grip of the biggest fall in the terms of trade since records began in 1959 because of a drastic fall in commodity prices
Foreign exchange reserves examples
China alone holds 30% of foreign reserves. The US is now the world’s biggest debtor
Trade blocs and regional trade agreements examples
NAFTA is a free trade area. Mercosur is a customs unions joining Brazil, Paraguay, Uruguay and Argentina in a market of 200 million people. The EU, NAFTA, ASEAN and Mercosur are regional trade agreements
The EU
The EU is an economic union but its current level of economic integration was achieved in several stages. When Denmark, Ireland and the UK joined in 1973 it was a common market. The increasing level of integration has been marked by changes in the name of the EU. Initially it was the European Economic Community, then the European Community and from November 1993, the European Union. Some nations have been more in favour of greater integration than others
Result of globalisation in Africa
If Africa increased its share of world trade by 1% it would earn $61 billion. The benefits of globalisation are not passed onto Sub-Saharan Africa, even exacerbating its problems
Asia-Pacific Economic Cooperation Forum (APEC)
Its 21 members border the Pacific Ocean including Canada, the USA, Peru, Chile, Japan, China and Australia which have pledged to facilitate free trade
The Cairns Group of Agricultural Exporting Nations
Formed in 1986 to lobby for freer trade in agricultural products including Argentina, Brazil, Canada, New Zealand, Australia, the Philippines and South Africa
Benefits of free trade for exporting countries
Since joining the WTO in 2001 China has become the world’s largest exporter benefitting from reduced trade barriers and investment inflows. Its economy has grown rapidly lifting hundreds of millions out of poverty. The export driven model based on manufacturing and technology has strengthened its positions as a global economic leader.
The removal of trade barriers under free trade agreements has allows Vietnam’s textile and electronics industries to expand creating jobs and attracting FDI
Challenges of free trade for exporting countries
When the COVID-19 pandemic disrupted supply chains, Bangladesh’s garment industry suffered as Western retailers cancelled orders. In countries like Cambodia, garment workers often earn very low wages despite producing goods for major global brands
Benefits of free trade for importing countries
In the UK, removing tariffs on food imports from the EU under the EU Single Market meant lower prices for shoppers. The availability of cheap electronics from Asia has helped businesses and consumers in Europe and North American access advanced technology at lower costs
Challenges of free trade for importing countries
The decline of the EU steel industry has been partly attributed to cheap steel imports from China leading to job losses in manufacturing towns. The US has faced persistent trade deficits with China, raising concerns about economic dependency
WTO and wealthy nations
The US and EU have heavily subsidised their agricultural sectors making it difficult for farmers in poorer countries like Ghana to compete
Africa’s struggle in global trade
Many African countries export raw materials but lack the infrastructure to develop high value industries. Under free trade, African nations remain suppliers of low cost commodities while wealthier countries profit from manufacturing and branding. While Cote d’Ivoire is the world’s largest cocoa producer, most of the profits from chocolate production go to companies in Europe and North America
NAFTA and Mexico
NAFTA increased trade between the US, Canada and Mexico. While it boosted Mexico’s exports, many small farmers struggled to compete with subsidised US agriculture leading to job losses in rural areas
Multilateral debt relief initiative
Helped Ghana, Tanzania and Ethiopia but some fell into new debt cycles from ongoing borrowing
Zambia debt situation and opportunities
Previously qualified for HIPC debt relief but still struggles with debt
Resource rich but vulnerable to price fluctuations
High poverty, reliant on commodity exports
Potential for diversification and infrastructure investment
Ghana debt situation and opportunities
Benefited from MDRI but still borrows heavily
MIC with oil and agriculture
Increasing debt due to new loans for development
Strong economic growth, investment in education and healthcare
Argentina debt situation and opportunities
Defaulted on debt multiple times, negotiated restructuring
Upper MIC, industrialised economy
History of economic crises, inflation and IMF bailouts
Large atricutlural exports, tourism potential
Haiti debt situation and opportunities
Received debt relief but remains one of the poorest nations
Developing economy reliant on aid
Natural disasters, weak infrastructure, political instability
Tourism potential, remittances from diaspora
China debt situation and opportunities
Major creditor rather than debtor
Worlds second largest economy
Lends to many developing nations, faces issues of debt sustainability
Controls large reserves, invests in global infrastructure
Zambia increased investment in education
After HIPC and MDRI debt relief in 2005, Zambia made primary education free leading to a large increase in school enrolment
Government spending on teacher recruitment and classroom construction improved access to education
Literacy rates improved though challenges remain in rural areas
More students were able to complete basic education, increasing future job prospects
Zambia expansion of healthcare services
Debt relief allowed Zambia to hire more healthcare workers and expand access to hospitals and clinics
Increased funding for HIV/AIDS treatment and prevention programs, reducing infection rates
Maternal and child healthcare services improved leading to lower infant mortality rates
Investment in vaccination programs and disease prevention helped reduce cases of malaria and other illnesses
Zambia development of infrastructure
More funds were available for road construction and electrification projects, improving connectivity
Water supply systems were expanded, giving more rural communities access to clean drinking water
Investments in agriculture infrastructure boosted food security
However, later government borrowing led to new debt challenges, affecting future infrastructure expansion
Zambia long term economic challenges and lessons
While initial debt relief freed up money for development, new borrowing for infrastructure projects led to rising debt again
Some infrastructure projects were not well planned leading to high costs and inefficient spending
Zambia’s reliance on copper exports meant that economic downturns still affected government revenue
Highlights the importance of sustainable financial management after debt forgiveness to avoid falling back into debt
Example of short term aid
Aid sent to Haiti after the 2010 earthquake, including emergency shelters and food
parcels.
Example of long term aid
Investment in education and healthcare in Malawi to improve literacy and life
expectancy.
Top foreign aid donors (in official development assistance)
US = $34.6 billion
Germany = $25.1 billion
UK = $18.6 billion
Japan = $16.3 billion
France = $14.1 billion
ODA to GNI
Luxembourg: 1% of GNI
Norway: 0.99% of GNI
Sweden: 0.98% of GNI
Denmark: 0.71% of GNI
UK: 0.7% of GNI
Target of 0.7%
Mali background
Established WaterAid in 1981 in Zambia. Mali is one of the poorest countries. The natural environment is harsh and deteriorating. Rainfall is low causing desertification. 65% is desert or semi desert and 11 million lack access to safe water. WaterAid has been active since 2001
What led to WaterAid operating in Mali?
The fully privatised water industry fails to provide to the poorest rural and urban areas. WaterAid is running a pilot scheme in Bamako (slum) providing clean water and sanitation. Its objective is to demonstrate to the government and other donors that slum projects can be socially and economically successful
Aims of WaterAid in Mali
Financed the construction of the water network. It is training people to manage and maintain the system and raise the money to keep it operational. Encouraging the community to invest in its own infrastructure is part of the philosophy, allowing WaterAid to move on and help others
Outcome of WaterAid in Mali
There have been improvements in overall health. It takes a generation for health and sanitation to be properly embedded in peoples day to day lives
Impacts of WaterAid
WaterAid is the UKs only major charity dedicated to the provision of safe domestic water, sanitation and hygiene education. Without this communities remain stuck in a cycle of disease and poverty. It maximises health benefits and promotes development. The combined benefits can reduce childhood diarrhoea by 95%. A child died every 15 seconds from diseases due to a lack of safe water and sanitation
Long term benefits of WaterAid in times of drought
Previously women would spend hours in search of water leaving little time to find food
Children would miss out on education in the search for water
Cattle can be watered rather than sold or left to die because of water shortages
During famines, with sanitation, water and hygiene people are less sick and so are better able to fend off disease
Water aid costs
Pays for the completion of a 15 metre hand dug well in Zambia
Pays for a public water point in an urban slum in Bangladesh used by up 10 100 families
Pays for a school sanitation block for 150 pupils in India
Buys and hand pump to serve 100-150 people in Madagascar
Tourist arrivals in 2024
France – 100 million arrivals
Spain – 85.17 million arrivals
United States – 66.48 million arrivals
Italy – 57.25 million arrivals
Turkey – 55.16 million arrivals
Mexico – 42.15 million arrivals
United Kingdom – 37.22 million arrivals
Germany – 34.80 million arrivals
Greece – 32.74 million arrivals
Austria – 30.91 million arrivals
Tourism receipts in 2024
United States – $189.1 billion
Spain – $92.0 billion
France – $71.2 billion
United Kingdom – $73.4 billion
China – $60.7 billion
Italy – $55.9 billion
Germany – $37.4 billion
Japan – $38.6 billion
Thailand – $29.7 billion
Regional tourism distribution in 2024
Europe - 49% (745 million)
Asia-Pacific - 23.7% (360 million)
Americas - 14.5% (220 million)
Africa - 4.6% (70 million)
Middle East - 3.9% (60 million)
Burma impacts of tourism
People are forced from their homes to make way for tourism developments and forced labour is used to construct tourist facilities
Goa impacts of tourism
There have been long term protests against tourism
One five-star hotel consumes as much water as 5 local villages with the average hotel resident using 28 times more electricity per day than a local person
Tourism Concern environmental group
They define sustainable tourism as tourism and associated infrastructure that operates within capacities for the regeneration and future productivity of natural resources, recognise the contribution of local people and their cultures, accept that these people must have an equitable share in the economic benefits of tourist and are guided by the wishes of local people and communities in the destination areas
Belize and Costa Rica impacts of tourism
Coral reefs have been blasted to allow for unhindered watersport
Ros Mohammad National Park (Red Sea) impacts of tourism
Scuba divers who were made to attend a lecture on the ecology of the local reefs were found to be eight times less likely to bump into coral with is the cause of ⅔ of all damage to the reef
Overview of tourism in venice
Venice, a UNESCO World Heritage Site, attracts over 20 million tourists annually, with daily cruise ship arrivals exacerbating congestion. The city’s small size and fragile ecosystem face significant strain due to excessive tourism.
Issues with overcrowding and over-tourism in Venice
The city struggles to handle mass tourism, especially in peak seasons. Narrow streets and small public spaces become overcrowded, making daily life difficult for residents.
The wake from large cruise ships erodes canal foundations, contributing to the gradual sinking of Venice. Pollution from boats and waste disposal challenges further threaten the city’s fragile environment.
The influx of tourists raises rent prices and forces locals to move away. The city’s population has declined significantly, leading to concerns about cultural erosion.
Management of overcrowding and over-tourism in Venic
Introduced in 2024, Venice charges day-trippers an entrance fee to control visitor numbers.
Large vessels have been banned from docking in central Venice to reduce environmental damage.
Authorities encourage visitors to explore lesser-known areas to ease congestion in main tourist zones.
Overview of tourism in Bali, Indonesia
Bali, one of the world’s most popular tourist destinations, heavily depends on international
tourism, contributing over 50% of its GDP. The island benefits from the tourism multiplier effect, but economic leakage remains a challenge.
Positive economic impacts of tourism in Bali
Tourism provides jobs in hospitality, transport, and entertainment. Many Balinese work in hotels, restaurants, and as tour guides.
Tourists’; demand for food, souvenirs, and services benefits local farmers, artisans, and small business owners.
Increased tax revenue from tourism supports road improvements, public transport, and airport expansion.
Challenges of economic leakages due to tourism in Bali
Many high-end resorts and tour operators are owned by international corporations, meaning much of the profit leaves the local economy.
Hotels and restaurants often import food and luxury goods, reducing the financial benefits for local producers.
While tourism creates jobs, many positions in the hospitality industry are low-paying, limiting financial security for workers.
Strategies to maximise local tourism benefits in Bali
Encouraging community-based tourism, where local businesses and cooperatives
directly profit from visitor spending.
Government policies promoting local sourcing of products and services.
Tax incentives for Balinese-owned businesses to compete with foreign corporations.
Overview of tourism in Maasai Mara, Kenya
The Maasai Mara, one of Africa’s premier wildlife reserves, attracts over 300,000 international tourists annually, generating significant income for Kenya. However, managing tourism sustainably is essential to protect the ecosystem and benefit local communities.
Benefits of tourism in Maasai Mara
Entrance fees and safari tourism finance conservation projects, protecting endangered species.
Many Maasai people work as tour guides, lodge employees, or in cultural tourism enterprises.
Tourism revenue supports local schools,
healthcare, and infrastructure.
Challenges and carrying capacity issues of tourism in Maasai Mara
Excessive vehicle traffic damages the ecosystem, disrupts animal behavior, and causes congestion in the reserve.
Hotels and lodges require significant water and energy resources, putting pressure on local supplies.
Large foreign-owned safari companies take a significant share of profits, reducing income for local communities.
Sustainable solutions to the issues of tourism in Maasai Mara
Authorities restrict the number of safari vehicles allowed in key areas.
Many lodges use renewable energy and
support conservation efforts.
A portion of tourism income is allocated to
community projects to ensure local benefits.
Blackpool exploration stage (pre 19th century)
Blackpool was a small fishing and farming village with minimal tourism. Wealthy visitors from nearby cities (Manchester and Liverpool) visited for health benefits of sea aid and bathing
Blackpool involvement stage (Mid 19th century - 1850’s)
Expansion of railways made Blackpool more accessible to industrial workers from the North of England. Hotels, guesthouses and piers (North Pier in 1863) were developed. The town became a popular working class holiday destination especially for factory workers on annual holidays
Blackpool development stage (Late 19th century - early 20th century)
Blackpool experienced rapid growth with entertainment and attractions:
- Blackpool Tower (1894) inspired by the Eiffel Tower
- Winter Gardens (1878) a major leisure complex
- Promenade expansion and investment in sea defences and piers
Became a leading UK seaside resort attracting millions of visitor annually
Blackpool consolidation stage (mid 20th century - 1950’s/60’s)
Tourism became well established and Blackpool reached its peak popularity. The Illuminations (began in 1912) extended the tourist season beyond summer. Many hotels, theatres and dance halls thrived. Competition between businesses increased leading to more investment in attractions like the Pleasure Beach amusement park
Blackpool stagnation stage (1970’s-1980’s)
Decline began as UK holidaymakers preferred cheap package holidays abroad (Spain and Greece). Air travel became affordable, reducing demand for traditional UK seaside holidays. Many hotels and attractions became outdated and the area suffered from declining visitor numbers. Unemployment increased as tourism jobs declined
Signs of declining stage in Blackpool (1990’s-present)
Ageing infrastructure, some hotels converted into cheap housing
Increased crime and social problems in some areas
Blackpools status as a top UK tourist destination declined
Efforts at rejuvenation in Blackpool
Regeneration projects (government funding for upgrading infrastructure)
Modern attractions (Blackpool Pleasure Beach improvements, Sandcastle Waterpark, Blackpool Tower refurbishments)
Events and conferences hosting political conferences and music events
Investment in transport (tram system modernisation)
Renewed focus on family friendly tourism (Merlin Entertainment investment)
Blackpool and the Butler Model
Closely follows experiencing early growth, peak tourism, decline and ongoing attempts at rejuvenation. Challenges remain but there are efforts to modernise infrastructure and improve attractions
International tourism in 2024
Middle East (95m arrivals) was the strongest compared to 2019
Africa (74m) had 7% more arrivals than in 2019
Europe had 848m arrivals supported by strong intraregional demand. Central and Eastern Europe are still struggling from Russian effects on Ukraine
Americas (213m) recovered 97% pre pandemic
Asia and Pacific (316m) had 87% of pre pandemic levels
Destinations exceeding pre pandemic levels
El Salvador (81%)
Saudi Arabia (69%)
Ethiopia (40%)
Qatar (137%)
Albania (80%)
Both international air capacity and air traffic virtually recovered pre pandemic levels through October 2024
Exports from 2024 tourism
The greatest growth in international tourism receipts were Kuwait (232%), El Salvador (206%) and Saudi Arabia (148%)
Background of tourism in Ecuador
Travel and tourism was 1.9% of GDP in 2014 with the total travel and tourism economic contributing 5.3% ($4702m). 118,000 jobs in the industry was 1.7% of employment and in the wider travel and tourism economy was 4.8% (338,000). 3rd largest source of foreign income after oil and bananas. The number of visitors has increased to the mainland and Galapagos due to the diversity of flora and fauna. Ecuador has 10% of the world’s plant species and most is protected by national parks and nature reserves
Tourism strategies in Ecuador
The tourism strategy has been to avoid being a mass market destination and to market quality and exclusivity. A large visitor influx could damage the most attractive ecosystems and harm its green image
Benefits of tourism in Ecuador
Ecotourism has brought income to the poorest parts, providing locals an alternative way to make a living reducing human pressure on ecologically sensitive areas. The main ecotourism area was in the Amazon rainforest around Tena. The schemes are run by small groups of indigenous Quicha people
Quicha people rules in Ecuador
All rubbish must be taken away by visitors
Do not enter people’s houses without invitation
Always check before touching plants and animals. Do not collect insects or animals without permission
Never go for a walk alone
Do not pull on branches or vines
Avoid displays of affection
No exchanges of clothes or personal items with community members
Galapagos Islands at risk
Declared at risk in 2007 saying visitor permits and flights could be suspended. The islands straddle the equator 1000 km off the coast of Ecuador. All but 3% are national parks. 5/13 are uninhabited. Visitors are currently 160,000 per year and rising. November to June is most popular. Boat trips cost 700-2000 pounds. National park entrance fee is 65 pounds with giant tortoises and marine iguanas
Identified problems in Galapagos Islands
Population doubling every 11 years (40,000 in 2014) putting pressure on natural resources and disposal of domestic waste
Illegal fishing of sharks and sea cucumbers at all time high
Number of visiting cruise ships rising
Increase in non-native species
Internal arguments within national park management structure
Hotel opened in 2006
Conclusion of Galapagos Islands tourism
The tourism carrying capacity has been reached or exceeded but many more people want to visit the environment. The management of tourists has evolved with increasing numbers but some radial approaches are likely to be required in the future
