Y1) TERM 4- GLOBAL SYSTEMS AND GLOBAL GOVERNANCE (PART 2) (E) Flashcards
what is Glocalisation
global and local fusing into one
TNC’s change products to fit the local demographic
explain the multiplier effect if a TNC opens a factory
the factory needs workers, these workers need food so small food shops open to feed the workers. the workers then need homes so these are built. this helps build the country’s economy.
why do TNC’s set up factories around the world (clue- profit)
They do this to get around import and export taxes and then their products mainly don’t need to be transported so they save money therefore increasing profits.
In Bhopal what was the incident that occurred? (BHOPAL)
What was the chemical?
How many effected?
A pesticide factory had a leakage of a deadly chemical called Methyl Isocyanate. This impacted the 520,000 people surrounding the factory.
What company was responsible (BHOPAL)
Union Carbide
What was the impact of the Bhopal tragedy (BHOPAL)
It caused sickness, burning, suffocation, local hospitals became overwhelmed and there was no knowledge of it.
how many initial deaths
deaths in one week
beyond one week
overall health impact (BHOPAL)
3000
8000
15-20k
1/2 million
What caused the gas to leak (BHOPAL)
water got into the storage tank, it reacted causing it to be released
All 3 safety systems not working
Where are Walmart stores located (WALMART)
how many names does Walmart operate as
Globally scattered
America, England, South Africa, India, China, Nigeria, Japan
55 different names, examples:Asda-UK Seiyu-Japan
How much revenue did Walmart make in 2009 (WALMART)
$505 billion
Walmart is the biggest employer in how many states (WALMART)
how many employees
25 states
2.1 million employees (7x population of Iceland)
Host country benefits from TNC growth
Jobs - pay more, less strenuous as ones in local community
Quality of life improves, standard of living increase
Companies use local suppliers- able to expand more businesses by selling/ expanding goods
Jobs - more taxes help local communities
Company’s invest in environmentally friendly/ sustainable development is the host country
Improved relations between countries
Host country costs from TNC growth
Jobs - sweatshops, poor working conditions bad pay
Dangerous working conditions = death
fast fashion
‘race to the bottom’
Environmental concerns- corners are often cut to secure FDI
Host countries have no power in decision making
Home countries benefits from TNC growth
Customers - wide range of fashion
Profits maximised
cheap products - due to low production cost
asses new markets and resources
Green brands are becoming more popular, improving the environment
improved relations between countries
Home country costs from TNC growth
Shop workers often work long hours with poor pay ( minimum wage )
Deindustrialisation of home countries as factories are being used abroad
cloning - branded, mass produced products , outcompeting local businesses
less employment in home country as jobs are sent abroad
Shipping - huge carbon footprint
Consumerism - waste products form are in home countries
What is a commodity (TRADE)
a useful/ value item ( often a crop or raw material ) that can be sold- oil, coffee, copper, etc
what is Fairtrade (TRADE)
is an arrangement designed to help producers in growing countries achieve sustainable and equitable trade relationships. Members of the Fairtrade movement add the payment of higher prices to exporters, as well as improved social and environmental standards.
What is Fairtrade premium (TRADE)
Is an extra sum of money, paid on top of the selling price, that farmers or workers invest in projects of their choice such as improving their farming, business or health and education in their community.
What is ‘RACE TO THE BOTTOM’ (TRADE)
Almost a competition, where a company, state, or nation attempts to undercut the competitions prices by sacrificing quality standards or worker safety ( often defying regulation ) or reducing labour costs.
what is the bean belt (COFFEE)
A strip around the world ( between the tropics ) where all the world coffee is grown.
Globally how many cups of coffee do we drink per day (COFFEE)
1.5 billion
coffee is the (?) most widely traded commodity after oil (COFFEE)
(?) = 2nd
who are the main producers of coffee (3) (COFFEE)
Africa, South America, Asia (LIC’s or NEE’s)
what was the crisis in Colombia (COFFEE)
Due to prices of coffee falling and violence increased people have little to no choice but to change to growing coca ( cocaine ).
Deforestation and removal of coffee plantations for coca
What does Fairtrade do to help the coffee farms in Columbia (COFFEE)
Fairtrade pay farmers a premium to protect them against economic downturn.
what problems do coffee plants suffer with (COFFEE)
Blight, pests, poor weather, expensive fertiliser, unfair trade, conflict, glyphosate and corruption
what percentage of the supermarket price do the coffee farmers receive. (COFFEE)
7-10%
TNC’s make all the profit
Between 1999 and 2002, the price of coffee globally ….. by …..% to a 30 year …. (COFFEE)
fell 50% low
what causes market price fluctuations (COFFEE)
supply vs demand - no financial security
how does climate change impact coffee (COFFEE)
growing in dryer conditions is becoming to difficult
why is fertiliser and pesticides a problem for coffee farmers (COFFEE)
they are expensive
why are costs of coffee so low (COFFEE)
LIC’s ( where the coffee is grown ) have little power to dictate prices to the HIC’s which buy the produce ( race to the bottom )
what is the whole process from planting the coffee pants to it being purchased in shops. (COFFEE)
Coffee tree- planted as a seed ( one tree = 1kg of coffee per year )
harvested- ( 120 kg of harvest = 25kg of coffee to be sold )
separated from the husks
fermentation ( for 12 hours )
Dried for 5 days
bagged
taken to cooperative ( market )
sampled, checked , analysed, graded, weighed, purchased (farer payed)
beans processed ( blended, roasted, grounded, freeze dried, packed )
exported
purchased, enoyed
social benefits of Fairtrade (COFFEE)
benefits wider community
creates a future for the next generation of coffee farmers
a movement of change connects consumers and producers