2.a Access To Markets

Question 1

What is a supply chain?

Answer 1

The flow of materials,information and finance in a network of customers, suppliers , manufacturers and distributor.

Question 2

what are logistics?

Answer 2

A broad set of activities dedicates to the transformations and distribution of goods from raw materials to finished market distributions

Question 3

How has transport technology increase global trade? - Containerisation

Answer 3

• Increased the volume of merchandise as more is able to be transported
• Increased volume of exports as is cheaper to ship

Question 4

How has transport technology increase global trade? - planes

Answer 4

• increased the trade of services ( tourism)
• more people able to access services as is cheaper
• Interconnectivity of places so people are able to explore more

Question 5

How has communication technology improved global trade?

Answer 5

• increased interconnectivity
• facilitated the movements of goos and services internationally
• increased speed of transactions
• broadened the global supply chain
• increased capital (e.g online banking)

Question 6

How does automation increase trade?

Answer 6

• increases efficiency and speed
• cost is much cheaper
• allows for greater volume of exports
• greater volume of transactions are accessible

Question 7

What is a transnational corporation?

Answer 7

Very large companies that have at least one branch / production overseas.

Question 8

What are the 6 key features of a TNC?

Answer 8

• well known brand
• generates large profits
• large employers
• HQs in Advanced countries
• Research in Acs
• Manufacturing in EDCs / LIDCs

Question 9

What is the primary sector?

Answer 9

Uses natural resources and raw material extraction.

Question 10

What is the secondary sector?

Answer 10

Manufacturing goods made from the raw materials into useable product

Question 11

What is the tertiary sector?

Answer 11

service sector/selling of manufactured goods ( schools, healthcare,tourism)

Question 12

what is the quaternary sector?

Answer 12

Industry based on human knowledge / providing information services –> technology/research

Question 13

what is global expansion?

Answer 13

Major product with world wide markets

Question 14

What is take over?

Answer 14

take ver of a foreign competitor firms to grow business and reduce competition.

Question 15

What is merger?

Answer 15

Joining with foreign firms into one large international company

Question 16

what is horizontal integration?

Answer 16

acquiring companies that make similar components that along with yours make the final product. E.G parts to make a phone

Question 17

What is vertical integration ?

Answer 17

acquiring the companies that sell YOU the materials and components.

Question 18

What is diversification?

Answer 18

purchasing companies that deal with different products in order to spread risks from loss of sales or financial fluctuations.

Question 19

What is risk dispersal?

Answer 19

Distributing operations across a range of countries in case of issues such as government instability.

Question 20

Why do TNCs set up in foreign countries?

Answer 20

profit maximisation
- lower tax
- avoid tarrifs
- wages are lower
- low regulation/laws

Question 21

What is a trade bloc?

Answer 21

A group of countries that agree to reduce trade barriers between them

Question 22

purpose of trade blocs

Answer 22

1. encouragement of intra regional trade - by rmoving tarrifs
2. protection of manufacturing and service industries from foreign competition
3. entering inter regional trade - with other trade blocs

Question 23

Free trade area

Answer 23

Tarrifs and quotas are reduced on certain goods going in or out of an area ( 2+ countries) e.g NAFTA

Question 24

Custom unions

Answer 24

The removal of tarrifs and barriers between members together with acceptance of common external tarrifs among non members

Question 25

Single market

Answer 25

As custom uions but with freer movement of labour and capital

Question 26

Economic Union

Answer 26

All the above but members are also required to adopt **common policies **in areas such as agriculture * members are free to persue independent macro-economic policies E.g EU

Question 27

Benefits of Trade blocs

Answer 27

1. Fascilitates trade - makes it easier 2. promotes inter regional trade - gives member states accesss to wider market 3. Promotes intra regional trade 4. Protectionism - barriers against competition 5. Political cooperation - work together on common aims

Question 28

Problems with trade blocs

Answer 28

1. Trade distortion - no longer making goods where cheaper non -member sites now in member states 2. Short term unemployment - specialisation shifts to industries with comparative advantage 3. Cultural erosion - cheap products across bloc replace local more expensive variants 4. Sovereignty loss - nation gives up determination of some areas of economic policy

Question 29

NAFTA example of trade bloc

Answer 29

North america free trade agreement 1. aim to remove tarrifs by 2010 2. remove barriers to agriculture manufacturing and services 3. Aims to improve economic competition betweeen members and increase opportunities

Question 30

Negatives of NAFTA

Answer 30

1. 1.5 million mexican farming jobs lost 2. Economies of mexico usa and canada are more dependent on eachother 3. TNC products in Mexico are exporte back to USA

Question 31

NAFTA positives

Answer 31

1. 1 million new jobs created in canada 2. 12.8 billion dollar increase in agricultural trade between US and mexico 3. Sales in consumer products increased

Question 32

What is labour mobility?

Answer 32

the natural tendency of people to move for employment

Question 33

Where are the main flows of people?

Answer 33

from South asia, Africa and latin america TO North America and Europe

Question 34

How is economic migration linked to trade?

Answer 34

* higher skilled workers move to places with labour shortages * lower skilled move for more job opportunities * Growth of service industry linked to travel and tourism --> in hotels * Transport development

Question 35

what is the new economic division of labour?

Answer 35

to the gloval reorganisation of production ( due to de industrialisation) in ACs and the spread of MNCs This lead to higher paying jobs in ACs and lower paid ( manufacturing ) in LIDCs

Question 36

Qatar

Answer 36

* work exploitation is high in world cup buildings * 600 men 2 kitchens * 15 people to one room * many going months without being paid * Workers unable to leave without emoloyers permiddion ( trapped ) in cycle

Question 37

what is south-south trade ?

Answer 37

trade among developing countries

Question 38

How much was s-s trade worth in 2013 ?

Answer 38

4.7 trillion dollars

Question 39

What was the growth of south - south trade driven by?

Answer 39

The brics

Question 40

Reasons for growth of south south trade?

Answer 40

1. risisng demand in china and india for fuel and energy to fuel development 2. vast potential market in Asia and Latin America 3. increasing demand from middle class in china, india , Brazil 4. growth in FDI in hina and india 5. MNCs aiming to reduce costs of labir 6. intra regional trade --> trade blocs and emerging countries

Question 41

What are the barriers for the least developed countries excluded from s-s trade?

Answer 41

1. low productivity capacity 2. limited economic diversification / limited infrastructure 3. poor govanance 4. land locked 5. exploitative trade agreements with china

Question 42

why are countries in sub saharan africa lagging behind?

Answer 42

their trade is mostly reliant on primary products ---> limited access to technology **so contribute less to supply chains **