EQ1 Facts

Question 1

Widening and deepening global connections

Answer 1

• Interdependence allowing trade to occur on both sides e.g Angola development by Chinese for oil
• more people connected to flows through increased globalisation, more consumers
• awareness of local market, glocalisation
• HICs have more access to flows, more people become consumers

Question 2

‘Shrinking world’ caused by development in the 19th Century

Answer 2

• telegraph cables started in the 1860s
• Ford started to export products in the 1890/1900s
• increased exploration allowed trade to be set up e.g. East India Trading Company
• Britain took advantage of steam power, through colonisation, it was also built in other countries for the transportation of goods

Question 3

Development in the 20th Century

Answer 3

• Boeing 747 arrived in the 1960s
• container shipping arrived in 1950s
• EasyJet founded in 1995, allowing for cheap, low cost airlines

Question 4

Technology in the 21st Century

Answer 4

• 200 million containerised shipping each year
• fibre-optic cables owned by government to speed up connection and flow of data
• causes time-space compression

Question 5

Pakistan Case Study

Answer 5

• Pakistan has had 12 IMF programmes since 1988- overall receiving £18.9bn
• Pakistan received $6bn of funds from IMF over 39 months
• 45% of loan used for debt repayment of $19bn
• value of Pakistani rupee fell, making goods more expensive
• have to agree to structural reform to reduce government deficit
• will have privatise loss-making companies that are owned by the government
• Ivory Coast is doing well after intervention by IMF

Question 6

UK case study

Answer 6

• subsidise new R&D
• free market liberalisation e.g. let BA merge with Iberia
• Shared legislation such as food standards and law, freedom of movement
• more than 50% of exports go to EU countries
• no trade tariffs
• companies can expand into more countries and source materials more cheaply from within trade bloc
• create economies of scale
• reduced competition

Question 7

Jebel Ali case study:

Answer 7

• the UAE has massively subsidises energy and continues to effectively subsidise transport companies such as Emirates Airlines
• part of GCC trade bloc such as UAE, Qatar, Oman, Bahrain, Kuwait, Saudi Arabia
• Dubai World Central is a logistics hub twice the size of Hong Kong
• Jebel Ali part is the world’s 9th busiest- first point for vessels travelling through the Persian Gulf
• Expats make up around 85% of Dubai’s population
• relies on selling oil

Question 8

KOF and AT Kearney Index case study:

Answer 8

KOF Index:

• measured 158 countries
• measures how well countries are socially, politically and economically linked to each other
• more globalised, more links to tourism, communication, trade, FDI and socio-political processes

AT Kearney Index:

• only 64 countries which produces the Global Cities and Connectivity Index
• measure business activity, human capital, information exchange, cultural experience and political engagement
• TNCs can use the these to decide with countries have the best level of infrastructure and connectivity
• image of country affects the profits of the o country

Question 9

Abercrombie and Fitch case study

Answer 9

• adapted advertisement campaign altered in Middle Eastern region to not use topless model
• makes use of That’s It Sportwear in Bangladesh to manufacture clothes
• using cloud- computing to support its supply chain operation

Question 10

Mali/ Sahel countries case study

Answer 10

• secular country
• North want autonomy, AQIM control Timbuktu
• coup d’etat in March, troops sent in
• 64% below poverty line
• AQIM placed ban on visiting shrines
• gold mining is 2nd main export
• food shortage cause anger
• high infant mortality rate
• 37,000 refugees fled to Burkina Faso
• relies on subsistence agriculture
• River Niger in South
• desertification, leading to starvation and dehydration

-used to be a French colony