Global Organisation Flashcards
(65 cards)
1
Q
What is the Bretton Woods Institutions?
A
- A group of intergovernmental organisations (IGOs) like the World Trade Organisation (WTO), the International Monetary Fund (IMF) and the World Bank promote free trade policies to encourage FDI and to accelerate globalisation.
- These IGOs are collectively referred to as the ‘Bretton Woods institutions’ after the place in America where they were established.
2
Q
What did the BRICs do to compete with the world bank?
A
In 2015, the BRIC nations set up the New Development Bank to rival the World Bank.
3
Q
What has this new development bank done?
A
- By 2017, this New Development Bank had given loans of $1.5 billion dollars to member countries.
- Most of these loans went on developing renewable energy in these countries.
4
Q
What are the 2 main ways to measure globalisation?
A
- AT Kearney Index
- KOF Index
5
Q
What are the 4 things that the AT Kearney Index uses?
A
- The AT Kearney Index uses four main indicators to publish a globalisation index.
-It includes political engagement, technological connectivity, personal contact and economic integration.
6
Q
In comparison to the KOF index, why is the AT Kearney Index better?
A
It is considered more holistic than the KOF index because it looks at the number of web servers rather than just internet communications, for example.
7
Q
What 3 aspects does the KOF index take into account?
A
- The KOF Index is calculated annually based on three aspects of globalisation.
- It includes measures of economic globalisation, social globalisation and political globalisation.
8
Q
What is Offshoring?
A
- Offshoring is where a TNC moves parts of its production process to other countries.
- This is often developing countries where production costs (e.g. labour or land) are lower.
9
Q
What is outsourcing?
A
- Outsourcing is where a TNC gives a contract to another company to complete part of their work. - For example, they might outsource their call-centres to parts of the world where labour costs are lower.
10
Q
What is one risk of outsourcing? And give an example of it
A
- The TNC loses some of its direct control over the production of its goods.
- An example was the horse-meat scandal in the UK in 2013 where UK supermarkets were unaware of horse-meat being used in some dishes.
11
Q
Give 2 examples of Offshoring/outsourcing
A
- Apple iPhones are assembled by Foxconn in China, but iPhones are ‘Designed in California’.
- BT outsources some of its call centre work to India to benefit from lower labour costs there. The large English-speaking population of India means that it is possible to have the call-centres of a British TNC in another country.
12
Q
What is the purpose of glocalisation?
A
To help spread globalisation
13
Q
What is glocalisation?
A
Glocalization is a concept that merges globalization and localization, focusing on how global entities adapt to local cultures and markets
14
Q
Give an example of glocalisation?
A
Since 2012, McDonald’s has served the McVeggie and McSpicy Paneer in India.
15
Q
Give an example of how glocalisation reflects laws?
A
BMW makes right-hand drive cars for the UK because we drive on the left whereas, in Germany, cars are left-hand drive.
16
Q
How do TNCs take advantage of economic liberalisation?
A
They take advantage of the removal of barriers to trade to earn more profit and increase their market share.
17
Q
What is the global shift?
A
- Global shift is the movement of manufacturing and the outsourcing of services from the West to the East.
- It can be considered the movement of the global economic centre of gravity.
- The main driver has been labour costs.
18
Q
What has China known for becoming?
A
The ‘workshop of the world’
19
Q
How much did China grow between 1978-2012?
A
- This has increased China’s GDP because their exports have increased significantly.
- Between 1978-2012 China’s economy grew at an average rate of 9.4% per year.
20
Q
Give an example of a global shift of services to India?
A
E.g. In 2003, BT opened two call centres in India (one in Bangalore, one in Delhi). They employed 2,200 people. BT benefit from lower labour costs because wages are cheaper in India.
21
Q
How much has the outsourcing industry in India added due to the global shift?
A
- The outsourcing industry in India adds an estimated $150 billion to the economy.
22
Q
What has been the effect of the people in the developing world in result of the global shift?
A
- There has been a material shift in jobs to the developing world.
- Rather than working in agriculture, people in countries like India, China and Bangladesh can add more value and earn higher wages than they would otherwise.
23
Q
What has been the 2 effect of the land use in the developing world in result of the global shift?
A
1) In the developing world, the global shift has caused the loss of productive land:
It was predicted in 2014 that 40% of China’s farmland was degraded because of pollution and increased building.
2) In the developing world, the global shift has caused the growth of unplanned settlements.
- As more people move to cities to take the jobs in manufacturing, squatter settlements or slums grow.
- These unplanned settlements often have a low quality of life and cause problems for the government of that area.
24
Q
What were was air pollution like in China in 2013?
A
- In 2013, China experienced severe air pollution problems with residents of Beijing advised to stay indoors.
- The air pollution levels were over 20x higher than the World Health Organisation recommended maximum levels for a 24-hour period.
25
What other problem does China have aside from air pollution?
- China also has serious water pollution problems.
- In 2015, 85% of the water in Shanghai's major rivers was undrinkable.
26
What do some people predict about Northern China?
Some people predict that the pollution in Northern China is so bad that it cuts three years from the life expectancy.
27
Give an example of an impact of poor working conditions?
- Sometimes the working conditions can be damaging to people’s health.
- In 2011, Chinese workers at Foxconn were made ill as they were exposed to chemicals used when making iPhones for Apple.
28
give an example of unplanned settlements?
E.g. slums or favelas in Latin America
29
What happened to China’s Farmland in 2014?
It was predicted in 2014 that 40% of China’s farmland was degraded because of pollution and increased building.
30
Give 2 examples of loss of biodiversity
- Since 1990, Togo has lost 60% of its forested area, and Nigeria has lost 50%.
- In 2015, the WWF found that China had lost 50% of its vertebrates since 1970.
31
What are the 6 negative impacts of the Global shift?
1) Air and Water pollution
2) Unplanned Settlements
3) Poor Working Conditions
4) Land Degradation
5) Resource Exploitation
6) Loss of Biodiversity
32
What are the 3 positive impacts of the global shift?
1) infrastructure
2) employment and wages
3) education and training
33
Give an example of an improvement in infrastructure in China?
- By 2016, China had 22,000km of high-speed rail network (which is about 60% of the world’s total)
- This has helped China to export enormously.
- This infrastructure has been built in the manufacturing areas and this benefits the whole population.
34
Give an example of an improvement in infrastructure in India?
- In India, the international airport of Mumbai has become the main hub for the city.
- It has increased its capacity to handle up to 40 million passengers annually.
35
Give an example about how the global shift has created more employment and higher wages
The increase in waged work has seen 1 billion people come out of ‘absolute poverty’ (less than $1.25 a day) since 1990.
36
What is the negative affect of the global shift in developed nations?
Deindustrialisation
37
What is the spiral of decline?
The spiral of decline describes when unemployment leads to de-population because of a lack of jobs.
38
What are the 3 effects of the spiral of decline?
- This leaves buildings and houses derelict.
- Rise in the crime rate and other social problems.
- Other businesses may leave the area because they cannot stay in business or hire skilled workers.
39
Give an example of the spiral of decline
For example, many towns in Northern England saw significant rises in mental health issues linked to the closure of the mines in the 1970s and 80s, which employed the majority of the population.
40
What was Detroit before?
Detroit was the 4th largest city in the USA
41
What was Detroit known for?
Detroit was known to be having its peak as a car producing city, with Ford and General Motors operating there.
42
How did Detroit fell off?
- With globalisation, car production moved to Japan where costs were cheaper.
- As a result, the spiral of decline set in and in 2013, the city was declared bankrupt.
43
What has happened to Detroit in 2017?
In 2017, Detroit was still losing 0.5% of its population each year.
44
How has Europe been affected by the spiral of decline?
- In March 2015, the youth unemployment rate in many European countries stood at more than 20%.
- Some people blame this on globalisation and the movement of manufacturing jobs abroad.
- The Euro Crisis and economic austerity after the 2008 global financial crisis probably played a role too though.
45
Where is Leicester located in?
Leicester is a town in the East Midlands
46
What was Leicester known for?
Leicester was once home to a large textile industry.
47
When did Leicester go through the spiral of decline?
In the 1970s
48
How many people worked in Leicester’s textiles mills?
- At the peak, over 30,000 people worked in Leicester’s textiles mills.
- But eventually, most of these factories moved abroad, including Marks & Spencer's mill.
49
How much did the global car exports amounted to during 2016?
Over $720 billion
50
What 4 countries have huge TNCs which dominate in the world production of cars?
World production of cars is dominated by huge TNCs, based in the USA, Germany, Japan and South Korea.
51
Which country is the leading importer of cars?
USA
52
Which country is the leading exporter of cars?
Germany
53
Where are Bananas grown in?
Bananas are mainly grown within the tropics
54
Where is the Banana production set in?
- Production is centred on Latin America (80% of exports), West Africa and parts of Asia.
- Other producers include Asian countries (e.g. the Philippines) and west African countries (e.g. Cote d’Ivoire).
55
Which TNCs dominate the Banana production?
Production is dominated by large American TNCs: Chiquita and Del Monte
56
What oil company was set in Iran?
The Anglo-Iranian oil
57
How was the Anglo-Iranian oil formed?
The shah (king) of Iran sold a concession to a British company, Anglo-Iranian Oil, in the early 1900s, allowing the company to develop and refine Iran's oil.
58
What did Iran try to do in 1953?
Iran tried to nationalise their oil operations in 1953, but they did not have workers with enough skill to run the oil operations themselves.
59
Who tried to nationalize the Anglo-Iranian oil?
Mohammad Mossadegh
60
What did the British do when Mohammad tried to nationalise the company?
the British government supported a coup organised by Kermit Roosevelt against him and restored the shah.
61
Waht happened after the oil industry was nationalised in Iran?
When the oil industry was nationalised, the British banned foreign oil workers from moving to Iran to support the Iranian oil industry.
62
What was the American oil company that was set in Saudi Arabia?
Aramco
63
What happened in Aramco?
In Saudi Arabia, The American company worked with the King of Saudi Arabia to find and produce oil.
64
What did Saudi Arabia receive in the end?
In Saudi Arabia, the al-Saud family had a 50:50 profit share with Aramco
65
What is so important about both the Anglo-Iranian oil and Aramco?
Without these TNCs, oil may not have been developed until decades later.
