Global systems 2 Flashcards
1
Q
International trade
A
Exchange of capital, goods and services between countries
2
Q
Visible trade
A
Physical goods being exchanged
3
Q
Invisible trade
A
Trade of services are exchanges
4
Q
Why establish a trade group?
A
- Protect economies
- Enhance growth and standard of living
- Improve trade relationships and maintain peace
- Collective bargaining
5
Q
Trade blocs
A
Typically countries in specific regions that manage and promote trade activities
6
Q
Economic Union
A
- No barriers
- Common outsider rules
- Free movement of resources
- Common economic policy
- EU
7
Q
Full integration 2
A
- Behaves as one unit
- US
8
Q
Common market 4
A
- No barriers
- Common outsider rules
- Free movement of resources
- MERCO
9
Q
Forms of trade blocs 5
A
- Free trade area
- Customs union
- Common market
- Economic union
- Full integration
10
Q
Customs union 3
A
- No barriers to trade
- Common rules against outsiders
- EU relationship with Turkey
11
Q
Free trade area
A
Eliminates barrier of trade (NAFTA)
12
Q
Trade Bloc disadvantages 4
A
- Unrestricted migration
- Loss of control over read and economic policy
- Economic dependance
- Loss of domestic industry
13
Q
Why is 5G significant?
A
- Crucial for foundation of technology of future
- Only a dew firms in market
14
Q
Huawei in US is an example of what?
A
Flows of information and technology being restricted and policy having International consequences
15
Q
5 eyes
A
Intelligence sharing agreement with US, Britain, Australia, Canada and New Zealand
16
Q
Huawei significance
A
- 3 billion users
- Built more than 1500 mobile networks
- 10% market share
- Operations in 170 countries
17
Q
Case Study of organisation reducing consequences of globalisation
A
- Fairtrade
- Organisation created to ensure farmers receive fair compensation
18
Q
Banana trade
A
- Example of how the flows of globalisation interact with one another
- 100 billion consumed
19
Q
Banana industry 3
A
- Largest produces found in LIC tropical areas
- India produces most
- In past, dominated by TNCs but transitioned to independence (44%)
20
Q
What has driven independence in banana industry? 3
A
- Pressure by governments
- NGO support
- Not as profitable
21
Q
Issues with banana industry caused by globalisation 4
A
- Corporate power
- Race to bottom price mentality
- Working conditions
- Single banana species used 47%
22
Q
Fairtrade involvement in banana trade
A
- Creation of cooperatives among farmers stabilising incomes
- Economic and educational support
- Improving infrastructure and sustainable practices
23
Q
Benefits to communities by Fairtrade
A
- 64% increase in wealth for farmers
- 78% improvement in diets
- Benefiting 6 million
24
Q
Main drivers of demand for bananas
A
- Population growth
- Developing nations and growing incomes
- Innovation
25
Country most dependant on bananas
- Ecuador
- 47% of agricultural production
- Largest export
26
Biggest importer of bananas
- EU = 29%
- US = 27%
27
Importance of bananas for developing nations 3
- Highest consumption found in LIC producers
- Relied upon for balancing trade
- Acts as food staple and income generation
28
Challenges to banana industry
- Disease affecting low biodiversity
- Global competition
- GMO
29
Banana TNCs
- Consumer pressure of lower prices
- Clearing of land and pesticides
- Destabilisation of countries
- Exploitation of workers
30
Benefits of TNC involvement in Banana trade 3
- FDI improving infrastructure
- Vertical and horizontal efficiencies
- Improved accessibility of healthy food
31
How many countries do bananas on average pass through for processing
6
32
Banana republic
- Central American nation dominated by TNCs
- Overthrew governments in order to maintain exploitation
33
Banana War 5
- Started in 1990s where EU gave former colonised Caribbean preferential trade terms
- Made bananas in Central America produced by TNCs lose demand, lobbied US gov
- US raised tariffs on EU exports of wine etc
- WTO rues it as anticompetitive forcing gradual change
- EU pledged $200 billion in response
34
Nations reliant on Russia for gas at more than 25% of energy mix 4
- Germany
- Turkey
- France
- Poland
35
Proportion of Nat Gas passing through Ukraine
80%
36
Why does Gazprom follow Russian government policies
- Publicly owns 50%
- Leverage of other shareholders
37
Gazprom facts 3
- 1/3 of worlds gas reserves
- Responsible for 92% of Russia’s production
- 460,000 employed
38
When has Russia previously cut off gas supplies to further political agenda
- Following 2006 protests against Pro-Russian government in Ukraine
- 2008 when Ukraine considered joining NATO and EU
- Gas cut off by Russia quadrupled prices
39
Ukraine ties with wider world
- Economic ties to both EU and Russia
- Increasingly move towards West
40
China in Africa 3
- Debt trap diplomacy to grow international support and supply of raw materials
- FDI into nations by Chinese firms develop infrastructure
- Has also provided weapons
41
Why are countries involved in affairs of other nations
As world has become increasingly global used nations reliance on others has meant they are directly influenced by internal affairs
42
China debt trap diplomacy drawbacks 4
- Has lead to growing debt crisis among developing nations
- Allows China to seize control of important regions
- Often doesn’t improve QOL of locals
- Enriches Chinese companies
43
Angola China diplomacy example 3
- 465,000 barrels of oil daily exported
- $2 billion package of loans and aid( road, internet, schools)
- Follows path of Europe and US of exploitative trade deals
44
European Union 5
- Created in 1993 originates from former economic agreement
- Largest political union, single market and aid donor in the world
- 1/6 of global economy
- 1/10 of global population
- Made up of some of the wealthiest western nations
45
WU benefits 5
- Diplomatic strength in unity
- Potential to compete with US and China for superpower status
- Promotes peace and freedom of people
- 10% GDP growth in new members
- single currency and investment
46
EU drawbacks 5
- Decimation of national industries
- Loss of sovereignty
- Loss of neutrality
- Favours big companies and nations
- Bureaucracy
47
ASEAN 5
- Association of SouthEast Asian Nations (free trade area)
- Features : Singapore, Thailand and Vietnam
- Combined would 5th largest economy
- 3rd largest workforce
- Stability rather than innovate
48
ASEAN benefits 5
- improvements in cooperation
- reduction in barriers of trade and investment
- freedom of movement of FQP
49
ASEAN drawbacks 4
- Lacks diplomatic strength
- Corruption
- Disparity between nations
- Prioritises national over regional interests
50
Top export destinations for UK cars
- 8/10 exported
- Largest customer is EU
51
Toyota internationally
- 3rd largest manufacturer
- 250,000 employed
- UK’s 4th largest car exporter
- First Euro factory in UK
52
Why did Toyota move to Derbyshire
- Can now produce in accordance with localised demand
- Historical link to vehicle manufacturing
- Large domestic market
- Solid transport links and inward investment from Brit gov
- Membership to Eurozone
- English is business language
53
Toyota in Derbyshire benefits
- Direct Employment of 3000 and further indirectly
- Infrastructure development
- FDI
54
Toyota in UK benefits
- Tax revenue
- 3000 jobs
- Relative employment security
55
Issues of Global trade 4
- Instability in supply chains
- Economic warfare
- Primary product resource dependancy (Dutch Disease)
- Exploitation of land and resources
56
Benefits of Global Trade 5
- Standard of living
- Global competition, and innovation
- Access to more resources
- Diversified risk
- Improved cooperation
57
Role of TNCs in globalisation 4
- Outsourcing
- Homogenisation across markets
- Movement of capital and people
- May discourage trade with other nations (banana)
58
TPP significance 4
- Potential to represent 40% of the worlds output lost significance
- US pulled out ( risked damaging domestic industry and NAFTA)
- National interests coming before international (similar to Paris 2015)
- Time lag of implementation
59
Global Governance on different scales 3
- Household (25% of all roofs of new developments need solar panels)
- TNC scale ( Global rate of taxation in developed nations )
- National ( overall emissions )
60
Paris Agreement
- Aims to limit global warming to 1.5°C
- 185 have ratified
- Global emissions need to fall by 3% a year
