globalisation Flashcards
(134 cards)
what international organisations play an important role in globalisation
- international monetary fund
- world bank
- world trade organisation
what is the international monetary fund
provides financial cooperation and trade
how does the international monetary fund help countries.
providing loans to member countries in exchange for lifting trade restrictions.
what does the world bank do.
member countries pay a subscription to the bank this is then used as a lone for the less develop countries.
what does the world trade organisation do
increase trade and help resolve trade disputes between member countries
how can the work of international organisations be controversial
they hold too much power over global flows.
why is the IMF and the world bank seen as controversial
a country has to abide by strict rules and conditions in order to get a loan and this can be difficult for developing countries.
some advantages for member states with trade blocs
- get goods at a cheaper price
- larger market for goods is provided for member states
- trade barriers can be set up for non member countries.
what are 2 examples of trading blocs
- the european union
- the association of south east asian nations
what is the european union
it has 27 members and free trade exists between them and there are common external tariffs on good imported into the bloc.
what is the association of south east asian nations
it has 10 members and has free trade between its nations. this encouraged local manufacturing and bank industries to grow, making them more economically competitive.
how do political and economic decisions accelerate globalisation.
- governments in NEE have developed incentives to encourage FDI to invest
- special economic zones have low tax rates or tax breaks to encourage investors to set up business within that area.
- governments can invest in transport for the SEZ which can be good especially for land locked countries/areas.
what is the China Open Door Policy (1978)
between 1949 and 1970’s chinas industry was under state control which meant that poverty rates where high and china was on the outskirts of the global economy.
what happened from 1978 with the China Open Door Policy.
radical economic and political changes made China more competitive in the global economy. this was known as the open door policy.
what help china develop further
special economic zones, FDI’s and TNCs invested in china and this meant that china was becoming richer and more of a global influence.
why are some countries switch off
- physical geography
- political decisions
- lack of economic development
- environmental resilience
example of a switched of country
- north korea
what ate TNCs
they opperate in two or more countries
what do TNCs control.
they control the supply chain that extend multiple countries.
what does offshoring mean
when a TNC moves branches of the company to other locations overseas.
what does outsourcing mean
when a TNC moves part of its operations to local companies overseas.
where has the global economy shited too
Asia
what is global shift in manufacturing
they went from making toys and textiles to making consumer electrons
how has India become a hub for outsourcing services
india has a large an youth full population. many of these have a degree in IT and engineering and this is what attracts companies.