Globalisation Flashcards

Question

London (1986) (deregulation case study)

Answer 1

- In 1986 the city of London was deregulated by the Thatcher government an attempt to transform it into a global competitor similar to the likes of New York and other European capitals. - There were three key elements of this de regulation:  Abolishing minimum fixed commissions on trades,  Ending the separation between those who traded stocks and shares  The allowance foreign firms to own UK brokers. Effects… - It produced a free-for-all, as brokers, jobbers and the City's traditional merchant banks merged. - Across the world foreign investors were determined to gain a share in the new opened up stock exchange. - Of the 300-member firms of the stock exchange that had all been domestic - within a year 75 were now foreign-owned. - In Canary Wharf, plans for an entirely new financial district were sought - Only a week after deregulation had been introduced, the volume of trade that flooded through the new terminals soared from averaging $4.5bn a week to more than $7.4bn a week - London is now the world’s leading global hub for financial services

Answer 2

- Privatisation is the transfer of a business, industry, or service from public to private ownership and control. - Up until the 1980s, important assets, such as the railways and energy supplies, were owned by the state – however, running these services often proved costly - Since then, UK governments have led the way in allowing foreign firms to gain a stake in the privatised national services and infrastructure - Overtime, ownership of many assets has passed overseas, e.g. French company Keolis owns a large stake in Southern England’s railway network

Answer 3

- Methods range from low business taxes to changes in the law allowing both local and foreign-owned businesses to make a profit - Italy has eased restrictions on Chinese investors wanting to start up textile companies inside the EU; as a result, the city of Prato now has the largest Chinese population in Europe

Answer 4

- Agreements have been drawn up all allowing state boundaries to be crossed freely by flows of goods and money - Within a trade bloc, free trade is encouraged by the removal of internal tariffs - This is used to promote trade activities within certain areas, whilst also assisting in economically managing specific regions. - By implementing trade blocs, a means of agreement between the countries within that trade bloc is provided which enables them to benefit from each other through trade activities. - As well as increased integration amongst members of a trading bloc. It is argued that trading blocs help globalisation through making global negotiations easier. - For example, in the case of trade negotiations. The EU will negotiate as a single trading block making it easier to push through practices which increase free trade. Enlarged market increases demand

Answer 5

- The European Union is a political and economic union of 28-member states that are located primarily in Europe. It has a population of 500 million - Over time the EU has evolved from being a simple trade bloc into a multi-governmental organisation with its own currency (the Euro) and some shared political legislation - Member states are eligible for EU structural funds to help develop their economies, while agricultural producers in the region all benefit from farm subsidies issued under the common Agricultural Policy Beneficiaries of the EU…  By removing barriers to intra-community trade, markets for firms grow. For instance, when ten new nations joined the EU in 2004, UK first Tesco gained access to 75 million extra customers  An enlarged market increases demand, raising the volume of production and thereby lowering manufacturing costs per unit  The EU also agrees common external tariffs and quotas for foreign b imports – in 2006, the EU blocked imports of underwear from Chinese manufacturers on the basis that the annual quota had been exceeded, jeopardising sales of EU clothing makers

Answer 6

- ASEAN (the Association of South East Asian Nations) has 10-member states and a combined population of 600 million - Established in 1967, ASEAN founding members include Singapore, Indonesia, Malaysia and the Philippines - Over time, they have worked to eliminate tariffs in favour of free trade - The enlarged ASEAN market has helped Indonesia’s manufacturing industries to thrive - ASEAN is expected to develop further into a single market called the ASEAN Economic Community (AEC) - The ASEAN agreement also promotes peace and stability: its member states have pledged not to have nuclear weapons

Answer 7

- One of the important reasons for the acceleration of globalisation has been changing attitudes in regions outside of Europe and North America - Asia’s most populated countries – China, India and Indonesia – have all embraced global markets as a means of meeting economic development goals - In all three cases the establishment of Special Economic Zones has played an extremely important role

Answer 8

An industrial area, often near a coastline, where favourable conditions are created to attract foreign TNCs. These conditions include low tax rates and exemption from tariffs and export duties.

Answer 9

- Indonesia is an important example here, in the late 1960s the president opened up Indonesia’s markets - American and European TNCs met with the Indonesian market and built an attractive new legal and economic framework for foreign offshoring - Indonesia instantly became a popular offshoring location for TNCs like Gap and Levi’s - World Bank lending funded the speedy modernisation of its roads, power supplies and ports

Answer 10

- Prior to 1978, China was a poor and politically isolated country, ‘switched off’ from the global economy - However, in 1978 radical ‘Open Door’ reforms were sought which allowed China to embrace globalisation while remaining under one- party authoritarian rule Actions…  Foreign TNCs allowed to invest in some sectors of China’s domestic market  World’s largest TNCs established branch plants, or trade relationships with Chinese-owned factories  Newly established Special Economic Zones set up  Mass industrialisation Impacts...  China transformed into an urban, industrialised nation – 300 million people left the cities in search of a better life in the cities  In the 1990s, 50 percent of China’s GDP was being generated in SEZs  FDI from China and its TNCs is predicted to a total of US$1.25 trillion between 2015 and 2025. Controversies…  While China evidently has an open-door policy towards global investment– it remains a highly restrictive nation and demonstrates a number of ‘Closed door’ approaches to globalisation  Google and Facebook are entirely banned from the Chinese market  China’s Government sets a strict quota of only 34 foreign films to be screened in cinemas each year  Still some restrictive policies on TNCs in certain aspects of industry

Answer 11

Measures globalisation on economic, social and political dimensions on a scale of 1-100. These new scores are then compared to previous scores dating back to 1970. It is a useful scale as it allows comparisons to be made between countries at any given time and uses data that is readily available. However, trade calculations often ignore the informal economy which can account for a large proportion of actual trade.

Answer 12

Broken down into 4 categories: Economic integration, personal contact, technological activity and political engagement. Each one is given a value between 0 and 1. The Kearny Index is useful as it covers 96% of the worlds GDP, 84% of the worlds populations and allows for comparisons between countries over time. However, only 64 countries are included in the index.

Answer 13

KOF Index | Kearny Index.

Answer 14

- Globalisation has affected some placed more than others - The location of TNCs vary significantly – some parts of the world have benefited far more than other from FDI from TNCs because:  Not all places are suitable sites of production for goods, for a range of physical and human reasons  Not all places have enough market potential to attract large retailers

Answer 15

A chain of connected suppliers of parts and materials that contribute to the manufacturing or assembly of the consumer goods. The network serves the need of a TNC, such as Apple or Tesco.

Answer 16

- One other strategy that plays an important role in a TNCs attempt to build their global business are rooted within their Global Production Networks - Rather than investing directly in the offshoring of branch plants, or acquiring foreign firms, TNCs can instead forge business partnerships with existing companies in other countries (outsourcing) - For example, Tesco has established tens of thousands of outsourcing partnerships while building heir global businesses - Global production networks have particularly benefited developing countries - Local factory owners in Chinas Special Economic Zones (SEZs) have profited from the work that foreign TNCs have outsourced to them.

Answer 17

The practice of conducting business according to the local and cultural needs of a population, in order to maximise the appeal of a product

Answer 18

- By 2012, McDonald’s had established 35,000 restaurants in 119 different countries - However, in order for this to occur, the TNC had to make a number of changes to its business model in order to attract consumers across the globe, who have different tastes, religions, laws and local interests - In India, the issue has been catering for Sikhs and Hindus who are predominately vegetarian – while Muslims do not eat pork - McDonalds opened a vegetarian restaurant for Sikh pilgrims visiting sites of religious importance in Amritsar

Answer 19

- Some areas of the world remain relatively switched off from global production networks - This can be due to physical, political, economic or environmental reasons

Answer 20

- Country chosen to remain politically isolated from the world since the 1950s - Ordinary citizens do not have any access to the internet or social media - There are no undersea data cables connecting North Korea with anywhere else - Huge amounts of poverty and a clear lack of development, despite its abundance in natural recourses.

Answer 21

- The mismanagement of natural and human recourses has played a role - Many of the countries in this region lack a coastline, which means they struggle to attract FDI - Arid conditions and desertification give further rise to further development challenges - In particular, the extreme environmental conditions increase the cost of providing infrastructure such as railways and ICT

Answer 22

- The term ‘global shift’ describes the international relocation of different the of industrial activity, especially in manufacturing industries. - Thousands of TNCs have offshored their production facilities to LEDCs in order to reduce the manufacturing costs

Answer 23

- Environment and recourse pressure - Worker Exploitation and poor social conditions - Social and environmental problems for deindustrialised regions

Answer 24

- The flip-side to global economic growth is the acceleration of environmental decline - Forested land has been sacrificed to urbanisation, logging and cash cropping - Since 1990, Togo has lost 60% of its forest area; Nigeria’s forests have halved - Crop land has been ruined by over-exploitation, mining and soil erosion. - Land degradation and biodiversity loss are widespread in Indonesia, where an area of rainforest as big as 100,000 football pitches are lost each year to make room for oil-palm plantations and mining operations

Answer 25

- Communities within many developing economies have experienced major environmental problems as a result of the global shift - Adverse impacts on the health and well-being of people have resulted from pollution, over-exploitation of resources and the dumping of industrial waste - In Ivory Coast, tens of thousands of Ivorians suffered from ill health after toxic waste was dumped by a ship owned by a European TNC - Air pollution in Chinese cities has reduced Chinese life expectancy by five years - In India, where call centre employment has been outsourced too due to the large English-speaking population, workers are easily exploited into 10-hour shifts, 6 days a week

Answer 26

- Global shift creates challenges for developed countries - During the 1970s, many European and American factory workers lost their jobs - Western factories closed in large numbers once Asia became the focus of global manufacturing - Issues such as high unemployment, rising crime, depopulation and dereliction occurred - In some low-income US urban districts – which were hit hard with the effects of de-industrialisation – life expectancy is 30 years lower than in affluent districts. - Detroit has lost 1 million residents since 1950, which has caused the catastrophic collapse in house prices and created 20,000 abandoned properties - The combination of manufacturing industry closures, falling house prices and rising crime has resulted in widespread environmental dereliction.

Answer 27

- Poverty reduction and waged work - Education and training - Infrastructure and, the built environment

Answer 28

- Worldwide, 1 billion have escaped US$1.25-a-day poverty since 1990 – with 500 million of these being from China alone - The term ‘new middle class’ is used to describe the growing mass of urban and working people who have escaped rural poverty - Many earn between $US10 and $US100 per day ``` - By 2030 it is predicted that Asia will be home to 3 billion middle- class people ``` - As conditions improve, people are enjoying large income gains – more people can now afford smartphones and fridges – in China, car ownership has gone from 1 in a hundred to 1 in 5 since 2000

Answer 29

- Throughout Asia, education has improved in recent decades - Around 2500 universities in China, India and South Korea award millions of graduate degrees each year. - China alone awarded 30,000 PhDs in 2012 - Asian countries now play a leading role in quaternary sector research in biotechnology and medical science

Answer 30

- Alongside economic take-off, infrastructure development has taken place, bringing modern motorways, high-speed railways and airports to major cities including Jakarta - There is a growing trend for extreme high-rise development in city centre hotspots in major Asian cities

Answer 31

- A megacity is home to 10 million people or more - They growth through a combination of rural-urban migration and natural increases

Answer 32

- Urban pull - Rural push factors - ‘shrinking world technology’

Answer 33

- The main factor almost everywhere is employment - FDI by TNCs in urban parts of poorer countries provides a range of work opportunities and their supply chains - Urban areas offer the hope of promotion and advancement into professional roles that are non-existent in rural areas - Schooling and healthcare may be better in urban areas, making cities a good place for young migrants with aspirations for their children

Answer 34

- The main factor is usually poverty, aggravated by a lack of jobs - Agricultural modernisation reduces the need for rural labour - Recourse scarcity in rural areas with population growth triggers conflict

Answer 35

- Rural dwellers are gaining knowledge of the outside world and its opportunities - As poor individuals in Africa and Asia begin to use inexpensive mobile devices, information is being shared and they are being ‘switched on’ to globalisation - Transport improvements, such as South Americas famous Trans- Amazon Highway, has removed intervening obstacles to migration

Answer 36

- India’s Mumbai urban area is home to 22 million people, having more than doubled in size since 1970 - People have flocked there from the impoverished rural states of Uttar and Pradesh - Urban employment covers a range of economic sectors and skill levels - Big global brands such as the Hilton and Starbucks are present in Mumbai - The senior management of large TNCs such as Tata and Reliance Industries, some of whom are billionaires has driven up housing prices in Affluent areas - In contrast; Dharavi is a slum housing area - It has a buoyant economy (5000 employed in Dharavis plastics recycling industries)

Answer 37

- Approximately 24 million people live in Karachi - Pakistan’s centre of finance, industry and trade - People flock to the city from rural areas all over Pakistan - Range of industrial sectors including shipping, banking, retailing and manufacturing - Population increase overtime is mainly due to internal migration, through international migrants from other South Asian countries

Answer 38

Highly globally-connected city Examples of ‘Global Hubs’ or ‘World Cities’ include New York, Mumbai, London, Beijing, Tokyo and Sao Paulo

Answer 39

Elite international migrants: Highly skilled migrants and/or socially influential individuals. Their wealth derives from their profession or inherited success. Most countries welcome highly skilled and extremely wealthy migrants. Low-waged international migrants: Drawn towards global hubs in large numbers. London, LA, Dubai etc. are all home to a large number of legal and illegal immigrants working for low pay in Kitchens, construction sites or as domestic cleaners. Internal (rural-urban) migration : Is the main driver of city growth in global hubs in developing and emerging economies but plays a lesser role in Europe and North America

Answer 40

- There are multiple costs and benefits of migration - There are impacts from both the source and hosts - These impacts are further subdivided into economic, social, political and environmental effects (which may all be interconnected)

Answer 41

Host:  Fills particular skills shortages (Indian doctors)  Economic migrants willingly do labour work that locals may be reluctant  Working migrants spend their wages on rent, benefiting landlords, and pay tax on legal earnings  Larger workforce  Prevent ageing population Source:  Migrants remittances can contribute to national earnings significantly  Less public spending on housing and health (unemployment in Poland decreased by a half since joining EU in 2004)  Migrants or their children may return, bringing new skills  Wealth from remittances  Source country has international links

Answer 42

Host:  Social tensions arise if citizens of the host country believe migration has left to a lack of jobs or affordable housing  Political parties change their policies to address public concerns  Local shortages of primary school places due to natural increase among a youthful migrant community  Increased birth rate  Stress on services Source:  The economic loss of a generation of human recourses, including key workers such as doctors and teachers  Reduced economic growth as consumption falls  The closure of urban services and entertainment with a young adult market  Reduced population size

Answer 43

Over time, international migration makes places interdependent. Each country depends on the economic health of the other for its own continued well-being.

Answer 44

The spread of cultural beliefs and social activities from one group of people to another. Through cultural diffusion, horizons are broadened, and people become more culturally rich. Multiple factors can influence the level of cultural diffusion that takes place, this includes: TNCs, Global Media and Migration & Tourism

Answer 45

- The global dispersal of food, clothes and other goods by TNCs has played a major role in shaping a common culture - Some corporations, such as Nike and Apple have rolled out ‘uniform’ products globally, bringing cultural change to places - When TNCs engage with new markets, they adapt their products and services to suit places better (Glocalisation) and this increasing reflects local cultures

Answer 46

- Media giant Disney has exported its stories of superheroes and princesses everywhere - The BBC helps maintain the UK’s global cultural influence overseas - Often, reality and celebrity shows, are entirely re-filmed for different national markets

Answer 47

- Migration brings enormous cultural changes to places - Europeans travelled widely around the world during the age of the empires, taking their languages and customs with them - Migrants can affect the culture of host regions, but changes are often partial: e.g. in India, the colonialist influenced the language and social activities such as Cricket on the population, but few others. - Tourists introduce cultural change to the places they visit

Answer 48

costs: - Some people are concerned that languages around the world are disappearing as use of English continues to spread – 4 billion people speak ‘Globish’ (a form of basic English consisting of around 1500 words) - Some locations face the loss of traditional foods, music, clothes, social beliefs and languages Benefits: - it has allowed worldwide changes in attitudes towards disabled people – shown with the Paralympics

Answer 49

- Amazonia and Papua New Guinea’s tropical rainforest tribes are among the world’s last isolated groups of indigenous people - More western members of rainforest tribes are becoming aware of Western culture and lifestyles - Today, many Amazonians and New Guineans are wearing modern, Westernised clothing - Increasingly, many young Amazonians are moving from the rainforest to urban areas like Manaus - Indigenous people no longer value ecosystems the way they used to, on account of cultural erosion - They want income, education and health improvements for their children – inevitably, social goals are becoming more important and this has driven many indigenous people to hunt endangered species for food or to sell. - Papua New Guinea’s Tree Kangaroo is under threat

Answer 50

- At a range of geographical scales, there is opposition to globalisation - individuals, pressure groups and governments may all experience some degree of concern with the cultural impacts of globalisation – - In addition to its social, economic or environmental consequences - France is fiercely protective of its culture and language - the French government is extremely supportive of French film makers and subsidises works filmed in the French language – under local content law – 40% if television output must consist of French productions - Amnesty international has accused oil firms such as Shell and ExxonMobil of bringing great environmental damage to Nigeria and other countries

Answer 51

Income per capita Gross Domestic Product (GDP) Human Development Index (HDI) Gender Inequality Index (GII) Environmental Performance Index (EPI)

Answer 52

- The mean average income of a group of people - Calculated by taking a source of income for a country and dividing it by population size

Answer 53

- Final value of the output of goods and services inside a nation’s borders - Includes the value added by foreign-owned businesses that have located operations there

Answer 54

- Measures environmental pollution - Environmental quality is often poor in developing and emerging economies – it usually improves as economic and social development occurs - Improves as places make the transition from industrial to post- industrial forms of economic activity

Answer 55

Global trends indicate a widening income inequality (Measured using Gini coefficient) - The great gains made by European and North American nations over the same time period has resulted in a widening of the average income gap between people living in the world’s wealthiest and poorest countries - In Africa, large income gains have been made in countries such as Tunisia, Algeria and other North African countries – which have become very ‘switched on’ to globalisation – A strong African middle-class is expected to rival Asia in the coming decades - Yet, in contrast, in other areas of Africa, such as sub-Saharan countries including Burundi and Central African Republic – geographical isolation, poverty and political extremism has resulted in falling life expectancy due to conflict

Answer 56

- Open door policies have brought rapid cultural change - In 2004, the EU opened up its borders to eight Eastern European nations which brought an unprecedented volume and rate of post- accession in-migration - In the UK, where Polish immigration has been largest – many non- Polish residents have welcomed the new arrivals and their contribution to the local economy and society – however, some local people worry that young migrants have increased the crude birth rate beyond the capacity of the area’s primary schools

Answer 57

- In many EU states, nationalist parties, such as France’s Front National and the UK’s United Kingdom Independence Party (UKIP) has commanded significant support - This is often due to their string rejection of immigration and multiculturalism - In France in 2015, staff of the satirical magazine Charlie Hebdo were killed by gunman of Algerian descent – who claim their Islamic faith had been mocked - Events such as these are rare, however, demonstrate the tensions in multicultural Europe - It is clear there is a growing ant-immigration sentiment in Europe – In the 2014 European Parliamentary elections – around 25 percent supported France’s Front National Party

Answer 58

- Governments may try and prevent or control global flows of people, goods and information, with varying success - Laws can be strengthened to limit numbers of economic migrants, however, illegal immigration can be hard to tackle

Answer 59

- Around 40 world governments limit their citizen’s freedom to access online information - In China, the government restricts access to google, Facebook, Twitter and YouTube in a system called the ‘Great firewall of China’ - more than 400 million Chinese citizens interact with one another using vetted social media sites approved by the Chinese government

Answer 60

Trade protection is still common – USA has a complete trade embargo on Cuba while in New Zealand imports of honey from Australia have been banned for 50 years

Answer 61

- Canada is home to six groups of indigenous people - Tribes located in the Yukon River Basin oppose the attempts of global oil companies to ‘switch on’ their region - Over 200 million barrels of conventional oil has been extracted there since 1920 - The death of trout and other fish in oil-polluted lakes – which is fundamental to the cultural identity of the Dene’s tribe - The effects of alcohol and drugs (brought by oil workers) on the behaviours of young Dene people

Answer 62

``` - Food Insecurity: By 2050, food demand is likely to double worldwide and growing Middle-class diets are characterised by their consumption of meat and dairy and have a larger ecological footprint ``` - Water insecurity:- As societies develop economically and urbanise, everyday household water use increases significantly. Food production depletes water supplies. Animal husbandry and crop production can be water-intensive activities - Energy: 50 percent increase in global energy is predicted by 2035 Unless significant innovation in terms of clean energy is achieved – fossil fuel consumption will continue to rise - Climate: The global diffusion and adoption of manufactured items has increased the global carbon footprint. The harmful global temperature rise in excess of 2 degrees now appears inevitable

Answer 63

A measurement of the area of land or water required to provide a person or a society with the energy, food and resources needed to live

Answer 64

A measure of the amount of water used in the production and transport to market food and commodities

Answer 65

The amount of carbon dioxide produced by an individual or activity

Answer 66

Meeting the needs of the present without compromising the ability of future generations to meet their own needs

Answer 67

Economic sustainability : Individuals and communities should have access to a reliable income over time Social sustainability: All individuals should enjoy a reasonable quality of life Environmental sustainability: No lasting damage should be done to the environment; renewable recourses must be managed in ways that guarantee continued use

Answer 68

- The critics of global capitalism say environmental costs should be accounted for in the pricing of products - low pricing of containerised transport allied with cheap labour and material costs in developing cost has helped TNCs build extensive global production networks – these strategies maximise profits, but they also maximise carbon footprints - It is argued – is it environmentally sustainable to transport a bottle of water 20,000km just to reach the UK – as a result some people buy locally - Local sourcing has allowed UK farmers to move up the value chain by producing locally produced items – while also helps reduce carbon footprint sizes - However, it can be expensive particularly for people on low incomes and can have impacts on LEDC producers that currently rely on the UK for exports

Answer 69

- Popular tourist site in Cornwall - Houses plants from all over the world in two enormous biomes - For the 600,000 meals that are provided annually for visitors 90 per cent of the produce is bought from local suppliers in Cornwall and Devon

Answer 70

- Todmorden is a down in the South Pennines - Much of the food on sale is locally grown - The ‘IET’ campaign, which received National Lottery funding, aims to encourage consumers and growers to work together for the long- term good of the planet - IET has created 40 public fruit and vegetable gardens and stages regular educational talks and events in the town

Answer 71

- While consumers benefit economically from global shift’s cheap goods, many have ethical concerns about the social costs of worker exploitation - Ethical purchases are increasingly available as a result of the work of NGOs, charities and a growing number of businesses with a ‘social responsibility’ agenda

Answer 72

- Recent events have shown that Western retailers are increasingly beginning to take more responsibility for working conditions in their supply chains - In 2013, the Rana Plaza building collapsed which led to the death of 1100 textile workers – on the day of the collapse workers were sent back into the building to complete international orders in time for delivery for western companies such as Primary ad Wal-Mart - Since then, many British TNCs have signed the Accord, which is a legally binding agreement on worker safety – these companies now promise to ensure safety checks are carried out regularly in all Bangladeshi factories

Answer 73

- Fairtrade - NGO action - Supply chain monitoring

Answer 74

- The Fairtrade Foundation’s certification scheme offers guaranteed higher income to farmers and some manufactures, even if the market price changes - Commonly used in products such as coffee, chocolate, bananas and wine Positives: - Fairtrade goods let shoppers know that what they spend will find its way into the pay packets of poor workers Negatives: - However, as the number of schemes grow, it becomes harder to ensure that money has been correctly distributed - It is also not possible for all the worlds farmers to join a scheme offering a high fixed price – it is economically unsustainable

Answer 75

- NGOs are extremely powerful in promoting economic consumption Positives: - After pressure from NGOs - Tesco recognised the issues and told a farm in South Africa it would use a different fruit supplier unless conditions for women improved Negative: - However, NGOs have limited financial recourses, which limits the scale of what they can achieve

Answer 76

- Large businesses increasingly accept the need for corporate social responsibility - The largest TNCs have thousands of suppliers which increases the risk of branded products being linked with worker exploitation Positive - Firms such as GAP and Nike now prohibit worker exploitation in their own foreign factories Negative - However, it is hard to monitor the working conditions and pay for the workforce of every single supplier they buy from

Answer 77

- Recycling is far more sustainable than sending waste to landfill – reducing the rate at which new natural recourses are used - High levels of energy are still required are stull high due to the treatment of waste and the transportation of waste to recycling sites - In Curitiba, Brazil, there are strong recycling schemes, whereas in other places such as India, recycling systems have failed to develop - However, the future for recycling is strong – products in the future could be designed in a specific way that allows them to be disassembled and reused or repurposed far more easily

Answer 78

- Since rapid developed of SEZ's in the 1980s the country has developed into the largest economy in South East Asia - Poverty rate fallen from 60% to 15% - The country's main exports are led by palm oil and coal briquettes, with jewellery, cars and vehicle parts, rubber, and copper

Answer 79

Source: Over populated islands of Indonesia, for example, Java. Destination: Under populated outer Islands such as Maluku. Consequences for area they arrive in: - In total over three million people have moved so this obviously puts great pressures on the areas they arrive in. - Thousand of acres of rainforest have been cleared and this has led to soil erosion. - Consequently, a large quantity of the land soon becomes unsuitable for farming. - This is made worse by the shortage of tool and destruction of crops by wild animals. - There has been friction with the migrants and the indigenous population. - Trans-migrants receive two hectares of land as an incentive to move. Indigenous people see this as government favouritism. - The tension is accentuated as sometimes migrants are given areas of land that locals used for shifting cultivation. Consequences for area they leave: - The population on main Islands like Java is continuing to grow rapidly and the trans-migration scheme is providing minimal relief. - Also many trans-migrants are returning after having little success on the outer Islands. Transmigration has done little to remove the problems of over-population.

Answer 80

Source: Rural areas and small town's among Calcutta. Destination: Calcutta's Bustees (Shanty Towns). Reasons - Large population growth in rural areas puts more pressure on the environment. - Wages in Calcutta are approximately six times that of rural areas. - Sub-division of land passed on makes a subsistence life more difficult and reduces the assets against which a rural inhabitant could get a loan. - Increased mechanisation of agriculture to feed growing population means greater rural unemployment. - A large number of migrants are a consequence of natural disasters such as those faced annually in the Monsoon season. Many cross from nearby Bangladesh. - Indian cities receive approximately six times the investment of their rural counterparts. - Better medical and health care. Infant mortality is lower in Indian cities than rural areas. Consequences for area they arrive in: In Calcutta they include: - A chance to escape the rigid caste system that is still very strong in rural areas. - Higher rates of infant mortality than towns. - Half a million people sleeping on the streets. - Increased air pollution as the pressures of population create a need for more industry. In addition, people use wood and charcoal for cooking. - The old water system cannot cope. Leaking pipes allow contamination to enter the water supply. In Monsoon season, this is particularly bad as sewage infects the water. - Increased traffic causes greater air pollution problems. As many as 60% of the population suffer from breathing problems. Consequences for area they leave: - If the migrant finds work in the city then it is likely that the village he left will benefit from money sent home. This is what every migrant dreams of but the situation in reality is usually very different. - As the pressures of urbanisation increase so government expenditure on urban areas must increase this leaves the rural areas facing an ever more difficult situation. - Lack of investment on health and welfare will have obvious effects for those left behind. - It is the young motivated male that is most likely to leave. - This has implications for those left behind. There will be a predominantly elderly population that will find it ever more difficult to support themselves. - Whilst migration may ease some of the population pressures the high birth rates in rural areas means the situation is deteriorating. This means a constant loss through migration with the break up of families.

Answer 81

the institution of policies, quotas, regulations that protect a country’s industries against competition from cheap imports.

Answer 82

As exports of the natural resource increases, the value of a country’s national currency becomes stronger. Therefore, other economic activities within the country become less competitive (e.g. manufacturing) because their product becomes more expensive than other countries’ products. So the country’s domestic market suffers as people look elsewhere to buy products from abroad. A good safe economy needs a balance. Primary product dependency is dangerous.

Answer 83

Some countries/cities are strategically located along important trade routes, giving them a big advantage in international trade.

Answer 84

Dutch disease is an economics term that refers to the negative consequences arising from large increases in the value of a country’s currency. It is usually associated with a natural resource discovery but can be a result from any large influx of foreign currency into a country (FDI – foreign direct investment), aid or a marked increase in natural resource prices. North Sea oil: 1970s oil price x 3. Extraction becomes profitable off Scottish Coast. UK becomes oil exporter. Value of pound increases, prices increase. Britain goes into recession as people want wage increase and other domestic exports too costly.

Answer 85

1. Traditional society - subsistence, barter and agriculture... dependent on rural economy 2. Transitional stage - specialisation, surpluses, infrastructure - dependent on social appreciation of education and skill development 3. Take Off - Industrialisation, growing investment, regional growth, political change - dependent on Sub-urban economy 4. Drive to Maturity - diversification, innovation, less reliance on imports, investment - dependent on growth and developed economies 5. High mass consumption - consumer oriented, durable good flourish, service sector becomes dominant - dependent on global economy or market managing economies

Answer 86

97% of exports are Oil and natural gas

Answer 87

77% of exports are Oil and Cotton

Answer 88

77% of exports are Sugar and Tobacco