GS&GG Flashcards
(50 cards)
banana republic
country whose economy is dependent on commodities (often leads to politically unstable state)
comparative advantage
when a country specialised in producing only those goods that can be produced efficiently and at the lowest opportunity cost
de-skilling
when traditional skills and crafts may be lost when production technology replaces manpower
domestic monopoly
when single firm controls large proportion of domestic marker (25% or greater) TMT domestic prices kept high as there is less competition
Dutch disease
negative consequences as result of large increases in countries income
fairtrade
value-based organisation aims to tackle injustices of globalised economy
aims to pay farmers a guaranteed minimum price, offer fair terms of trade and make payment of an additional development premium for reinvestment
foreign direct investment
investment made by a company based in one country into a company based in another country
global commons
parts of planet that fall outside national jurisdictions and to which all nations have access
glocalisation
describes product that is developed and distributed globally but adapted to meet local market tastes
international monetary fund
standardises global financial relations and aims to promote global monetary and exchange stability by monitoring the global economy and encouraging the growth of international trade
non-governmental organisation
non-profit organisation created by private organisations or people with no participation or representation by any government
over-specialisation
when focus of production is on only one or two products
lack of flexibility + ability to diversify if the same goods can be produced more cheaply oversees
trade liberalisation
involves removing barriers (tariffs)
trade protectionism
use of barriers (tariffs) to increase price of imports so protect domestic production
World Bank
promotes investment globally + provides loans for countries
World Trade Organisation
global organization that deals with the rules of trade between nations
globalisation
process of opening up world trade and markets to TNCs and an increasingly interconnected world
dimensions of globalisation
flows of information, technology and capital
flows of products and labour
flows of services and global marketing
patterns of production, distribution and consumption
factors in globalisation
new technologies, communications and information systems
global financial systems
transport systems
security
trade agreements
Uganda and global systems
land-locked country in East Africa that lies within the Nile basin
shouldn’t be poor: green, fertile, plenty resources (copper, cobalt) - civil war, corruption, HIV
one third of pop live below national poverty line - global systems worked against interests of Uganda
poverty greatest rural where pop smallholder subsistence farmers - when part of British Empire strongly influenced countries exports and continue to dominate
fish now traditional food staple and most profitable export - trade unsustainable - overfishing - fish factories close and knock-on effect to local economy
installation of cables is cost prohibitive - but ‘Village Phone’ model offers loans to people wishing to start mobile phone business - rapidly growing market - farmers pay to access internet and gain information about price for seeds or information on new farming techniques
China and the internet
internet allows flows and shares of money, ideas and technology
Chinese central government controls what citizens see using two methods:
1. ‘Great Firewall’ censorship - blocks access to foreign websites, filters key words, bandwidth throttling (Google, Facebook)
2. ‘Golder Shield’ domestic surveillance - traditional methods fines, arrests, lawsuits to enforce censorship
Nigeria: negative impacts of a single-product economy
single-product economy (oil & gas 80% national income)
without global trade in oil countries development limited
global demand for oil fuelled Nigeria’s economy but at cost - focus on oil resulted in dramatic decline in traditional industries (agriculture, manufacturing)
rural-urban migration increased - increased rural poverty and overcrowding in cities
as neither technology or skills to exploit oil, major oil companies encouraged to develop - scant regard to local environment and indigenous local people e.g. oil spills common is Niger Delta and land rights of local people abused
high income generated from oil results in Nigerian currency being overvalued making imported consumer goods cheap - results in domestically manufactured goods being too expensive and unable to be exported (Dutch disease)
deindustrialisation consequence drives more people into oil and gas industries exacerbating problem
greater emphasis on exports of oil and gas makes Nigeria less internationally competitive in manufactured foods and increases reliance on imports
international trade
resources unevenly distributed so trade allows access to products that might not be available domestically or better meet specific needs
international trade highly contentious - foreign products bought cheaply but (most costly) domestic seller loses a sale
trade seen as one of main ‘engines’ of economic growth
advantages of international trade
comparative advantage
economies of scale (producing narrower range of goods and services means that a country can produce in higher volumes and at cheaper cost)
purchasing power (increased trade and competition lowers prices and allows consumers to buy more)
fewer domestic monopolies
transfer of technology (lead to design improvements and cost savings)
increased employment
