Lesson Two Flashcards
(13 cards)
Q1: What is a Special Economic Zone (SEZ)?
A:
A Special Economic Zone (SEZ) is a geographically designated area within a country where economic regulations and policies are more liberal than the rest of the national territory. These zones are set up to attract foreign direct investment (FDI), encourage export-oriented industrialisation, and stimulate economic growth by offering tax incentives, reduced tariffs, simplified customs, and improved infrastructure.
Key idea: SEZs are gateways for countries (especially in the Global South) to integrate into Global Value Chains (GVCs).
Q2: Give an example of a successful SEZ and its impact
A:
Shenzhen, China is the textbook example of SEZ success. Created in 1980 as China’s first SEZ, it grew from a fishing village to a global hub of tech, logistics, and manufacturing. It attracted vast foreign investment, notably from Hong Kong and international firms. This contributed to massive GDP growth, urbanisation, and China’s rise as the “world’s factory.”
Key idea: SEZs can drastically transform regional economies—but success depends on governance, location, and global demand.
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Q3: What are the major criticisms of SEZs?
A:
SEZs can bring development—but at a cost:
• Labour exploitation: Poor working conditions, low wages, lack of unions (e.g. textile factories in Bangladesh).
• Environmental degradation: Relaxed regulations attract polluting industries.
• Social inequalities: Benefits are often concentrated in specific zones, creating core-periphery divides within countries.
• Dependency: Zones may rely on foreign companies that can relocate at any time.
Q4: What is a Regional Trade Agreement (RTA)?
A:
An RTA is a formal agreement between two or more states to reduce or eliminate trade barriers (like tariffs and quotas) and to harmonise economic regulations. RTAs aim to increase trade between member countries, boost economic integration, and enhance cooperation in various fields.
Key idea: RTAs are a state-led strategy for regional integration in a globalised economy.
Q5: Name three examples of RTAs and their importance.
A:
• European Union (EU): Most advanced RTA; allows free movement of goods, capital, people, and services.
• USMCA (formerly NAFTA): Unites USA, Mexico, and Canada; key for manufacturing, agriculture, and energy flows.
• ASEAN: A Southeast Asian bloc promoting trade and cooperation across 10 nations; growing economic power.
Each has a different model of integration—some more political (EU), some more economic (ASEAN).
Q6: What are the benefits of RTAs for development and integration?
A:
• Trade facilitation: Lower tariffs make goods more affordable and trade more efficient.
• Regional cooperation: Countries develop shared standards and infrastructure.
• Attracting investment: Integrated markets are more attractive to global investors.
• Boosting competitiveness: Encourages innovation and productivity.
Example: ASEAN countries have seen increased intra-regional trade and rising FDI due to their RTA framework.
Q7: What are the drawbacks or criticisms of RTAs?
A:
• Unequal benefits: Stronger economies often dominate (e.g. Germany in the EU).
• Loss of sovereignty: Countries must conform to bloc-wide rules.
• Marginalisation of the poorest: Weak economies may struggle to compete.
• Dependency: Over-reliance on trade with a few partners can be risky (e.g. Mexico with the US under NAFTA).
Q8: Who are the main actors in globalisation and development?
A:
1. States – Governments that implement policies and negotiate agreements.
2. TNCs (Transnational Corporations) – Operate across multiple countries, dominate global production.
3. NGOs – Promote development, rights, and environmental protection.
4. International Organisations – Like the World Bank or WTO, they regulate global systems and distribute aid.
Q9: How do TNCs influence global development?
A:
TNCs such as Apple, Amazon, or Nestlé control vast segments of global production chains. They:
• Invest in infrastructure and jobs, often in SEZs.
• Shift production to low-cost regions to maximise profit.
• Influence policy via lobbying and partnerships with states.
But they are also criticised for:
• Social dumping
• Environmental exploitation
• Reinforcing dependency in the Global South.
Q10: Why are international organisations like the World Bank often criticised?
A:
• Aid dependency: Countries become reliant on external funds.
• Tied aid: Recipients must buy goods/services from donor countries.
• Debt traps: Loans often come with structural adjustment policies (austerity, privatisation).
• Unequal priorities: Aid often serves donor geopolitical or commercial interests (e.g. US aid going more to strategic allies than the poorest countries).
Q11: What is the purpose of the classroom ‘trial’ activity?
A:
To critically assess SEZs and RTAs through debate. Teams defend or criticise their impacts on development and integration. It helps students:
• Use structured argument (P.E.E.)
• Develop public speaking and evidence-based reasoning
• Understand both benefits and limitations of these strategies
Q12: What is the essay question for this lesson?
A:
“Discuss the impacts of SEZs and RTAs on the integration and development of territories.”
This question asks you to evaluate both positive and negative consequences, across different regions and scales (local, national, global).
Q13: How can you structure your answer to the essay question?
A:
1. Positive impacts: SEZs and RTAs can boost trade, jobs, growth, and global integration.
2. Negative effects: Exploitation, dependency, inequality, environmental harm.
3. Unequal results: Outcomes vary by country, region, and actor. Some benefit more, reinforcing global divides.
You must analyse and evaluate, not just describe.
