Retest feedback Flashcards
(90 cards)
1
Q
What 3 ways has investment changed since the 1980s?
A
HIC > HIC
HIC > NIC/LIC
NIC > NIC/LIC
2
Q
Define free trade
A
No barriers to trade
3
Q
Give 3 positives of free trade
A
- Economies of scale
- Technology transfers
- Increase FDI
4
Q
Give 3 negatives of free trade
A
- Widening wage gap
- TNCs are powerful
- Primary product dependency
5
Q
Give 3 things part of fair trade
A
- Fair trade premium
- Environmental standards
- Minimum wage
6
Q
Give a 2 positive of fair trade
A
- Better working conditions
- Environmental standards
7
Q
Give 2 negatives of fair trade
A
- Becomes mainstream
- Reduced incentive for diversity
8
Q
What are subsidies?
A
Grants given as money
9
Q
What are embargoes?
A
Banning of things from certain consumers
10
Q
What is the WTO and what does it do?
A
World Trade Organisation - sets regulations for trade
11
Q
Give 3 positives of the WTO?
A
- Promotes free trade
- Settles disputes
- 153 members (97% of world trade)
12
Q
Give 3 negatives of the WTO?
A
- Favors TNCs
- Race to the bottom
- Protects trade related intellectual property rights
13
Q
What are trade blocs?
A
Group of countries that have reached a common agreement that promotes and manages trade
14
Q
Give 3 positives of trade blocs
A
- Increased trade
- Share tech-resources
- Greater negotiating power
15
Q
Give 3 negatives of trade blocs
A
- Trade diversion
- Disputes among trade blocs
- Loss of financial controls
16
Q
What does the IMF do?
A
Maintains global economy and gives out money to those in need
17
Q
Give 3 negatives of the IMF
A
- Come with conditions
- Voting power
- Loss of political sovereignty
18
Q
What does the world bank do?
A
Loans for development
19
Q
Give 3 positives of the World Bank
A
- Promotes economic development
- Promotes private business
- Loans are long term
20
Q
Give 3 positives of the IMF
A
- Prevents economic crisis
- Prevents poverty
- 190 members
21
Q
What is TTP?
A
Trans-pacific partnership
22
Q
What is TTIP?
A
Transatlantic Trade and Investment Partnership
23
Q
What is MERCOSUR?
A
South America (Brazil, Argentina)
24
Q
What is APEC?
A
Asia-Pacific Economic Cooperation
25
What is CARICOM?
Caribbean (Jamaica, Haiti)
26
Give 3 positives of NAFTA and EU?
- Increase trade
- Increase jobs
- Increase FDI
27
Give 3 negatives of NAFTA and EU?
- Increased rural > urban migration
- Mexican farmers out of business
- Deindustrialisation of the US/Canada/ jobs move to Mexico
28
What is special and differential treatment?
WTO agreements with special provisions/favourable treatment of LDCs
29
Give 3 positives of special and differential treatment?
- Supports LICs
- Increase employment
- Allows for diversification
30
Give 3 negatives of special and differential treatment?
- May be conditional
- Often unbalanced
- Often no generalised
31
Give 3 examples of international organisations?
- WHO
- WTO
- UN
32
What is global governance?
Rules, norms and laws that make and remake global systems
33
What is the Paris agreement?
Green climate fund
34
Give 2 positives of the Paris agreement?
- 180 countries submitted pledges
- Hold warming to 1.5 degrees so slow sea levels
- Review process to update and strengthen pledges
35
Give 2 negatives of the Paris agreement?
- Trump pulled out
- Only considers carbon sources not sinks
- No enforcement of pledges
36
What 4 ways do TNCs form links between countries?
- Merges
- Outsourcing
- Global supply chains
- Acquisitions
37
What are the 4 global commons?
- Atmosphere
- Antarctica
- Space
- High seas
38
Give 3 attributes of the global commons
- Common heritage of mankind
- Shared resources
- No national governance
39
What is the common heritage of mankind?
Belong to all humanity and the resources are available for everyone’s use and benefit
40
What is Tragedy of the commons?
Over exploit of resources
41
What is NGO?
Non-governmental Organisation
42
What is Advocacy NGO
Campaigns to raise awareness
43
What is Operational NGO?
Frontline support services for those in need
44
Give 3 positives of the UN
- 193 countries
- Millenium development goals
- Improve stability
45
Give 3 negatives of the UN
- Data issues
- General assembly is advisory
- No standing military
46
What does the UN do?
Promote human peace
47
What is vertical integration?
Company owns entire supply chain
48
What is Horizontal Integration
Company owns one level of a supply chain
49
What is the Treaty for atmosphere?
UN Framework Convention on climate change
50
What is the Treaty for antarctica?
Antarctic treaty system
51
What is the Treaty for space?
Moon Treaty
52
What is the Treaty for the high seas?
UN Convention on the Law of the Sea
53
Give 3 reasons why globalisation threatens the high seas?
- Overfishing
- Chemical waste
- Sea levels rise
54
What is globalisation?
Increased interconnectedness and widening,speeding up and deepening in variety of dimensions.
55
What are the 5 dimensions of globalisation?
- Economic
- Cultural
- Political
- Social
- Biological
56
Examples of the economic dimension of globalisation?
FDI, International trade, TNCs, global marketing and global money exchanges
57
Examples of the Cultural dimension of globalisation?
Universalisation of culture, glocalisation of products, western influence and cultural influences e.g food and language
58
Examples of the Political dimension of globalisation?
Global governance, growth of western democracies and their influences/decline of centralised communist economies
59
Examples of the social dimension of globalisation?
Social networks, migrant families and diaspora
60
Examples of the biological dimension of globalisation?
Globalised health risk e.g covid and invasive species
61
Direction and nature of capital flows?
FDI - HICs>LICs
Aid - HICs>LICs
Remittances - HICs>LICs
Reparation of products - LICs>HICs
62
Direction of product flows?
Raw materials - LICs>NICs/HICs
Low value manufactured - NICs>HICs
High value manufactured - HICs>NICs/LICs
63
Direction of the following flows?
- Labour - LICS/NICs>HICs
| - Services - HICs>HICs which is high level services or NIC/HIC>HIC which is low level service
64
What is glocalisation?
product developed and distributed globally but adjusted to be specific to local consumers
65
What is global shift?
movement of manufacturing from developed countries to lower wage economies (deindustrialisation of LICs).
66
What is interdependence?
places become increasingly dependent on one another.
67
What is economic interdependence?
reliance for economic growth - international trade ; remittances; financial crisis; trade blocs
68
What is social interdependence?
migration/diaspora
69
What is political interdependence?
global governance e.g. 2015-16 European migrant crisis
70
How have changes to financial systems promoted globalisation?
- Deregulation of financial markets
| - High speed electronic trading systems
71
How have changes to production promoted globalisation?
- Global shift/decentralisation of industries.
- FDI for construction of factories
- Economies of scale
- Outsourcing
72
How has changing technology promoted globalisation?
- Communication satellites
- Containerisation
- Development of internet
- Social media
- Improvement of travel
- High speed electronic trading
73
An argument for the importance of changing technology in promoting globalisation?
- Containerisation-Reduced transports costs by 70% hence the boost in the amount of trade
- Internet-Global reach/access to all markets/increased capital movement/increased sharing of cultures
74
An argument against the importance of changing technology in promoting globalisation?
- Concern over re atmospheric pollution meaning it is likely green taxes will be introduced on shipping
- LICs still excluded due to high costs of internet infrastructure,censorship laws exclude some countries
75
An argument for the importance of trade blocs in promoting globalisation?
- Common external tariffs and lower internal barriers>trade within a bloc is more competitive>trade increases
- Increase labour movement
- Increase in negotiating power
76
An argument against the importance of trade blocs in promoting globalisation?
- Trade diversion
- Trade dispute between blocs
- Trade blocs can break down and have disputes within there bloc
77
What is outsourcing?
companies arrange for goods to be produced by other companies usually at lower cost locations.
78
What are impacts of outsourcing?
- De-industrialisation
- Multiplier effect
- Structural employment
- Race to the bottom in LICs
- Greater profits for TNCs
- Can lower cost for consumers
- Exploitative working conditions
79
How have unequal flows of labour created inequality?
- Brain drain from LICs
- Conflict between migrants and locals
- Rural-migration increasing poverty in rural areas
- Dependence on remittances and lack of alternative income
- Outsourcing>structural unemployment in HICs
80
How have unequal flows of capital created inequality?
- Aid can fund armed groups/conflict
- Profit reparation
- Dependence on remittance and aid causes problem if they stop
- FDI can be used to corrupt weak governments
- Foreign aid dependency with little development of manufacturing
81
Why do HICs dominate world trade and have better market access?
- Infrastructure is similar and well-developed, including a high tele-density rate.
- Party to trade and tax agreements and trade blocs.
- Literacy rate is high and similarly high skill level.
- Geographical proximity.
- High market volume - wealthy middle classes (high disposable income).
- High-value products (not primary) - N.b. issues with primary products- volatile etc.
82
Economic impacts of poor market access?
- Less FDI
- Dependent on low value primary products
- Dependence on foreign aid
- Reinforces poverty
- Reduces economic growth
83
Social impacts of poor market access?
- Less employment opportunities and disposable income
- Less money invested in health/education/infrastructure so lower quality of life
- Often poorly paid work and workers exploited
84
What is race to the bottom?
countries /businesses compete to attract FDI/TNCs therefore cut wages, labour regulations and environmental restrictions.
85
What is comparative advantage?
products a country can produce at a lower opportunity cost than others.
86
What is special economic zone?
areas with different trade and investment rules to the rest of a country e.g. companies investing there may pay lower taxes on land and goods. SEZs increase trade while keeping barriers in the rest of the country.
87
Define primary product dependency?
A country, usually a LIC which relies on one, or a very small number of raw material for its export earnings.
88
Problems caused by primary product dependency?
- Volatile prices as supply fluctuates but demand remains the same
- Resource curse
- Supplies are finite
- Easy wealth reduces economic development elsewhere as appreciation in currency>decline in competitiveness
- Monopoly power
89
Ways world trade patterns have changed since the 1980s?
- Increased by 8x
- Triadic structure
- Slower growth of LICs
- Trans-pacific trade growing faster than trans-atlantic trade
- Dominated by TNCs 70%
- Emerging countries starting to challenge developed countries
- Increase in intra-corporate trade
90
Ways world investment patterns have changed since 1980s?
- Increasing NIC investment in NIC/LIC
- Increased from $400 billion to $1500 billion
- More HICs investing in NIC/LIC than in 1980s
