role of national govs and IGOs

Question 1

how UK embraced globalisation

Answer 1

• in 1980, conservative gov embraced globalisation strategies fully
  -some industries closed if their profitability depended on gov subsidies
  -looked to overseas options e.g. steel
  -gov refused to support industries with overseas competitors
  -gave tax breaks to companies investing in UK areas
  -gave subsidies to encourage companies to locate new manufacturing plants in UK to attract FDI

Question 2

how China embraced globalisation

Answer 2

-Open door policy 1978 (needed western tech/investment to develop economy

• 4 special economic zones (tax incentives and huge pools of cheap labour (encouraged UK and USA to outsource and relocate)

-WTO members in 2001. 2005 = 50% china exports come from foregin companies in these zones

• part of BRICS who investin EU, USA, sub sahara

-Has FDI in africa in oil, mining, natural gas

Question 3

advantages of trade blocs

Answer 3

• lower prices and more varied products
  -larger market
  -boost direct investments
  -access to cheaper and more abundant capital
  -decrease monopoly power
  -positive affect in knowledge abundance and tech transfer
  -better quality intermediate inputs
  -minimise potential for conflict amongst members
  -increase economic power
  -new opps for trade and investment
  -growth of member countries

Question 4

trade bloc disadvantages

Answer 4

-shut down domestic industries
-increase economic dependence
-loss of state sovereignty
-retaliation from non member countries

Question 5

IGO examples

Answer 5

-Opec = represent 40% worlds global oil producers

OECD = global think tank of 54 wealthiest nationsdw