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Geography Weston = Global Systems And Governance 🌍 > Trade > Flashcards

Trade Flashcards

1
Q

What is international trade (2)

A

Import and export of goods and services between countries
Increased 8X between 1980-2008

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2
Q

How is patterns changing (3)

A

Developed countries remain biggest traders
Emerging countries are catching up
China = largest exporter

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3
Q

Less developed - AFRICA countries chnage in trading (2)

A

1995 = African countries accounted for 2% world trade
2010 = over 3%

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4
Q

What is fair trade

A

Way of trading that supports people in lesss developed countries who make products exported to developed countries

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5
Q

What is foreign direct investment

A

When a person, company or groups ends money to another country in order to generate profit

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6
Q

What attracts foreign investors (4)

A

Size of the market
Stability if market
Possibility of extracting resources
Ability to access large financial sector

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7
Q

Rise in FDI

A

volume increased from $400 billion in 1996 to $1500 billion in 2016

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8
Q

Pattern of investment chnage (2)

A

Since 1980s = developed countries began investing in emerging economies and developing countries
China, India, Brazil some of largest investors

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9
Q

Change in we’re investment comes from

A

Emerging economies invest alot

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10
Q

What is trading bloc (2)

A

Free trad between member countries
Common external tariff in non members

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11
Q

Developed countries trade + how much (2)

A

Most trade occurs between developed
2013 = imports and exports between us and eu accounted for over 30% global product trade

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12
Q

Emerging economies sector that’s most important

A

Manufacturing sectors are increasingly important

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13
Q

Less developed countries trade with who

A

Mainly trade with less developed countries

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14
Q

What is access to markets (2)

A

How easy it is for countries and co panties to trade with each other
Determined by extent of barriers

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15
Q

What’s affects access to markets (3)

A

Wealth
Developed countries often put higher tariffs of goods imported to less developed C
Harder for less developed to access market

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16
Q

What increases access to market (2)

A

Trading blocs
Less developed may be left with high tariffs if not part of bloc

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17
Q

What are special and differential treatment agreements by wto (2+)

A

Let less developed countries bypass developed countries’ tariffs = greater market access
Example = EUs 2001 Everything but Arms agreement = allows least developed to export some products to EU w/o paying tariffs

18
Q

Positive of SDT (2)

A

Less developed countries can diversify their range of industries
Introduce manufacturing or tourism

19
Q

SDT agreements bad

A

Allow cheap imports into developed country

20
Q

Different access to markets economic consequences (2)

A

Countries with poor access = can’t establish new industries = high tariffs
Dependant on selling low value primary products = low GNI

21
Q

Different access to markets = social consequence (3)

A

Better access = higher paid jobs = higher y = higher SoL
Less = less money for healthcare + education = QoL is lower
Poorly paid work in less DC = Sweatshops

22
Q

What is a TNC + how much trade when (2)

A

Companies that produce, sell or are located in multiple countries
80% global trade linked to TNC in 2013

23
Q

Examples of TNC (3)

A

Primary industry = shell
Secondary industry = Toyota
Tertiary industry = Aviva

24
Q

What do TNC bring to countries (4)

A

Investment
New tech
Promotes cultures
Job creation

25
Q

How do TNC connect countries together (3)

A

Spatial organisation
Create a global supply chain because different parts of business located in different countries

26
Q

Where are headquarters of TNC

A

Big cities in developed countries = skilled workers + transport

27
Q

Research and development were TNC

A

In cities and towns were highly educated people = same country as headquarters

28
Q

Where are factories located TNCs (2++)

A

Less developed countries where production costs are lower =Nestle have factory in Bangladesh
Some have were there market is = Nissan in uk = avoid import and export tax + reduce transport

29
Q

What is a merger

A

When 2 companies agree to become 1 bigger one

30
Q

What is acquisitions

A

One company buys another company

31
Q

Using subcontractors + TNC

A

TNCs can use foreign companies to manufacture products w/o actually owning business

32
Q

What linkages to TNCs create (3)

A

Mergers
Acquisitions
Use sub contractors

33
Q

What is vertical integration (3+)

A

When a company takes over other parts of supply chain
Through mergers, acquisitions and FDI
She’ll owns every part of supply chain

34
Q

What is horizontal integration

A

Company merges with or takes over another company at the same stage of production = retail chain takes over a retail chain

35
Q

How do TNC expand operations to gain more control

A

Vertical and horizontal integration

36
Q

Exmaple of horizontal integration (2)

A

Disney took over Pixar studios in 2006
Both film production companies

37
Q

How do TNC take Adavanatges of supply chain (5+)

A

Economies of scale = most value for whole supply chain
Invest in C with:
Big natural resources to exploit = primary
Low labour costs + cheap land = secondary
Well educated pop = tertiary
Invest in countries with weak regulations

38
Q

What is infra firm trading

A

One Dickson of a TNC trades with another part of the TNC

39
Q

Example of intro firm trading (3)

A

Tech firm = intel
Some microchips assembled in cost rich but sells them to USA
Costa Rican subsidiary sells them to intel in USA

40
Q

TNC multiplier effect (4+)

A

Open new factory = jobs = more y = helps local firms + gov (tax)

41
Q

How do TNC take advantage of global marketing (3)

A

TNC = lots of money to spend on advertising
Change product to reflect national cultures = gain knowledge of local market = mcspicy in India
Aim = recognisable brand

Geography Weston = Global Systems And Governance 🌍 (9 decks)

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