12.2 Politics and Economies of Globalisation Flashcards Preview

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Flashcards in 12.2 Politics and Economies of Globalisation Deck (21)
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1
Q

Trade Blocs (3)

A
  • International organisations that exist for trading purposes
  • Bringing greater economic strength and security to nations
  • E.g. the EU / Mercosur
2
Q

IGO’s that are ‘brokers’ of Globalisation (4)

A
  • Known as ‘Bretton Wood Institutions’
  • IMF
  • World Bank
  • WTO
3
Q

IMF (3)

A
  • An IGO
  • Which works to secure financial security
  • And sustainable economic development globally
4
Q

SEZ (4)

A
  • An industrial area often near a coastline
  • Where favourable conditions are created
  • To attract foreign TNCs
  • Including low tax rates / exemption from tarifs
5
Q

Tariffs (3)

A
  • Taxes that are paid
  • When importing or exportig goods and services
  • Between countries
6
Q

3 Government Policies that allow TNCs to grow in size and influence (3)

A
  • Privatisation
  • Free-market liberalisation
  • Encouraging business start-ups
7
Q

Alternatives to the Bretton Woods Institutions (5)

A
  • China Development Bank (CDB)
  • Provided nearly $1 trillion
  • In financing to foreign governments since the early 2000s
  • New Development Bank (NDB)
  • Made up of the BRIC nations
8
Q

3 Government Policies that allow TNCs to grow in size and influence

  • Privatisation
  • Free-market liberalisation (5)
  • Encouraging business start-ups
A
  • Reduced government restrictions on the way firms operated
  • Reflects the belief in a ‘trickle-down’ of wealth
  • E.g. the deregulation of the City of London in 1986
  • Paved the way for London to become the world’s leading global hub
  • For financial services
9
Q

Bretton Woods vs CDB (4)

A
  • BW tend to make loans conditional on a country’s commitment to controversial policy reform
  • Such as deregulating financial markets and privatizing public utilities
  • The CDB offers more expensive development finance
  • However, there are no strings attached
10
Q

World Bank (3)

A
  • An IGO
  • Which works to provide assistance for developing countries
  • One of the world’s largest sources of loans and knowledge
11
Q

Limitation of WTO (6)

A
  • WTO’s continued lack of success
  • In getting its member states
  • To reach a global agreement on any aspect of trade
  • Not to mention large economies such as the USA and France

Moving towards protectionism

  • Raises questions about its long-term role
12
Q

Why global flows may be viewed as threats (3)

  • ______________________ can threaten _________________
  • Migrants can bring _______________________________
  • ____________ can provide citizens with _____________________________
A
  • Imports of raw materials/commodities can threaten a nation’s own industry
  • Migrants can bring unwelcome cutural change and religious diversity
  • Information can provide citizens with knowledge that governments may find threatening
13
Q

Trickle-Down (2)

A
  • The positive impacts on peripheral regions
  • Caused by the creation of wealth in core regions
14
Q

One very important reason for the acceleration of globalisation in recent decades is the …. (6)

A
  • Changing government attitudes in Asia
  • Asia’s three most populated countries
  • Indonesia, China and India
  • Have embraced global markets and reduced barriers to trade
  • In all 3 cases, SEZ’s were created and attitudes to FDI were altered
  • E.g. by the 1990s, 50% of China’s GDP was generated in SEZ’s
15
Q

Reason why BWI’s are less trusted (6)

A
  • The global financial crisis of 2008-09
  • Originated in the US and EU markets
  • And undermined the entire world economy
  • As a result, governments in developing countries
  • Have become more sceptical of the financial advice
  • That the IMF and World Bank offer
16
Q

3 Government Policies that allow TNCs to grow in size and influence

  • Privatisation
  • Free-market liberalisation
  • Encouraging business start-ups (6)
A
  • Methods range from low business taxes
  • To changes in law
  • Which allow firms to make more profit, e.g. trading hours
  • E.g. Hulhumale in the Maldives
  • Business profit tax maintained at 15%
  • To encourage business start-ups/FDI
17
Q

4 Types of FDI (4)

A
  • Offshoring
  • Foreign merger
  • Foreign acquisition
  • Transfer pricing
18
Q

FDI (3)

A
  • A financial injection made by a TNC into a nation’s economy
  • Either to build new facilities
  • Or merge with an existing firm based there
19
Q

Benefits of trade blocs to businesses (3)

A
  • Larger market size so access to more customers
  • More customers = more sales = higher volume of production = economies of scale = lower costs + lower prices
  • National firms can merge to form TNCs
20
Q

WTO (4)

A
  • An IGO
  • Which advocates trade liberalisation
  • And asks countries to abandon protectionist measures
  • In favour of free trade
21
Q

3 Government Policies that allow TNCs to grow in size and influence

  • Privatisation (6)
  • Free-market liberalisation
  • Encouraging business start-ups
A
  • Successive UK Governments have led the way in allowing
  • Foreign investors to gain a stake
  • In privatised national services and infrastructure
  • Selling to private investors reduces government spending and raises money
  • E.g. French company Keolis owns a large stake
  • In southern England’s railway network