GS&GG: Differential Access to Markets Flashcards Preview

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Flashcards in GS&GG: Differential Access to Markets Deck (8)
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1
Q

What are the causes of poor access to markets?

A

Lack of access to trade blocs = limited trade

Lack of access to trade agreements

2
Q

What are 4 economic impacts of poor market access?

A
  1. Lack of development of manufacturing industries - as high tariffs when trying to sell abroad mean products are uncompetitive = primary product dependency
  2. Lack of industrial development restricts multiplier effect - as no supporting industries
  3. Reduces attractiveness to FDI from TNCs
  4. Fewer employment opportunities as growth in all industrial sectors is limited = limiting size of domestic market and economic growth
3
Q

An example of a country that has poor market access?

List 2 economic impacts of this.

A

Sierra Leone:

  • Manufacturing only contributes to 27% of GDP
  • 70% under 25s are unemployed
4
Q

What are 2 social impacts of poor market access?

A
  1. Lack of employment opportunities = lack of disposable income/lower standard of living
  2. Lack of higher paid jobs/manufacturing = less tax income for investing in health/education = greater inequality
5
Q

How has the WTO created preferential access to markets for LDCs?

A

Creation of special and differential treatment

6
Q

What is special and differential treatment?

A

Special provision to give developing countries special rights and the ability for developed countries to treat developing countries more favourably

7
Q

Give an example of a special and differential treatment policy:

A

‘Everything But Arms’ - EU

Accepts goods from LDCs on an import-tax reduced, quota free basis

8
Q

What is a strength of special and differential treatment?

What is a weakness of special and differential treatment?

A

+ Promotes economic growth in LDCs = gives better access to markets = increasing their competitiveness in the markets of HICs

  • Concern in HICs as non-reciprocal = may allow cheap imports to flood in = deindustrialisation and higher unemployment in HICs