A level Geography - Globalisation

Discuss the disadvantages associated with the migration of individuals?

- Loss of the best talent from a country due to the potential to acquire higher wages from an alternative and additional country - Loss of skilled workers creates a training gap - Outsourcing of production from high wage to low wage economies causes more unemployment in the developed countries - With greater movement of labour, there is an enhanced risk of disease pandemics

Discuss migration?

- Majority of the out-migration of labour takes place from poorer to richer countries - This will exacerbate inequalities between the poor and the rich countries, since the less developed nations will lose their most talented and skilled workforce/labour - These individuals will ultimately pay their taxes and spend much of their earnings in their destination country, although they habitually send remittances back to their country of origin

Discuss how trade agreements have facilitated the emergence and advancement of globalisation?

- Without the system of global trading rules, countries may favour particular foreign imports and potentially refuse others. World Trade Organisation oversees 97% of global trade and was established during 1994 - provide a forum for negotiations, as well as ensures that the trade agreements are fulfilled and effectively sustained in a fair and appropriate manner - The agreement is over 26,000 pages, serving to highlight the extreme importance and complexity of global trade

Discuss how transport systems have encouraged globalisation?

- World has become increasingly accessible to a wider and more diverse range of individuals - Global transport system enables for the movement of people and goods throughout the world over vast distances - no longer the friction of time and space - Various negatives and drawbacks accompanied by the multitude of opportunities. For example, substantial risk evident for the potential spread of disease

Discuss the growth of the Polish migration towards the United Kingdom?

- 1st April 2004 - Poland was one of the eight Eastern European countries to join and officially become a member of the European Union - additionally followed by two Mediterranean islands, Cyprus and Malta - EU enables free movement of labour between its member countries. Increase in migration into the EUs more prosperous regions was anticipated following the accession of the A8 nations, most of which had higher unemployment rates and lower standards of living - UK government predicted that there would be 15,000 migrants from the A8 countries moving to the UK seeking employment - Nationals from A8 countries required to register with the Home Office's Worker Registration Scheme in order to be able to receive the right to live and work in the United Kingdom - By 2006, 447,000 A8 country citizens had registered with the project - 264,555 members from Poland reported - further 105,00 between July and December 2006, taking the total to 370,000 since joining during 2004 - third largest ethnic minority group in the UK, following Pakistanis and Indians - An additional 150,000 are registered as being self-employed, including plumbers and builders

Discuss the peaceful transmission of the Chinese influence upon Africa?

- Aim to promote peaceful co-existence stemming from the Cold War origin and creation of a "harmonious world" - does not wish to interfere with the domestic affairs of the continent, nor impose its own will - Able to enter international trade agreements and diffuse chance for conflict, tension and war potentially formed as a consequence of the lack of free trade and inequalities stemming from the cross continental exchange of goods - China and Kenya launched a joint solar energy venture in 2015 - investment in training local technicians on new technologies and expanding solar capacity - loan package worth over $100 million announced to support youth jobs

Discuss the tax practices of Apple?

- Apple has ultimately been accused of exhibiting corporate tax avoidance - As a TNC operating in a number of countries, Apple able to use subsidiary firms in other countries to declare its profits and pay a lower rate of tax - In 2014, both the US Senate and the EU Commission investigated Apple's tax liabilities - both claimed that Apple had received favourable treatment on tax from the Irish government - both parties strenuously denied this cause - Also caused tension between the US and EU, as both claimed that Apple owe them tax on their profits - these tensions expose a flaw in the increasingly globalised world - taxation systems must thereby be updated in order to facilitate the larger TNCs, which manufactures most of its products in China, but derives most of its profit from "intellectual property," marketing, patenting and branding, which can be funnelled through a maze of subsidiaries - Apple ultimately claims that the majority of its profit from large chunks of intellectual are generated outside the USA

Provide a synopsis on Apple?

- Apple is a US transnational electronic corporation with its headquarters based in Cupertino, northern California - Produces many of the familiar high-tech products that are marketed under the universal "i" brand - these include iPhones, iMacs, iPods and in 2015 launched a new "smartwatch" product known as "Apple Watch," as well as a new Apple TV - Company started business in 1976, in the early days of personal computer manufacture - achieved more success when it took over the smaller MacIntosh organisation in 1982 and launched a new brand of desktop Macintosh, later Apple Mac computers - Apple achieved a growing reputation for the quality of its products, as well as attracted a growing niche market of brand-loyal customers - Since 2000, Apple has achieved significant phenomenal growth as an organisation, especially due to the development of WiFi and mobile devices

Discuss the impact of Apple in Ireland?

- Apple's European HQ is based in the north of Hollyhill, on the north side of Cork. Only fully Apple owned manufacturing facility in the world - along with a number of additional foreign blue-chip corporations, Apple was lured to locate in Ireland by the government's 12.5 per cent corporation tax, the second lowest in the EU - Impact upon Ireland has mainly been extremely positive: - Employs 4,000 people directly on it's iMac production line and call centre, Cork's largest employer - Has attracted additional high-tech corporations to establish within the area - Bluefin - payment security and Jet - American retailer company - Has additionally attracted a highly skilled workforce and provided an inspiration for local education, research and development - Indication that the presence of Apple Inc in Cork, Ireland, has generated up to a further 2,500 jobs for workers employed as part of the supply chain or in ancillary work - Company has expanded and contributed to infrastructural improvements in the city - Together with other companies locating in the south and west of Ireland (for example, Galway), Apple has enhanced the reputation of the Republic for hosting high-tech TNCs, which contributed to the "Celtic Tiger" economy of the 1990s and early 2000s - However, many of the more highly skilled workers are deemed as being foreign nationals (mainly from the EU) - Apple thereby accused of not creating sufficient work for the local residents - Counter-argument has been that this has created a vibrant cosmopolitan area, and that at least 60 per cent of the workers are Irish - however, these citizens are employed directly in the production/supply line

Discuss the impact of NAFTA on the inequalities within Mexico?

- As the country has modernised, a huge variation in incomes has been consequently experienced For example, economic productivity in Nuevo Leon, a heavily industrialised state close to the American border is at South Korean levels, whereas, the southern states of Mexico possess productivity levels close to Honduras - The industrial clusters of the country are focused upon the manufacturing of cars, planes, electrical goods and electrical machinery - accounts for two thirds of manufacturing exports within the country and hence contributes to 18% of the GDP. These regions tend to be situated in a band close to the northern border, as well as in the central states to the south - home to 70% of the 120 million population - largely due to the access to the American markets as a consequence of NATA - Criss crossed by gas pipelines, truck roads and railways - making it extremely attractive for industry - some economists see these services as defining the new frontier of North America - boundary between the modernised and the underdeveloped used to be classified as Rio Grande - border is formed around the edges of the new infrastructure - NAFTA determines the rules of business and hence operates under the modern legal system, instead of cooperating with the arbitrary justice system elsewhere - In these industrialised regions reside the wealthier and more privileged population - these have benefitted from the reforms that have made the country a model of free trade over the past two decades, casting off its prior depending on providing raw materials from agriculture and mining - Audi $1.3 billion project within San Jose Chiapa, a town near Puebla with population of 8000. From 2016, production of the Q5 car, which is currently bring made near Munich - cars from San Jose Chiapa shall be shipped around the world - Volkswagen, Audi's part company has additionally been building cars in Mexico for decades - Mexico's position between two seas and two continents, bolstered by free trade agreements with 45 countries in North and South America, has made it attractive to such manufacturers - Germans favoured the region around Puebla, which lies to the east and south of Mexico city - Nuevo Leon - Japanese have favoured city northwest of this region - Collectively, Mexico has been transformed into the world's seventh-largest car exporter as a consequence of the activity of Germans and Japanese - Audi recruits, however, are required to possess at least secondary school level education. However, majority of the Population of San Jose Chiapa never received education further than primary school standard. More than half of the people around the city depend upon farming and all plots for a living - Mexican government has additionally promised to establish a university within San Jose Chiapa to provide technicians for the car industry

Discuss the banana industry?

- Banana industry currently worth £214 million at the wholesale level - national average price of bananas per box is equivalent to $28.79 - 4th most important food product for LDCS - staple food for 400 million citizens - Ecuador, Phillipines, Costa Rica, Colombia and Guatemala are the five biggest banana exporters - Ecuador exports 5,778,171 tonnes of bananas on an annual basis - EU and US are the greatest importers of bananas, importing 27% share each - 4.5 million tonnes - In the past, 80 per cent of the banana trade was dominated by just four large transnational companies, including Chiquita, Dole, Del Monte and Noboa (national corporation based in Ecuador) - Companies are integrated vertically up the supply chain - they own or contract out plantations to other producers -possess their own sea transport and ripening facilities, as well as their own distribution networks in consuming countries - chain ultimately allows them significant economies of scale gains so that they can sell bananas in the US and EU markets at a very low price - repatriate these profits into the country of origin - Bananas for export tend to be grown on large monoculture plantations in Latin America and increasingly in Africa. Remainder of the banana production not in fact controlled by TNCS, but instead smaller, family run farms throughout the Caribbean in particular - As recently as 2012, the five main corporations still claimed 60 per cent of the market, but this subsequently reduced to 45 per cent - still major stakeholders in the business and have responsibility for and influence over the labour standards on the plantations that they own or source from - Organisation of the banana trade has dramatically changed in recent years - big companies have freed themselves of direct ownership of plantations, instead favouring guaranteed supply contracts with medium- and large-scale producers - increasing number of national growing companies based in Ecuador, Costa Rica and Colombia sell their produce either to the banana TNCs that act as distributors, or directly to retailers in the developed countries, for example Wal Mart and Tesco - There has been a shift in power and retailers in the grocery sector in importing countries are increasingly dominating the supply chain - as the grocery market share becomes concentrated in the hands of smaller number of retailers, suppliers have no option but to accept the conditions such as low prices, discounts and delayed payments, else risk being removed from the list

Discuss the banana trade wars?

- Bananas acted as the subject of one of the longest trade disputes in history, lasting 20 years from 1992 until the 2009 Geneva Banana Agreement was reached, coming into effect in 2012 - Dispute began in 1975 when the EU countries negotiated a trade agreement with the former European colonies - Agreement referred to as the Lome Convention and was made with 71 African, Caribbean and Pacific countries, many of whom were banana producers - Countries were provided with special and differential treatment - preferential tariff-free import quotas to supply EU markets. Idea was to enable their economies to develop independently without being reliant upon the utilisation of overseas aid - Agreement extended to a list of banana suppliers to the UK, including Jamaica, Ghana, Windward Isles, Ivory Coast, Dominican Republic and Cameroon - Effect of the deal was to protect the mainly smaller, family run farms in the Caribbean and Africa from the larger Latin American producers, whose bananas were produced more cheaply on mechanised plantations - At the time, US transnationals which controlled Latin American crop, responsible for supplying around 75 per cent of the EU market, while only 7 per cent originated from Caribbean suppliers - 1992 - TNCs filed a complaint to the WTO concerning the unfair EU trade deal - 1997 - the WTO ruled against the EU and the Lome Convention - ordered the EU to cease the occurrence of discrimination - Dispute was not resolved, however, over the course of the following years - EU proposals did not satisfy the larger producers - led to a trade war between the USA and EU - US government retaliated under the pressure of TNCs and imposed WTO improved sanctions on EU products - Argued that they were losing $520 million per year from the occurrence of the Lome Convention - hence imposed a 100% tariff on luxury goods, including cashmere and certain cheeses - EU defended its favouritism as a foreign policy aid tool - Compromise was eventually reached in the Geneva Conference during 2009 between EU and 11 Latin American countries - EU agreed to gradually reduce the tariffs on Latin American bananas - from $224 a tonne to $145 a tonne between 2000 and 2017 - Still concerns, however, about the ACP countries being unable to compete with the larger and more mechanised plantations positioned throughout Latin America. Of the Caribbean countries, only Dominican Republic (large number of medium scale plantations), Belize and Windward Isles are able to compete with the larger Latin American producers - 80 per cent of the imported bananas now come from these sources - focus on organic and fair trade bananas meeting the needs of a growing market in richer EU countries

Discuss the role of China?

- China is a member of the G20 group, an international forum for the central banks and governments of the 20 major economies. Includes G7 countries and the EU as a single member - Established in 1999 to give a voice to the major developing economies (including BRIC countries) who felt that the WTO was not fully serving their interests - The Group of 77 and China is an additional forum which was established in 1964 when China was seen as a less developed economy - aim of the group are to represent the interests of the world's poorest countries, help development in these countries, reduce poverty, disease and improve human rights - China's role in these countries - consists of sharing a common interest in terms of reducing poverty, powerful ally to help in international co operation and change. Hopes to increase its influence in world affairs by being part of the group

Discuss the mutual benefits of the relationship between China and Africa?

- China wishes to achieve Great Power Status, so maintaining that in terms of global word order is a long term foreign policy goal - Africa contains an important amount of diplomatic weight in terms of the shifting of China's diplomatic and political influence away from Western dominated world order - Construction of the country's first overseas military base - Ten miles from US AFRICOM and ultimately provided China with strategic access to the Red Sea and Indian Ocean - China additionally been utilising aid in a strategic manner. Aid tends to be directly proportional to how poor the country is - however, there is a strong correlation between the amount of aid given, and the support for China's foreign policy objectives. AidData - for every 10 per cent increase in voting support within the United Nations, China increased aid by an average 86 per cent - African countries have hence felt entitled to support China in its foreign endeavours - 2016, Kenya deported 50 Taiwanese nationals to China - Sustaining economic growth in the long run is a substantial challenge - due to the fact that Africa's recent success has been due to its access to Chinese markets, detrimental future ahead - economy slows and projections for the African growth should follow suit. The Chinese imports from Africa dropped by 40 per cent - price fluctuations in oil and food prospects. Successful development cannot solely depend upon the prosperity of foreign actors - requires meaningful policy initiatives that promote and focus upon long term economic sustainability

Discuss the growth of China?

- China's substantial economic growth in the last 25 years has been as a result of the expansion of manufacturing of consumer goods for richer "Western" countries, particularly those in Europe and North America - China's influence as a large NIC has not been confined to industrial expansion within its borders - development as an economic superpower boosted its confidence in terms of extending its influence and wealth by investing in other parts of the world, including Africa - Many Western-based TNCs deterred from investing in African countries, especially those that have a recent history of civil war - Chinese entrepreneurs, however, identified the lack of development in Africa as an opportunity for investing in resource development and increased trade - Role in Africa is varied - one clear objective is to extract a range of primary resources such as metals to support the industrial expansion in China - for example, investment in old copper mines in Zambia and Botswana - Evidence that the investment is helping the country to developing infrastructure, as well as healthcare and education - 200 billion dollars worth of trade - cheap goods brought into Africa by 2014 - since 1970, total investment into Africa worth 300 billion dollars. Africa acts as a recipient of half of China's foreign aid

Discuss downfalls of the World Trade Organisation?

- Cotton industry - The $42 billion paid to producers in the developed countries through the form of subsidies has acted as a barrier for the 15 million cotton farmers situated across Western Africa to trade their way out of poverty - 5 million of the poorest farming families have ultimately been forced out of business and into even deeper poverty levels - Special and differential treatment agreements failures - WTO have not been able to work their way through the 88 proposals that fill the legal vacuum - requirement to ultimately make the negotiations and implementation of these policies more precise, effective and operational - Although it has been over 10 years since the occurrence of the Doha Development Round, the World Trade Organisation have still been unable to make world trade fair. Campaigning organisations such as Fairtrade Foundation and Traidcraft thereby still possess a pivotal and critical role in terms of giving a voice to the poorest and smallest countries - attempting to eradicate subsidies involved in the cotton industry

Discuss the advantages of outsourcing?

- Creation of jobs and investment

Discuss the environmental issues associated with the activity of Apple Inc?

- Criticisms have largely originated from Greenpeace - global environmental campaigning group so thereby have a substantial quantity of influence and produce a Green Electronics Guide which ranks companies on their environmental performance. Apple criticised as a consequence of four major reasons: - Reliance on non-renewable resources to supply electricity to its data centres - Use of toxic chemicals such as PVC and brominated flame retardants in their manufacturing processes - Factories in China were discharging pollutants and toxic metals into local water supplies, threatening public health - Lack of recyclability of many Apple products - Apple has responded through launching its Green my Apple campaign to improve its green credentials - it now uses 75 per cent renewable energy, investing in large solar farms to power its data centres - made the decision to remove PVC plastics and brominate chemicals from its products and has started to promote the recycling of its products - As a result, has moved up the Green Electronics ranking from eleventh in 2006 to sixth to 2012

Discuss the Pacific Alliance?

- Developed more recently in 2011 and comprises Chile, Peru, Colombia and Mexico - Enables the creation of bilateral agreements with other nations and trading entities and has the tendency to see the Asia Pacific and the USA as its main market - countries in this group part of the TPP agreement - Although much younger and with a slightly smaller overall population, the Pacific Alliance group has been growing more quickly both in terms of individual economies and volume of trade - Possibility in the future of the two groups merging together to produce one Latin American Union - which would act as a major player globally Both alliances account for a third of Latin American gross domestic product and half of the region's trade with the rest of the world - If combined, would have the ninth biggest economy in the world and account for around 2.7% of global economic output - Peruvian and Chilean economies are the largest growing in South America - averaging growth of 6.3% and 5.6% on an annual basis

Discuss the result of the TPP agreement?

- Donald Trump withdrew America from the agreement after the signing in 2016. Binding rules on labour and environmental standards, investment, patents and copyrights, financial regulations - All TPP signatories except the US agreed to revive the agreement in 2017 and reached a deal titled The Comprehensive and Progressive Agreement for Trans-Pacific Partnership - at this time, the eleven remaining companies represented 13.4% of the global gross domestic product - Became the third largest free trade area in the world by GDP - Former President, Barrack Obama, treated trade deals as a great priority during his tenure, as the TPP would have ultimately bolstered America's position in the Asia-Pacific region where China is growing in influence. US critics highlighted how it favoured big business and other countries at the expense of US jobs and national sovereignty - Pave the way for companies to sue governments that change policy on health and education to favour state provided services - also highlighted to intensify competition between the labour forces of various markets

Discuss the race to the bottom?

- Due to the extremely low prices paid to suppliers by the supermarkets, many of the larger companies are relocating they plantations, increasingly to West Africa, as companies search for lower labour costs and weaker legislation - Called pursuing a 'race to the bottom' in terms of social and environmental standards - Employers use sub contracted labour so plantation work is becoming increasingly casual - workers tend to have to work for long hours in unbearable heat - many additionally fail to earn sufficient to cover their basic needs - Average wage in Ethiopia is $1.45 per hour

Discuss the impact of fair trade upon a notable banana plantation?

- El Guabo Association of Small Banana Producers - formed in 1997 in south-west Ecuador - One of the world's largest producers of fair-trade bananas and exports around 30,000 boxes a week to the USA and Europe - Before fair-trade, the 339 family farms sold their bananas through intermediaries at a price that was too low to cover their basis costs - Economic benefits: -Stablished economies and improvements to standards of living - Guaranteed fair wage and long term supply contract, including direct access to new and international markets - Producers able to raise additional capital for reinvestment, for example tanks to wash bananas - Migrant labourers are helped, for example, assistance to buy their own land

Discuss the impact of Chinese investment and influence throughout Africa?

- Following de-colonisation, Africa left with a legacy of harsh, imperialist rule that set it back many years in terms of modernisation - African countries have recently become attracted to China's "no-strings attached' development assistance and policies of growth therefore - Infrastructure programmes funded by the Chinese government, are often carried out by the Chinese workers - instead of giving local companies and citizens a vital opportunity to grow experience and capital, these contracts overwhelmingly benefit Chinese corporations and bring in massive profits - Chinese Military of Commerce reported $50 billion in terms of contract worth in 2015 - following year, China Railway Construction Corporation - Announced over five billion in contracts within Africa - Chinese goods are flooding the African markets, overwhelming local producers with large volumes of cheap products that are difficult to ultimately compete with - 2011 - Human Rights Watch - scathing review of the treatment of the Zambian workers in Chinese owned copper mines - claiming unsafe working conditions, exploitative hours, and threats to those who posed complaints - Chinese doctors, however, were enlisted to assist in the 2015 Ebola outbreak - Mutual interest - If good policies and institutions in place, Africa can use the investment to grow their economies

Discuss the Mercosur trade agreement in Latin America?

- Formed in 1991 between Brazil, Argentina, Venezuela, Uruguay and Paraguay - traditional customs union and operates very similarly to the EU. Sometimes referred to as the "Common Market is the South" and enables/facilitates tree movement of labour between the member states. Nature of its produce allows trade globally, but it tends to view the EU and North America as its main markets - Mercosur tariff policies regulate imports and exports and the bloc can arbitrate trade disputes between its members - Mercosur aims to create a continent-wide-free-trade area, and the creation of a development bank has additionally been suggested - When Brazil's car industry became increasingly competitive, aided by the devaluation of its currency during 1999, Argentina responded through imposing tariffs on Brazilian steel imports. Spat was resolved in December 2000 when the two countries signed a bilateral agreement to end the crisis - Long outstanding problem of Venezuela's membership - country accepted as a full member in July 2006, pending ratification by other member stated - but four years later, status remained in limbo as Paraguay had not yet officially approved the decision - 2006, Argentina and Uruguay clashed over plans to construct two large pulp mills along the border - biggest foreign investments Uruguay had ever attracted - Argentina stayed how it feared pollution and the impact on tourism and fishing - Paraguay and Uruguay have complained of restricted access to markets in Argentina and Brazil have south to set up bilateral trade deals outside Mercosur - the rules of the organisation, however, forbids this - ongoing talks with the EU that have lasted for a duration of eighteen years - Argentina enlisted Mercosur countries in is campaign against British sovereignty in the Falkland islands by persuading them not to allow ships flying the Falklands flag to dock in their ports

Discuss the repatriation of profits undertaken by Apple?

- Generates 94 per cent of its total cash profit outside of the US - repatriation of $285 billion in 2018 - Donald Trump reduced tax on repatriated profits from 35 per cent to 15.5 per cent in 2018 - increasing unequal flows of capital

Discuss the spatial organisation of Apple Inc?

- Global organisation, with their main products being designed in Silicon Valley, California - Cupertino, made in mainland China by Foxconn, a Taiwan-based company, and sold all over the world, especially to consumers in developed countries - Most of Apple's employees based in the developed world, mainly in the USA - serves to reflect the high-tech and knowledge intensive nature of its business - Headquarters and research and design centre all situated upon one campus - Apple Campus in Cupertino, California - Three further data centres situated throughout the US - two more in California at Santa Clara and Newark - This concentration of R&D and data centre locations in Silicon Valley, California is a good example of agglomeration - ultimately typical of high-tech industries since information exchange and access to an expert and well qualified work force is crucial - Apple has European headquarters in Cork, Ireland - 4,000 employees on its iMac production line - additionally possesses a customer support and online store call centre - Assembly of its main products outsourced to Foxconn - main production base in Foxconn City, Shenzhen- Guangdong Province. Additionally possess factories in Chengdu, Sichuan province - subcontracts to component manufactures elsewhere in China - Of its 453 retail stores, 110 are situated within the Middle East and Europe - 25 in China - increases its market by 600 million people. Chinese stores have ultimately been rather successful and Apple plan to open more stores in the country

Discuss if globalisation of TNCs has overall been a force for good or bad?

- Globalisation of Apple is not solely positive or negative - Apple providing employment to many and helping China to grow and develop - Further investment in both Africa and South America may follow in time - Apple's response to criticisms regarding labour practices and environmental issues demonstrates the concern shown by large TNCs regarding ethical purchasing and willingness to respond - positive feature of globalisation

Discuss the social benefits of the El Guabo Association of Small Banana Producers?

- Health care benefits to families of cooperatives - for example free use of the El Guabo clinic - Provision of educational and medical supplies - Affiliation with a social security system, for example, payment of retirement benefits - Support for the poorest groups, for example through retirement benefits - Improved education provision - new schools for children with special needs - Marginalised groups helped to find employment, for example HIV/AIDS suffers

Discuss the global shift in the steel industry?

- In 1954, 95% of manufacturing was concentrated in Western industrialised economies of North America, Western Europe and Japan. Products were largely consumed in the country of origin. European steel producers pursued a policy of open markets, so long as the trading conditions were free and fair. Led to steel being one of the most internationally traded of manufactured products and Europe has benefitted from the significant trade surplus for many years. Today, price levels in the EU are largely determined by the decisions of the steel producers and developers located far away while the trade balance is still positive in terms of its value, now increasingly negative in terms of volume - However, due to a decrease in demand for steel as a consequence of technological advancement reducing reliance, the long lasting nature of the material and the move towards aluminium, the steel industry began to experience a decline. In addition, privatisation of the steel industry led to a reduction in state governing subsidies - Competition from subsidised EU countries such as Spain, as well as the growth in the productivity of Asian BRIC markets - lower labour costs £322 per month in China to £1,524 in UK - By 2010, BRIC countries expected to account for 50% of global steel production - increased demand in China compared to the United Kingdom. 2006 demand at 14% for China in relation to 4% in United Kingdom. Growth was predicted for 7% per annum until 2010 for China, compared to global demand increase of 4.5% - China has historically been a net importer of steel, soaking up large quantities of steel from exporters such as Japan and South Korea - Since 2003, China's net steel balance has greatly shifted from 35mt per annum net import to 33mt net export in 2006 - Rapid increase in capacity has resulted in domestic oversupply - Chinese steel producers are enhancing production facilities to enable production of higher grade products that were traditionally imported from Europe - Asian regions now absorb 30mt per annum of Chinese exports - EU receives the annual equivalent of around 8 million tonnes of those exports - Between 1983 and 2013, manufacturing in the UK fell by 50 per cent - Closure of Port Talbet works in 1961, along with the closure of Tata Steel Port Talbet works in 2016 - loss of 15,000 jobs - predicted 20 years worth of unemployment for certain individuals that worked within the particular industry - 4.3% unemployed compared to 3.9% in UK - £523 vs £587 average weekly wage - 3.4% out of work benefit to 3.0% in Great Britain - Work in the financial and insurance industries - 0.9% compared to 3.5% - Evident that unemployment due to the factory closure and occurrence of deindustrialisation has occurred to a greater extent in Port Talbot compared to the United Kingdom in its entirety - moreover, it is interesting to note the lack of individuals operating within the financial institutions, highlighting how the region was predominantly governed by manufacturing activity over various sections of the service industry - Education - Due to low skills required in the manufacturing industry, grave inequality present in terms of the level of education received in Port Talbot compared to the United Kingdom. For example, 25.9% of the United Kingdom possess no qualifications compared to 30.9% of the Port Talbot residents. 18.8% 24.5% with degree - Port Talbot possesses 20% lower proportion of people in higher or intermediate managerial jobs, administrative or professional households than the entirety of the United Kingdom - 1960s - Ranked 5th in terms of steel quantity production, has since fallen to position of 18 (2015)

How have TNCs heightened inequality in flows of capital and labour?

- Main goal of profit and they thereby tend to locate their production in NICs such as China - Apple have situated their manufacturing of the main products in Foxconn, Shenzhen - Highly paid jobs, however, kept in HIC headquarters such as Silicon Valley, California - global headquarters and base for research and development - thereby crucial for information exchange and requires expert and well qualified work force - causes some of the most intelligent people in emerging economies to leave, causing a 'brain drain' - many leave in search of better employment opportunities as they international division of labour inhibits social mobility - skills shortage in the host country - unequal flow as few talented, highly skilled workers move from home to host country - between 2005 and 2015, 5 million individuals moved from south Asia to west Asia - Smaller scale - prospect of individuals moving from rural regions to urban areas where the factories and manufacturing jobs tend to be situated in - accounts for the urbanisation in the present day - 746 million in 1950 to 3.9 billion in 2014 - Unequal flows of money as much of the profit earned in production is reinvested into the home country - called repatriation of profits and economic leakage - profit largely kept in California and European headquarters in Cork - Reduce the inequality of flows of capital through enhancement of foreign investment and inward investment - partly due to TNCs production - investment in China is now the second largest receiver of foreign direct investment, benefitting its economy - also positive multiplier effect results from increased employment in an area, investing more and increasing spending in the location

Discuss the market for Apple Inc?

- Market is predominantly in richer, more developed nations - in 2011, 44 per cent of their product sales were in the USA - average market profile consist of young (age 31), wealthy (earning 26 per cent more than the national average) and educated (58 per cent graduates) that are prepared to pay a premium price for their products - over the past five years, however, its most rapid growth has been outside the USA, particularly in the Asia-Pacific region, largely due to global demand for the iPhone

Discuss developments in the TTIP?

- Negotiations halted by Donald Trump who then initiated a trade conflict with the EU - both parties declared a truce of sorts, however, in 2018, resuming talks that appeared to be similar to the TTIP - EU member states and the European Commission prepared mandates for new trade negotiations with the US, launching "a new phase in the relationship between the United States and the European Union." 2019 - the negotiations were declared as being "obsolete and no longer relevant" by the European Commission - however discussions are still said to be underway - Process criticised for its "covert" nature. Reports on ongoing negotiations and the contents of the negotiated TTIP proposals classified from the public and can only be accessed by authorised persons. Leaks of proposed TTIP contents into the public caused controversy - Met much parliamentary and public opposition from the EU during period of time between 2013 and 2016 - threat to the public services, killing public interest laws, to waves of unwanted genetically modified foods and fracked into Europe

Discuss the drawbacks of the SDT agreements?

- Not all LDCs are members of the WTO - accession following agreement tends to require between 8 and 10 years - The WTO Doha Round recognised that SDT measures needed to be made more effective and operational - Some of the lack of effectiveness results from the fact that various LDCs are simply not aware of the agreements, and when aware, do not make productive use out of them - Some measures have ultimately not been tailored to the conditions prevailing in most LDCs - Concern among some of the richer nations that the non-reciprocal and preferential trading agreements would result in cheap imports flooding markets and undermining their own industrial base - this has effectively already occurred with the growth of newly industrialised countries - Agreements are additionally difficult to apply in a fair or standardised manner and the lack of reciprocity in the agreements has deterred some developed countries from participation - many cases, have been replaced through the application of unilateral trade agreements between poorer countries and richer trading partners - for example, Mexico was a beneficiary of the preferential access to Canadian and US markets but has arguably been more beneficial for the region - Sub regional trade areas and customs unions among developing countries expanding and deepening in Asia, Latin America and Africa - these groupings greatly enhance the negotiating leverage of their members in trade negotiations and may offer more to the least developed countries in the long term - More international cooperation ultimately required in order to overcome the shortcomings of differential access since it is clear that SDT agreements have a pivotal role in the removal of some of the inequalities in international trade

Discuss the terms agreed to through the application of the Special and differential treatment agreements?

- SDTs can be acquired by the developing countries as a political right - Developing countries should be able to enjoy privileged access to the markets of their trading partners, particular developing nations - Developing countries provided with the power to limit exports to a greater degree than developed nations - Developing countries able to acquire additional freedom to subsidise exports - Allowed flexibility in respect of the application of certain WTO rules, or postpone the application of the rules - EUs Everything but Arms Agreement in 2001 is an expert example of a trade preferential scheme in which the region decided upon policies to accept access of all products from LDCs apart from ammunition and arms on a duty reduced, quota free basis - similarly, US extends duty-free treatment to nearly 2,000 products from qualifying African countries

What is fair trade?

- Social movement whose goal is to help producers in developing countries to achieve better trading conditions and promote sustainability - Movement mainly focuses upon agricultural-based products and additionally includes handicrafts or valuable minerals such as gold - these are traditionally the products that are exported from developing countries to richer nations - Fair trade supporters share the common belief that those producing the commodities do not get an equitable deal from the organisations that they supply their produce to - these may be transnational corporations, food processing companies or buyers from supermarkets in developing countries - buyers are able to force down the prices of individual supplies due to the little market influence attained by the suppliers, as well as their extreme reliance on the income from goods - Members of the fair trade movement advocate the payment of higher prices to producers, as well as helping them to achieve improved social and environmental standards - International fair trace organisations organise producers into cooperatives to combine their produce ultimately - this gives more influence on market conditions and the power to negotiate better deals ultimately with buyers or to supply direct - goods are labelled as 'fair trade' and possess an International Fair-trade Certification Mark - ethical consumers thereby aware and can recognise that they are buying goods for which the producer received a fair price - Alternative trading organisations additionally in operation, such as Cafedirect and Oxfam - focus on the application of fair trade - slightly different pattern as they are retailers who buy directly from the suppliers at a fair trade price

Discuss the fair trade of bananas?

- Steady growth has occurred in the so-called "sustainable" bananas - organic and fair trade - help small scale producers in developing countries and will partially resolve the deterioration in the conditions present during banana production - Undoubtedly a growing market segment of ethical consumers in richer nations who are becoming aware of the shortcomings of the current product process and are willing to pay a greater volume of money for a certified product - 8% growth in fair trade reported between years of 2016 and 2017 - Farmer and Worker Organisation have received an estimated $193 million in Fair-trade premiums - Based upon sales of bananas and are able to be invested in projects of their choice, such as the construction of a school building in St Lucia - Corporation for Rural Business Development - 34% of people have stated that the premiums have resulted in an increase in their quality of life, 52% report that their housing conditions had improved with the aid of the benefits, whilst all believe that they are within employment contracts - only 18% of workers possess employment contracts in non-Fairtrade areas - employment contacts ultimately provide financial stability - 2017 Banna Cooperatives - spend 40% of the Fair-trade Premium to support and provide services, including loans for home improvement, health insurance - 11% spent on community services such as education infrastructure and support for vulnerable groups present throughout society

Discuss the repatriation of profits?

- TNCs investing in overseas production will normally take back any profit made from that investment back to their home country headquarters - This is sometimes called economic leakage - The majority of flows return to companies based in richer companies

Discuss the impact of Apple Inc upon China?

- Working conditions - 2006, reported that 200,000 workers who livd and worked in the Shenzhen factory were regularly working more than 60 hours a week for around $100 a month, with the majority of this finance being taken up by living expenses. Media reports use the terms "sweatshop conditions" and "enforced overtime," none of which deemed to enhance Apple's reputation - Health and safety - in 2010, fifty workers at the Lianjian Technology establishment (a company subcontracted by Foxconn) in Suzhou, Jiangsu, province, poisoned by toxic chemical utilised to clean iPad screens and decided to sue Apple. In order to reduce costs, adequate ventilation had not been installed. Most cases were settled out of court - Utilisation of student and child labour - Foxconn's use of students and children part of its objectives of maintaining a low cost and flexible labour force - employees under 18 are subjected to the same working conditions as adults. Provincial authorities supported the policy by allowing them to be graded as interns or trainees - university students forced to work once graduated - Suicides - Suicides reported between 2009 and 2010 brought most significant quantity of damage to Apple's reputation as a business - 2009, Foxconn factory worker committed suicide after coming under pressure following the disappearance of a prototype of the iPhone 4. By the end of 2010, 14 suicides totalled, predominantly due to the severe working conditions - Practices and their consequences have ultimately placed an enormous strain upon the business relationship - very difficult and costly relationship for Apple to extricate itself from - in response, Apple has implemented a Supplier Code of Conduct and audits supplier factories regularly

Discuss the growth of Apple Inc in greater detail?

- World's second largest IT company by revenue (after Samsung Electronics) - Third-largest mobile phone manufacture - Largest global brand by value - $145 billion - 98,000 full time employees and over 450 retail stores in sixteen countries - Eleventh largest TNC globally with total assets of $207 billion - Products are successful as a consequence of a number of factors: - Stylish and well designed products - Slick marketing and branding - thereby able to generate a growing number of customers with brand loyalty - Innovative products - Focus on highly mobile devices, which fits the growing demand of the market - Selling, via the internet, ancillary products such as music and applications

Discuss the environmental issues associated with banana plantations?

-Banana varieties are susceptible to diseases and almost all are treated with chemicals throughout the production cycle - Commercial plantations operated by large TNCs apply around 30kg of active ingredients per hectare, per year - these include fungicides, pesticides and herbicides - Fertilisers applied regularly and fruit is washed with disinfectant after harvesting - With the exception of cotton, industry has the largest agrochemical input into the environment - Crucial issue in terms of waste - for every tonne of bananas produced, two tonnes of waste generated in the form of plastic bags, containers, strings - Soil fertility impacted due to the use of contaminants and a consequential loss of biodiversity, especially aquatic life, as pollutants run into water courses

What are conglomerates?

A collection of different companies or organisations which may be involved in different business activities, but all report to one parent company - most transnational corporations are conglomerates

What are MINT countries?

Acronym referring to the more recently emerging countries of Mexico, Indonesia, Nigeria and Turkey

What are BRIC countries?

Acronym used to identify a group of four countries - Brazil, Russia, India and China, whose economies have advanced rapidly since the 1990s

What are economic unions?

Allow free trade and the movement of capital, but also require members to share in the adoption of common policies that apply to sectors such as agriculture, industry and regional development

Discuss the production for Apple?

Apple's mainstream products are constructed throughout China for the following regions: - Large source of highly skilled, hard working and low paid workers - good for China as it provides some investment into the country, as well as generates jobs - Number of, mainly Taiwanese, companies competed for the Apple manufacturing contract, forcing down production costs ultimately - Shenzhen was the location of China's first and highly successful Special Economic Zone - offering a number of incentives to ultimately attract foreign companies - Foxconn City is a business park that contains many factories belonging to a number of different manufacturers - possesses Dell and Sony - assemble high-tech products , thus dubbed as "China's Silicon Valley" - Park is self contained and exhibits high security - most workers live on site where there are dormitories, shops and cafes - There are over 400,000 workers employed in Foxconn City, and the average wages paid on site vary between $150 and $200 per month, which is above the minimum wage and higher than in other parts of Shenzhen and China

What are preferential trade areas?

Exist when countries within a specific geographical region agree to reduce or eliminate tariff barriers on selected goods imported from other members of the area

Discuss the overall role of the IMF and WB?

Fundamental roles in supporting world economic and financial order by regulating and assisting in the flow of international capital

Discuss the criticisms of the International Monetary Fund?

Known to impose severe cuts on education and welfare spending by governments that they are supporting

Discuss how the cultural/social division of globalisation was derived?

Migration, growth in communication networks and the impact of western culture through sport, leisure, celebrity and media - Spread of ideas, information and images

Discuss the International Monetary Fund?

Organisation of 188 countries that work to promote financial cooperation between countries to reduce poverty. This is ultimately achieved through promotion of trade and high employment

What are global systems?

Systems that come into fruition to ensure cultural, financial, economic, legal and environmental facilitation with the interdependence that exists between countries present throughout the world today

What are tariffs?

Tax or duty placed on imported goods with the intention of making them more expensive to the consumer so that they do not end up selling them at a lower cost than home-based goods - a strategy of protectionism

Is NAFTA an overall success?

The United States would not be as strong competitor with the European Union or China. This is critical now that both of these trade areas are larger than United States as the world's largest economies - Perhaps designed with better protections - free trade agreements are a necessity for the United States when competing in an ever more globalised world

What is free trade?

The idea that trade between countries should proceed with as few limitations or restrictions as possible - pretty much nowhere in the world has 100% free trade - Every country has taxes on foreign goods, limits on how many goods can be brought in and restrictions on importing certain things

Discuss the Lorenz distribution?

This is a form of data representation that indicates the degree of unevenness

Define a TNC?

This is a global corporation that possesses facilities and other assets in at least one country other than its home country. Such companies have offices and factories in different countries and usually possess a centralised head office where they coordinate global management

What is a quota?

This is a physical limit on the quantity of a particular good that can be imported into a specific country

What is foreign direct investment?

This is investment made mainly by TNCs (occasionally by governments) based in one country, into the physical capital or assets of foreign enterprises - The investing company may make its investment in numerous ways, for example, by establishing a subsidiary company, through acquiring shares or undertaking mergers or joint ventures

What is a an import license?

This is issued by a particular government that is authorising the importation of goods from a specific source

Highlight how global trade is expected to change and develop by 2020?

- 2013 - global trade of manufactured goods accounted for a total worth of $18.8 trillion, whereas the large scale cross-continental exchange of services totalled net value of $4.6 trillion - Despite the slowing of growth as a consequence of global recession periods, future trends in development are expected to be as outlined below: - Sub saharan African countries predicted to experience some growth as a result of their development and growing likelihood of becoming the point for the assembly of finished goods - Asia-Pacific region predicted to undergo the fastest growth in global trade - Europe - Most important market for the sub-Saharan exports - Machinery and transport sector, which includes consumer electrical goods, predicted to form the largest and most substantial contribution to trade - Intraregional trade within Europe will be worth more than US $7 trillion - still greater than Intra-regional trade of Asia, despite the enhanced rapid growth expected to be experienced

Discuss the income inequality within the United Kingdom?

- Average disposable income (after wages and cash benefits, as well as direct tax such as council tax and income tax, but not VAT), is £34,000 - This average wage has been experiencing a significant increase over the past five years by an average of 2.2% each year - However, the richest fifth has had an increase in wage, explaining the aforementioned figure - 4.7% - Poorest fifth - decrease in median wage - 1.6% - Richest fifth had an income more than 12 times the poorest fifth - £12,798 compared to £69,126 - Wealth is additionally unevenly spread between the various regions of the country - South East (£387,000 - which is over twice the average in North West of £165,200

Discuss how global financial institutions have facilitated globalisation?

- Banks and financial services operate across the globe - They are linked through a transmission system which enables for the lending and flow of money - 2007 - US house price collapse - led to the credit squeeze of the banks, since they were not willing to lend money - global banking crisis emerged consequently in 2008

Discuss how the economic form of globalisation was ultimately generated and derived?

- Increase in the occurrence and efficiency of free trade - Growth and development of transnational companies - Global marketing - Cheaper and more efficient forms of public transport Characterised ultimately through long distance flows of goods, capital and services, as well as information and market exchanges

Discuss the poverty in Mexico?

- Bulk of population of Mexico continue to live in a land of backwardness and poverty. This is the Mexico of make-shift foot stands, informal markets, cash-only family firms, peasant farmers and indigenous communities, as well as the vicious and corrupt underworld - Half of the population remains poor, despite the promise of benefits from joining NAFTA - Poor peripherally of the country impacts so much on the economy that between 1990 and 2013, the overall productivity in Mexico fell by 0.3 per cent on average each year - Labour, capital and technology have ultimately become less efficient over the past two and a half decades - Economic Productivity Unit set up the government in 2013 blames the poor output on the proliferation of the informal systems, insufficient finance, lack of worker training, weak managerial capabilities and excessive regulation, crime and corruption - Some people have adopted a more sociological approach to the occurrence - Many Mexicans believe that the top-down model of development associated with NAFTA does not offer them the stability that they value - such stability is instead offered through the small businesses in which they operate. Businesses are embedded in a culture of family ties, rather than entrepreneurship and capitalism - Writers state that the factories are unable to provide the jobs for 55 million people that are poorly educated and aged under 25 - they can instead find employment in small businesses - job opportunities, increasing producitiyity - little investment required - The government's few that without strong technological underpinning, alliances with bigger firms and the investment of wealthy individuals and banks, most Mexican businesses will struggle to grow. These attributes are becoming more abundant in the modern part of Mexico providing the possibility of property for those that wish to move there

Discuss flows of capital?

- Capital includes all money that moves between countries that is used for investment (for example, in land and physical capital), trade or production - Late twentieth century, deregulation of world financial markets meant that activities of financial institutions such as banks, insurance companies and investment companies were no longer confined within national boundaries - Global power is concentrated in the hands of a relatively small block of developed nations which they call the 'core.' Periphery countries were seen as those that are less developed and have been exploited and suffered from a lack of investment, leakages and out-migration - The concept is largely outdated in the world of today because rapid growth of large medium-income economies such as BRIC and, more recently, MINT countries, means there is now a continuum of development, so many more regions of the world might be envisaged as 'core'

Is globalisation good or bad?

- Consumption opportunities. Individuals now have access to an increasingly diverse range of goods from all around the world such as bananas that grow in Jamaica, but their growth cannot in fact be supported throughout regions of the United Kingdom - Ecological impact is of substantial importance and significance - Transport of goods and product releases greenhouse gases - this can ultimately enhance and worsen climate change occurrence

Discuss the negatives of international trade?

- De-skilling - Traditional skills and crafts may be lost when technology replaces manpower - Product dumping - Exporting at a price lower in the foreign market than domestically - Stunted growth or decline of local industry - home-grown new industry will find it difficult to establish - Exploitative and about intensive industry - Labour is the biggest cost in industry, profits can be maximised when costs are squeezed - Over specialisation - Centres that are too specialised may struggle to diversity when faced with the occurrence of competition

Discuss the disadvantages of outsourcing?

- Deindustrialisation of the economy - Loss of jobs - Structural unemployment whereby the skill set of the workers is no longer compatible as jobs have now relocated abroad. Often ill-equipped for the new jobs that enter and establish themselves within the local economy. High investment from the government required to retry workers and may take a generation before new workers with education and skills required for local economy, emerges

Detail how Britain used tariffs to change the Indian economy in order to benefit Britain's economy?

- During 16th and 17th century, India possessed a world class and thriving cotton textiles industry - However, Britain wished to develop its own textiles industry - Used its colonial power to halt all imports of Indian textiles to the region in order to protect producers - Additionally dumped all of the imports into the European mainland at lower costs, undercutting domestic costs and hence eradicating all competition that was present - Once industry had been established, Britain imposed high export taxes upon the Indian textile materials. Materials being delivered to Europe were required to pass through United Kingdom to begin with and hence added 5-25 per cent higher exports than those for the British produce - This thereby added great cost to the produce of India - could not compete with the British as a result of their comparative advantage ultimately having been eroded and destroyed due to the British policies - export commodity emerged - industry declined and disappeared

Arguments for the EU?

- Encourages trade with other EU countries - Encourages FDI and therefore multiplier effect - Protectionism for British goods within EU - Free movement of people - For those that are situated within the Euro, easier flow of capital - Ensure food security in Europe - Protect environment - CÓ

Discuss the Trans-Pacific Partnership?

- Free trade agreement currently being negotiated between twelve states, including Australia, Brunei, Canada, Chile, US and Japan - Benefits include: - Boost of economic growth and exports - increase and elevation in prosperity and job opportunities for all twelve member states - Global exports predicted to rise by $305 billion per year by 2025 - US exports could increase by $123.5 billion per year, with particular industries such as machinery, plastics, auto and agriculture experiencing the most substantial benefits and improvements - All countries have vowed to reduce the occurrence of wildlife trafficking - policies would benefit marine organisms, rhinoceroses and elephants. Additionally wish to prevent environmental degradation/abuses such as unsustainable logging and fishing

Discuss how new technologies have encouraged globalisation?

- Information can now be shared easily and cheaply with an audience of billions through a click of a button -Mobile phones - one of the most important technologies for Lower Income countries due to the fact that they connect different people and therefore trade in fashions that were not previously available

Discuss the impact of free trade upon the peanut industry?

- Groundnut originates within Senegal and was brought to the region by the Portuguese doing the late 18th century - Quickly replaced slavery as the main export product in Senegal in the late eighteenth century - The independence of the economy during the 1960s - lacked the resources and finance to be able to develop the industry and continue to uphold their comparative advantage - World Bank thereby issued loan in 1980 - Since groundnut appeared to be a lucrative and stable crop, additional developing countries began to exploit this particular market in order to receive foreign currency - Increase in the number of groundnuts within the system and market resulted in a fall in price - increased supply but constant and same demand - Senegal required to borrow more money from the World Bank in order to remain afloat - Sonacus became partially privatised and free trade implemented - less restrictions. Taxes on exports were reduced. Ultimately benefitted due to less money needing to be paid, but long term impact considered to be detrimental.Policy present over the course of 20 years and failed to be effective - price of the nut fell and could no longer afford to sustain the market. 1725 US dollars in 1975 to 638 US dollars in 1995 - Faced bankruptcy despite trade liberalisation - now one of the most indebted countries present throughout the world and spend a great quantity of money paying back their debt then necessarily investing within education and healthcare - The US, however, possesses a thriving peanut industry that is highly subsidised - this is due to the fact that workers receive a subsidy for each quantity of nuts that they generate - 50,000 peanut farms, producing $4 million - protected by tariffs and not free trade

Discuss the origins and development of the political aspect of the process of globalisation?

- Growth and development of western democracies and their ultimate impact on lower economic countries - decline of centralised, communist power and control - although the influence is still prominent in places such as China and Russia - Diffusion of government policy and the establishment of market economies in former communist states

Discuss the great negatives that NAFTA has brought to Mexico?

- Growth of only 1% since 1994, attributed to the abandonment of development and industrial policies, and the giving rise to the prominence of deregulated trade and investment - prioritisation of fiscal and monetary policies, including during times of grave and substantial recession - 2,700 maquiladoras - export oriented manufacturing and assembly found in the already environmentally strained and overpopulated regions that are situated in the north close to the border between Mexico and the US. Toxins produced by the maquiladoras are leaking into the land and the water - regions unable to struggle with the basic sewage and waste disposal requirements - Between 1997 and 2001, 36,000 child rushed to hospital due to suffering from breathing problems as a result of the increased air traffic due to the enhanced and elevated occurrence of trade - individuals most at risk are children under the age of 5 - risk of developing Hepatitis is more than twice the Mexican average - Environmental damage in 1999 settled at $47 billion, which is higher than the economic benefits as a consequence of trade due to the goods produced by the establishments - figure settles at $14 billion - Mexican law states that hazardous waste should be transported back to its country of origin, but only 30% is returned and just 14% of the 8 million tonnes of waste is able to receive sufficient levels of treatment - 45% of maquiladora managers have highlighted how they are simply dissatisfied with the level of environmental training offered - NAFTA has not overall improved living standards and conditions - the average wage is only 26.8% of the quantity that an average family of four would require in order to survive. 70% of the country's population remain living within poverty - Prior to NAFTA, small plots of land were permanently deeded to Mexico farmers - however constitution changed, which enabled the foreign ownership of the land - able to be seized and sold by creditors - NAFTA opened the door for the dumping of expansive quantities of subsidised agricultural goods within the Mexican market, lowering prices and hence endangering the livelihoods of many farmers - farmers received 70% less for their harvests of crop due to the fact that US imports of crop into Mexico had quadrupled since 1993 - 2 million farmers have since been displaced, but unable to find work as a consequence of the fact that only 700,000 manufacturing jobs were created and developed - farmers have called for a suspension in the tariff reductions and a change in agricultural provisions, but have unfortunately not received great success - Increase in annual deforestation rates from 600 thousand hectares per year to 1.1 million hectares

Discuss the impact of the global recession upon global trade?

- Historically, trade agreements have been a challenge to negotiate and reach. However, the development of the Global Agreement of Trades and Tariffs (post-WW2) served to decrease the average trade tariffs to a tenth of their initial level - agreement has since been replaced by WTO in 1995 - International trade has consequently developed and advanced at a rate that is considered to be of a faster and higher level than global economic growth - the flow of products has subsequently become much easier and more effectively facilitated - However, the global financial crisis in 2008-2009 resulted in global trade agreements becoming difficult to achieve. International trade flows are still experiencing substantial expanding, but have not yet regained the pace of the 2000s - During major recessions, international trade effectively stalls and this serves to act as a setback in the economic aspect of globalisation - Increase in trade restrictions and quotas as a consequence of the diminished demand for products and the mounting of unemployment rates - Rise in the occurrence of various trade disputes as regions are becoming concerned with defending and challenging trade restrictions - Development in unemployment melts away public support for the occurrence of trade negotiations - thereby the establishment of deals and terms shrinks and loses gravitas and importance

Discuss Foreign Direct Investment?

- Important source of funding that encourages the occurrence of economic development, enables the lowest income and least developed/advanced countries/economies present throughout the world to "catch up" - Whether they are just beginning to modernise or are members of wealthier groups, difficult to jump-start economic development without an injection of capital - More than US $1 trillion in FDI flows in countries around the world. However, the distribution is far from equal - Some countries possess natural resources that ultimately attracts foreign direct investment, other regions exhibit a large population size and hence a substantial market, which serves as a pull factor in the attraction of investment from overseas locations - United Nations Conference on Trade and Development: - US - $258 billion - China - $220 billion - Belgium - $102 billion

Discuss the positives of international trade?

- Increase in employment rates and levels, leading to the instillment and encouragement of the multiplier effect. Enhanced export production required - Comparative advantage - Specialising in goods that can be made more efficiently at lower costs - Economies of scale - A narrower range allows countries to produce at higher volumes and lower costs - Purchasing power - Increased competition results in lower prices so consumers are able to buy more - Fewer domestic monopolies - Imports from overseas help to eradicate control from a single domestic firm - Protectionism - A country may protect domestic industry by imposing additional tariffs - Transfer of technology - New technologies are used which can lead to improvements and innovation

Discuss flows of information?

- Information flows are governed by the speed of data and communication transfers, as well as the movement of people through the occurrence of migration - Both are responsible for the transfer of cultural ideas, language, industrial technology, design and business support - Digitalisation and satellite technology have ultimately transformed these flows of information, which are now supported by: - Improvements to global telephone networks, making communication cheaper and easier - Mobile telecommunication technology - Email and the internet, which enable large amounts of information to be exchanged instantly across the globe - Live media coverage available on a global scale as a consequence of the occurrence of satellite technology - Important due to their contribution to knowledge-intensive goods and services. Such goods and services include those that have an intensive research and development component and thereby require the use of highly skilled and educated labour - include high tech products such as semi-conductors, pharmaceuticals, computer technology and business services such as international law, accounting and engineering. Industries need the exchange of ideas and flow of expertise in order to flourish

Discuss the KOF system for measuring globalisation?

- Introduced during 2002 and covers all dimensions of globalisation, including political, social and economic - Measured on a yearly basis - Social globalisation - Spread of information, images and ideas - Economic globalisation - Long distance flow of goods, services and capital, accompanied with market and information exchanges/transmissions - Political globalisation - Diffusion of governmental policy and ideas - Excellent mode in which to compare the occurrence of globalisation between countries that are situated in different regions of the world. Lower income countries tend to possess the lowest levels of globalisation ,due to their lack of finance and hence resources for transport and technological advancement - North/South divide is evident with the majority of the globalised countries being situated across the Northern Hemisphere - Certain countries such as China may be lacking in certain aspects of globalisation, such as the social features, whereby they do not posses a westernised, democratic political system and approach - Erosion of national barriers - integrated national economies, technologies and governance - produces complex relations of mutual interdependence

Discuss special and differentiatial agreements?

- Key feature of the global trading system in the post-war period has been the emergence and development of special and differential trading agreements - In the late twentieth century, the Asian, African and Caribbean regions experienced decolonisation, resulting in the creation of newly independent nations - however, it was clear that due to the presence of protectionist policies, these developing countries would potentially be excluded from trading freely with the more developed nations (inevitably encounter huge tariffs and quota barriers) - In order to prevent the aforementioned occurrence, United Nations Conference for Trading and Development assisted these developing countries in placing these issues in the General Agreement for Trade and Tariffs - Creation of the category for the least developed countries during 1971 by the UN General Assembly - view of providing the least developed nations among the developing regions with specialist support to enable them to overcome specific disadvantages - Additionally facilitated preferential access to the developed markets in trade agreements

Arguments against EU?

- Knock on effects of recession e.g.. Greece bail out - Differences in development of joining countries encourages migration of workers - leads to tensions - Leads to separatist movements e.g. Scottish Nationalist Party and UKIP

Discuss the criticisms of the World Bank?

- Known to attach conditions to its lines that do not ultimately help in the reduction of global poverty - Top-down approach when decisions are undertaken by central authorities (governments and other large institutions) without the consultation or the people that it may impact - does not always reduce poverty. Criticised for the decision to invest in the production and development of large scale multi-purpose dams throughout developing countries in order to ultimately provide hydro-eclectic power, which did not serve in the reduction and minimisation of poverty occurrence

Discuss the changing dividends of the steel industry?

- Last 20 years, there has been a dramatic increase in the demand for metal from the emerging economies of East Asia, particularly China - To meet this growth in demand, metal supplies previously considered as being uneconomic to exploit have been developed - Frontiers of metal exploitation have shifted from North to South, from the advanced markets and developing economies to those that are emerging and developing - This global shift is particularly apparent and significant in Africa - new mines in Africa result in more investment and jobs - increased governmental revenue - New trade routes have been established and increased geopolitical implications of African-Asian cooperation - "No strings attached route to development" to development - unfulfilled Chinese promises of development assistance, flooding of Chinese manufactured goods into African markets, working conditions deemed unsafe and unethical

Discuss the role of the World Trade Organisation?

- Liberalise and supervise trade through the reduction of barriers - To act as an arbitrator in sorting out key trade problems between member governments - To negotiate to reach agreements that become legal ground rules for international commerce - To provide stability by providing trading nations with the reassurance that there will be no sudden policy changes

Discuss the negatives of the NAFTA?

- Loss of between 500,000 to 750,000 US jobs. Most were within industry throughout Texas, California, Michigan and New York. Companies decided to relocate to Mexico as a consequence of the labour being cheap. Industries consisted of automation, textile, computer and electrical appliance - Put Mexican farmers out of business. Government subsidised US farm products into Mexico. - local farmers could not compete with artificially low prices - Mexican trucks access into United States - Mexican trucks are not held to the same safety standards as American trucks. Congress prohibited this provision - Mexicans lost their farms - went to work in sub-standard conditions in the maquiladora programme - US companies degraded the Mexican environment to keep costs low - Job migration suppressed wages. US workers remaining in those industries could not bargain for higher wages. Between 1993 and 1995, 50 per cent of all companies in the industries that were moving to Mexico used the threat of closing the factory. By 1999, the rate had grown to 65 per cent

What is the economic leakage?

- Loss of income from an economic system. Usually refers to the profit sent back to the base country by transnational corporations - also known as profit repatriation

Discuss the geographical spread of Polish migrants within the United Kingdom?

- Migration often follows a slow dispersal from the port of entry. Capitals and large industrial towns tend to be the prime location for many individuals relocating into new regions - however, Polish migration has in fact adopted a different pattern in regards to its dispersal and distribution - Broad geographical spread across the country of the United Kingdom, not simply across industrial areas but also within rural regions. Hertfordshire - 8,156 registrations - Lincolnshire and East Yorkshire additionally classified as populous areas - Growth in passenger numbers from Polish airports has additionally been remarkable - 5.7 million passengers in 2000 to 15 million passengers during 2006 - Ryanair flew 111,000 passengers to Stansted, and Centralwings transported 25,000 individuals to Edinburgh - Tend to be under represented in higher paying forms of work, such as banking and finance, as well as public services, healthcare and education

Discuss the negatives of the Trans-Pacifc Partnership?

- Most of the gains would go to workers already earning good wages. Free trade agreements would serve to heighten income equality in high income, promoting cheaper goods from lower income countries - Higher paid owners of intellectual property would receive more of the income gains - Prioritisation of the agreement regarding patents - reducing the availability of cheap generics, raising costs of many drugs - Competitive business pressures would receive incentives to protect

Discuss how security has encouraged globalisation?

- National boundaries have ultimately become less of a barrier to a more mobile and better informed population - Traditional security measures have hence subsided in significance and prominence - High profile leaks of sensitive information has brought the issue of cyber security to significance as a consequence of our reliance upon information systems. 2016 exposure/leaks of 11.5 million financial and legal records ultimately exposed wrongdoing on a global scale

Discuss the occurrence of inequalities within countries?

- Nenets are indigenous, Nomadic reindeer herders that have resided within the Yamal Peninsula for the last 1,000 years - remote, wind blasted region that is underlain by substantial quantities of permafrost - Peninsula extends from Northern Siberia to the Kara Sea - Nenets allow their reindeer to graze during the summer months and relocate to the southern regions during periods of the winter - semi-Nomadic may even reside in towns and cities throughout the winter time - As a consequence of the eradication of communism within the Russia region, many Nenets have since decided to abandon their traditional way of living and have relocated to the cities and towns on a permanent basis - however, many individuals have in fact struggled with the readjustment away from the Nomadic way of life, with cases of high levels of unemployment, alcoholism and mental health problems being reported on a regular occurrence - Region possesses largest natural gas reserve worldwide - 55 trillion cubic metres - hence region and future of the Nomadic tribe significantly threatened by the over exploitation of these specific gas and oil regions. Gazprom, Russian corporation, have hence established plans to develop the region - which were confirmed in 199.1. First quantity of oil extracted from the Bovanenkovo gas fields in 2012 - Development of the Oskaya-Bovanenk railway line (570km) has interrupted the migration routes of many reindeers. Reindeers have additionally been shot, with the fish yields present in the Ob river declining dramatically after having provided 60% of the fish to the population during Soviet Union rule periods. Fish spawning grounds have further experienced grave pollution - Survival, highlight how Gazprom's website describes the area as being a "strategic oil and gas bearing region" - Nomads have lived upon and steward the tundra's fragile environment for many years - no developments should thereby be undertaken without their consent, and fair compensation should be delivered and orchestrated for any damage potentially undertaken - Climate change - has led to the significant melting of the permafrost covering - 6,400km squared of this medium has been destroyed - release of methane and carbon dioxide, which are significant and harmful forms of greenhouse gases that result in enhanced further warming occurrences - Freshwater levels have reduced in the nearby rivers, again threatening the present fish supplies. The melting of the ice and snow at earlier times during the spring periods and not freezing until much later, has put the migration routes of the herders at significant risk

Discuss the role of the International Monetary Fund?

- Oversees the global financial system and acts as a lender of last resort in order to help with the stabilisation of member economies - Has 2,300 employees

Discuss the impact of the G7?

- Pattern of international trade has changed due to greater integration of economies - Geographically, trade is still greatly dominated by the large economic blocs, mainly North America, East Asia and Europe - US, Japan and Germany ultimately account for 25% of economic trade. When UK, Italy and Canada are included, account for 50% of global trade - Dominance is being challenged by the emerging economies of China and India - account for a growing share - China accounts for the largest growth occurrence - Possess highest GDP - UK $2.6 trillion and thereby ultimately possess the resources and finances required to be able to sufficiently trade to a significant extent

Discuss the benefits in the migration of individuals?

- Reduction in unemployment levels - opportunities to seek and acquire work elsewhere - Addresses the important labour and skill shortages, with the United Kingdom recruiting nurses from the Far East - Diminishment in geographical inequality - Eastern European citizens now working throughout United Kingdom - Migrants may potentially return to the home country with new and improved skills and ideas

Discuss the benefits of the provision of SDTs?

- Remove and erode structural handicaps within the developing countries, including the low incomes, higher concentration of primary export products and vulnerability to export price volatility - Engage in word trade on a more advantageous level - Providing incentives for export diversification and allowing more stable export revenues - Promotion of stable income growth and development additionally acted as a key and required feature

Discuss the flow of products?

- The international movement of products has ultimately been facilitated through cost reductions made to trade - which includes transactions, tariffs and transport or time costs - Transaction costs have been reduced as a consequence of the improvements in the flow of data and the ease with which capital can be transferred to pay for transactions - Transport and time costs have additionally been reduced by the process of containerisation, which has enabled for more complex and longer distance flows of products, as does air transport, which can speed delivery - reduce costs of valuable or perishable cargo - Most obvious regulatory barriers to trade are tariffs - World Trade Organisation have aspired and acted to reduce this particular costs

Discuss the flow of services?

- Services are economic activities that are traded without the production of material goods, for example, financial or insurance services. Can be ultimately sub-divided into: - High level services - Services to businesses such as finance investment and advertisement - Low level services - Services to customers, including bankers travel and tourism, customer call centres of communication services - Services such as banking, insurance and advertising depend upon communication and the transfer of information. They are therefore footloose and can locate anywhere and advancing technology means that they still serve the needs of customers worldwide - High level services have increasingly been concentrated in cities in the more developed world, such as London, New York and Tokyo - which are now the major centres of global industrial and financial control. Other cities have grown in importance such as Frankfurt, home to the European Central Bank, and Zurich, as well as Toronto - Empowerment of East Asian economies - Hong Kong, Singapore and Shanghai have additionally begun major global financial centres - Growing number of transnational service conglomerates have emerged, seeking to extend their influence on a global scale, such as HSBC Holdings in banking and financial services and TUI Group for travel and tourism - Trend has been the decentralisation of low level services from the developed to the developing world. Call centre operations, for example, have moved from the UK to India where labour costs are generally 10-20 per cent lower than in the UK

Discuss the characteristics of Polish workers?

- Skilled and unskilled industrial workers and tradesman form the largest social group among the recent immigrants from Poland to the UK - Prepared to go to the United Kingdom in search fro a better life, but are typically deemed as being among the poorest in the Polish society, tending to only possess £150 a month in Poland to survive upon - Another important sub-group of migrants consist of Polish students taking a gap year before or after completing their university degree course - Factory workers make up the largest group of A8 workers (25%). Low skilled jobs including cleaners, kitchen assistants, waiters and building labourers make up another 37% - Labour Force Survey concluded in 2005 that less than half of those registered since 2004 were still ling in the UK - highlights how for much of the migrants, their time within the United Kingdom operating is rather short-lived and limited

Detail an example concerning remittance payments?

- Somalia 2012 - remittance payments - Some of the least developed countries rely more heavily on remittances than any other sources of capital. According to the World Bank, remittances contribute to 50% of the GNI within Somalia, and 40 per cent of the citizens rely upon the payments in order to undertake and fulfil their basic needs - Play an important role in supporting economic development and people's livelihoods - accounts for 80% of all investment throughout the country - 2012 - Concerns that the money totals were falling into the hands of terrorist groups led to many US and UK banks and money transfer agencies deciding to withdraw their service. Effects in Somalia were ultimately devastating and protests were organised by various human rights groups in order to support and protect the Somalians - Concerns of the US and UK financial institutions were ultimately based upon the following underlined factors: - Its informal economy, with minimal governmental regulation - The lack of anti-money laundering laws - Lack of due diligence (suspicious activity reports) for money transmitters - Fact that some remittances may end up in the hands of terrorist group, Al-Shabaab, which receives donations from domestic and foreign sympathisers

Discuss the issues of concern surrounding migration of Poles to the United Kingdom?

- Some Poles have been exploited by unscrupulous employment agencies or employers in the United Kingdom. Although paid the minimum wage, deductions in food, accommodation and transport costs, have significantly reduced the earnings considerably - Broad geographical spread of the Polish and other A8 migrants has ultimately brought large scale migration to regions that have not experienced it before. This has since created misunderstandings and tensions. Anti-Polish graffiti has appeared in some British cities. Number of isolated incidents of abuse and attacks on migrant workers. The worst examples have occurred throughout Northern Ireland - bricks have been thrown through the windows of homes and two reported cases of petrol bombing - attacks carried out by Protestant citizens that are not only threatened through the perceived job stealing but also due to their Catholic religion - Yorkshire Bank has launched a telephone service in Polish, Lloyds TSB has opened a Polish branch in Manchester and road signs in Polish have additionally appeared throughout UK cities

Discuss how the Umbrella City has benefitted from international trade?

- Specialisation - The workers are trained specifically in order to perform their job of manufacturing jobs efficiently and at reduced costs. Has since established its own umbrella industry supply chain, undertaking fabric weaving and dyeing, as well as being occupied with the production of runners, tips and handles - economies of scale and comparative advantage - There are 1,200 umbrella suppliers and manufactures situated within the Songxia umbrella city - 40,000 employees. Product capacity of half a billion and value of $1.3 billion on an annual basis - accounts for 30% of the total umbrella market throughout China - All supplies are sourced locally - encouraging and supporting businesses found throughout China, as well as reducing transport and trading costs - Coastal location - thereby excellent transport links - railways and roads additionally able to move through this particular region - Umbrella city is situated within one particular site and possesses a central communications centre - this enables for the establishment and maintenance of links with countries situated round the world - Support by governmental action and incentives - Umbrella Festival held in 2003 - Improved visibility of the Songxia Umbrella Festival worldwide - able to establish greater variety and quantity of international trade links, as well as increase the global brand recognition - export to multitude of countries, including USA, Europe, Asia and Canada

Discuss remittance payments?

- These are transfers of money made by foreign workers to family in their home country - Remittance payments have become the second most important source of income in developing countries, above international aid - India receives more international aid from its diaspora than any other country

Discuss the Transatlantic Trade and Investment Partnership?

- This is a free trade agreement being negotiated between the EU and the US - has been criticised for possessing a "covert" nature - Aim to reduce regulatory barriers for trade for big business, including food safety laws, environmental legislation, banking regulations and the sovereign powers of individual nations - Many opponents to the proposed agreement, particularly social and environmental NGOs such as Friends of the Earth. Major concern is that it will give power to large TNCs above that of democratically elected governments - Opponents believe that the TTIP will undermine democracy and social provision in both regions - claim that such an agreement will threaten public services (such as the NHS) as well as consumer protection, data protection and the environment - Inclusion of the Investor State Dispute Settlement which would give the large corporations the ability to sue EU governments (and thus taxpayers) if their profits are affected by any change in government policy - President Hollande blocked the transmission of the agreement. US companies may have to avoid meeting various EU health and environment, as well as safety regulations through the Investor State Dispute - Toxic trade deals being pushed would only benefit the financial elites, ordinary people of the EU stripped of legal protections of labour rights, consumer standards and public services - EU should instead address issues such as the rising inequality and social exclusions - prioritising corporate grabs to prevent further disintegration after Brexit

What is aid?

- This is an important source of financial support for poor countries - Can take many forms and can be provided through the UN from contributions made by a number of richer countries (sometimes known as the Official Development Assistance) - It can also be provided bilaterally from one government to another, usually with mutual co-operation conditions applied - Aid can additionally be provided in the form of technology and expertise through non governmental organisations (NGOs) or as food or relief during periods and times of disaster

Discuss the meaning of "terms of trade?"

- This is the difference between the cost of the goods that a country has to import, compared to the price at which the country can export the goods for - HICS tend to import primary goods from LICs and convert these resources into manufactured products, which can then be exported to the global market - Over the past decades, the cost of manufactured goods has increased, whereas value of primary resources has experienced a great fluctuation - This therefore serves to highlight how the transmission of goods through HICs results in a significant rise in their value - Indicates how LICs must export a considerable quantity of resources in order to be able to import the manufactured goods that they may require - Terms of trade often deemed as being uncertain and less favourable towards lower income countries - Rapid industrialisation of Asia has brought great opportunity to China - however, unequal power relationships still emerge and present

Discuss the benefits of NAFTA?

- Trade between Canada, United States and Mexico has since quadrupled to $1.4 trillion since it's establishment - Economic growth/output in the trade sector - boom in economic development, with a 0.5% increase occurring on an annual basis - Jobs in the US have increased by 5 million - most beneficial industries have included automotive, agricultural and services such as healthcare and finances. 800,000 jobs in manufacturing - Foreign direct investment more than tripled - $452 billion invested in Mexico and Canada. $250 billion invested in US - Reduced government spending. Each nation's government contracts are available to the suppliers in all three member countries. Hence increased competition and lowered costs

Discuss the benefits brought to Mexico as a consequence of the NAFTA agreement?

- Trade between Mexico, US and Canada more than quadrupled to $1.4 trillion since its established. Moreover, foreign direct investment has elevated, with $452 billion being received by Mexican companies and $250 billion by US - Integrated supply chains - more cost efficient international forms of production and creation - 1960 and 1980 - GDP more than doubled and hence living standards significantly improved, however growth only by 1% since 1994. 1980 and 2000 growth by 16%, a far cry of the 99% growth and development experienced in prior years - Adopt and acclimate to US technological and innovation, as well as reach global exigencies more efficiently - 40% of the content of US imports from Mexico originate from the US - Every dollar of export from Mexico, 30 cents revenue generated by the US

Discuss the situation in China and how that reflects inequalities between countries?

- Unequal power relations enable some countries to be able to drive global systems to their own advantage, and hence directly influence geopolitics. Other countries are only able to resist or respond in a more constrained fashion as a consequence - Chinese government established two launch battery facilities within the South China sea to allow for the activity of surface to air missiles, as well as 42km of artificial land mass in the Panacus archipelago - military and logistical bases - 3000km of air strip. Claimed that the development acted towards the formation of "limited and necessary defence facilities." Additionally a response to the US attempt to control the international trade occurring in the region. Philippines, Vietnam and Taiwan exercised claim over the locations - Construction occurred across an important trade artery, with this body of water ultimately accounting for 30% of the world trade passage and generating totals of £3 million - Alliance of South East Asian Nations - Failed to fulfil its promise in the legal regulation that it would exercise self restraint in terms of advancement and development - UN Convention for the Law of the Sea - additionally highlighted how the Itu Abu is a rock that simply cannot sustain human life, let alone a 200 mile economic zone. So entitled to 12 nautical miles of territorial seas - Legal case instilled by the Philippines that the historic claim executed by China and demonstrated through the nine dashed marks upon a map that encompassed the majority of the sea region simply did not possess any legal ground - was not sufficient in terms of lowering and inhibiting the activity and goal of China - US hence the only global force exhibiting sufficient force to be able to control and impede the activity of the nation. Establishment of two military training sites on the Pagan and Tainan islands, that act as territories of the United States found within Commonwealth region of the North Mariana Islands. Preparing for potential conflict with Chinese over the period of 16 weeks each year - The US strategists were growing increasingly concerned in regards to the advancement of the Chinese naval forces and their expansion in the Pacific Ocean - Aspired to prevent a situation in which China was able to control a region of important sea communication from foreign influence - US required to involve themselves within the situation as a consequence of inability of Asian nations to essentially resolve the situation at hand. Diplomatic approach was simply not effective - Behaviour ignores International law, intimidates their neighbours and additionally increases the threat and chance for the occurrence of grave conflict, not just with the US individuals

Discuss the successes of the World Trade Organisation?

- Uruguay Rounds (1986-1994) - Progress in regards to the reduction in the barriers for trading manufactured industrial goods - Doha Development Agenda - 2001 within capital of Qatar. Focus upon reforming trade in agricultural produce, especially between advanced and developing economies - Hoped that the agreement could finally be achieved and reached in Doha Talks within Geneva during 2008. Aim to reduce the trade tariffs by 30%, as well as limit and restrict the subsidies paid to produce farm products - This would have ultimately benefitted the occurrence of trade within developing countries, as well as provided food for cheaper costs in MEDCs. Fairer prices would have additionally been experienced for farmers in emerging economies - Doha talks, however, eventually collapsed in Geneva. This is due to the fact that the US, EU and Japan, would only agree to the agreements and rules if the larger trading nations of the emerging countries, including Brazil, China and India would open their markets to Western manufactured products and goods - Emerging nations additionally insisted on "safeguard clauses," which the US and China did not agree with. These policies would have enabled the developing nations to impose an emergency quota on imports - Year later in Geneva, successful trade agreement was formed between Latin America and the EU which ended a long-term trade dispute concerning the trade in bananas. Bilateral agreement gave hope that Doha may in fact be re-invigarated - Further success achieved in Bali, World Trade Organisation confirmed its first multilateral trade agreement in 20 years with the Bali Package - "trade facilitation" - primarily measures to speed up the movement of traded goods and to reduce costs by removing red tape in customs procedures - Success at Bali gave impetus and hope that multilateral agreements may still be achieved. However, agreements in trade of agricultural produce, still prove to be a sticking point between the richer nations and developing economies - richer countries being unwilling to compromise on tariffs, nor the subsidies offered to domestic producers

Discuss the positive impacts of migration?

- £2.54 billion is contributed annually to the economy by eastern European immigrants in the United Kingdom. Have contributed to between 0.5 and 1 per cent of UK's economic growth between 2005 and 2006 - 80% of the new migrants are working people between the ages of 18 and 35. Offsets the tendency for the UK population to age, addressing the difficulties in providing for an ageing population. National Insurance contributions are resultantly lower as a consequence of the allowance of immigration - Bank of England has stated that migration had helped to prevent the rapid rise in oil prices from causing a damaging surge in inflation which allowed interest rates to remain lower than they otherwise would have been. Ernst & Young estimated that the cost of borrowing and of mortgages would be 0.5% higher if not for migrants - New migrants are stereotypically hard working, flexible, enthusiastic and skilled. Has exposed some shortcomings in the UK workforce. Labor MP, Frank Field, pointed out that school leavers and university students seeking vacation jobs had been losing out to Eastern European migrants - Some employers have additionally stated that they would prefer to employ Poles over British workers due to the strength of character and initiative demonstrated by the decision to relocate in order to seek new employment opportunities and standards of living

What is a common market?

First significant step in the occurrence of full economic integration - occurs when all member countries are able to trade freely in all economic resources, not just tangible goods. Means that barriers to capital, goods, services and labour are removed

What is the diaspora?

Large group of people with similar homeland and heritage that have move and settled in places all over the world

Discuss the World Trade Organisation?

Deals in the rules of trade between countries in order to ensure that trade flows freely

What is protectionism?

Deliberate policy by the government to impose restrictions on trade in goods and services with other countries - usually down with the intention of protecting home-based companies from foreign competition

What is a TNC?

Global company that operates in more than one country. Headquarters are often in MEDCs with factories in LEDCs where workers are cheaper

What is the process of globalisation?

Globalisation refers to the increasing connections between people and places throughout the planet, established through trade, politics and cultural exchanges. Also aided and facilitated through advancing technology and transport

What is are subsidies?

Grants and allowances issued to domestic suppliers in order to reduce their costs and enable them to compete more effectively with the foreign imports

What are trade restrictions?

Import restrictions based on technical or regulatory obstacles such as quality goods standards, as well as the conditions under which the products were manufactured eg. unethical production

Discuss the World Bank?

Important source of financial and technical assistance to developing countries, with its main aim being to ultimately reduce the occurrence of poverty

Discuss the reasons for migration?

Number of push factors that are encouraging Polish citizens to leave their own country - Unemployment levels are extremely high in Poland - residing at 18.2% in 2005. Rural rates of employment are even more elevated, at 40%. Youth Polish unemployment rate for Young Poles - 40%, even if individuals had in fact acquired a high quality and prosperous education. Country to, the employment levels in the United Kingdom are 5.1% - experiencing a significant shortage in the demand for skills and particular labour - high skilled and semi skilled - Average number of job vacancies in the United Kingdom for the three months leading up to January 2007 - 607,900 - Poland, average GDP per head $12,700 compared to in UK $30,900 in the United Kingdom - Important factor is that UK, Ireland and Sweden, were the only three countries in the EU to restrict immigration from the A8 following accession. Ireland received 170,000 Poles - received an even higher in proportionate flow of A8 citizens - France, Germany and Austria chose to retain restrictions on immigrations for up to seven years - Earn four or five times as much money in the United Kingdom - living costs are only deemed to be two times higher. Many of the migrants choose to remain and work in the United Kingdom for a few years before returning to their country of origin

What are embargoes?

Partial or complete prohibition of commerce and trade with a particular country - tends to be due to a political rather than a commercial reason

Discuss the role of the World Bank?

Promotes economic development in developing countries, provides long term loans in order to aid in reduction of poverty, and provides interest free loans to the countries with very low incomes

Discuss the United Nations?

Referred to as the "Guardian of international peace, security and human rights." Promotes the development of poorer countries through work with the International Monetary Fund and World Bank

What is visible trade?

Refers to the exchange of goods that can be counted, weighed, or assigned a particular number. Includes food stock and manufactured products

What is invisible trade?

Refers to the exchange of services, such as financial services and additionally tourism

What is a customs union?

Removal of all tariffs between members, plus the acceptance of common external tariffs against non members. Members may negotiate as a single bloc with third parties such as the WTO and other blocs present throughout the globe

What are voluntary export restraints?

These are diplomatic strategies offered by the exporting countries to appease the importing countries and deter them from imposing trade barriers

What are tariffs?

These are taxes that are levied on the importation, and less often, the exportation of goods as they cross the border of a country or other geographical area

What are free trade areas?

Two or more countries agree to reduce or eliminate tariff barriers on all imported goods coming from other members

Discuss flows of labour?

The labour market is not considered to be as free flowing as the financial market in the process of globalisation. People move less easily around the world than money as a result of the restrictions on immigration - In recent years, however, there has been a phenomenal rise in the numbers of migrants crossing international borders mainly to seek better and enhanced employment opportunities - Much of this movement has been from developing countries in South Asia, Latin and Africa to more developed regions in North America and Europe. Another major destination for the movement of labour has ultimately been around the oil-rich Gulf States of Kuwait, Qatar, Saudi Arabia and the United Arab Emirates - construction boom has ultimately provided plentiful employment opportunities - Despite increases in cross-boder movements, most migrants move over short distances within the same region or between neighbouring regions (this is particularly true within sub-Saharan Africa) - North America, Europe and the Gulf countries in western Asia attract migrants from further afield - Bulk of economic migrants moving between continents are not the poorest but instead those with some education and financial means - Largest regional flow of labour within the world is in Asia. Between 2005 and 2010, around 5 million workers moved from south to west Asia

What are trading blocs?

These are associations between countries that promote and manage trade - They remove trade restrictions between the member countries and keep common barriers to countries that are not part of the bloc - Tend to be regional, but also can be based around specific industries such as OPEC

What is international trade?

This is the exchange of goods, services and capital across international barriers or territories. In most countries, such trade represents a significant share of gross domestic product

What is international trade?

This is the exchange of goods, services and capital between countries. Often referred to as imports and exports