7.3 International trade and access to markets

Benefits of free trade: lower price for ..., greater ..., access to larger, wealthy markets for TNCs, greater economies of scale through increases specialisation, greater foreign completion may weaken .......... (for example, UK supermarkets), competition leads to greater ..., access to cheaper raw materials for TNCs

consumers, choice, domestic monopolies, innovation

Costs of free trade: the .. of free trade not giving sufficient 'protection' to emerging industries in developing economies so they cannot compete with developed countries in the free market, more developed economies are still protected by ........, the unjust exploitation of workers and poor working conditions, diseconomies of scale as a result of difficulties co-ordinating subsidiary companies

injustice, tariffs on agricultural imports

WORLD TRADE IN BANANAS CASE-STUDY: Summary: The world trade in bananas demonstrates a number of relevant points about trade, especially in .......: ..... in developing countries will have ................ TNCs have a large element of ...... and influence ..... WTO will support ..................... even if the protection may be to help .........( the ...... of US TNCs calling for free trade seems to have taken .... over the SDT agreements for LDCs, which were not very effective in this situation). ...... means that trade disputes can spread and can scale into .... between ..... Power and control of food production has shifted away from growers and towards retailers in HICs Supermarket price wars may ultimately decide where and how food is produced More ethical, sustainable consumer markets are growing but .......................

primary commodities, mass production, negative environmental consequences, control of markets and can influence political decision, WTO will support free trade against protectionist activities/agreements at all costs, even if the protection may be to help development (the lobbying of US TNCs called for free trade seems to have taken precedence over the SDT agreements for LDCs), geopolitical processes, trade wars between regional trading blocs, relatively slowly and only in places that can afford products bough at a higher price.

Differential access to markets: In one form or another, ............ (SDT) agreement have been a defining feature of the ............. for most of the post-war period. During the latter part of the 20th century, there were a growing number of newly independent nations following de-colonalisaiton in Africa, Asia and the Caribbean. It was recognised that there was a danger that protectionist politics would exclude many developing countries from trading freely with more developed nations (they would inevitably encounter huge tariffs or quota barriers). In order to prevent this, the .................... (UNCTAD) assisted developing countries in placing these issues in the GATT (and later WTO) toured of talks from the 1970s onwards. The category of there least developed countries (LDCs) was created by the UN in 1971 with a view to providing the least developed among the developing countries with special support measures to overcome their specific disadvantages. In addition to official development assistance (ODA or multilateral aid) these support measures also included preferential assess to developed markets in trade agreements. The provision of SDTs was to enable some of the world's poorest countries to tackle low income, engage in world trade on a more .......... and promote faster income growth and development.

special and differential treatment (SDT), multilateral trading system, United Nations Conference on Trade and Development UNCTAD), advantageous level,

Linkages, trading and marketing patterns: One of the features of TNCs is the ability to expand and gain more control of their industry and markets. They do this by integrating different parts of the business through investment, takeovers and mergers. There are two types of integration: .......... - an arrangement in which the ... of a company is owned entirely by that company. This gives the TNC control over its supplies and stocks and recess costs because of economics of scale. A good example is ... in the oil and gas industry. BP has negotiated exploration and production rights in over ........... It owns or jointly owns (with other energy companies) oil pipelines and has its own shipping fleet. The company owns ...., usually based in the countries here end products are sold, and in the UK has over ................ ........... - a strategy where a company ..... it operations by expansion, merger or takeover to give a broader capability at the same stage of production. for example, ... takeover of ..... in ..... gave them a more diverse base in the grocery and confectionary market. Following a series of de-mergers, the newly formed .... melted with ... in ... for the same purpose.

vertical integration, supply chain, Bp, 40 oil and gas fields worldwide, refineries, over 1,100 retail service stations, horizontal integration, diversifies, Kraft Foods, Cadbury in 2010, grocery and confectionary market, Kraft Foods Group merged with Heinz in 2015

WORLD TRADE IN BANANAS CASE-STUDY: The banana trade raises a variety of environmental, economic, social and political problems. Bananas are one of the the ....... and globally one of the most commonly eaten. Of all agricultural products, bananas are the ........ important food product within ...., being a .... for around .... Of all fruits it is the greatest in terms of .... and is one of the five most consumed fruits on the planet. It contains large quantities of .... (......) and .................... Globally, banana are the ........ and in ..., a record ..... were exported, primarily from ... and the ....

world's favourite fruits, 4th most important food product within LDCs, being a staple food for around 400 million people, volume produced, energy (90 calories per 100 grams) and 1 banana provides more than adult's daily potassium requirement, 5th most traded agricultural commodity, and in 2013 a record 16.5 million tonnes were exported, primarily from Latin America and the Caribbean.

Trends in investment: FDI is an important source of funding for development in all countries, especially for the least developed economies wanting to catch up. Whether they are countries just beginning to modernise, or those of the rich ...... group, it is difficult to '...........' economic growth without an injection of capital. Each year more than a ........ in FDI flows into countries around the world, but the distribution is far from equal, e.g. USA and China get ............. whereas France and Canada get less than ....... Some of these countries have ....... that attract foreign investment but another pull is the size of their populations, or more precisely the size of their markets. Countries with the greater share of FDI as a portion of their national income fall into two main groups: countries known for ......, including Congo, Liberia. These have attracted investment from large .... such as ....., a ............. Countries known for ...., including Singapore and ..... In summary, there are three main attractions that pull in investment: plentiful natural resources, large and accessible consumer markets and financial services.

'jumpstart', a trillion dollars, over $200 billion, $50 billion, natural resources, natural resource development, Congo and Liberia, mining corporation such as Arcelor Mittal, a Luxembourg-based TNC, financial business services including Singapore and Luxembourg

WORLD TRADE IN BANANAS CASE-STUDY: Issue - fair trade and organic bananas: There has been a steady growth in the sales of so-called '...........' bananas, which includes both fair trade and organic produce. This will help smaller-scale producers in the Caribbean and in parts of Africa and will partially counter the ........... There is undue a growing market segment fo ... in ... wo are become aware of the ....... in the ...... and willing to a pay a ............

'sustainable', deterioration of conditions in banana production, ethical consumer in richer nations, shortcomings in the supply chain, higher price for a certified product

Trans-Pacific Partnership (TPP): The TPP is a free trade agreement currently being negotiated by ..... including the USA, Australia, Canada, Mexico and Singapore. It has been criticised, because the negotiations lack ................, but will be one of the most important trading agreements globally as this region has seen the most rapid recent growth in trading. The topics being negotiate debit eh group extend beyond traditional trade matters and are though to set binding rules on a whoe range of subjects including investment, ...... and ........, financial regulation and labour+environmetnal standards, as well as trade in industrial goods and a agriculture.

12 countries, transparency, patents and copyrights

WORLD TRADE IN BANANAS CASE-STUDY: Issue - trade wars: Bananas were the subject of one of the longest trade disputes in history, lasting ... from .. until the ... was reached coming into effect in ...... The dispute started in ... when EU countries negotiated a trade agreement with former European colonies. the agreement was the ........ and was made with ....... (ACP countries), many of whom were banana producers. These countries were given .....(SDT) with ........ to supply .. The idea was to deniable these ........ to .. without having to use ... The agreement was extended to a list of bananas suppliers to the EU including Cameroon, Jamaica, ghana etc. The effect of the deal was to protect the mainly, smaller, ........ in the Caribbean and African from competition with the large Latin American producers, who banns are produced more ..... At the time, the US TNCs which controlled the Latin American crop were suppling around ... of the ..., while only ... came from the .... Despite this, in ..., the TNCs filed a ..... that the EU practice was .... In .., the WTO ruled against the EU and the Lome Conveiton and ordered the EU to cease the discrimination. The dispute was not resolved as the Eu proposals did not satisfy the larger producers. This lead to a trade war between the USA and the EU as the US government ... under pressure form the TNCs (mainly ..) and imposed WTO-approved sanction on a range of EU products. A compromise was eventual reached in .. in .. between the Eu and ..... The EU agreed to gradually ... on Latin American bananas; the agreement was ......... There are still concerns from the ACP producers that they are not able to compete. Of the Caribbean countries, only the ....... and one or two others are competing successfully with the larger producers but around ... of baanasn entering the EU now come from these sources. Their focus on producing ..... is meeting the needs of a growing market in richer EU countries.

20 years from 1992 to 2012, 2009 Geneva Banana Agreement, 2012, 1975, Lome Convention, 71 African, Caribbean and Pacific countries (ACP countries), special and differential treatment, preferential tariff-free import quotas to supply EU markets, the idea was to enable these former European colonies to develop independent without having to use overseas aid, family-run farms in the Caribbean, more cheaply on merchandised plantations, 75%, 7%, 1992, filed a complaint to the WTO that the EU practice was unfair trade, 1997, ruled against, retaliated, Chiquita, WTO-approved sanctions on a range of EU produce, Geneva in 2009, EU and 11 Latin American countries, ratified in 2012, Dominican republic, 80%, organic and fair trade bananas

APPLE CASE-STUDY: China - labour practices: Working conditions - in ..,. it was reported doha ... who lived and worked in the Shenzen factor were regular working more than ..... for around ..., half of which was taken up by living expenses. Media reports used the term '......' and reported .... - none of which enhanced Apple's reputation. Health and safety: in .., ....at ......, a company ........... were ... by a ...... used to ..... and decided to .... In order to reduce costs, .... has not been installed. most cases were settled out of court. Student and child labour: Foxconn's used of students and children is part of its objective of maintaining a low-cost and ........ Employees ....are subjected to the same working conditions as adults. .......... supported the policy by allowing them to be ......; university students were forced to work as a condition of graduating Suicides - of all the controversies, suicudes report in ... probably brought most damage to Apple's reputation as a business. In ..., a Foxconn factor worked committed suicide after coming under pressure fooling the ........... By the end of ..., a total of ...... has occurred, largely as a consequence of ..... These practices and their consequences have put enormous strain on the business relationship between Apple and Foxconn, but it is a ........ IN response, Apple now has a ...... and it ....... supplier factories regularly.

2006, 200,000 qorkrese, more than 60 hours a week, $100 a month, 'sweatshop conditions', enforced overtime, 2010, 50 workers, Lianjian Technology (a company subcontracted by Foxconn), poisoned by a toxic chemical used to clean iPad screens, sue Apple, adequate ventilation had not been installed, flexible labour force, under 18, provincial authorities, 2009-2010, 2009, under pressure following the disappearance of a prototype model of the iPhone 4, end of 2010, total of 14 suicides, severe working conditions, very difficult and costly relationship for Apple to extricate itself from, Supplier Code of Conduct, audits

Trends in the volume and pattern of international trade (continued): The pattern of international trade has changed as a result of the greater integration of economies. Geographically, it is still dominated by a free large economic blocs, mainly North America and Europe. The USA, Germany and Japan alone account for about .... of global trade and when the other ..... are included (UK, Canada, Italy and France), together they account for nearly ..... of global trade. This dominate is now being challenged by emerging economies, which account for a growing share; China accounts for the largest growth. These changes are reflected in the balance of trans-oceanic trade. Trans-Pacific trade is now growing much faster than Trans-Atlantic trade. In ...., the total value of world trade in ..... was ..... and inservice it wqsa ... Despite some recent slowing of growth in trade, forecasts suggest the following by 2020: World trade in goods will total around. ... and services will be around ......... Intra-regional trade within Europe will be with more than ... - still more than Asian intra-regional trade (......) despite the more rapid growth of the latter. The Asia-Pacific region will experience the faster growth in global trade. There will be some growth in sub-Saharan African countries as they develop and possibly become points for the assembly of finished goods. Europe will be the most important market for sub-Sahara's exports.The .........., which includes consumer electrical products, will make the largest contribution to trade.

25%, G7 countries, 50%, 2015, US$18.8 trillion in merchandised trade, US$4.6 trillion, by 2020, US$35 trillion, US$trillion, Europe - $7 trillion (intra-regional trade), Asian - $5 trillion, machines and transport sector

WORLD TRADE IN BANANAS CASE-STUDY: The banana trade (continued): In the past, .... was dominated by just ... TNCs - ......, ......, .. (all US-based TNCs) and ... (based in ...) The other important producer is ....., which is a national corporation based in ... these companies are ....... up the chain. They own or contract out plantation to other producers; they have their ..... and ..., and their ................ This chain allows them significant ......... so they can sell bananas in the USA and EU markets at a very low price. They repatriate profits to their countries of origin. most banns for export are grown on ... in Latin America and increasingly in Africa. The remainder of banana production not controlled by TNCs, is produced on ...., particularly in the ... As recently in .., the big 5 companies controlled nearly .... of the market but their share has now fallen by volume to .... They are still major stakeholders in the business and have responsibility for and influence over ..............s that they own or source from. Organisation of the banana trade has chained in recent years. The big companies have freed themselves of .... of plantations, in favour of ...... with ....... and ........ An increasing number of national growing companies based in ...., ... and ... sell they produce either to the banana TNCs (as ............) or direct to realtor in the developed countries, for example, ... and .... There has been a shift in power and retailers in the grocery sectors in important counties are increasingly dominating the supply chain. As grocery market share becomes concentrate din the hands of fewer retailers, suppliers have little option have to accept conditions such as low prices, discounts and delayed payments or otherwise risk being taken from the supplier list.

80%, 4, Chiquita, Dole, Del Monte (all US-based TNCs), Fyffes (based in Ireland), also Noboa a nation corporation based in Ecuador, integrated vertically, own sea transport and ripening facilities, own distribution networks in consuming countries, economics of scale, monoculture plantations, smaller-scale family farms, Caribbean, 2002, 60%, 45% in 2013, direct ownership, guaranteed supply contracts with medium and large scale producers, Ecuador, Costa Rica and Colombia, distributors, Walmart and Tesco,

WORLD TRADE IN BANANAS CASE-STUDY: The banana trade: World trade is dominated by two different groups of producers: the ...... (Africa, Caribbean and Pacific) and the so-called '......' of Central American republics (primarily .. and ..) controlled by ......... Trade of bananas follows the traditional pattern of ................... Exports are dominated by Latin American and the Caribbean countries, which produced ..... (nearly ...) of bananas for the export market. The leading producers are ..., ........, ... , ... etc. Smaller countries in Central America are now exporting at a faster rate, though Ecuador remains the most exporting country. In Asia, which produces .... of the export market, the main country producing commercial is the ..., while in Africa exports are smaller. The largest importers are the .. and the ..., in .., each consumer approximately .........(about ....... for each region) As with almost all commodities produced in developing regions but consumed in richer countries, around ... of the price paid by the end consumer stays in the richer '....' and enter races the procure, who has most of the risk of producing a ..... The largest slice is taken by ... and balances are one of the biggest profit-markets in supermarkets.

ACP group, 'dollar producers', Ecuador and Colombia), large US TNCs, developing regions exporting a low-value primary product to more developed countries, 13 million tonnes (nearly 80%0, Ecuador, Colombia, Costa Rice etc., 17%, Philippines, EU and the USA, in 2013, 27% (about 4.5 million tonnes for each region), 90%, 'north', perishable fruit, retailers

Economic consequences of international trade: Developing countries in Asia, Africa and Latin America are now some of the fastest growing economies globally, such as MINT countries - Mexico, Indonesia, Nigeria nd Turket. In 2015, the top 10 fastest growing economies were all in ..........

Asia or Africa

Spatial organisation: TNCs have become increasingly flexible in the global location of their assets - e.g. ...... (....), .....% of their assets are foreign Traditionally, the company HQ are based in a major cit in the home country. Most TNCs have ........... in each continent, or in countries where their main operations are based. In order to maintain their position competitively, TNCs engage in ........... (RaD) activities. These also tend to be based in the country of origin and will often locate near to centres of higher education, to take advantage of a graduate labour market, or to make use of university research facilities.

BP (UK), around 80%, subsidiary HQ's, research and development (RaD)

Transatlantic Trade and Investment Partnership (TTIP): This is a free trade agreement current being negated by the ... and the .... It has simply been criticised for its '.....' nature. As a ......... trade agreement, TTUP aims to reduce the regulatory barriers to trade for big business, including food safety law, environmental legislation, banking regulations and the sovereign powers of individual nations. There are many opponents to the proposed agreement, particaulrl social and environmental NGOs such as ............ Their major concern is that it will give people to large TNCs ............ that of ................ Opponents believe TTIP will undermine democracy and social provision in both regions. They claim that such an agreement will threaten public services (such as the ...) as well as consumer protection, data protection and the environment. It is even claimed that a feature of the agreement will be something called .....................(ISDS) which will give large corporations the ability to sue EU governments (and thus taxpayers) if their profits are affected by any change in government policy.

EU and the USA, 'covert' nature, bilateral, Friends of the Earth, power to large TNCs above that of democratically elected governments, NHS, Investor State Dispute Settlement (ISDS) large corporation the ability to sue EU governments if their profits are affected by any change in government policy.

The role of China: China is a member of the ....., an international forum for the governments and central banks of 20 major economies. It includes the G7 counties ad the EU as a single member. It was established in ... to vie a voice to the major developing economies (including the BRIC countries) who felt that the WTO was not fully serving their interests. China's phenomenal economic growth rate in the last 25 years has been based on 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 bene confined to industrial expansion within its own borders. the increased convince of being an economic superpower has enabled the Chinese to spread their wealth and influence by investing in other parts of the world, including in Africa. Many Western-based TNCs are often too wary of investing in African countries, especially those which a recent history of .... Chinese entrepreneurs, however, have seen the lack of development in Africa counties as an opportunity for investing in ..............and increased trade. China's role in Africa is varied: one clear objective is to extract a range of primary resources including metals to support industrial expansion in China, for example, investment in ................ However, there is evidence that China's investment in Africa is helping some of the poorer countries to develop infrastructure, as well as healthcare and education. ..... Chinese now live in Africa, China have also established food and retail industries, tourism, rapid growth in trade with African counties, investment in infrastructure, textile industries

G20 group, 1999, civil war, resource development, older copper mines for metals in Zambia, 1 million

APPLE CASE-STUDY: Environmental issues: Criticisms have largely come from ...... As a global environmental campaign group, they carry a lot of nfluce and produce ... which ranks companies o their environmental performance. Apple was criticised on four main counters: its reliance on .... to ........, use of .... such as ... and ...... in their ...., factories in China were discharging pollutants and toxic metals into .... , threatening ... , the lack of ... ...... Apple has responded by launching its ....... campaign to improve its green credentials. It now use ........ investing in ... to power its data centres. It made the decision to ....... and ..... form its products and has started to .... of its products. As a result it has moved up the ..... from ... in ... to ....... by .....

Greenpeace, a Green Electronic Guide, reliance on non-renewable resources to supply electricity to its data centres, use of toxic chemicals such as PVX and brominated flame retardants in their manufacturing process, factories in China were discharging pollutants toxic metals into local water supplies, threatening public health, the lack of recyclability of many Apple products, Green my Apple campaign, 75% renewable energy, large solar farms to power its data centres, remove PVC plastics and brominate chemicals, promote recycling, Green Electronic ranking from 11th in 2006 to 6th in 2012.

Latin America: As another 'emerging; region, Latin America's relations with other trading entities will be important in the future. At the moment they have two distinct trading blocs - .... sonf the ...., each with different approaches to how the develop their trading links. Mercosur - formed in ..... and comprises of Brazil, Argentina, Uruguay, Paraguay. It is a traditional .... and operates very similar to the EU. It is sometimes called the 'Common Market of the South' and allows the .... between member states. The nature of its produce allows trade globally but it tends to view the EU and North America as its main markets. Pacific Alliance - formed more recently in ..... and prise of Chile, Peru, Colombia, Mexico. Its key different o Mercosur are that is has been more open to making bilateral freeman with other nations and trading entities and had tendency to see the Asia Pacific and the USA as its main market. The countries in this group will be part of the TPP agreement. Although much younger with a slightly smaller overall population, the Pacific Alliance group has been growing more quick both in terms of individual economies and volume of trade (..........................) There is the possibility in the future that the two groups could merge to form one Latin America union, which would be major player globally.

Mercosur and Pacific Alliance, 1991, customs union (similar to the EU), free movement of labour, 2011, more exports than Mercosur, $574 billion compared to $440 billion, but Mercosur bigger in internal trade,

Free trade vs. Fair trade: Main goal: to increase nations' economic growth vs . to empower marginalised people and improve the quality of their lives Focuses on: trade politics between countries vs. commerce among individuals and businesses Primarily benefits: ......, powerful business interest vs. ........., .... and workers in less industrialised countries Critics say: punishing to marginalised people and environment, sacrifices long term, vs. ........., inefficient, too small scale for impact Major actions: countries ......., .... labour and environment standards vs. business offer producers favourable financial, long-term relationship, .........., and higher labour and environmental standards Supply chain: includes many parties between producers and consuerl vs. includes fewer parties, more direct trade Key advocate organisations: ....., ..., ... vs. .............., .........

TNCs, vulnerable farmers+artisans, interferes, lower tariffs, quotas, minimum prices, WTO, World Bank, IMF vs. Fair-trade Labelling Organisations International, World Fair Trade Organisation

CASE-STUDY: Apple, a TNC Apple is a ....... with its company HQ based in ...., ........ Apple produces many of the familiar high-tech products that are marketed under its universal 'i' brand. These include iMacs, iPhones, iPods and iPads and in 205 it launched a new 'smartwatch' produce 'Apple Watch' and a new version of Apple TV. The company started business in ..., in the early days of person computer manufacture. In ..., it took over the smaller Macintosh organisation and achieved more success by launching a new brand of desktop Macintosh, later AppleMac computers. Apple computers earned a growing reputation for quality and they attracted a growing niche market of brand-loyal consumers. Since ..., it has experienced phenomenal growth as an organisation because of its development of mobile and Wi-Fi devices. Apple is now the ..........., ............... and the ............ (......) It has ........ and over ... in ... countries. In .. it was the ...... with total assets of ....... Apple's success has been due to a number of factors including stylish and well-designed products, slick marketing and banking, innovative products etc. Their market is predominantly in richer, developed countries. In ..., .... of product sales were in the .... Its average market profile consists of young, wealthy and education who are prepared to pay a premium price for their products. Over the past ..., however, its most rapid growth has been outside the USA, especially in the ..., largely due to the global demand for the iPhone.

US transnational electronic technology corporation, Cupertino, northern California, 1976, 1982, 2000, 2nd largest IT company by revenue (after Samsung), largest music rattled (through iTunes) and number one global brand by value (US$145 billion), i 2014 it was the 11th largest TNC globally with total assets of US$207 billion, in 2011, 44% of product sales were in the USA, 5 years, Asia-Pacific region

WORLD TRADE IN BANANAS CASE-STUDY: Issue - race to the bottom: Because of the lower prices paid to suppliers by supermarkets, manu of the larger companies are reoclaitn their plantations, increasingly to ......, as companies search for lower labour costs and ...... this is called pursuing a '.........' in terms of ........ Employers usually ..... so plantation work is increasingly ... The work involves ....... in .... and many workers fail to earn enough to cover their basic needs.

West Africa, weaker legislation, 'race to the bottom', social and environmental standards, sub-contract, casual, long shifts in unbearable heat

Nature and role of transnational corporations (TNCs): TNCs are companies that operator in at least ..., with a HW based in one country but with business operations usually in a number of others. TNCs take many different forms and are based in different economic sectors. They no longer originate from the more developed region; emerging economies also have TNCs which are major global companies. TNCs may operate in more than once country for a number of reasons: ........... - for example, ....... decision to produce cars in ... was largely to gain ........ to the ..... to find the ......... - for example, .... in ....... to reach .... - for example, ...... to exploit .... or other resources available in foreign countries - for example, .. in .......... The TNC of the 21st century has been called a '................' because it: is prepared to locate different functions of the business anywhere - based on getting the right costs, skill and environment pursues a goa to .... and deliver value worldwide - state borders mean less and less to corporate practice. There are certain characteristics though to be common to TNC organisations, including: maximising global ..... by organising production to reduce costs sourcing raw materials or components at the lowest cost controlling key supplies control of processing at each stage of production branding of products/services so they are easily ....... outsourcing of production

at least two countries, to escape trade tariffs, Nissan in Sunderland to gain barrier-free access to the lucrative EU market, lowest cost location for their production, (e.g. Hewlett-Packard in Malaysia), foreign markets more effectively (e.g. McDonalds), BP in Azerbaijan, 'globally integrated enterprise', integrate production, economies of scale, recognisable

APPLE CASE-STUDY: Conclusion: Globalisation of Apple is not solely a positive or negative process. Apple is providing employment to many and helping China to grow and developed but ..... Further investment and development in ........... may follow in time. ..................demonstrates the concern shown by large TNCs regarding ... and a ..... This in itself is a positive feature of globalisation.

at what cost to the workforce?, South America and Africa, Apple's response to criticisms about labour practices and environmental issues, ethical purchasing and a willingness to respond.

The notion of .......... is why most nations trade. The theory behind comparative advantage suggest that countries should specialise in providing goods and services that they excel at producing. They trade these for the things they are not as good at producing. It is easier to make these trading exchanges if there are fewer barriers. Theoretically production should increase in each country, and globally, because each country is concentrating on what it does best. For much of the 20th century, trade remained relatively limited because of regulations, ....... and .................

comparative advantage, protectionism, high transportation costs

APPLE CASE-STUDY: Tax practices: Apple has been accused of ............ As a TNC operating in a number of countries, Apple can use ...... in other countries to ...... and pay a lower rate of tax. In ...., both the ... and the ...... investigated Apple's tax liabilities. Both claimed that Apple had received favourable treatment on tax from the Irish government, a claim that was sensuously denied. It also caused tension between the USA and the EU, as each claimed that Apple owed them tax on their profits. These tensions expose a flaw in an increasingly globalised world. ............ need to be updated to accommodate large TNCs such as Apple, which manufacture most of its products in China but derives the majority of its profit from '.......', ...., .. and .., which can be ......................... Apple is far from alone in claiming that profits from large chunks of its intellectual property are generated outside the USA.

corporate tax avoidance, subsidiary firms in the countries to declare profits and pay a lower rate of tax, in 2014, the US Senate and the EU Commission, favourable treatment on tax from the Irish government, taxation systems, 'intellectual property', marketing, patenting and branding, which can be funnelled through a man of subsidiaries.

APPLE CASE-STUDY: Spatial organisation: Apple is a truly global company with a distinctive geography. Their main products are ..........., made in mainland ........., a .........m and sold all over the world, especially to consumers in developed countries. Most of Apple's employees are based the development world, mainly in the USA. This reflect the high-tech and knowledge-intensive nature of its business. Its HQ and RaD centre are together on the Apple Campus in Cupertino, California. It has ...... in the USA, .. more in California and . on the east-coast of the US in ..., ......... The concentration of RaD and data centre location in Silicon Valley, California is a good example of ............ (when companies in similar industries locate near to each other because of the benefits gained by ......... - 'called 'agglomeration economies'), which is typical of high-tech industries where information exchange and access to well-qualified and expert staff is crucial. Apple has its European HQ in ..., where it employs ... on its ....... and also has a ....... and ........... Assembly of Apple's main products, ...., .... and..... is ... to .... . Its main production is in ..., .... in ....., .... Foxconn also have factories in Chengdu, Sichuan province and in turn ............ elsewhere in China. Of its ...... retail stores, .. ar tin Europe+Middle East, ... are in China, where it has increase its market by ..... the Chinese stores have been very successful and Apple has plans to open more there.

designed in Silicon Valley, California, made in mainland China by Foxconn, a Taiwan-based company, 3 further data centres, 2 other in California, 1 other on the east coast of the US in Maiden, North Carolina, agglomeration, sharing ideas and resources, Cork, Ireland, 4,000 people, iMac production line and also has a customer support and online support call centre, iPhone, iPods and iPads is outsourced to Foxconn, Foxconn City, Shenzen in Guangdong province, north of Hong Kong, subcontracts to compete manufacturers, 453 retail stores, 110 are in Europe+Middle East, 25 in China, 600 million people

Ethical investment: Ethical investment if a form of ....... where investors make a deliberate choice to invest capital based on the actives for the firm or organisation they are investing in. The investor used personal principles and beliefs as the main filter to make investment decisions. Foe example, some choose to eliminate certain industries entirely from their investment plans, such as .......... or .... Ethical investment is usually seen as a social responsible choice and most investors make their decision based on environmental or social concerns.

ethical consumerism, tobacco or firearms

Trends in the volume and pattern of international trade: The emergence of ....... ideas at the end of the 20th century saw a push to remove existing barriers to international trade. With an increase in the mobility of factors of production, especially capital, ............ (RTAs) emerged and the global trade framework was strengthened by the ........... (GATT) (established in ..). In ..., GATT was replaced by the WTO which continued the work of gradually lowering the barriers to international trade, with free trade as its aim. Reaching agreements has not been easy but average trade tariffs have shrunk to a ....... of their level when GATT first began operating in 1947. World trade has increased at a faster rate than global economic growth and the flow of most products has eased. In recent years, however, particularly since the global financial criss of 2008-2009, global agreements have become increasingly difficult to reach. Internaitonal trade flows are still expanding but have not yet regained the pace of the 1990s and 2000s. During major recessions, international trade inevitably stalls and this can cause a setback the economic aspect of globalisation.

free market, regional trade agreements, General Agreement on Tariffs and Trade (GATT), 1947, 1995, one tenth,

APPLE CASE-STUDY: Production: Apple's mainstream products are produced in China for a number of reasons: a large source of ..., ... but ..... - good for China as it provides some investment into the country and generates jobs a number of, ..., companies competed for the ....., which ....... ... was the location of China's ............ (SEZ) offering a number of ............. Foxconn City is a .... and has number of factories belonging to different manufactures who assemble high-tech products for well-known brand names including ..., ... and ....., this it is dubbed '..............'. The park is .. with .... and most workers liv on sites where there ......., shops and cafes. There aver over ..... employed in Foxconn City. Wages paid on the site are around ... to .......... which is above the minimum wave and higher than in other parts of Shenzen and China, but no where near the minimum wage in USA and other places.

highly skilled, hard-working but low paid workers, mainly Taiwanese companies competed fro the Apple manufacturing contract, forcing down production costs, Shenzen was the location of China's first and most successful Special Economic Zone (SEZ) offering a number of incentives to attract foreign companies, business park, Sony, Hewlett-Packard and Dell, 'China's Silicon Valley'. the park is self-contained with high security and most workers live on site where there are dormitories, shops and cafes, over 400,000 workers, US$150 to US$200 per month

WORLD TRADE IN BANANAS CASE-STUDY: The banana industry: Bananas are grown predominantly in ............ In a number of countries such India, Brazil and much of Africa, large quantities are produced are mostly consumed domestically. India is the largest producer of bananas globally but they will eat their own produce and not export. The Philippines are large producer and export to Japan and other parts of East Asia. The main commercial producing-regions for export, however are geographically concentrated in ... and the ..... Some of the countries int these regions are very dependent on banana exports. Banana varieties are ......... and almost all the balances are related with chemicals throughout the production cycle. ...... operated by large TNCs apply around ............, ... This include ...... and .. In addition, .... are applied regular after harvesting the fruit is washed with a ....... With the exception of cotton, the banana industry has the .............. Banana plantations also cost the enviornemtn in terms of ....... (as land is cleared), ... (for every .........), ... (because of ...) and loss of ... (especially .. as pollutants run into water courses).

hot, rainy lowlands of tropical regions, Central America and the Caribbean, susceptible to diseases, commercial plantations operated by large TNCs apply around 30kg of active ingredients per hectare, per year, include fungicides and insecticides, fertilisers disinfectant, largest agrochemical input into the environment, deforestation, waste (for every tonne of bananas produced there are two tonnes of waste), soil fertility (because of contaminants), and loss of biodiversity (especially aquatic life)

Geographical consequences of global systems and the impacts of globalisation: The following have been the main beneficiaries from the process of globalisation: NICs - some medium-income nations have developed rapidly as a result of .... and have metered to become major economic powers competing with the richer developed regions of the world. TNCs - large companies have grown in a number of different industrial and service sectors and although they are mainly based in the developed countries, TNCs from emerging economy have also become global powers. International organisations - organisations such as the IMF, the World Bank and the WTO have all contributed to the globalisation of economies and have sonlidated their position and control in world affairs. Regional trading blocs - more trade agreements have evolved which benefit their members, though some would argue that it is at the expense of the nation state.

inward investment

Environmental impacts: with greater movement and use of resources the world's population is putting ever-increasing pressure on the Earth's finite resources. Environmentalists argue that globalisation is concerned primarily with economic costs and largely ignore environmental costs. Problems include: ..., which increases greenhouse gas emissions ... of non-renewable resources, TNCs outsourcing production to countries where environmental standards are less strict, work or non-existent controls allowing pollution of the air, land, rivers and was, more waste from packaging, IMF-enforced spending cuts reducing many nation's spending on the environment, greater movement giving a higher risk of ...... being introduced

more transportation, depletion, invasive species

Benefits of TNCs: for the host country - generates jobs and incomes Brings ...... gives workers new skills has a ......... ( situation where an initial injection of investment/capital into n economy in turn creates addition income, for example, increasing employment, wages , spending and tax revenues) for the TNC - lower costs because of cheaper land and lower wages (......), greater access to new resources and markets, few controls such as environmental regulation For country of origin (TNC base): ........, can specialise in finical services and ..............

new technology, multiplier effect, fewer unions, cheaper goods, RaD occupations

Social and cultural impacts: Globalisation has allowed for greater sharing of ideas, lifestyles and traditions. It means that people have greater access to foreign culture such as film, music, food, clothing and other goods and services that were not previously available domestically. The ............... of many goods and services has lead to increase .... This has damaged individual traditions and means less diversity. Access to foreign (mainly Western) cultures is causing the distinction between countries to fade, diminishing the world with one 'corporate' identity. In a bid to offset criticism of there standardisation of products on a global scale, a strategy called .... has been adopted by some TNCs. This involves thinking globally but acting locally to reduce threats to cultural ....... Products and services are likely to more successful when they are customised for the local market. McDonald's is a commonly citied example of this strategy as the restaurant's menu if often customised to suit local tastes (e.g. the ...... in .......) Increased awareness go ... - which can be positive by informing people of environmental issues such as climate change, but can be used negatively, for example, for propaganda purposes by terrorist organisations.

over-standardisation, cultural homogeny, 'corporate' identity, globalisation, Mac Burrito in Mexico City, global news and events

Problems associated with TNCs: for the host country - ........, exploitation of resources, negative impacts on environment and local culture, economic ....... for the TNC - .... such as the image of environmental damage or '.........' can be detrimental to their ......, social and environmental conscience for country of origin (TNC base): loss of ......., de-industralisaion, structural unemployment

poor working conditions, leakages, ethical issues, 'sweatshops', reputation, manufacturing jobs

Production: production operations of TNCs involved in the ..... will be based wherever there are ...................This tends to be in developing economies as reserves in more developed countries have largely been depleted. However, a combination or rising world prices and .................. can make access to new reserves or raw materials viable in the home country, for example, the recent development of ......., known as '.....' has revitalised oil and gas industry in ............. For TNCs in the ......., production operations have largely been locate din the manufacturing regions of developed countries, especially in ....... These areas attracts TNCs because .........., there is investment tin ..... - which makes it easier to train workers, the ... vans workers are willing to work .... with relatively few holidays in a ......., there may be ..... such as ......, ....... with low business rates or less restrictive ............... The spatial organisation of production has allowed for TNCs from emerging economies to locate production where it gives access to large markets in developed regions. .... (.....) has factories in .... and the YSa to gain access to EU and NAFTA markets. ................... in the .... are more .... and will locate operations either where there are relatively low labour costs balanced with good education or in proximity to their markets. ................ is another important consideration here: lower level services, such as .........., are outsourced to ..........., for example, because of the high proportion of well-educated ..... workers, who offer a lower cost alternative.

primary sector, unexploited resources, new technologies, hydraulic fracturing ('fracking'), North America, secondary sector, south east Asia, labour costs are lower, education, work ethic, long hours, non-unionised environment, government incentives, tax-free breaks, enterprise zones, less restrictive environmental regulations, Kia Motors (South Korea), Slovakia, Service-based TNCs in the tertiary sector, footloose, language, call centres, India, English-speaking

Differential access to markets (continued): The following arguments were advanced for less developed countries to gain SDT agreements Special and differential treatment is an acquired political right. Developing countries should enjoy privileged access to the markets of their trading patterns. Developing countries should have the right to ........... Developing countries should be allow ............ Developing countries should be allowed flexibility in respect of the application of certain WTO rules, or to postpone the apllciaiton of rules. Examples of trade preference schemes include the ........... (EBA) agreement in .. to accept access for all products from LDCs on a duty-reduced, ........... Similarly, the US extends duty-free treatment to nearly ...... from ......... Trade has played an important tour in promoting economic development in LDCs and differential access has allowed many countries to ...........s, achieve economic take-off and lift some of their population out of poverty. In particular, it has helped many countries .........., and in some cases manufacturing, though overall this has been less successful. SDTs aren't without their problems though: Not all counties listed as LDCs are members of the Two and the time taken to accede after application can be length (..........) The WTO ...... recognised that SDT measures need to be more effective and operational. Some of the lack of effectiveness of the SDTs is due to the fact that LDCs are not fully aware of them, and when aware, do not make productive use of them. Some measures have not been tailored to the conditions prevailing in most LDCs. There is concern among some richer nations that ....... and ....... given to LDCs will result in ......... an underline their own industrial bae (this has already happened with the growth of NICs) The agreements are difficult to apply in a fair or standard manner and the lack of reciprocity in the agreements has deterred some developed countries from participation. In many cases, they have been replaced by unilateral agreement between poorer countries and richer trading patterns. For example, .... was previously a ........ to ........ but has arguably benefited more as a member of ... having to accept reciprocal arrange with its co-members. Similarly, sub-regional free trade areas and customs unions among developing countries are 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 least developed countries in the long term. More international co-operation is needed to address these shortcomings of differential access because it is clear that SDT agreements have a role in removing some of the inequalities in international trade.

restrict imports to a greater degree, additional freedom to subsidise exports, EU's Everything but Arms (EBA), 2001, quota-free basis, US extends duty-free treatment to nearly 2,000 products from qualifying African countries, diversify their economies, service and tourism industries, on average 8 to 10 years (time taken to accede after application to the WTO), Doha Round, non-reciprocal and preferential trading agreements, cheap imports flooding markets, Mexico, beneficiary of preferential access to Canadian and US markets, NAFTA

Risks of economic interdependence: One of the most significant disadvantages of globalisation is the increased risk associated with the interdepend cow economies. A negative economic ... in one country can quickly spread to other countries. This is particular the case if its affects a country's banking system. The 2008-2009 global financial crisis was initiated by the collapse of lending in the ..............

shock, US sub-prime housing market

Fair trade: Fair trade is a ... whose goal is to help .............. achieve ..... and to ............... The movement focusses mainly on agricultural-based products (or they direct derivatives) and includes ......., ......., ....etc. Goods may also include handicrafts or valuable mineral such as gold. These are traditional the products which are exported from developing countries to richer nations. Fair trade supports argue that those producing the commodities do not get an ................. These may be TNCs, food processing companies or burgers from supermarkets in developed countries. Buyers are able to force down the prices of indivila supplies because these suppliers have little market influence and are extremely reliant on the income from their goods. Members of the fair trade movement adnate the payment ...... ,as well as helping to achieve improved social and environmental standards. International fair trade organisation organise producers into .... to ............. This gives them more influence in governing market conditions and the power to negotiate better deals with buyers or to supply direct. The goods labelled as 'fair trade' goods with the ..........., so that '.....' can recognise that they are buying goods foe which the producer received at a fair price. There are also '........' such as ...... which also focus on the application of fair trade. The pattern is slightly different in that they are retailers who but direct from suppliers at a fair trade price. It's important not to confuse fair trade with free trade, especially as the two ideas can be conflicting. The terms are used interchangeably but they mean completely different things.

social movement, producers in developing counties achieve bette trading conditions and to promote sustainability, bananas, coffee, chocolate etc., equitable deal from the organisations they supply their produce to, higher prices to producers, improved social and environmental standards, co-operatives, International Fair Trade Certification mark, 'ethical consumers', 'alternative trading organisations'

Barriers to trade and protectionism: A barrier to trade is a government-imposed restraint on the flow of international goods or services. The most common barrier to trade is a ...... - ...... Although free trade has eroded the practice of protectionism, it is still a strategy used by governments in both developed and developing countries to protect their established or emerging industries. There are a number of other barriers to trade, which are used as either protectionism strategies or sometimes as a means to affect diplomatic relations: ......... - this is a licence issued by a national government authorising the importation of goods from a specific source. ...... - these set a physical limit on the quantity of goods that can be imported into the country. ........ - these are grants or allowances usually awarded to domestic producers to reduce their costs and make them more competitive against imported goods .............. - this is a diplomatic strategy offered by the exporting country to appease the importing country and deter it from imposing trade barriers. ......... - these involve the partial or complete prohibition of commerce and trade with a particular country. The are usually put into practice for .............. ......... - other import restrictions may be based on ........ obstacles such as the quality standards of goods being imported or how they are produced. For example, the EU attempts to put restrictions on the import of goods knowingly produced using ............

tariff - a tax on imports, import licence, import quotas, subsidies, voluntary export restraints, embargoes, political than than commercial reasons, technical or regulatory, child labour