Unit:4 Power,Places and power
The free trade agreement (FTA)
The free trade agreement (FTA) is a free trade agreement among countries to remove all barriers to trade between each other. They are free to set their own barriers to non-member countries - like NAFTA - uniting Mexico, USA, and Canada, they can set different barriers for non-member countries like China.
Explain the concept of space-time convergence and the friction of distance and discuss the driving forces of the technological innovations that have resulted in our 'shrinking world' Our Shrinking World Sea transport trends
46 million USD (2008) - 20 million USD (2009) due to global recession 15 million USD (1995) to 45 million USD (2011) Growth in trade since 2000 (except 2008 and possibly 2020 due to covid) Size of containers ship are rising/rose through 20th / 21st century Warmer arctic means more transport which makes transport cheaper and more economically efficient (however this negatively impacts the climate)
The Shrinking world ICT (Information and communication technology) Patterns
High User population in USA China India Low internet user population: SIS Central Asia + Eastern Europe Geographically isolated places In some places, internet penetration + usership is not the same for example in China However this is not the case in GBR South Asia has a low penetration region
Trade deflection
A form of tariff avoidance which can occur in FTAs. (When NAFTA was created US companies outsourced jobs to Mexico to enable lower-wages to be paid than in the US.)
Explain the concept of space-time convergence and the friction of distance and discuss the driving forces of the technological innovations that have resulted in our 'shrinking world' Our Shrinking World Sea transport advantages
Advantages: Cheap way of moving heavy/bulky goods in long distances No cost in building transport routes Containerization has sped up the process of loading/unloading Provides refrigerated containers Lots of revenue can be invested to research/development to reduce the negative environmental effects Cheaper than airplanes
Proactive immigration policies:
Aimed to encourage skilled migrants to fill gaps in the workforce (ICT, medicine, bioengineering)
Control of migration in San Diego:
Already have extensive border fencing and enhanced border patrols Strict enforcement of the border in cities have failed significantly to curb illegal imigration increased the cost to taxpayers of each arrest from 300USD in 1992 to 1,700 in 2002 The cost to immigrants has also increased as they have to pay someone to smuggle them across the border
Impacts of flows within regional trading blocs Negatives
Economic benefits are not equally enjoyed by all member states. (e.g. Kenya dominated economic interactions between the first East African Community, that collapsed in 1977) Local companies may not survive increased competition which causing domestic unemployment Increased job outsourcing to lower-wage economies within the FTA. (e.g. US companies outsourcing jobs in Mexico) Illegal migration flows may increase across more relaxed borders
The Shrinking world- Air Transport Trends
Decrease in cost of airplane fuel/air travel Increase in air shipping Increase in intensity of global travel + migration (for example Dubai is dependant on migrants to build up the city) Air transport expanding at a much faster rate than any other type of transport MIC vs. Emerging Economies Emerging economies are projected to increase rapidly (trip frequency) since the rate of income is also increasing rapidly However, with MICs since their economy is more stable the rate at which they are gaining their income is not as fast of a rate as it is for emerging economies.
Explain the concept of space-time convergence and the friction of distance and discuss the driving forces of the technological innovations that have resulted in our 'shrinking world' Our Shrinking World Sea transport Disadvantages
Disadvantages: Pollution -- due to unrefined shipping fuel which emits sulfur Major contributor of CO2 Breaking down of retired ships is a human + environmental hazard Ship are expensive to build Ports are expensive to build and can affect the surrounding costal area
Economic Union
Economic union: EU single and internal market, there are different areas that have different regulations. European Union allows free trade and shared regulations (Denmark, Germany, Spain) The Eurozone includes the countries using the Euro (Germany, Spain,etc.) The European Economic Area provides access into the single market with payment and there is a conditional free movement of people. (Bulgaria, Germany, Spain etc.) The European Free Trade Association is a free trade zone and a network of agreements. (Iceland, Switzerland, Spain, Germany etc.) The Customs Union circulates goods in a uniform system of imports without paying duties. (Turkey, Spain, Germany etc.) Schengen Area is a passport-free travel zone of 26 countries including Denmark, France, Czech etc)
Explain the concept of space-time convergence and the friction of distance and discuss the driving forces of the technological innovations that have resulted in our 'shrinking world' Our Shrinking World Sea transport terms/facts
Friction of distance - the reduced likelihood of travelling to a destination the greater distance. (time and cost is seen as a disadvantage) Time-space convergence - The changing relationship between time and space Containerization - A large amount of material is packaged into large standard containers Intermodal container: As long as the container is standardised it can be transported on any vehicle as it fits the international agreement for one size fits all, this makes it intermodal. Bulk cargo - cargo transported unpackaged in large quantities Break Bulk cargo - cargo loaded individually Rise in population - e.g. China and India Rise in demand in goods and services from overseas - e.g. Dubai (large dependency on imports) Growing urban areas and industrialization - e.g. China
Explain how the physical environment provides opportunities for global interactions in the form of natural resource exploitation but also how geographical isolate may or may not limit global interactions Geographical isolation
Geographical isolation Isolation from the world markets can be a major limiting factor. Increased transport costs and times may reduce access to markets. Countries that are landlocked may also pay substantial traffic to export their goods. Landlocked countries would also have to pay for the use of another country's air space. Dubai large change between 1991 and 2017 (extreme urbanization due to oil money increase) Geographic/physical advantage due to oil localization (discovery of oil in the 60s) Iceland In 2016, the annual World Happiness Report ranked Iceland at number three in the world. Physical Geography: Very small country (could fit inside kentucky) with dark winters Human Geography: 95% percent of icelanders having icelandic ethnicity -- homogenous population
The Shrinking world ICT (Information and communication technology) Advantages
ICT leads to an increase in economic growth Sharing of culture / widening perspective of the world (through music, food, tv, language) Easy and fast communication Shrinking world (bringing people closer together) Time-space convergence Reduced friction of distance
The Shrinking world ICT (Information and communication technology) Disdvantages
Increase amount of e-waste from old electronics that are thrown out and cause physical and environmental harm by filling up land-fills Challenge and divide of factors of age, income, age, literacy level which in turn will link to disparities Global diffusion of culture linked through social media
Free Trade Zones affect on global interactions
Increase exports for countries that provide intermediate goods or components in the global supply chain. Too little is often spent on infrastructure (railways, roads, port facilities) to link the zone to the rest of the world. For example an FTZ in Senegal failed due to excessive bureaucracy, high energy costs and it's distance from the port. It is thought that FTzs have contributed to illegal flows such as international money laundering and flows of counterfeit goods due to their relaxed regulations.
The Shrinking world- Air Transport Advantages
Increased satisfaction of human needs Major catalyst in globalization process ' International airport hubs are growth poles for core development Shrunk sea-bound world Helped reduce differences + misunderstandings between cultures
The Shrinking world- Air Transport DisAdvantages
Major contributor of CO2 Price is depended on cost of oil and fuel (which is suspected to fluctuation) Airports/takeoffs are noisy + frequent (bothersome to people who live nearby) Wildlife/ecosystems subject to destruction in order to create airports + airport runways Susceptible to shocks such as pandemics
Describe and explain the global pattern of economic migration Trends & Patterns:
Migration is becoming more global in the sense that more countries are affected at the same time and the diversity of areas of origin is increasing Migration is accelerating in terms of the number of movements growing in volume in all major regions Migration is becoming more differentiated with no one type of movement domination, there is a combination of different reasons of movement.
Evaluate the effectiveness of controls and rules on the flow of economic migrants Controls and rules:
Most countries wish to control levels of immigration Thus, they often employ immigration policies in place which are characterised by strict conditions which must be met by the immigrants. Example of control: Trump's famous wall
Explain how the physical environment provides opportunities for global interactions in the form of natural resource exploitation but also how geographical isolate may or may not limit global interactions Natural resources:
Natural resources: UAE After discovery of oil -- lead to Growth of city Employment rose Trade rise Niger Large mining sites of uranium -- 70% of world's uranium France has troops to protect mines Agreement over price of uranium Colonial -- french colon France makes higher tax over niger on uranium Influx of euro groceries Migration from france to compounds I solation: Kyrgyzstan: Physical: Land-locked Mountainous 90% of their mining materials is gold Russia is largest trading partner Lack of global interactions in FDIs and Tourism
Trade Diversion
Occurs when there is a removal of trade barriers such as tariffs within new FTAs or CUs as this is a negative consequence for non member countries of Free trade agreements or Custom Unions as their goods are now taxed when trying to trade with FTAs or Custom Union countries. (e.g. when NAFTA was created everyone that wasn't in NAFTA was negatively impacted due to tariffs on their exports to NAFTA member countries)
Trade creation
Occurs when there is a removal of trade barriers such as tariffs. (typically within Free trade agreements or Custom Unions)
The Shrinking world- Air Transport Patterns
Patterns Globalization of cities: more airports emerged more nodes + hubs Examples: JFK in NYC LAX in LA Dubai international airport Singapore Changi airport Most busiest airports are located within Asia, this is due to increased tourism which comes from increased investment in infrastructure and this is due to the rise in the global middle class. Asia makes up 54% of the rising global middle class. Huge concentration of airplanes flying within Asia + Europe As global cities, naturally more people will go to that area due to their prominence. However, their airport hub makes them attractive to visit as well. - a positive feedback loop.
Impacts of flows within regional trading blocs Positives
Positives Increased economic growth. NAFTA is credited with increasing US economic growth by 0.5% per year since its establishment and it increased overall trade between member countries by 400% in the first 20 years. Increased competition and efficiency, as formerly protected industries are exposed to the free market conditions which may lead to greater trade flows within and outside the bloc. This puts pressure on firms to do better thus increasing competition and efficiency. Reduced government spending to protect domestic industries allows funds to be allocated elsewhere more effectively Greater access to flows of expertise and new technologies.
Distinguish between different MGOs in terms of levels of integration Provide named examples of significant trading blocs Affecting flow of goods: Preferential trade area
Preferential trade area (PTA): countries in a geographic region agree to eliminate/reduce traffic on a selected range of goods. (e.g. 2005 Association of Southeast Asian Nations and China)
Impacts of Free trade zones
Reduced taxes on company profits Relaxation of environmental and employment regulations Warehousing and storage facilities Security and logistics systems
Explain the concept of space-time convergence and the friction of distance and discuss the driving forces of the technological innovations that have resulted in our 'shrinking world' Our Shrinking World Sea transport patterns
Significant concentration of shipping in Northern America, Europe and East Asia Atlantic Ocean is a popular shipping route Movement is lower in Africa, south America, Australia and South Asia 6/10 of the busiest trading parts are in China, the busiest globally is Shanghai. (9/10 are in East Asia)
Describe and explain the global pattern of economic migration Types of migrants
Temporary labour migrants -- traveling for limited periods, like seasonal agricultural workers or fixed term contracts in UAE Long-term, low skilled migrations --Receiving countries typically prefer these types of migrants to be temporary, however the experience of guest workers in Western Europe's shows that this is not the case Highly skilled and business migrants: Some transfer within TNC while others are hidden on the international job market.
The Shrinking world ICT (Information and communication technology) Terms and facts
Terms/Facts Any communication device or application: for example, radio, tv, laptops, cellphones Hardware/Software (hard is devices) (Soft are programs) Data travels on fiber-optic network Internet standard Use: number of people with an internet connection Penetration: Number of internet users compared against its demographic (its population)
The Shrinking world- Air Transport Facts and terms
Terms/Facts Friction of Distance: Reduced likelihood of people engaging with a place the greater the distance they live from it. Disadvantage due to time and cost which takes to overcome it. Impact = distance decay / reduction of interaction between two places. Time-Space Convergence The changing relationship between time and space. The impact of transportation improvements on the relationship between time and space. This is closely related to the concept of speed which indicates how much space can be traveled over a specific amount of time. Relates to passenger + cargo traffic
The common market
The common market (CM) such as EU customs union which has provision to liberalise movement labour and capital
The custom union
The customs union -- Benelux customs union of Belgium - eliminate tariffs on imports from each other, resulting in greater trade. They also have tariffs on imported goods from non-union members.
The Shrinking world ICT (Information and communication technology) Trends
Trends Moore's law: States that the number of transistors on a microchip doubles about every two years
Free trade zones:
Well-connected + accessible transport hub (like a port - air, sea or river) or other area for quota and tariff free imports on all types of goods. Free trade zones are usually run by special port authorities outsourced government departments. They are typically established within one country, such as the Aqaba Special Economic Zone on the Red Sea coast of Jordan, although some FTZ have straddle borders such as the FTZ set up jointly by Jordan and Syria. The purpose of a free trade zone is to eliminate the hindrances caused by high tariffs and complex customs regulations in seaports, airports. They are to create a faster turnaround of ships and planes through the reduction of formalities of customs examinations. Turnaround is the length of time taken from the arrival of the shipment to the departure of the same truck, airplane, train or ship with a new cargo, and or the trans shipment of cargo from one mode of transport to another in preparation for delivery.
