Globalisation 2

Foreign Direct Investment

BRICS Group

Trickle Down

Sovereign Wealth Funds

Trade Blocs

Tariffs

Special Economic Zone

Political Factors - Global Flows may be seen as threats (3 ways)

The work of International Organisations
3 institutions that make up the Bretton Woods institution.
Why was it created?

Protectionism after the Great Depression

Plans from the Bretton Woods insitution...

How does FDI work?

Financial Deregulation - The process of removing government rules controlling the way banks and other financial organisations operate.

Strategies used by US and Europen banks and finance which resulted in companies globalising rapidly.

OFFSHORING

Strategies used by US and Europen banks and finance which resulted in companies globalising rapidly.

FOREIGN MERGERS

Strategies used by US and Europen banks and finance which resulted in companies globalising rapidly.

FOREIGN ACQUISITIONS

Strategies used by US and Europen banks and finance which resulted in companies globalising rapidly.

TRANSFER PRICING

IMF - Role in Globalisation

Resulting in TNC's setting up in countries more easily.

IMF- Evaluation of Role

World Bank - Role in Globalisation

World Bank - Evaluation of Role

WTO - Role in Globalisation

WTO - Evaluation of Role

Which is the luckiest nut in the world?

What is trade liberalisation?

Why did Senegal need help from the World Bank and what did the World Bank advise?

What happened to the global production of the groundnut following this?

What effect did this have on Senegal?

What economic reforms did Senegal implement following World Bank Advice?

What problems does Senegal have today?

Issues that need to be considered about the Bretton Woods Institution.

Global financial crisis (2008-9)

Issues that need to be considered about the Bretton Woods Institution.

New Institution Banks

Attitudes and Actions of National Governments.

3 Policies

Free Market Liberalisation
Associated with?
When?
Beliefs they followed?

Free market liberalisation

What was it like in practise?

What impact did it have on London in 1986?

Privatisation

What have successive UK governments led the way too allowing?

Privatisation

Until the 1980's, important assets, such as railways and energy supplies, were owned by state. However, why did the government sell these to private investors?

Privatisation

Overtime ownership of many assets has passed overseas. Give some examples...

Privatisation

Since the global financial crisis, who has the British government approached to help fund new infrastructure projects?

Encouraging Business Start-ups

What methods have been implemented to encourage business to start up?

Encouraging Business Start-ups

In 1994 what resulted in the UK becoming a more attractive market for foreign retailers? Give examples of the foreign retailers.

Encouraging Business Start-ups

Why does the city of Prato in Italy now have the largest chinese population in Europe?

Other Government mechanisms to encourage FDI include...

Advantages of Trade Bloc Membership

Bigger Markets (but not extra taxes)

Advantages of Trade Bloc Membership

National Firms can merge to for TNCs

Advantages of Trade Bloc Membership

Firms that have a comparitive advantage in the production of a particular product or service should prosper.

Advantages of Trade Bloc Membership

Being in a trade bloc can result in an increase in FDI and job creation

Disadvantages of Trade Bloc Membership

Loss of Severeighnty

Disadvantage of Trade Bloc Membership

Interdependance

The Actions of Governments in New Global Regions

What is the one important reason for acceleration of globalisation in recent years?

Special Economic Zones and Government Subsidies

SEZs are a good example of governments building what? to attract what?

Special Economic Zones and Government Subsidies

Characteristics?

What do they do?

Special Economic Zones and Government Subsidies

How does this benefit the host country?

How has Indonesia encouraged the acceleration of globalisation?

POSITIVE

How has Indonesia encouraged the acceleration of globalisation?

NEGATIVE

How has India encouraged the acceleration of globalisation?

POSITIVE

How has India encouraged the acceleration of globalisation?

NEGATIVE

What evidence is there that the EU has contributed to the acceleration of globalisation?

EU FACT FILE
Simple trade bloc - multi governmental organisastion
Own Currency Euro and shared political legislation
Member states are eligible for EU structural funds to help develop their economies

ASEAN FACT FILE
10 member states (trade freely as they eliminated tariffs), combined population of 600 million, established in 1967.
Members include HIC, singapore and Emerging Economoies of Indonesia, Malaysia and Philippines.