Geography Paper 2 case studies
EU Trade Bloc
-28 members
-single currency adopted by 19 countries
Schengen area (26 countries) removes barriers
-Integrated economic policy – CAP
-ECJ and European parliament = political globalisation
-uniform product, labour and environmental regulations
ASEAN Trade Bloc-10 members
-worked to eliminate tariffs in favour of free trade to promote peace and stability
-members pledge not to have nuclear weapons
-aims to coordinate responses to regional political issues
Chinas Open Door policy 1978
-previously communist, ODP lead to economic liberalisation and opening up of FDI
SEZ created in 1980s, exports increased by 9900% from 1980-2000
-joined WTO in 2001 (removed export restrictions on rare minerals)
Benefits
-By 2006 FDI per year = $60bn
-nearly 800m people lifted out of poverty
-TNCs can develop industry + comparative advantage
Negatives
-Poor working conditions
-censorship
-SEZ= legal restrictions relaxed e.g. chemical usage
-Wages becoming more competitive (potential to global shift to Vietnam)
Jaguar land rover – outsourcing and offshoring
Outsourcing from China – Chery Automobile
,Offshoring in Brazil and Slovakia + company merger with Austrian company
Glocalisation
CocaCola = kekou Kele in China
-adapt packaging and flavours to match domestic tastes
North Korea – Switched off
-NK= hereditary autocracy
Since 1955 its followed junche policy of self-sufficiency
-minimised trade, emigration and tourism is prohibited
-Few TNCs and FDI
-censorship – propaganda of Dictator
10% have internet use
Sahel region as Switched off
-colonial era boarders divide ethnic groups (civil wars)
-corruption and political unrest
-unattractive to FDI (climate and capital wise)
-lacks infrastructure, factor immobility- poor literacy rates and high transport costs (landlocked)
Climate= desertification, drought, climate change, locust
China Outsourcing (global shift) Winners
-low cost of labour
-extreme poverty fell – 800m lifted out of poverty
(poverty =84% in 1980 to 10% in 2016)
-hi-tech manufacturing boom
-increased global competition so downward pressure on price
-investment into infrastructure – high speed rail
, -education is free for 5-15 year olds
But
-20% earn less than $2 a day which the WB classifies as poverty
India outsourcing of services – Winners (BT call centres in Bangalore)
Pros
-middle class wages
-profitable for outsourcing companies
Cons
-widens inequality
-work can be repetitive or at night due to time zones
-works lack bargaining power
India outsourcing- Nike
-Bhopal Disaster 1984
-leaked toxic gas from industrial accident at Nike
= water and soil contaminated with chemicals causing respiratory disorders, cancer, stillbirths
-20,000 died
India – river gangees
-1bn untreated sewage a day +inadequate cremation procedures – partially burnt floating corpse
Dharavi Slums + Mumbai
-22m population
Slums = water access for 2 hours a day at 5:30am
Poor sanitation and disease- Typhoic= 4,000 cases a day
NOTE= 85% employe
Global shift negatives (Detroit)
EU Trade Bloc
-28 members
-single currency adopted by 19 countries
Schengen area (26 countries) removes barriers
-Integrated economic policy – CAP
-ECJ and European parliament = political globalisation
-uniform product, labour and environmental regulations
ASEAN Trade Bloc-10 members
-worked to eliminate tariffs in favour of free trade to promote peace and stability
-members pledge not to have nuclear weapons
-aims to coordinate responses to regional political issues
Chinas Open Door policy 1978
-previously communist, ODP lead to economic liberalisation and opening up of FDI
SEZ created in 1980s, exports increased by 9900% from 1980-2000
-joined WTO in 2001 (removed export restrictions on rare minerals)
Benefits
-By 2006 FDI per year = $60bn
-nearly 800m people lifted out of poverty
-TNCs can develop industry + comparative advantage
Negatives
-Poor working conditions
-censorship
-SEZ= legal restrictions relaxed e.g. chemical usage
-Wages becoming more competitive (potential to global shift to Vietnam)
Jaguar land rover – outsourcing and offshoring
Outsourcing from China – Chery Automobile
,Offshoring in Brazil and Slovakia + company merger with Austrian company
Glocalisation
CocaCola = kekou Kele in China
-adapt packaging and flavours to match domestic tastes
North Korea – Switched off
-NK= hereditary autocracy
Since 1955 its followed junche policy of self-sufficiency
-minimised trade, emigration and tourism is prohibited
-Few TNCs and FDI
-censorship – propaganda of Dictator
10% have internet use
Sahel region as Switched off
-colonial era boarders divide ethnic groups (civil wars)
-corruption and political unrest
-unattractive to FDI (climate and capital wise)
-lacks infrastructure, factor immobility- poor literacy rates and high transport costs (landlocked)
Climate= desertification, drought, climate change, locust
China Outsourcing (global shift) Winners
-low cost of labour
-extreme poverty fell – 800m lifted out of poverty
(poverty =84% in 1980 to 10% in 2016)
-hi-tech manufacturing boom
-increased global competition so downward pressure on price
-investment into infrastructure – high speed rail
, -education is free for 5-15 year olds
But
-20% earn less than $2 a day which the WB classifies as poverty
India outsourcing of services – Winners (BT call centres in Bangalore)
Pros
-middle class wages
-profitable for outsourcing companies
Cons
-widens inequality
-work can be repetitive or at night due to time zones
-works lack bargaining power
India outsourcing- Nike
-Bhopal Disaster 1984
-leaked toxic gas from industrial accident at Nike
= water and soil contaminated with chemicals causing respiratory disorders, cancer, stillbirths
-20,000 died
India – river gangees
-1bn untreated sewage a day +inadequate cremation procedures – partially burnt floating corpse
Dharavi Slums + Mumbai
-22m population
Slums = water access for 2 hours a day at 5:30am
Poor sanitation and disease- Typhoic= 4,000 cases a day
NOTE= 85% employe
Global shift negatives (Detroit)
