Orange

• The EU has 27 member states - this provides a large market of 448 million people - removes internal tariffs which promotes trade between members - encourages social, political and economic gloablisation
• The EU promotes social globalisation - the Schengen agreement allows free movement of people between countries - economic migrants - ease of tourism
• The EU promotes political globalisation - integrated policy e.g., the ECHR - European parliament
• ASEAN has less integration than the EU - largely based on free trade between member countries - Singapore is one of the flagship members - political differences e.g., Vietnam v Singapore - 10 member states - helped negotiate RCEP - the world's largest FTA
• Thatcher promoted economic globalisation in the UK - deregulation encouraged businesses start ups by removing red tape e.g., Sunday Trading laws - privatisation attracts TNCs which promotes FDI
• The UK provides support for tech companies - helped encourage Tech City
• problems with trade blocks

  trade distortion which does not promote equal globalisation

  cultural erosion

  structural unemployment

  sovereignty loss - political tension
• free market liberalisation - at the core of globalisation - free flows of commodity, information and capital - competition between firms leads to innovation and lower costs for the consumer - greater choice
• privatisation - transfer of ownership to the market - encourages innovation and competition - encourages FDI - foreign injection into the domestic economy - increases efficiency - less waste of scarce resources
• deregulation - removal of government control over markets - reduces bureaucracy and red tape - allows more freedom for business owners to make decisions without interference from the state - encourages entrepreneurialism
• Chinese led Asian infrastructure bank - lent $110bn more than the WB
• the WTO was unable to prevent USA and the EU from subsidising their farmers - create disprop lower price - harmed LIC farmers
• WB lent $70 million to the DRC
• Bretton Woods organisations promote a Western model of development
• IMF - debt relief for HIPC - 31 African countries have this - but comes with conditions - usually SAPs
• WTO negotiates free trade policies
• 3.5million ppl displaced to make room for a so-called WB project  
• free trade

  • Allow every country to grow economy  
  • Lowers price for consumers as production = cheaper  
  • Use of comparative advantage  
  • Trade with a country with what both relatively better at producing  
  • ‘Cos of low/ no tariffs + taxes --> able to export w/ less added cost --> make export more worthwhile + make profit (profit incentive) 
• free trade bad

  • Allow richer to become richer and poorer to become poorer  
  • Poorer export raw materials/products with less value --> still mining the same amount of resources/ exporting but profit is not as advantageous   
  • Further growth of TNCs – settle in LICs + exploit (example Umbro – made in China; workers = refused time off when ill and if leave factory then will lose months' worth of pay+ Lotto – made in Indonesia; workers – humiliated + verbally abused + women = sexually harassed)  
  • Easier for jobs to be moved overseas – take local jobs  
• TNCs contribute to globalisation through the spread of global production networks and development of new markets
• TNCs utilise off shoring and out sourcing so that can develop into new markets and contribute to the expansion of global production networks - utilise by taking advantage of economic liberalisation
• Mini has 2500 parts that it gets from different suppliers e.g., the engine is from Brazil - this is outsourcing and expands global production networks
• TNCs contribute to glocalisation which adapts the good or service to the local market e.g., Cadbury makes their chocolate sweeter in China to cater to the local tastes
• global production networks are chains of connected suppliers - these are often transboundary
• TNCs promote globalisation through expanding global production networks but lose control of production process through outsourcing and off shoring e.g., Tesco + horse meat scandal from Romania
• TNCs promote economic globalisation as they increase the flows of capital and commodities
• TNCs utilise a spatial division of labour
• TNCs mobilise globalisation by taking advantage of economic liberalism
• development into new markets via glocalisation
• create a multiplier effect
• 25% economic activity from TNCs
• they encourage cheaper and faster transport
• Yahoo offshore labour in Bangalore - call centres
• globalisation has led to human development across the world but this has happened unequally
• composite measures consider more than one indicator
• GDP/ capita measures economic development
• GDP measures the final monetary value of goods and services in the economy
• economic sector balance measures the contribution of each sector to the final output of the economy
• there are four economic sectors
• social development measures how well the individual is doing excluding their economic health