Implications for the Majority world
- Created by: Amy Brown
- Created on: 10-06-14 21:42
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- Implications for the majority of the world
- Some periphery nations have gained economic independence through 2 ways
- 1) Nationalisation - state has taken control of the company or its land owning
- 2) Cartels - formation of cartels e.g. OPEC
- Named Example: OPEC an oil cartel
- Organization of petroleum exporting countries was created in 1960 to counter oil price cuts from American and European oil companies
- 1979, OPEC countries produced 65% of the world oil but in 2007 only 35%
- Concerns that they had reached peak oil but it has allowed them to control the price of oil within a range of $22-28 per barrel
- They can control the amount of crude oil they export to avoid flooding or squeezing the international market place
- Profits made from oil have allowed member countries to invest and diversify their economies and generate wealth
- Also ensured that countries maintained favourable relationships with the OPEC countries
- Named Example: China's investment in Africa
- Growth of the emerging powers has been seen by many to provide the developing world with new opportunities to develop
- Around 30% of all raw materials used in China comes from Africa
- In 2007 Chinese investment in Africa totalled $30 billion
- Many believe China have little interest in developing Africa
- 45% ownership of Nigerias oil field
- Mineral investment in Zimbabwe
- $175 million invested in copper mining in Zambia
- Some periphery nations have gained economic independence through 2 ways
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