SEE: Globalisation: 3.2B
- Created by: MaggieNaylor
- Created on: 10-03-22 19:30
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- 3.2B: National governments as key players
- Trade blocs- an inter-governmental agreement where trade barriers are reduced/eliminated
- EU- has evolved from a simple trade bloc into a multi-governmental organisation with its own currency and some shared legislation
- Schengen area allows for free movement of people
- It is the world's largest trading bloc, accounting for 16.5% of world trade
- ASEAN- 10 member states, established in 1967
- They have eliminated tariffs for free trade
- The enlarged ASEAN market has helped Indonesia's manufacturing industry to thrive
- In the future it is expected to operate as a single market + allow free movement
- National governments are key players by promoting trade blocs
- EU- has evolved from a simple trade bloc into a multi-governmental organisation with its own currency and some shared legislation
- National governments are key players through policies
- Free market liberalisation
- Belief that government intervention in markets impedes growth
- Encourages globalisation as encourages movement of capital and commodities
- CASE STUDY: Thatcher's government
- During Thatcher gov the UK embraced neoliberalism
- Gov subsidies removed from industries that faced abroad competition
- Tax breaks in areas like Canary Wharf
- 1986 deregulation of the market encouraged FDI
- Belief that government intervention in markets impedes growth
- Privatisation
- National services being sold to private companies
- UK did this under Thatcher e.g. railways, energy supplies
- French company Keolis own stake in UK's southern rail
- Encouraging business start ups
- Method often involves low business tax
- 1994 Sunday trading in the UK made UK market more attractive to foreign retailers
- By 2015 the UK is the 4th largest recipient of FDI
- Free market liberalisation
- Trade blocs- an inter-governmental agreement where trade barriers are reduced/eliminated
- Trade Blocs
- + By removing barriers, markets grow e.g. when A8 joined EU Tesco gained 75 million more customers
- +Enlarged market leads to reduced price
- +Allows smaller nations to enter global trading
- +Enlarged market leads to reduced price
- - Could lead to economic isolation and a decline in overall global trade
- + By removing barriers, markets grow e.g. when A8 joined EU Tesco gained 75 million more customers
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