A2 Globalisation Revision Guide

A2 Globalisation Revision Guide, full with a wide range case studies related to the topic.

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A2 Globalisation Revision
Key Terms and Organisations
Key Terms and Definitions:
Import To ship (commodities) into a country from abroad.
Export To ship (commodities) to other countries or places for sale, exchange, etc.
Balance of Payments an accounting record of all monetary transactions between a country
and the rest of the world. These transactions include payments for the country's exports and
imports of goods, services, financial capital, and financial transfers.
Deficits An excess of expenditure or liabilities over income or assets in a given period.
Surplus An amount of something left over when requirements have been met an excess of
production or supply over demand.
Free Trade A policy by which a government does not discriminate against imports or interfere
with exports by applying tariffs (to imports) or subsidies (to exports).
Protectionism The theory or practice of shielding a country's domestic industries from foreign
competition by taxing imports.
Import Taxes/Tariffs A government tax on imports or exports.
Quotas A limited quantity of a particular product that under official controls can be produced,
exported, or imported.
Subsidies A benefit given by the government to groups or individuals usually in the form of a
cash payment or tax reduction. The subsidy is usually given to remove some type of burden.
Tangible Goods Physical products which are typically shipped to the buyer
Foreign Direct Investment A Company or organisation from one country making a physical
investment into building a factory in another country.
The European Union (EU)
The EU is an economic and political union of 27 European member states. The EU operates through a
system of supranational independent institutions and intergovernmental negotiated decisions by the
member states. Examples of institutions of the EU include the European Commission, the Council of
the European Union, and the European Central Bank.
The EU has developed a single market through a standardised system of laws which apply in all
member states. Within the Schengen Area (which includes EU and nonEU states) passport controls
have been abolished. EU policies aim to ensure the free movement of people, goods, services, and
capital, enact legislation in justice and home affairs, and maintain common policies on trade, agriculture,
fisheries and regional development. A monetary union, the Eurozone, was established in 1999 and, as of
January 2012, is composed of 17 member states. Through the Common Foreign and Security Policy the
EU has developed a limited role in external relations and defence. Permanent diplomatic missions have
been established around the world and the EU is represented at the United Nations, the WTO, the G8
and the G20.
With a combined population of over 500 million inhabitants, or 7.3% of the world population, the EU
generated a nominal GDP of 16,242 billion US dollars in 2010, which represents an estimated 20% of

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GDP when measured in terms of purchasing power parity. The EU is composed of 27 sovereign
Member States: Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland,
France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the
Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.
Advantages of the EU:
High reduction of war probability, common foreign policy.
All European countries entering the EU are bound to restrictions that are favourable to their
economy and development.…read more

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The members of the IMF are the 187 members of the UN and Republic of Kosovo. Former members are
Cuba (which left in 1964) and the Republic of China which was ejected from the UN after losing support
of then US President Jimmy Carter, and replaced by the People's Republic of China in 1980. The other
nonmembers are North Korea, Andorra, Monaco, Liechtenstein, Nauru, Cook Islands, Niue, Vatican
City, and the rest of the states with limited recognition.…read more

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Disadvantages of WTO:
The WTO is fundamentally Undemocratic.
Industrialized countries benefit more than poor countries.
Try to monopolize all basic services.
Developed countries have an advantage over developing countries.
Don't allow the participation of developing countries.
The North American Free Trade Agreement or NAFTA is an agreement signed by Canada, Mexico, and
the United States, creating a trilateral trade bloc in North America. The agreement came into force in
1994.…read more

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US wages were suppressed. Companies used the threat of moving to Mexico during union
organising drives. When it became a choice between joining the union and losing the factory,
workers chose the factory. Without union support, the workers had little bargaining power.
This suppressed wage growth. Between 1993 and 1995, 50% of all companies in the industries
that were moving to Mexico used the threat of closing the factory. By 1999, that rate had grown
to 65%.
Mexican famers were put out of business.…read more

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Some analysis shows that the World Bank has increased poverty and been detrimental to the
environment, public health and cultural diversity. Some critics also claim that the World Bank
has consistently pushed a neoliberal agenda, imposing policies on developing countries which
have been damaging, destructive and antidevelopmental.
It has also been suggested that the World Bank is an instrument for the promotion of US or
Western interests in certain regions of the world.…read more

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Producers can benefit from the application of scale economies, which will lead to lower costs
and lower prices for consumers.
Employment may be created as a consequence of increased trade between member
Firms inside the bloc are protected from cheaper imports from outside, such as the protection of
the EU shoe industry from cheap imports from China and Vietnam.
Disadvantages of Trading Blocs
The benefits of free trade between countries in different blocs are lost.…read more

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On February 25, 2010, a new lawsuit was launched on behalf of 8 plaintiffs against The
CocaCola Co. and Coke processing and bottling plants in Guatemala, with charges of murder,
rape, and torture of union leaders and their families.
The plaintiffs were victims of employees associated with Industria de Café SA, or Incasa, which
operates an instant coffee and CocaCola bottling plant in Guatemala City. The plaintiffs said
Incasa "is or was previously owned by CocaCola.…read more

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El Salvador's secondlargest export crop after coffee.
Beginning in 1995, most of the plantations were privatized.
CocaCola does not own any of these plantations nor does it buy the cane directly from them.
Instead, it buys the sugar milled from the cane from El Salvador's largest sugar mill, Central
Izalco.…read more

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Critics respond that Coke shouldn't be locating bottling plants in
droughtstricken areas.
In Plachimada, CocaCola is allegedly responsible for creating problems for
communities by creating severe water shortages and polluting the groundwater and
soil, destroying farms by draining them out completely.
The plant here used about 900,000 litres of water last year, about a third of it for the
soft drinks, the rest to clean bottles and machinery. It is drawn from wells at the plant
but also from aquifers CocaCola shares with neighbouring farmers.…read more


Mr A Gibson

These are very thorough indeed. A really good set of notes that you need to have in your folder if you are studying globalisation. Loads of great case studies with accompanying detail.

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