X hits on this document

23 views

0 shares

0 downloads

0 comments

7 / 8

Human Geography

Economic Geography

Role of State and Supranational Bodies

The State’s Role

LO: Examine the roles of the state in economic development

Evaluate the effectiveness of the state in economic development

State: Organized body of people under a government, within a defined geographical boundary

Mediator and facilitator between FDIs and host economies

Extent of mitigation differs from country to country

Employer

Provides public employment in civil service

Regulator of policies

Sets and regulates socio-economic policies

o

Trade, investments, industries etc.

Policies Implemented

Fair wages: National Wage council in S’pore

Land allocations

Mitigate environmental impacts

Provides local protection: Minimum local content

o

Minimum amounts of RM to be sourced from local suppliers

o

Reduce profit leakage overseas

Increase multiplier effects within local economies

o

Case: Korea – prevents TNCs from bypassing local firms that provide machinery

Creation of pull factors for industries and foreign companies

o

Niche on local strengths of the economy

o

Focus efforts on specialized areas

Linkages between local companies and TNCs

o

In terms of logistical support, supply-chain supports etc.

o

Some extent of technology transferred

o

Local Industry Upgrading Programme in S’pore – Apple, Macromedia, Microsoft, Oracle, BMC Software assisting local firms by providing access to technology

o

National Linkage Programme in Ireland – local firms ‘married’ to TNCs = 33% increase in employment

Reduce dependency via joint-ventures

o

Shared profits

o

Shared technology = technology transferred

o

Minimum share of local labour

Creation of export processing zones (EPZs)

o

Designated areas built with infrastructure, housing etc. for the purposes of housing manufacturing companies. Companies save startup costs as most things are already built for them.  (e.g. – Batam EPZ in Indonesia)

Collaborator

Engages in bilateral trading arrangement with other states: FTAs

Competitor against other states

Role of Supranational Bodies

LO:Discuss the role of supranational bodies and evaluate their impact on national and regional economies

Supranational bodies: Organized body of people operating across geographical boundaries and transcending national spheres of interest

European Union, (EU)

North American Free Trade Association (NAFTA)

Group of Eight (G8)

Association of SE Asian Nations (ASEAN) etc.

Regulator

Case: Curbs on Chinese textile imports by EU

o

Prevents cheap imports form flooding the market

o

EU has textile manufacturers in Portugal, France and Italy

Case: ‘threshold safeguards’ in place by WTO

o

Host nations allowed to impose quotas to safeguard economies

With poof that cheaper imports seriously damage their economies

Collaborator: Formation of trade blocs, FTAs

7 of 7

Document info
Document views23
Page views23
Page last viewedThu Dec 08 11:59:55 UTC 2016
Pages8
Paragraphs459
Words2028

Comments