1. INTERNATIONAL PATTERNS OF INDUSTRY AND FINANCE Group members: 1.Ngô Lê Quỳnh Tiên 2.Nguyễn Thị Thu Thảo 3.Chung Minh Tâm 4.Huỳnh Thúy An 5.Phan Thị Thường Linh

2. OUTLINE 1) Generalisation a. Overall Framework b. Important Trends 2) Patterns of International Trade 3) Patterns of International Aid

3. Overall Framework Core economics:  70% of manufacturing value added (MVA)

4. Overall Framework Productivity  Highly capitalized manufacturing industries  high levels of worker productivity  high share of manufacturing in GDP

6. The first trend of shifting dominant position in the world economy Japan China U.S’s dominance United Kingdom TREND

7. The second trend of international industrial production and employment The second trend TrendReasonTNCsAbout TNCs Effect Production effect Government effect TREND

8. The rapid growth of manufacturing employment and productivity in China and the newly industrializing economies of East Asia Eg: China and the four Asian “Tigers” – HongKong, Singapore, South Korea and Taiwan

9. Reason Corporate strategies Particularly ones of large transnational corporations (TNCs) Globalizatio n of economic activity (the overarching component of the world’s economic geography) The second trend

10. About TNCs The importance of TNCs in the world economy- compare their annual turnover with the Gross National Income (GNI) All top 50 global TNCs > many of the world’s smaller LDCs ( Less Developed Countries) The very biggest TNCs are comparable in size with countries: Greece, Ireland, Portugal and New Zealand

12. Production Effect 5oo largest US & Japanese corporations employ overseas labour force in LDCs, particular, the NICs ( New Industrializing Countries) 2/3 of the radios made by Japanese manufacturing companies are produced abroad- mostly in South Korea & other nearby East Asian locations Over 90% of South Korean exports of electronic equipment are produced by affiliates of Japanese companies

13. Government Effect Government of LDCs have sought to take advantage of TNCs needs for cheap labour Setting up Export Processing Zones (EPZs) Adaptions of free trade zone => favourable investment and trade conditions are created EX: the resourcce- poor island of Mauritius had more than 500 companies operating within its EPZ, over 90,000 workers, many of firms are foreign owned/ owned jointly with foreigners. In 2000, exports from these firms exceeded $1.2bil => 75% of country’s exports

14. Government Effect At more general level, government everywhere have responded to the “global reach” of TNCs => intensifying their involvement with supranational economic and political organizations => European Union (EU) Association of South East Asian Nations (ASEAN) North American Free Trade Agreement (NAFTA)

15. PATTERNS of International Trade  Fundamental structure: trading blocs  Membership: + distance,  +legacy of colonial relationship  + geopolitical alliances  - Ex : western Europe, together with some former European colonies in Africa, South Asia, the Caribbean and Australasia

16. PATTERNS of International Trade  Other cases: Autarky Many countries don’t contribute significantly to the flows of imports & exports constitute the geography of trade. EX: Central African Republic

17. Changes in Geography of Trade Due to :  Innovations in transport, communications and manufacturing technology  Shifts in global politics  The increasing internationalization and flexibility of production processes.

18.  The most striking aspect of commodity flows and the regionalization of trade is the persistence of the dependence of LDCs on trade with developed countries that are geographically or geopolitically close. Ex : Algeria – Cambodia – Côte d’Ivoire France

19. Patterns of International Aid Debt issue AID Viewed as useful weapon to establish and preserve political influence Its geography has a strong political flavor, which means Localized political aspirations Colonial ties ‘tied’ to donor countries’ exports, specific military, educational/cultural projects

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