GLOBAL INTERDEPENDENCE

CONTENTSMANAGEMENT OF TOURISM.

DEVELOPMENT OF INTERNATIONAL TOURISM.

TRADE FLOWS AND TRADING PATTERNS.

DEPT AND AID AND THEIR MANAGEMENT.

Tourism

Its a travel away from home for at least one night for the purpose of leisure

NICHE TOURISM –It’s a type of tourism designed to meet the demands of people who don’t have enough time from work for holiday or leisure.

LEISURE – a freely chosen activity or experience that takes place in non- work time

RECREATION – a leisure time activity undertaken voluntarily for enjoyment

RESORT – settlement where the primary function is tourism ,it includes a hotel complex.

CARRYING CAPACITY – number of visitors a site or event can support

ENVIRONMENT CAPACITY – the maximum number before the environment is damaged

PARCEPTUAL CARRYING CAPACITY – maximum before a certain group of visitors consider the level of impact ,i.e. noise to be excessive.

CARBON OFFSETTING – paying levy to counteract the carbon emission a resort produces.

In 2013 the world income from tourism was $1159bn.

DEVELOPMENT OF INTERNATIONAL TOURISM….

Tourism is a global industry that has been expanding rapidly, and it’s the

worlds major service industry.

It is the major contribution of economic growth and also employment.

International tourist arrivals in 2007 was 900 and international travel receipts

totaled $800.

FACTORS FOR GROWTH OF GLOBAL TOURISM

o ECONOMIC

• Widening range of destinations within middle-income range.

• Aims at those who have time and disposable income to take an additional

break.

• Decreasing costs of holiday

o SOCIAL

• An increase in average number of days of paid leave .

• Increase in desire to experience other cultures and landscapes.

• More advertisements of tourist destinations .

o POLITICAL

• Governments have invested heavily to encourage tourism

• Perceived greater likelihood for terrorist attacks in certain destinations

• Government backing for international events ,i.e. Olympics/world cup

MANAGEMENT OF TOURISM DESTINATION(CASE STUDY)

TOURIMS IN ECUADOR Tourism was expected to contribute 1.8% of total GDP in 2007 instead it

contributed 7.8% of total GDP.

1.6% employment

It brings in foreign income

Ecuador was anxious not to suffer the negative consequences of mass tourism by becoming more eco friendly.

Ecotourism helped to bring needed income to poorest parts of the country, it provided the locals with a new alternative ways of living. Ecotourism has been focused on the Amazon.

Butler’s model of evolution of tourism….

Evaluation of Butler’s model

• it has a useful summary of holiday resorts, particularly in the Mediterranean

• It does not apply well in all locations

• It has a limitation on capacity issue

• Limited practical use of the model

• It does not include possible role of local and national governments in destination country.

Case study :BRAZIL

• The Amazon forest and the beaches are a great place for tourists.

• The country involved themselves by reserving the area and stopping any activities that would destroy the Amazon forest

• As the number of tourist increased the area was developed by improving the infrastructure and destinations for tourists.

• Ecotourism helps to restore the natural environment that has been damaged from the impacts of mass tourism.

Trade flows and trading patterns.

• Visible trade – trade where items can be seen (raw materials, manufactured goods)

• Invisible trade – trade in service (tourism)

Importance of invisible trade

deindustrialization in MEDCs has caused a reduction in invisible trade.

There is a growth in tourism.

Industrial division of labor favors visible trade from LEDCs

Inequalities in trade flow

• MEDCs and LEDCs have different export/import patterns

• LEDCs have a smaller range of exports(they export mainly agricultural material)

• Range of imports is similar but cheaper and less sophisticated for LEDCs.

Factors affecting global trade

1)RESOURCE ENDOWMENT – these are the resources a certain country has, and whether the countries use the wealth from the resources to diversify their economy.

i.e. the middle East countries dominate the export of oil.Another example is Tanzania, this country has a variety of crops as well as holiculture and

floriculture due to the country's climate and nutritious soil supporting the growth of crops.

Tanzania can trade food or plants with other countries.

It trades for gas , as well as import technology and exploit the resources it has .

It has the best tourist attractions,national parks and the world’s third largest mountain(Mt Kilimanjaro) this is an advantage for invisible trade.

2)COMPARATIVE ADVANTAGE.

Different countries will specialize in producing goods and services for which is best endowed.

They then trade for goods and services they are not endowed with but they need.

This also involves supply and demand in sense that one area wants what the others are producing and the others are willing to supply it.

3)LOCATIONAL ADVANTAGE

It’s a advantage if an exporting country is near its market as this reduces travel cost.

Some cities are strategically located i.e., Lagos, dar es salaam

Availability of land as well as capital and labor.

4)INVESTMENT

Investment in a country is key to increasing trade.

Foreign countries are more willing to invest in a country where trade is increasing substantially.

5)HISTORICAL FACTORS

Relationship based on colonial ties can increase trade between colonial groups .

Trade dependency –a LEDCs is so reliant on its MEDCs trading partners, that’s why poor countries have a limited share of world trade.

Changes in global market

•rapid growth of industrialized countries has brought changes in economic strength countries.

•Economies such as ‘BRICS’ are emerging markets where by they grew by 4%while developed world grew by 2%.

•The emerging economies have more power in international negotiations.

WTO….

• Aimed to remove trading barriers for global trade to increase( i.e. tariffs)

• It has limited influence as only trade in manufactured goods

• It reduced tariffs from 40-25%

• There was a rise in protectionism between its trade members.

• Imposition of tariffs causes trade in LEDCs to be hard.

• It has 160 members.

ITS AIM….

DEALS WITH GLOBAL RULES OF TRADE BETWEEN NATIONS

REMOVES TRADE BARRIERS.

PREDICTABLE AND AS FREE AS POSSIBLE

THE WTO’S FUNCTIONS.

TRADE NEGOTIATIONS ; Countries will make deals to trade with others ,the WTO checks to see if they are implementing the rules for trade to run smoothly

IMPLEMENTATION AND MONITORING; they monitor how the agreements they made are being implemented

DISPUTE SETTLEMENT; how the WTO handles quarrels ,as understanding is vital for reinforcing the rules

BUILDING TRADE CAPACITY; helping officials to understand the WTO rules so that they can implement the agreement which bolsters their trading regimes .

EVALUATION OF THE WTO

• IT TAKES TIME TO RESPOND!!!

i.e. the steel war- the Americans increased tariffs on the steel that was imported by the EU (30%) this was for protectionism. This could cause 1500 jobs to be lost ,this took two years for the WTO to resolve.

• The organization is too big ,therefore it takes a lot of time for them to go through each members documents

• Trade blocs will try to defend their own industries and markets, this imposes protectionist measures on non-members.

Fair trade…

They are small producers that join together to form a co-operative with high social and environment standards.

The co-ops deal directly with companies in MEDCs and cut-out the middle man.

The MEDCs pay significantly higher than the world market price for the traded products, the higher the price will result to the producer achieving a high living standard and invest in farms.

Advantages of fair trade

• Through minimum price, fair trade enables farmers to get more income

• Fair trade certification enables farmers to negotiate high price for their product than conventional market price.

• Additional income through fair trade allows better afrming and stronger co-ops

• It allows workers to know their rights and negotiating terms.

• Fair trade by co-ops in community development projects allows improvement in facilities i.e. health care.

• Fair trade minimum price- it covers costs of production of products in a region.

• If market price is higher than the minimum price,producer receives the minimum price.

• Flo-cert acts as a safety for farmers from fluctuation of market prices in products they grow

• Case study ; Kuapa kokoo.It’s a groups of farmers who formed a cooperative in order to sell their cocoa.

They were supported by other major groups i.e. UK department of international development.

This cooperative ensures that farmers are paid for their products and not cheated by middle men.

It distributes money towards community projects.

Kuapa kokoo with NGO formed a divine chocolate company, devine fair trade chocolate is sold in the UK , Netherlands and USA.

INTERNATIONAL AID…

BILATERAL AID- given directly from one country to another

MULTIRATERAL AID- provided by many countries and organized by international bodies, i.e. the united nations.

Aid is influenced by;

1)Colonialism

2)neo-colonialism

3)Strategic consideration.

Aid assistance is in from of grants or loans at below market rates.

LEDCs accepts foreign aid because they lack hard currency to pay imports(oil ,machinery) and population pressure drains expenditure and prevents accumulation of enough capital to invest in development.LEDCs have shortage of skills for development, they also rely on small range of exports for foreign currency

Foreign aid purchases goods and services from donor countries and gives them jointly agreed projects.

DIFFERENT TYPES OF INTERNATIONAL AID

OFFICIAL GOVERNMENT AID; who the aid is given to is determined by the government. This aid could be bilateral or multilateral

Voluntary aid; run by non – governmental organizations ,they receive government money due to running aid.

Aid given to poor counties can be long/short emergency aid.

FINANCILAL AID – funded to developing countries to support government policies and programs whose objective is to reduce poverty.

TECHNICAL COOPERATIONS – enhances knowledge ,skills an technical expertise of people in recipient countries.

PROBLEMS WITH AIDo It fails to reach the poorest people and if it does its short lived.

o Large portion of aid purchases goods/services from donor country and used in agreed projects.

o It can create a dependency culture.

Case study: aid worker

People prefer cash

They make good use of it

The poor know what they need

Case study: water aid

They want a world where everyone accesses safe water and sanitation.

They work through water partners to help communities buil,plan,manage and maintain water.

Since 1981 they have helped 13 million people

4000 children die from water born diseases.