How have individual governments contributed to the spread of globalisation into new regions?

If you were in charge of a country and wanted to attract businesses what could you do?

1. What are Government Subsidies?• A government can offer subsidies (business grants)

to different countries to entice business to come and locate in that country. E.g. a not paying business tax for a period of time (called Tax Breaks).

• The UK has successfully enticed a number of foreign businesses to set up here through different government subsidies.

• See p154-5 in Lizard book

Prince Charles (left) addressing Morita (right) and Sony employees and at the inauguration of the Bridgend plant in Wales (December 1974)

2. What is a Special Economic Zone (SEZ)? • Watch this video first to see what a SEZ is all about.

• A Special Economic Zone is an area set up by a government to reduce tax on any imported machinery to a new factory. The tax laws are lighter in these areas to encourage large companies to set up businesses there.

Case study Chinas’ open door

• Read the article on China from both p182 and from Showbie to

• Design a poster to show how Chinas Government has encouraged globalisation.

China’s ‘Open Door’ policy

• Read the article on China from p155 Lizard, p182 Iceberg and the article on Showbie.

• Design a poster to show how both the UK and the Chinese Government has encouraged globalisation

• Key words include; • FDI

• Subsidies

• Grants

• Open Door Policy

• EPZ’s

How can governments accelerate globalisation?

THE UK CHINA