Topic 6: The impacts of global events and ethics

Question 1

What is globalisation

Answer 1

the integration of business industry and society through developments in technology communication and migration

Question 2

How many countries has HSBC expanded into

Answer 2

65

Question 3

The international Monetary fund (IMF)

Answer 3

International body of 189 countries that aim to cooperate

Question 4

What are common critics of globalisation

Answer 4

Undermines local culture
systematic failure
multinational companies rival small business
mergers and accusations can result in redundancy

Question 5

What is toxic debt

Answer 5

debt with low chance of being repaid with interest

Question 6

first bank in UK hit by 08 crisis

Answer 6

Northern Rock

Question 7

What are the effects of globalisation

Answer 7

UK face competition from overseas, better for consumers

UK can expand overseas and have increased employment

Question 8

What is outsourcing

Answer 8

provider paying another to carry out tasks they previously would’ve done

Question 9

What is offshoring

Answer 9

moving parts of operations abroad to cut costs

Question 10

what is economies of scale

Answer 10

cost advantages reaped by companies when production becomes efficient

Question 11

The global economy

Answer 11

the total of all activity in the national or regional economies of which its composed

Question 12

exchange rates

Answer 12

The price of a currency compared to another

Question 13

explain the benefits and drawbacks of a weak and strong pound

Answer 13

Weak pound = better exports worse imports

strong pound = better imports worse exports

Question 14

What is real economy

Answer 14

demand and supply for products and services

Question 15

What is an international trade organisation

Answer 15

International bodies try to persuade governments to co-ordinate economic policies

Question 16

Protectionism

Answer 16

government policies designed to protect a country’s business and workforce

Question 17

The world trade organisation

Answer 17

160 members goal to ensure trade flows smoothly and freely

Question 18

what are 3 regional unions and their member status

Answer 18

EU - 27 members
Association of Southeast Asian nations - 10 members
Caribbean community - 15 members, 5 associates

Question 19

Gross Domestic Product (GDP)

Answer 19

The total value of goods produced and services provided in a country during one year

Question 20

GDP per Capita

Answer 20

total GDP divided by Population

Question 21

Overheated Economy

Answer 21

rapid unstable growth which leads to higher prices to meet demands

Question 22

Boom and Bust cycle

Answer 22

rapid growth followed by failing output

Question 23

sustainable growth

Answer 23

growth controlled enough to be able to continue into the medium and long term.

Question 24

Higher productivity

Answer 24

more goods and services with the same resources

Question 25

How does global uncertainty affect savers

Answer 25

consumers opt for safer investments like guilts

Question 26

How does global uncertainty affect borrowers

Answer 26

Banks cut borrowing (credit crunch)

consumers more cautious focused on repaying

Question 27

How does global changes affect employment and earnings

Answer 27

falling growth = falling employment levels = job losses and debt not repaid

Question 28

How does global changes affect emerging markets

Answer 28

can cause problems for established countries

high price of commodities = high net commodity price

Question 29

What is BRIC and MINT

Answer 29

Brazil, Russia, India and China

Mexico, Indonesia, Nigeria, Turkey

Question 30

Runaway inflation

Answer 30

very rapid inflation

Question 31

How to join Euro zone

Answer 31

Must meet certain standards of fiscal stability, independent central banks, low inflation and rates, established stable currencies.

Question 32

What does European central bank do

Answer 32

sets base interest rate for euro area

Question 33

what 3 members joined EU

Answer 33

Estonia 17th member Jan 2011
Latvia Jan 2014
Lithuania Jan 2015

Question 34

What 5 countries hit hard by crisis in EU

what was there unemployment rates

Answer 34

1. Greece - Oct 2014 25.78%
2. Ireland - 3 billion bailed out by UK
3. Spain - Nov 2014 23.9%
4. Portugal - 2012 17%
5. Italy - 2014 13.4%

Question 35

HM Treasury

Answer 35

responsible for setting economic policy

Question 36

How can natural disasters affect finances

Answer 36

Global warming affects how industry
flooding = higher prices death repairs
volcano eruption Iceland 2010 disrupts flight

Question 37

What is the jobs of directors and auditors

Answer 37

directors - duty to all shareholders

auditors - duty for accuracy in accounts

Question 38

What is Jupiter emerging European opportunities fund

Answer 38

fund that invests in new EU markets

Question 39

What happened due to Pandemic

Answer 39

1. lockdowns
2. business closures
3. reduced spending
4. government deficit

Question 40

The UK Sustainable Investment and Finance (UKSIF)

Answer 40

membership organisation committed to growing sustainable responsibility in UK

Question 41

What is corporate social responsibility

Answer 41

self regulation to demonstrate social and ethical standards

Question 42

what are ethical brand and ethical operations

Answer 42

Brand - don’t offend or miss market to anyone

operations - ethical running of day-to-day tasks

Question 43

Systematic failure

Answer 43

complex interdependent networks that are at risk of huge collapse

Question 44

project merlin

Answer 44

agreement between the government and the main banks to pay lower bonuses to their employees and make more money available for business loans.