Globalisation

Question 1

What is globalisation

Answer 1

The growing integration of the worlds local, regional and national economies into a single international market

Question 2

Trade in goods - contribute to G (2+)

Answer 2

Developing C = acquired capital and knowledge to manufacture goods
Efficient forms of transport = easier and cheaper to transfer

Question 3

Trade in services - contribute to G

Answer 3

Tourism, call centre services, software production - increased from developing to developed countries

Question 4

What is trad liberalisation (3)

Answer 4

Advocates free trade
WTO
Removal trading barriers

Question 5

What is a multi national corporation

Answer 5

Own or control the production of g/s in many countries

Question 6

When did uk use trade liberisation (5)

Answer 6

1980s
Margaret thatcher used program of privatisation
Any gov owned business was sold to private sector
British rail, British Gas, British airways
Companies get bigger = sell goods abroad = MNC

Question 7

Financial flow internationally - contribute to G (2)

Answer 7

Flow of FDI and capital increased
China and Malaysia financed growth through capital flows

Question 8

Communication + IT - contribute to G (2)

Answer 8

Spread = easier and cheaper to communicate = more interconnectedness
Better transport = easier to transfer info

Question 9

Containerisation - contributes to G (4)

Answer 9

Cheaper to ship goods
Leads to price fall = competitive market
Helps meet world demand = cargo moved 20x faster
EoS can be exploited and less labour required

Question 10

What is containerisation (3)

Answer 10

Goods are distributed in standard sized containers
Easier to load
Cheaper to distribute using rail and sea

Question 11

Problem with containerisation (2)

Answer 11

MNC mainly get benefit of EoS
Result in structural unemployment

Question 12

Factors contributing to globalisation (6)

Answer 12

Trade in G/S
Trade liberalisation
MNC
International financial flows
Communication + IT
Containerisation

Question 13

Impacts of G - individual countries (3+)

Answer 13

Trade imbalances = US had deficit whereas China has surplus
Imbalances in wealth = China rural and urban
Culture is spread = improves quality of life but weakened culture and loss of diversity due to global brands

Question 14

Impacts of G - governments (2)

Answer 14

Lose their sovereignty due to international treaties
Must abide by rules

Question 15

Impacts of G - workers (3)

Answer 15

Workers have job opp all over globe now
Lower wages = negative for consumers positive for firms
Sweatshops bad because conditions but provide higher income than agriculture

Question 16

Structural unemployment (3)

Answer 16

After mining and ship building decline = u employment
More efficient to produce abroad = lower labour costs
Could argue G didn’t cause it only sped it up - previously been move from agriculture to manufacturing

Question 17

Impact of G - the environment (2)

Answer 17

Increased pollution through increased privation and transport
Deforestation, water scarcity, land degradation

Question 18

Impact of G - procurers and consumers (3)

Answer 18

G = increase in world GDP = increased SoL = less people in absolute poverty
Could be increased inequality
Firms become bigger = competitive environment = lower average costs and become more efficient