4.1 Globalisation

Question 1

Who are the ‘BRICS MINT’ countries

Answer 1

• Brazil
• Russia
• India
• China
• South Africa
• Mexico
• Indonesia
• Nigeria
• Turkey

Question 2

What are the BRICS MINT countries?(Not countries but actually what they are).

Answer 2

Countries in the world with the highest levels of economic growth

Question 3

GDP meaning and what does it stand for?

Answer 3

Gross Domestic Product

• Total value of output of goods and services made and sold in a country.

Question 4

HDI meaning and what does it stand for?

Answer 4

Human Development Index

• Measure of human development (Death rate, Birth rate, Life expectancy & Literacy).

Question 5

FDI meaning and what does it stand for?

Answer 5

Foreign Direct Investment

• Investment/acquisition of a business located in another country. (Movement of cash from one country to another)

Question 6

What is specialisation?

Answer 6

Process of concentrating on becoming an expert in a particular subject or skill.

Question 7

Comparative advantage.

Answer 7

Comparison of competitiveness between countries (efficiency, cost etc)

Question 8

Diseconomies of scale

Answer 8

When a business grows so large that its cost per unit increases.

Question 9

Globalisation

Answer 9

Interconnecting the world

Question 10

Employment patterns

Answer 10

Types/nature of jobs people are doing in that particular country.

Question 11

What is protectionism?

Answer 11

Protecting a countries industries from foreign competition.

Includes:
- Taxing imports
- Setting quotas

Question 12

What is a trade barrier?
Give examples

Answer 12

Any regulation or policy that restricts international trade.
- Tariffs
- Quotas
- Legislation
- Domestic subsidies

Question 13

What is a Trading bloc

Answer 13

An agreement between countries to reduce trade barriers

Question 14

(+ / - ) to a business of trade blocs?

Answer 14

+

• Access to larger markets
• Economies of scale
• Foreign Competition
• Decrease in domestic businesses

Question 15

What is trade diversion?

Answer 15

Where countries trade with each other based on agreements and not efficiency

Question 16

Difference between political and structural change?

Answer 16

Structural change = Shits in managent hierarchy

Political change = Change in government policy

Question 17

What are Push / Pull factors? give examples

Answer 17

Push:

Something forcing a business to trade in another country.
- High levels of domestic competition
- Change in legislation

Pull:

Something making it more lucrative to trade in another country.
- Expanding trading bloc
- Change in legislation

Question 18

Domestic market

Answer 18

Home market

Question 19

Word for foreign market

Answer 19

International market

Question 20

Name 4 types of economies of scale

Answer 20

• Bulk Buying
• Technical (better equipment/technology)
• Financial (Larger businesses can negotiate better deals)
• Risk bearing (Larger company able to survive a downturn in the economy)

Question 21

Offshoring vs Outsourcing

Answer 21

Offshoring

• When part of a business is relocated to another country

Outsourcing

• Delegating business processes to another business (Foreign & Domestic)

Question 22

Trade liberalisation

Answer 22

The removal/reduction of trade barriers between countries.

Question 23

Bureaucracy Meaning

Answer 23

A system in government where major decisions are made by state officials rather than elected representatives

Question 24

Cultural Diversity

Answer 24

Practice of including People from different social and ethnic backgrounds.