5. GLOBALISATION Flashcards
(12 cards)
What is the economic dimension of globalisation?
It includes trade, standardisation, and finance.
Trade involves countries focusing on producing certain goods and exchanging them. Standardisation refers to products being made uniformly across countries, and finance indicates the free movement of money for investments.
What are the key components of trade in the context of globalisation?
Countries focus on making certain things and buy other things from other countries.
This leads to increased trade between nations.
Define standardisation in globalisation.
Products are made in the same way everywhere, allowing production in any country.
This facilitates easier trade and market access.
What does the finance aspect of globalisation entail?
Money can move freely between countries, allowing for investments anywhere.
This contributes to a more interconnected global economy.
What is the cultural dimension of globalisation?
It encompasses cinema, music, fashion, and food, particularly the global consumption of Western culture, especially that of the United States.
This reflects the influence of Western cultural products worldwide.
What role do transnational organizations play in globalisation?
They make decisions affecting politics, society, the economy, and the environment on a global scale.
Examples include the G8 and the World Trade Organization.
What is a primary cause of globalisation related to transport?
Improved transport networks allow for the easy movement of goods and people.
This promotes both trade and tourism.
How do communications contribute to globalisation?
They facilitate the flow of information and financial and industrial capital.
This enhances connectivity and business operations across borders.
What are multinationals?
Large companies with locations in more than one country, usually with head offices in developed countries.
They play a significant role in the global economy.
What is offshoring?
It occurs when companies relocate from developed to less developed countries to increase profits through cheap labour.
This practice can lead to job losses in developed countries.
Define economic integration.
It makes trade easier by using a single currency, common policies, and removing tariffs.
However, it can reduce the economic independence of countries.
True or False: Economic integration increases the economic independence of countries.
False.
Economic integration typically reduces the economic independence of individual nations.
