A2 - Paper 4 - Globalisation Flashcards
(36 cards)
What are visible and invisible imports and exports?
Visible trade involves physical goods (e.g. cars, food). Invisible trade includes services (e.g. finance, tourism, insurance).
What are current global trade patterns?
HICs dominate high-value exports (e.g. tech from USA, Germany); LICs export raw materials (e.g. coffee from Ethiopia).
What are current inequalities in trade flows?
LICs often export cheap raw materials and import expensive goods, causing trade imbalances.
How does resource endowment affect trade?
Countries with oil (e.g. Saudi Arabia) or rare earths (e.g. China) dominate exports of those resources.
How does locational advantage influence trade?
Proximity to major markets or ports, like Singapore, boosts trade efficiency.
How do colonial ties affect trade?
Former colonies often trade with former colonisers (e.g. France and West African nations).
How do trade agreements affect trade flows?
Agreements like the EU, USMCA, and CPTPP reduce tariffs and increase trade.
What recent global market changes affect trade?
The COVID-19 pandemic and Russia-Ukraine war disrupted global supply chains and increased shipping costs.
What is the role of the WTO?
To regulate global trade rules and settle disputes, promoting free and fair trade.
What are the benefits of free trade?
Increased market access, lower prices, economic growth.
What are criticisms of free trade?
Can harm local industries and reduce government control over economies.
What are the impacts of trade on exporting countries?
Can boost GDP and employment, but over-reliance on few exports can cause vulnerability.
What are the impacts of trade on importing countries?
Access to goods and services, but can hurt domestic producers.
What is Fairtrade?
A movement ensuring fair prices and ethical treatment for producers in LICs.
Give an example of Fairtrade in action.
Fairtrade-certified cocoa from Ghana supports sustainable farming and community projects.
What causes international debt?
Borrowing for infrastructure, war, or to cover budget deficits, often worsened by interest payments.
What is the international debt crisis?
LICs like Zambia and Sri Lanka struggle to repay loans, risking default and economic collapse.
What is debt relief?
Forgiveness or restructuring of debt by creditors (e.g. G20 Debt Service Suspension Initiative during COVID-19).
What is relief aid?
Immediate aid during crises (e.g. Turkey earthquake aid in 2023).
What is development aid?
Long-term aid to improve health, education, or infrastructure (e.g. UK funding schools in Sierra Leone).
What is tied aid?
Aid that must be spent on goods/services from the donor country.
What is bilateral aid?
Aid from one country directly to another.
What is multilateral aid?
Aid given by multiple countries through organisations like the World Bank or UN.
What are the positive impacts of aid?
Improves healthcare, education, and infrastructure.
