Global Groupings

Question 1

What is an economic grouping?

Answer 1

A group of nations that are categorised together according to their overall levels of wealth

Question 2

What does LDCs stand for?

Answer 2

Least developed countries

Question 3

How many countries are classed as LDCs?

Answer 3

Around 50

Question 4

Give 3 examples of LDCs?

Answer 4

Sudan

Ethiopia

Afganistan

Question 5

What does NICs stand for?

Answer 5

Newly industrialised countries

Question 6

What are NICs?

Answer 6

Middle Income nations where exports and average earnings have risen at unprecedented rates since 1970.

Question 7

Give 3 examples of NICs

Answer 7

‘Asian Tigers’ = Hong Kong,Singapore,South Korea

South America = Brazil,Mexico, Argentina

Question 8

What are RICs?

Answer 8

The second wave of NICs, called RICs to distinguish them from NICs

Question 9

What does RICs stand for?

Answer 9

Recently Industrialised countries

Question 10

Give 2 examples of RICs

Answer 10

China and India

Question 11

What are Ex-soviet states?

Answer 11

States that once belonged to the USSR and are now classed as middle/low income with poor GDP and HDI figures.

Question 12

Give 3 examples of Ex-soviet states

Answer 12

Ukraine

Kazakhstan

Russia

Question 13

What does OPEC stand for?

Answer 13

Organisation of Petroleum Exporting countries

Question 14

What is the OPEC ?

Answer 14

Countries that display above average levels of wealth and are the worlds major producers of oil

Question 15

Give 3 examples of OPEC’s

Answer 15

Saudi Arabia

Nigeria

UAE

Question 16

What does OPEC do?

Answer 16

Controls the amount of oil produced to sell to the market, the countries involved produce only enough to meet demand, not exceed, it in order to maintain a profit.

Question 17

What does OECD mean?

Answer 17

Organisation for Economic Cooperation and Development

Question 18

What are OECD nations?

Answer 18

Nations that have high levels of wealth that is evenly distributed among its citizens, with a good standard of living

Question 19

Who belongs to the OECD?

Answer 19

The G7 = USA,Canada,UK,Germany,France,Italy and Japan

Question 20

What is a Political grouping?

Answer 20

They are trade blocs which have 2 main features:
1) Agreements/laws are drawn up to allow national borders to be crossed by flows of goods,money and workers.

2) Trade Blocs can contain nations with varying levels of wealth as it allows for the sharing of resources known as a spatial division of labour.

Question 21

Give 3 examples of trade blocs

Answer 21

EU= European Union

NAFTA= North American Free Trade Agreement

ASEAN= Association of South East Asian Nations

Question 22

Who are members of NAFTA?

Answer 22

Canada, USA , Mexico

Question 23

Name 5 members of the EU

Answer 23

UK, Romania,Poland,Germany ,France Italy

Question 24

Name 5 members of ASEAN

Answer 24

Indonesia, Philippines,Thailand,Malaysia, Singapore

Question 25

Why do nations belong to Trade Blocs? (4 reasons)

Answer 25

1) Market growth, eg when 10 new nations joined the EU Tesco gained 75 million more customers. 2) Firms and businesses have a comparative advantage due to the removal of internal tariffs. 3) Increased demand due to an enlarged market, raising production and lowering costs. 4) Small national firms within a trade bloc can merge with TNCs making their operations more cost effective.

Question 26

What is a TNC?

Answer 26

A company that has operations in more than one country

Question 27

How do TNCs build their business?

Answer 27

By buying up foreign firms in mergers or acquisitions

Question 28

How do TNCs keep manufacturing costs low?

Answer 28

Manufacturing work is subcontracted to third parties, usually in developing countries, this means wages can be kept low and good working conditions hard to maintain.

Question 29

How to TNCs manufacture things?

Answer 29

Through assembly industries meaning TNCs rely on a chain of suppliers both independent or part-owned from all over the world to manufacture separate parts of a product.

Question 30

What does TNC stand for?

Answer 30

Transnational Corporation

Question 31

How do TNCs contribute to Globalisation

Answer 31

1) They act as a bridge between different nations and cultures through their brand(s) 2) They bring together different economies through their supply chains and marketing strategies 3) They work in partnership with local governments to offer financial assistance and improved infrstructure

Question 32

What is Glocalisation?

Answer 32

When TNCs customise their products to meet local taste or to attract new consumers eg Disney films like Mulan/the Lion King and Mcdonalds selling sushi in Japan