Global systems and governance

Question 1

Name a case study related to labour flows and globalisation.

Answer 1

Poland to UK

Question 2

State four push factors for moving from Poland to the UK.

Answer 2

Average unemployment in Poland of 18.5% in 2005, GDP in Poland was $12,700 per head, Youth unemployment in some areas of over 40%, rural unemployment in some areas of over 40%.

Question 3

State four pull factors for moving from Poland to the UK.

Answer 3

Unemployment in the UK is just 5.1%, GDP was $30,900 in the UK, Poles can earn 5x more, but the cost of living is only 2x higher, there were 650,000 open job vacancies in the UK in the months following Poland’s membership to the EU.

Question 4

State five positive impacts of labour flows from Poland to the UK.

Answer 4

Polish workers are three times more likely to be law-abiding than the average British resident, Poles contribute £2.5 billion to the economy and £1.9 billion a year in tax and national insurance, 80% of workers are 18-35 years old which helps balance out the UK’s ageing population, Poles have filled a skills gap by taking undesirable jobs, migrant workers add a considerable amount to consumer spending in the UK.

Question 5

State six negative impacts of labour flows from Poland to the UK.

Answer 5

Local people may feel like strangers in their own town, some British people claim they are unable to find work as jobs tend to go to cheaper immigrant workers, increased demand for housing which increases the price of housing and rent, UK loses money from remittances, more stress on the NHS, potential discrimination may lead to social unrest.

Question 6

What is interdependence?

Answer 6

The theory that nations depend on each other economically, politically, socially and environmentally.

Question 7

What is a diaspora?

Answer 7

A group of migrants of the same origin living in another country.

Question 8

What is global shift?

Answer 8

The movement of the manufacturing industry in one country (usually an HIC) from being internally based to abroad (usually in an LIC where labour is cheaper).

Question 9

What are remittances?

Answer 9

Money sent back from an HIC by a migrant worker to their home country.

Question 10

What is FDI?

Answer 10

Foreign Direct Investment. When TNC’s put a lot of money into an area in a foreign country to set up a manufacturing area or another part of their company.

Question 11

Why might it be difficult for LIC’s to trade their resources with other countries?

Answer 11

HIC’s generally control trade agreements because they are more powerful which allows them to pressure LIC’s into deals that better suit the HIC.

Question 12

Why was the World Trade Organisation criticised?

Answer 12

For widening the gap between low income and high income countries, for being biased towards richer countries.

Question 13

Why was Fair Trade set up?

Answer 13

To allow small-scale farmers in LICs to compete with competitive prices of huge plantations owned by TNCs and ensure producers receive better trading conditions.

Question 14

What is a trade bloc?

Answer 14

A group of countries in a trading agreement, usually giving advantages such as reduced tariffs or higher quotas to countries trading within the trade bloc.

Question 15

After which major event did global trade grow enormously?

Answer 15

The second world war.

Question 16

What are the BRICS countries and why are they related?

Answer 16

Brazil, Russia, India, China and South Africa. These are the five foremost emerging economies in the world.

Question 17

What are the MINT countries and how are they related?

Answer 17

Mexico, Indonesia, Nigeria and Turkey. These are the fastest growing economies in the world.

Question 18

Where is the largest labour flow within one continent?

Answer 18

Asia

Question 19

What is the name for improving global product flows by using large standard-size steel containers to transport goods?

Answer 19

Containerisation

Question 20

what is a tariff?

Answer 20

A tax placed on imported goods.

Question 21

What is the name for a company that can be relocated and still operate effectively?

Answer 21

Footloose

Question 22

What does OPEC stand for?

Answer 22

Organisation for Petroleum Exporting Countries.

Question 23

What is the term used to describe when TNC’s adapt their products to suit a local market?

Answer 23

Glocalisation

Question 24

What are high level services?

Answer 24

Activities that generally require a higher skill level, usually important and complicated meaning the person delivering the service should be qualified and trained.

Question 25

What are low level services?

Answer 25

Services that require less training and are not as important to consumer. Mainly customer service based especially call centres.

Question 26

State five developments improved by improved flows of information.

Answer 26

Fast broadband and connections, social media, real time data and data transfers, large databases and the ability to research.

Question 27

State four factors that have led to a rise in globalisation.

Answer 27

Improvements in transportation, freedom of trade, improvements of technology/communications and labour availability and skills.

Question 28

What are the four ways countries can be interdependent with each other?

Answer 28

Social, environmental, economic and political.

Question 29

What is the main issue associated with interdependence?

Answer 29

Unequal global flows of labour, capital, ideas and technology cause inequalities. If a disaster occurs in one country then it will adversely affect any dependent countries as well.

Question 30

Give one push factor for migration.

Answer 30

Fleeing from conflict.

Question 31

Give one pull factor for migration.

Answer 31

Better job opportunities.

Question 32

State four problems of unequal flows of people.

Answer 32

Host countries may become dependent on migrant workers, overpopulation which can lead to inflated house prices and fewer job opportunities for locals, migrants may be exploited by employers and the origin country of migrants may become dependent on remittances.

Question 33

State three benefits of unequal flows of money.

Answer 33

FDI can improve quality of life for people in the recipient country, aid and remittances can also improve quality of life and the richer countries can take advantage of lower labour costs.

Question 34

State three problems with unequal flows of money.

Answer 34

TNC’s from HIC’s operating in LIC’s can create dependencies for workers as they are dependent on the wages meaning they must subject themselves to harsh working conditions, TNC’s can pressure governments to reduce taxes so they will invest and TNC’s have been criticised for profiting too much; the amount of money that stays in other countries is very small.

Question 35

What is globalisation?

Answer 35

The process of the world’s economies, political systems and cultures becoming more strongly connected to each other.

Question 36

What is globalisation caused by?

Answer 36

The movement of information, capital, products, services and labour between different countries.

Question 37

What are SDT agreements?

Answer 37

Special and differential treatment agreements allow less developed countries to bypass developed countries’ tariffs, which gives them greater market access.

Question 38

What are TNCs?

Answer 38

Companies that produce, sell or are located in two or more countries.

Question 39

What are economies of scale?

Answer 39

The cost advantages that TNCs get due to the size of their operation. E.G. Marketing is cheaper when one advertisement can be used everywhere in the world rather than many being made for each location.

Question 40

State four benefits of globalisation.

Answer 40

Integration of countries meaning they can pool resources to solve global issues, Development; FDI brings capital to improve education and infrastructure, Stability; countries become more interconnected and dependent on each other meaning they are less likely to do something which may disrupt global stability, Economic growth.

Question 41

State four costs of globalisation.

Answer 41

Inequalities, conflict which may be intervened by developed countries for natural resources, injustice; improved transport lead to easier human trafficking and people in less developed countries have to work in sweatshops to make products for developed countries, environmental impacts.

Question 42

State five environmental impacts of globalisation.

Answer 42

More pollution from more transportation, deforestation, overfishing, the ‘race to the bottom’ where companies ignore environmental impacts to produce cheaper goods, the abundance of resources leads to more wastefulness.

Question 43

State the four global commons.

Answer 43

Antarctica, the high seas, the atmosphere and outer space.

Question 44

What is the tragedy of the commons?

Answer 44

When countries or companies feel that they can exploit the global commons without consequences because the costs of exploiting them are shared by everyone.