Globalisation

Question 1

Define Globalisation

Answer 1

The process by which culture, people, finance and goods transfer between countries with few barriers

Question 2

List some of the top Trade Blocs

Answer 2

EU
NAFTA
ASEAN
CARICOM

Question 3

Define FDI

Answer 3

When one country invests money in another country. For example McDonald’s in China.

Question 4

What is throw away culture?

Answer 4

Cheaper to buy new and from far away countries than to fix something

Question 5

What are Trade Blocs?

Answer 5

Voluntary organisations for trading purposes. Free trade is encouraged by removing tariffs.

Question 6

Define spatial division of labour

Answer 6

When large firms move low skilled workers abroad to places where labour costs are low, also establishing call centres and factories in poorer countries

Question 7

Define Glocalisation

Answer 7

The adaptation of a global product for a local market place (McDonald’s not selling beef in India).

Question 8

What’s the KOF index and what are the 3 indicators it’s made up of

Answer 8

An index of the degree of globalisation.
Made up of:
Economic globalisation (volume of FDI)
Social globalisation (cross border contacts, information flows)
Political globalisation (membership to international organisations like the WTO)

Question 9

What is China’s open door policy and when did it begin?

Answer 9

In 1978 China allowed FDI and TNCs into their country to promote a modern and thriving China

Question 10

Define containerisation

Answer 10

A shipping method designed to reduce costs by packing large amounts of material into containers

Question 11

Define cultural diffusion

Answer 11

The spread of cultural beliefs and social activities into different cultures

Question 12

Define cultural erosion

Answer 12

The reduction of a culture due to globalisation

Question 13

Define cumulative causation

Answer 13

The process of self-sustaining economic growth in a city or region

Question 14

Define deindustrialisation

Answer 14

A reduction In industrial capacity, leading to social and economic change within a region

Question 15

Define downward transition zone

Answer 15

A country or city with predicted economic decline

Question 16

Define economic migration

Answer 16

Movement of migrants to improve financial income or standard of living

Question 17

Define global hub

Answer 17

A city that has lots of connections to the world through trade, ideas or migration. TNCs will want to base here

Question 18

What does a “shrinking world” mean?

Answer 18

New technology has reduced time taken to transport goods

Question 19

What does the IMF do and what does it stand for?

Answer 19

The International Monetary Fund is a fund of 189 member countries with the aim to aid each other to achieve financial stability

Question 20

What does the WTO do and what does it stand for?

Answer 20

The World Trade Organisation works to reduce barriers and create free trade

Question 21

What is a TNC?

Answer 21

A Transnational Company is a company that operates in different countries to where they were originally based

Question 22

Role of the World bank?

Answer 22

To give grants and lend money in order to reduce poverty and aid development

Question 23

CASE STUDY- Leicester

Answer 23

In the 1920s people worked in the textile mills
Employment peaked in the 1960s
Fast decline post 1970s due to the industry moving to Asia
Less employment led to less money leading to decline