Globalisation

Question 1

What is globalisation?

Answer 1

The process by which people, their cultures, money, goods and information can be transferred between countries with few or no barriers

Question 2

What is linked to globalisation? (7 things)

Answer 2

• Growth
• Science
• Technology
• Communication
• Environments
• Culture
• Wealth

Question 3

Older examples of globalisation (3 points)

Answer 3

• Trade
• Colonialism - e.g. British empire
• Co-operation - organisation e.g. United Nations

Question 4

Modern globalisation examples (3 points)

Answer 4

• Lengthening connections - products sourced from further away
• Deepening connections - links with more people in all areas of our lives
• Faster speed of connection - people can connect instantly or travel distances faster

Question 5

Factors that have accelerated globalisation (5 points)

Answer 5

• TNCs
• Transport
• Communication and technology
• International organisations
• Trade

Question 6

Why have TNCs accelerated globalisation?

Answer 6

They invest abroad and build links between the places that make products and the places that consume goods and services

Question 7

How has transport accelerated globalisation?

Answer 7

There are lower transport costs and modes of transport are now faster

Question 8

How has communication and technology accelerated globalisation?

Answer 8

• Manufacturing in diverse locations can be coordinated using computer software for the transfer of ideas
• Global communication such as social media has enabled the creation of recognisable global brands

Question 9

What does the term shrinking world refer to?

Answer 9

It suggests that the rapid rate of globalisation has made the world feel smaller, due to the fact that we can instantly connect with people across the world

Question 10

Examples of trading blocs (5 points)

Answer 10

• NAFTA - North American Free Trade Agreement
• EU - European Union
• ASEAN - Association of South East Asian Nations
• OPEC - Organisation of Petroleum Exporting Countries
• Mercosur - southern common market

Question 11

What is the World Bank?

Answer 11

It is a bank that lends money on a global scale. It also gives direct grants to developing countries

Question 12

What is a trading bloc?

Answer 12

A group of countries that share trade agreements between each other

Question 13

Give some examples of barriers to trade

Answer 13

• Tariffs
• Quotas
• Embargo
• Subsidies

Question 14

What are tariffs?

Answer 14

A tax places on goods that are imported from other countries

Question 15

What are quotas?

Answer 15

A limit placed on the number of goods that are imported from other countries

Question 16

What is embargo?

Answer 16

A ban placed on certain goods imported from other countries

Question 17

What are subsidies?

Answer 17

A sum of money granted by the government to help an industry or business to keep the price of goods low

Question 18

What is FDI?

Answer 18

• Foreign Direct Investment
• An investment in the form of a controlling ownership in a business in one country by an entity based in another country

Question 19

What are foreign acquisitions?

Answer 19

When a TNC launches a takeover of a company in another country

Question 20

What are foreign mergers?

Answer 20

Two Firms in different countries join forces to create a single entity

Question 21

What is transfer pricing?

Answer 21

When TNCs channel profits through a subsidiary company in a low-tax country, in order to reduce tax burdens and maximise profits

Question 22

How do national governments promote FDI?

Answer 22

• Free market liberalisation
• Privatisation
• Encouraging business start ups

Question 23

What is free market liberalisation?

Answer 23

The removal of controls in an industry or market to encourage the entry of new suppliers and thereby, to increase the intensity of competition

Question 24

What is privatisation?

Answer 24

The process of transferring an enterprise or industry from the public sector to the private sector

Question 25

What is a special economic zone?

Answer 25

An area in which business and trade laws are different from the rest of the country, the tax laws are lighter to encourage companies to set up businesses there

Question 26

What are the aims of a special economic zone?

Answer 26

• Increased trade • Increased investment • Job creation

Question 27

Who was Mao Zedong?

Answer 27

* A former president of China * Launched the Great Leap Forward which aimed to transform the economy but resulted in great famine and the death of millions

Question 28

Who was Deng Xiaoping?

Answer 28

* A president of China * Led a program of economic reforms * Introduced an Open Door Policy, which involved opening up China's borders to trade. This enabled the country to embrace globalisation. * Due to him, China now has the second largest economy in the world

Question 29

What is special about Zhengzhou?

Answer 29

* It is China's aerotropolis * It is found in Henan province, China * By 2030 the terminals will handle 70million passengers yearly - about the same as Heathrow now

Question 30

What is an aerotropolis?

Answer 30

A metropolitan sub region where the layout, infrastructure, and economy are centered on an airport

Question 31

What is the KOF Index?

Answer 31

Measures the extent to which countries are socially, politically and economically linked to others

Question 32

What is the A.T. Kearney Index?

Answer 32

Analyses data falling into the categories of: - business activity - cultural experience - political engagement to rank the cities in terms of the quantity and quality of their global connections.

Question 33

What are some reasons as to why locations are 'switched off' from globalisation?

Answer 33

Sahel region Economic - poor infrastructure and low literacy rates Physical -All four Sahel region countries are landlocked and have poor-quality roads, which results in high transport costs Environmental - Semi-arid climate reduces the land area available for agriculture. Also harsh environment limit transport and trade connections

Question 34

Winners and losers of the shift of global economic centre.

Answer 34

Winners- Improvement in the economy allows for the development of education, infrastructure Losers- Deindustrialisation leads to people losing their jobs. In these areas crime usually increases and illegal cash flows become more common.

Question 35

Why has there been a global economic shift to Asia?

Answer 35

-Most populous continent(4.1bln) -poverty rates more than halved -Asian nations allowed foreign TNCs(Open Door Policy) -Cheap Labour

Question 36

What are some stats about China's globalisation?

Answer 36

-Between 1981 and 2010 china reduced the no. of people living in poverty by 680 million. -Urban incomes in China have been rising by 10% per year since 2005. -70% of China's rivers and lakes are polluted.

Question 37

What are some facts about Detroit?

Answer 37

-The largest city in the state of Michigan -By 1920 it became a world-class industrial powerhouse -The population has decreased by over 1 million people since the year 1950.

Question 38

What are some urban pull factors?

Answer 38

-Employment -Schooling and healthcare are better

Question 39

What are some rural push factors?

Answer 39

-Poverty -Resource scarcity -Conflict

Question 40

What are the impacts of migration on the source country?

Answer 40

Costs -Loss of skilled workers leads to a negative multiplier effect -Families are broken up Benefits -People send money back which boosts the country's economy

Question 41

What are the impacts of migration on the host country?

Answer 41

Cost -Social tensions rise due to the demand for education, healthcare and housing -Loss of green space due to urban sprawl Benefits -Migrants fill low wage dirty or difficult jobs -Contact with different cultures