Globalisation

Question 1

What is globalisation?

Answer 1

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

Question 2

What is a core region?

Answer 2

Highly Developed Countries (HDE’s)

Question 3

What is a periphery region?

Answer 3

Less Developed Economies (LDE’s)

Question 4

Name two model’s that include references to Core and Periphery regions?

Answer 4

1. Frank’s ‘Dependency Theory’
2. Wallerstein’s ‘World System Theory’

Question 5

Why is it harder to distinguish between core and periphery regions?

Answer 5

There are rapidly developing countries that blur the line e.g. BRICS and MINT member states

Question 6

What is FDI (Foreign Direct Investment)?

Answer 6

Investments generally made by TNC’s (sometimes government’s in China’s case) based in one country, into the physical capital or assets in foreign nations

Question 7

What direction does capital from FDI generally flow?

Answer 7

From Core to Periphery regions

Question 8

What is repatriation of profits?

Answer 8

Profits earned by TNC’s operating overseas will generally be taken back to their home country

Question 9

What direction does capital from repatriation of profits flow?

Answer 9

From Periphery to Core regions

Question 10

What is aid?

Answer 10

Funding provided from an IGO or government to a foreign nation for any number of reasons e.g. bilateral, tied, voluntary multilateral

Question 11

What direction does capital from aid flow?

Answer 11

From Core to Periphery regions

Question 12

Give an example of a medium by which aid flows

Answer 12

• the UN collects contributions made by a number of richer countries (multilateral aid) sometimes known as Official Development Assistance (ODA)
• The World Bank

Question 13

What is the difference between the IMF and the World Bank?

Answer 13

• The world bank provides development loans at low interest rates
• The IMF maintains global financial stability and promotes free trade

Question 14

What impact does migration have on periphery regions?

Answer 14

Exacerbates disparities between Core and Periphery regions, as nations lose their most skilled and talented labour

Question 15

What is diaspora?

Answer 15

A large group of people with a similar heritage or homeland who have moved and settled in places all over the world

Question 16

What are remittance payments?

Answer 16

Transfers of money made by foreign workers to family in their home country

Question 17

What country is the top recipient of remittance payments?

Answer 17

India - $79 billion dollars in 2018

Question 18

What direction do remittance payments flow?

Answer 18

From Core to Periphery regions

Question 19

Give 2 leakages in flows of capital?

Answer 19

1. Remittance payments
2. Repatriation of profits

Question 20

How high were remittances in 2018?

Answer 20

$529 Billion - more than 3 times the volume of ODA

Question 21

Give 5 mediums for the flow of capital in globalisation?

Answer 21

1. FDI
2. Repatriation of Profits
3. Aid
4. Migration
5. Remittance Payments

Question 22

How much has FDI increased by from 1996 to 2016

Answer 22

$400 billion - $1500 billion

Question 23

How do the flows of capital promote globalisation?

Answer 23

Increasing flows of capital are making the world more interconnected e.g. most countries’ economies are now dependent on flows of investment to and from other countries

Question 24

How do the flows of products promote globalisation?

Answer 24

Products manufactured in Periphery regions where labour is cheaper are sold to Core regions where capital is more abundant making countries around the world more dependent on one another

Question 25

How are flows of products facilitated and encouraged?

Answer 25

- Transaction costs have been reduced by improvements the ease with which capital can be transferred to pay for goods - Transport and tie costs have been reduced by containerisation - Regulatory barriers like tariffs are being reduced by the WTO and RTA's

Question 26

How do flows of services promote globalisation?

Answer 26

Increasing flows of services are making the world more interconnected

Question 27

What are high level services

Answer 27

Services targeted at businesses, e.g. accounting, law, advertising

Question 28

What are low level services

Answer 28

Services targeted at consumers, e.g. customer service, call centres

Question 29

What feature of the service industry means they can pack up shop and move wherever they want

Answer 29

Footlose

Question 30

Where are low level services being set up?

Answer 30

LDE's where labour is cheap

Question 31

Where are high level services being set up?

Answer 31

Cities in HDE's e.g. London, New York

Question 32

Why are flows in services increasing?

Answer 32

Improvements in Information and Communications Technologies (ICT) have allowed services to locate anywhere in the world and still be able to serve the needs of customers anywhere in the world

Question 33

What are flows of labour?

Answer 33

Movements of people who participate in the workforce from one country to another

Question 34

How much has international migration increased by between 2000 and 2015

Answer 34

40%

Question 35

How do flows of labour promote globalisation?

Answer 35

Increasing flows of people between different countries are making the world more interconnected culturally, as people bring aspects of their culture with them e.g. Chinatown

Question 36

How do flows of information promote globalisation?

Answer 36

Information can be spread across the world very quickly and easily due to the advent of the internet: - People are more culturally connected as people can learn about different lifestyles and cultures with social media - This allows for people in different countries to communicate and work together, helping TNCs set up shop around the world, and making countries economically connected

Question 37

Give 5 flows that promote globalisation

Answer 37

1. Flows of capital 2. Flows of labour 3. Flows of services 4. Flows of products 5. Flows of information

Question 38

What is marketing?

Answer 38

The process of promoting or selling products and services

Question 39

What does global marketing involve?

Answer 39

Treating the world as a **single market** and using **one marketing strategy**

Question 40

What are the benefits of global marketing?

Answer 40

- Economies of scale - It is cheaper to have one marketing campaign for the whole world, rather than having a different campaign for every country

Question 41

What are the impacts of global marketing?

Answer 41

Increased global connectedness, as people from around the world can identify common products that are globally marketed, e.g. Coca Cola