Globalisation

Question 1

What is globalisation?

Answer 1

Globalisation is the ever-increasing interconnectedness between countries. It is a process that involves connections, interdependence and flows between different locations.

Question 2

What are the 5 types of flows in globalisation?

Answer 2

Commodities, capital (or finance), information, migrants and tourists can all flow more freely between different countries.

Question 3

Give an example of how commodities can flow internationally?

Answer 3

Logistics companies like DHL allow commodities to flow internationally.

Question 4

Give an example of how capital can flow internationally?

Answer 4

Investment companies like Blackrock allow capital to flow internationally.

Question 5

Give an example of how information can flow internationally?

Answer 5

The internet also allows tourists to discover more places

Question 6

Give an example of how migrants can flow internationally?

Answer 6

The free movement of people is only possible within some trade blocs and within some regions.
(E.g. The Schengen Area in the EU.)

Question 7

Give an example of how tourism can flow internationally?

Answer 7

Airlines like Ryanair, Wizz Air and Easyjet can let you travel to a different country for as little as £20.

Question 8

What are the 4 types of globalisation?

Answer 8

• Economic globalisation
• Social globalisation
• Cultural globalisation
• Political globalisation

Question 9

What 4 things does economic globalisation include?

Answer 9

• The growth of MNCs (Multinational Corporations)
• The growth of TNCs (Transnational Companies).
• The growth of the internet
• Better communication technology

Question 10

Give 2 examples linked to economic globalisation?

Answer 10

• Inditex (which owns Zara)
• Meta (which owns Instagram and WhatsApp)

Question 11

What 3 things does social globalisation describe?

Answer 11

Social globalisation describes:

• The increasing number of international migrants,
• The increasing quality of education and healthcare
• The rise of social media.

Question 12

What does cultural globalisation describe? And give 3 examples

Answer 12

Cultural globalisation describes the spread of Western ideas and culture such as American films (Tom Cruise films), fast food (McDonald’s) and fashion.

Question 13

What does political globalisation describe?

Answer 13

Political globalisation describes the growth of trade blocs as different countries seek to work together to increase the prevalence of free trade.

Question 14

List the 4 important organisations in political globalisation?

Answer 14

• The World Bank,
• IMF (International Monetary Fund),
• World Trade Organisation
• The United Nations.

Question 15

What is an early example of globalisation?

Answer 15

The British Empire’s colonizations

Question 16

What are the 3 ways in which Globalisation has advanced in the 21st century?

Answer 16

• ICT and mobile advances
• Leap-frogging
• Time-space compression

Question 17

How has ICT and mobile advances important to improve globalisation?

Answer 17

These technological developments have been particularly important in developing countries where a lack of infrastructure has been a major factor in the lack of economic growth.

Question 18

Give an example of leap-frogging

Answer 18

In Kenya, people use electronic banking and their mobile phones to make payments (with something called M-Pesa), often before having a bank card.

Question 19

How does Time-space compression help to improve globalisation?

Answer 19

Time-space compression allows the relative distances between places to feel far shorter.

Question 20

What did China do in 1978?

Answer 20

• In 1978, the Chinese government adopted their Open Door Policy and opened up the country to investment from abroad.
• This led to the transformation of China with significant economic growth and urbanisation.

Question 21

What has happened in the 30 years since 1978 in China?

Answer 21

In the 30 years since 1978, 300 million people have moved from the rural areas to the urban areas (rural-urban migration) in search of a better quality of life and increased income

Question 22

What are the 2 things does China do to encourage TNCs?

Answer 22

China encourages TNCs to locate there by offering low taxes and low labour costs

Question 23

When did China join WTO?

Answer 23

2011

Question 24

Give 2 ways of how China tries to reduce globalisation?

Answer 24

• Social media TNCs such as Facebook and Google are censored with little or no access to the market of China.
• As of 2018, China only allowed 34 foreign films to be screened in cinemas each year.

Question 25

What are tariffs?

Answer 25

Tariffs are effectively taxes on goods that are imported and exported.

Question 26

What are quotas?

Answer 26

Quotas are limits on the number (or quantity) of goods and services that can be exported.

Question 27

Give an example of a trade bloc that allows the free movement of people?

Answer 27

The EU

Question 28

What is privatization?

Answer 28

- Privatisation is where state-owned businesses or infrastructure is sold to private TNCs. - It allows foreign investors to gain a share and so can represent a form of FDI.

Question 29

Give an example of Privatisation

Answer 29

Royal Mail was privatised by the UK government in 2013.

Question 30

What is Free-Market Liberalisation?

Answer 30

- It is where you remove the influence of the state in the economy and allow the markets to act more freely. - By doing this, it is hoped that markets will be efficient and the benefits of economic growth will trickle down to the poorest in society. This does not always work as intended.

Question 31

What is Free-market liberalisation also known as?

Answer 31

Neoliberalism

Question 32

What benefit does privatisation give to businesses?

Answer 32

The policy is based on the view that businesses are run more efficiently in the private sector because of the incentive to make profit.

Question 33

What does Susbidies to TNCs mean?

Answer 33

National Governments can offer subsidies, perhaps to TNCs, to set up in a particular area and thus encourage FDI into a region or a country.

Question 34

Give an example of subsidies to TNCs?

Answer 34

- The Irish government was punished by the EU for having a favourable tax relationship with Apple and other tech companies. - Apple paid a tax rate of 0.005% in Ireland.

Question 35

How does encouraging business start-ups accelerate globalisation?

Answer 35

If you adopt methods to encourage businesses to start up in an area then you can encourage TNCs to increase FDI in your country.

Question 36

What are the 4 ways in which governments can encourage business start-ups?

Answer 36

Methods to encourage business start-ups include: - offering lower tax rates to these companies - installing high-quality infrastructure in an area (e.g. high-speed broadband) - allowing them to make more profit (e.g. by relaxing Sunday trading laws). - Subsidies could also be used.