GS&G 1.8, 1.9

Question 1

What is production?

Answer 1

Manufacturing of products

Question 2

What does distribution refer to?

Answer 2

How products are moved around

Question 3

Define consumption in an economic context.

Answer 3

How products are used

Question 4

What percentage of employment in the UK is in the primary sector?

Answer 4

3%

Question 5

What percentage of employment in Nigeria is in the primary sector?

Answer 5

23%

Question 6

What is the employment percentage in Madagascar’s primary sector?

Answer 6

75%

Question 7

What percentage of employment in the UK is in the secondary sector?

Answer 7

17%

Question 8

What is the secondary sector employment percentage in Nigeria?

Answer 8

33%

Question 9

What percentage of employment in Madagascar is in the secondary sector?

Answer 9

7.1%

Question 10

What percentage of employment in the UK is in the tertiary sector?

Answer 10

78%

Question 11

What is the employment percentage in Nigeria’s tertiary sector?

Answer 11

42%

Question 12

What percentage of employment in Madagascar is in the tertiary sector?

Answer 12

18%

Question 13

What does the quaternary sector involve?

Answer 13

Research, AI, finance

Question 14

What is the employment percentage in the UK for the quaternary sector?

Answer 14

2%

Question 15

What is the quinary sector primarily focused on?

Answer 15

Non-profits and governmental staff

Question 16

What is the global shift in economic sectors?

Answer 16

Movement of manufacturing from HICs to LICs/NEEs

Question 17

True or False: HICs typically move from production to other stages for profit.

Answer 17

True

Question 18

What is the impact of deregulation of financial markets?

Answer 18

Promotes competition and lowers consumer prices

Question 19

What is a consequence of eco-friendly campaigns for companies?

Answer 19

They must find eco-friendly production methods or face backlash

Question 20

What does cheaper labor in LICs lead to?

Answer 20

Global shift towards primary/secondary sector work

Question 21

What is brain drain?

Answer 21

Migration of talented workers to HICs for higher-paying jobs

Question 22

What are tariffs intended to do?

Answer 22

Encourage local businesses by taxing imported goods

Question 23

How has containerization affected global production?

Answer 23

Decreased shipping time significantly

Question 24

In 1965, how many tonnes per hour could be loaded onto a ship?

Answer 24

1.5 tonnes/hour

Question 25

What has broadband improved in terms of trade?

Answer 25

Easier exchange of ideas and communications

Question 26

What is deindustrialization?

Answer 26

Reduction of manufacturing jobs

Question 27

What are TIGER economies?

Answer 27

Regions where manufacturing has migrated after the global shift

Question 28

What is the effect of low birth rates on economic growth?

Answer 28

Slows economic growth due to top-heavy age structure

Question 29

Fill in the blank: High birth rates can cause _______.

Answer 29

Resource depletion and environmental degradation

Question 30

What can lack of education on contraception lead to?

Answer 30

High birth rate

Question 31

What benefits do tax breaks provide to businesses in HICs?

Answer 31

Positive economic growth and higher retained profits

Question 32

What is an example of a social program in HICs?

Answer 32

Social Mobility programme

Question 33

What does STEM investment lead to in HICs?

Answer 33

More movement into the quaternary sector

Question 34

What does protectionism refer to?

Answer 34

Policies that restrict imports to protect local industries

Question 35

How does division of labour in TNCs differ from GPNs

Answer 35

- TNCs outsource a couple fully owned facilities overseas, while GPNs outsource different parts to different areas/companies

Question 36

What is vertical disintegration (Klein)

Answer 36

Different parts of the process are given to different companies to do, where before they were done by one only

Question 37

Give an example of a TNC becoming a GPN

Answer 37

Apple outsourcing touchscreen manufacturing to Wintek touchscreens

Question 38

Positives and negatives of TNCs

Answer 38

- Product/labour quality maintained, less vulnerable to Black Swan events - Overdependence, slow and inflexible

Question 39

Positives and negatives of GPNs

Answer 39

- finds cheapest and best globally - transport cost and duration is bad, Black Swan events, wider risk of exposure

Question 40

What event started LIC working condition improvements

Answer 40

Rana Plaza collapsed killing 1000 people

Question 41

Give examples of black swan events

Answer 41

COVID-19: businesses reliant on physical workers went out of business. Tech companies profit Japan EQ and tsunami: major damage to tech industry,

Question 42

What are closed and open networks?

Answer 42

Closed - Tech used is one of a kind (Nestle coffee machines) Open - Loosely integrated systems, generic parts made for everyone

Question 43

Ways TNCs deal with the risks of outsourcing

Answer 43

Re-shoring, reglobalising, glocalisation, business as usual (tighter controls)

Question 44

Positives and negatives of offshoring

Answer 44

Job losses in TNC country of origin. Physical and political risks Factories and offices closer to target market, cheaper labour

Question 45

Positives and negatives of acquisition

Answer 45

- Large profits lost from state where buyer is located - In 2015, 1/3 of FDI came from cross-body mergers

Question 46

Positives and negatives of joint venture

Answer 46

- Complicated logistics of attempting to do large business in multiple countries - Sometimes profits stay in country (MacDs and India)

Question 47

Give an example of the shift from private to public ownership

Answer 47

Facebook selling 421 million shares in 2012

Question 48

Reasons to not migrate corporately

Answer 48

- Authenticity and brand origin - Complecity - Reputational risk