Paper 1 Globalisation

Question 1

What are the two main factors that accelerated globalisation?

Answer 1

Transport and communication.

Question 2

What are the transport factors accelerating globalisation?

Answer 2

Containerisation
Jet Air Craft
Railways
Steam-ships

Question 3

What are the communication factors affecting globalisation?

Answer 3

Mobile phones
Fibre optics
Social networking
Internet
Electronic banking

Question 4

What is privatisation?

Answer 4

Moving businesses out of government ownership into private ownership.

Question 5

What is the advantage of privatisation?

Answer 5

Creates a competition led market, which encourages more FDI.

Question 6

What is deregulation?

Answer 6

Getting rid of certain rules/ tarrifs.

Question 7

Who privatised lots of companies in Britain?

Answer 7

Margaret Thatcher in the 1980s. Privatised BT in 1984 and British gas in 1986.

Question 8

What is a trade bloc?

Answer 8

International agreement where barriers to trade are reduced or eliminated among the participating states.

Question 9

What are the advantages of trade blocs?

Answer 9

Serve a larger market
Protection from foreign competition
National firms can merge to form transnational companies

Question 10

What are the disadvantages of trade blocs?

Answer 10

Interdependence
Loss of sovereignty
Compromise and concession

Question 11

How do national governments attract FDI?

Answer 11

Change in policy (Open-door policy in China 1978)
Privatisation (Margaret Thatcher UK 1980s)
Improvement of infrastructure (China has 234 civil airports since 2018)

Question 12

How does privatisation attract foreign direct investment?

Answer 12

Creates a competition-led market which brings great opportunity to bring in profit. Therefore companies are attracted to that area.

Question 13

What are the special economic zones in China?

Answer 13

Shenzhen, Shantou, Zhuhai

Question 14

When did China join the WTO?

Answer 14

December 2001

Question 15

Why are special economic zones significant?

Answer 15

They create a high proportion of jobs in an area, which brings in a lot of money to the national economy.

Question 16

What questions the significance of SEZ’s?

Answer 16

They only help certain areas, and may only profit certain cities and not the people living in rural areas.

Question 17

When was the open door policy introduced in China?

Answer 17

1978 by Deng Xiaoping

Question 18

What are the four SEZ in China?

Answer 18

Shenzhen
Zhuhai
Shantou
Xiamen

Question 19

What is the role of the World Bank?

Answer 19

• Provide loans in order to rebuild economies as well as alleviate poverty
• Reduce the % of people living on less than $1.25 a day to less than 3% by 2030
• Also works in partnership with governments and other multilateral institutions as well as commercial banks to help deliver projects

Question 20

What is the role of the WTO?

Answer 20

• Reduce tariffs and barriers to trade

- Established in 1995

Question 21

What is the role of the IMF?

Answer 21

• Help governments balance their payments when suffering economic difficulties
• Gives loans to member countries if they are unable to pay their debts
• Members are given financial ratings, representing their economic power
• Main purpose is to maintain the stability of the International Monetary System