Study unit 7: the changing distribution of life chances from apartheid to globalisation

Question 1

what is a status group according to weber

Answer 1

defines a status group as a group of people

who distinguish themselves from others whom they regard as less worthy of respect

Question 2

to what does social closure refer

Answer 2

The notion of social closure refers to the mobilisation of a large number of
people in the common project of improving their economic position

Question 3

what does globalisation mean

Answer 3

globalisation refers to the process by which local events are
influenced by global events.

Question 4

what are the different types of globalisation

Answer 4

social (the increasing
prominence of social relationships that stretch over large distances – for example, long
distance relationships that are maintained by means of webcams and products such as
Skype), cultural (the global diffusion of music styles, movies and so on) and economic.
Here we will focus on the economic aspect of globalisation.

Question 5

what is needed for globalisation to take place

Answer 5

the development of technology, and the

creation of an appropriate social infrastructure.

Question 6

what are import tariffs

Answer 6

Import tariffs are taxes levied by

governments on imported products.

Question 7

explain concept of value chains

Answer 7

A value chain consists of relationships between a number of companies
which are all involved in the design, production and marketing of products There are two kinds of value chains, depending on which kind of company
takes the lead in organising the others. In buyer-driven chains, the lead is taken
by a retail firm such as Massmart, which owns Makro and Game stores.A In producer-driven chains, the initiative is taken by an
industrial company which owns valuable technology

Question 8

what is financialisation

Answer 8

financialisation as “the increasing role of financial motives,
financial markets, financial actors and financial institutions in the operation of the
domestic and international economies”. The most important financial motive at issue
here is increasing the share price of your company

Question 9

what are derivatives

Answer 9

A derivative is a financial instrument, the price of which depends on
the price of an underlying security or commodity or some other financial value It is a tool most often used to take a position (to gamble) on the future price
moves of the underlying entity, although it also has a more benign use as a hedge against
risk.