1. Globalisation & 2. Global Systems

Question 1

what is globalisation

Answer 1

a set of processes leading to the integration of…economic, cultural, political, social systems…that stretch across geographical boundaries

Question 2

globalisation largely refers to

Answer 2

the economic integration of countries especially in relation to trade and movement of capital

Question 3

NICs

Answer 3

newly industrialised countries

Question 4

free trade areas

Answer 4

countries agree to abolish tariffs/quotas between themselves but still maintain restrictions from elsewhere

Question 5

customs unions

Answer 5

place tariffs on imports from outside

Question 6

common markets

Answer 6

all free movement of labour and capital

Question 7

economic or monetry unions

Answer 7

incorporate all but also adopt common policies in areas like agriculture, pollution, energy eg eurozone

Question 8

how is OPEC different from other trade blocs

Answer 8

mainly members from middle east, s america and africa
focus on trade of oil globally
other groups are more loose knit with an interest in cooperation/development but no formal trade agreement

Question 9

what is the main success criteria of the Organisation for Economic Cooperation and Development (OECD)

Answer 9

deal between rich/emerging economies lifted goods traded duty-free to 87%
duty-free deals between emerging economies advance from 28-92% -> can lower barriers

Question 10

OECD aim

Answer 10

studied 55 regional trade agreements to discover if barriers to agri produce were lowered

Question 11

source country

Answer 11

where a companies HQ is located and business operates from

Question 12

host country

Answer 12

country where a TNC operates in

Question 13

roles of the IMF and WB

Answer 13

support structure of global economy by…regulating/intermediaries in flow of int’n capital, stabilise global market, support LICs

Question 14

difference between IMF and WB

Answer 14

IMF acts a regulator of financial flows and stabiliser of system
WB is the provider of support for less developed countries and aims to reduce poverty

Question 15

role of WTO

Answer 15

deals with the global rules of trade between nations and responsible for facilitating int’n trade

Question 16

issues associated with interdependence tend to be around…

Answer 16

employment and outsourcing, between countries, within countries, geopolitical issues

Question 17

outsourcing

Answer 17

one directional movement of manufacturing from developed to developing economies

Question 18

consequences of outsourcing

Answer 18

loss of jobs and the de-multiplier effect, de-industrialisation of the economy and structured unemployment

Question 19

2 measures of inequality

Answer 19

difference between richer and low income countries (growing or shrinking)
how inequality within countries is affected by globalisation

Question 20

capital flows

Answer 20

the movement of money for the purpose of investment, trade, produce goods/services

Question 21

globalisation

Answer 21

a process by which national economies, societies, cultures have become increasingly integrated through global network of trade, communication, transportation and immigration

Question 22

international trade

Answer 22

the exchange of capital, goods, services across international borders

Question 23

labour

Answer 23

factor of production defined as the aggregate of all human physical and mental effort used to create goods or services

Question 24

factors of production

Answer 24

land, labour, capital, enterprise

Question 25

BRIC

Answer 25

brazil, russia, india, china whos economies have advanced rapidly

Question 26

diaspora

Answer 26

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

Question 27

economic leakages

Answer 27

a loss of income from an economic system

Question 28

profit repatriation

Answer 28

profits sent back to their base country by TNCs

Question 29

MINT

Answer 29

more recently emerging economies of mexico, indonesia, nigeria, turkey

Question 30

containerisation

Answer 30

standardised transport that uses large steel containers to transport goods between ships, trains, lorries for cheaper/efficient transport

Question 31

protectionism

Answer 31

policy by government to impose restrictions on trade in goods/services with other countries usually done to protect from foreign competitors

Question 32

tariffs

Answer 32

a tax or duty placed on imported goods with the intention of making them more expensive to consumers so they don’t sell at a lower price than home-based goods (protectionism strategy)

Question 33

conglomerates

Answer 33

a collection of different companies or organisations but may be involved in different business activities but all reports to one parent company

Question 34

Maquiladora

Answer 34

a manufacturing operation (plant or factory) located in free trade zones in Mexico. they import materials for assembly and then export the final product without any trade barriers

Question 35

bottom up

Answer 35

when local people are consulted and supported in making decisions to undertake projects or developments than meet one or more of their specific needs

Question 36

top down

Answer 36

when the decision to undertake projects/developments is made by a central authority such as government, with little/no consultation