3.1 Causes and acceleration of globalisation

Question 1

Glocalisation?

Answer 1

The changing of design of products to meet local tastes and laws

Question 2

4 key factors of the acceleration of globalisation?

Answer 2

Economic - influence of TNCs and IT

Social - The rise in people through international migration

Political - growing of interconnectedness of governments through trade and free trade agreements e.g. EU and ASEAN

Cultural - The spread of western cultures due to diffusion of ideas e.g. glocalisation e.g. Nike

Question 3

4 flows of globalisation?

Answer 3

Capital - the worlds stock markets moving capital around the world

Commodities - exchange of raw materials through trading

Information - real time communication globally through internet

Tourism - Places now seem ‘closer’ through the development of budget airlines, creating more opportunities to travel to distant places

Question 4

What has rapid development in transport and trade caused since the 19th century?

Answer 4

Airlines and container ships have reduced the travel time of people/products across the world, leading to the shrinking world effect.

Question 5

4 improvements in transport?

Answer 5

Railways in 1800s

Jet aircraft in 1960s eased the movement of people and goods across the world

By 1900, Britain was the world leader in steamship production

containers were introduced in 1960s, which reduced the cost and time of international trade and

Question 6

How much has the % of population using the internet increased since 2000?

Answer 6

40%

Question 7

Since 1975, how much has the flows of people using air transport increased by?

Answer 7

from 400 million to just under 4 billion people

Question 8

How much has the total number of migrants increased by since 1960?

Answer 8

From 500 million to over 1 billion

Question 9

What are the 3 IGOs that are major players in the promotion of the global economy?

Answer 9

World Bank
International Monetary Fund (IMF)
World Trade Organisation (WTO)

Question 10

The role of WTO?

Answer 10

At the heart of global negotiations to support exporters and importers with the trade of goods and services. Run by member governments with collectively-made decisions

Question 11

The role of IMF?

Answer 11

Key aim is to help stabilise exchange rates and provide loans to countries in need. Since 1997, they’ve arranged over $180 billion in bailout packages

Question 12

When was the IMF and World Bank founded?

Answer 12

1944

Question 13

The role of the World Bank?

Answer 13

Works with international institutions, regional banks and national governments with the aim to reduce global extreme poverty to no more than 3% by 2030. They offer grants, zero-interest credit and low interest loans and investments

Question 14

How do national governments promote the growth of the global economy?

Answer 14

• Promotion of free trade blocs e.g. the EU and ASEAN
• free market liberalisation: lifting restrictions on the way companies and banks operate
• the promotion of business: encouraging business start ups and allowing TNCs to grow in size and influence
• privatisation: allowing companies to take over important national services such as railways and energy supplies

Question 15

What allowed Britain to transport goods and people to other parts of the british empire (mainly Africa and Asia)?

Answer 15

Britain was the world leader in steam power in the 19th century

Question 16

Leap frogging?

Answer 16

When developing countries skip past out of date technology e.g. in Kenya, people use electronic banking and their mobile phones to make payments before having a card

Question 17

How has globalisation been able to accelerate?

Answer 17

Special Economic Zones (SEZs), government subsidies and changing attitudes to FDI have played important roles in the acceleration of globalisation

Question 18

What is the China Open Door Policy and what has it created?

Answer 18

In 1978, China created lots of factories and low wage jobs to attract TNCs to set up there. This has created the spearheaded ‘Made in China’ movement, with China have great trade relationships. China is now recognised as one of the worlds most powerful economies, soon to be challenging USA

Question 19

What is the KOF index?

Answer 19

measures the economic, social and political dimensions of globalisation

Question 20

3 ways that TNCS aim to build their global businesses?

Answer 20

Offshoring
Outsourcing
Global production networks

Question 21

What is offshoring?

Answer 21

Relocating factories or offices to other countries to lower costs

Question 22

What is outsourcing?

Answer 22

Contracting alternative companies to produce the required goods and services

Question 23

What are global production networks?

Answer 23

Establishing chains of connected suppliers of parts and materials for the manufacturing or assembly of the consumer goods

Question 24

Why do some countries not benefit from FDI?

Answer 24

Due to production sites not being suitable and these places not having enough market potential

Question 25

How do TNCs achieve maximise profit?

Answer 25

By modifying the goods and services they sell to meet local tastes, interests and laws, and by showing respect to religion and culture

Question 26

2 countries that are switched off from global networks?

Answer 26

North Korea
Sahel