3.2 Political and economic decision making are important factors in the acceleration of globalisation Flashcards
How has the World Trade Organization (WTO) contributed to globalization through the promotion of free trade policies?
facilitates negotations and agreements on trade liberalisation among member countries
promotion of fair and non discriminatory trade practices
dispute settlement mechanisms to resolve trade disputes between member nations
encouragement of transparency in trade policies
What role does the International Monetary Fund (IMF) play in globalization and its impact on the international economic landscape?
providing financial assistance and loans to countries facing economic crises
promoting economic stability and growth through policy advice and technical assistance
monitoring global economic developments and providing analysis and forecasts
encourages cooperation and coordination among member countries to address global economic challenges
In what ways has the World Bank contributed to globalization and the facilitation of foreign direct investment (FDI)?
providing financial support for development projects in developing countries
offering loans and grants to promote infrastructure development and economic growth
encouraging private sector participation in developing countries through investments and partnerships
providing technical expertise and knowledge sharing to support sustainable development initiatives
What is the role of the European Union (EU) in promoting free trade blocs and economic integration?
facilitates trade among member countries through the establishment of a single market and customs union
negotiation of trade agreements with another regions and countries on behalf of its member states
harmonization of regulations and standards to promote the free movement of goods, services, capital, and labor within the EU
How does the Association of Southeast Asian Nations (ASEAN) contribute to the promotion of free trade blocs and regional integration?
Promotion of economic integration and trade liberalization among member states through initiatives like the ASEAN Free Trade Area (AFTA).
Facilitation of negotiations for regional trade agreements, including partnerships with other countries and regions.
Development of mechanisms to enhance cooperation and connectivity in areas such as infrastructure, finance, and human resources.
What role do national governments play in economic liberalization and promoting free trade?
Implementation of policies to liberalize markets and remove barriers to trade and investment.
Privatization of state-owned enterprises to foster competition and efficiency.
Creation of favorable business environments through regulatory reforms and incentives.
Support for entrepreneurship and business start-ups through policies and programs that encourage innovation and growth.
How have special economic zones contributed to the spread of globalization into new global regions?
Creation of designated areas with special economic regulations and incentives to attract foreign investment.
Facilitation of foreign direct investment (FDI) by providing tax breaks, streamlined regulations, and infrastructure development.
Promotion of export-oriented manufacturing and services within these zones.
What role do government subsidies play in attracting foreign direct investment (FDI)?
Offering financial incentives, such as tax subsidies, grants, and low-cost loans, to attract foreign companies to invest in a country.
Supporting industries and sectors through subsidies to enhance competitiveness and encourage FDI inflows.
Stimulating economic growth and job creation through targeted subsidy programs.
How did China’s 1978 Open Door Policy contribute to the spread of globalization?
Introduction of economic reforms and liberalization measures to attract foreign investment and promote trade.
Establishment of special economic zones, such as Shenzhen and Shanghai, which attracted significant foreign direct investment and facilitated economic growth.
Adoption of policies that encouraged foreign companies to set up manufacturing facilities in China, leading to increased integration into global supply chains.
