🧍3.2.1.1 - Globalisation

Question 1

What is globalisation?

Answer 1

A process by which national economies, societies and cultures have become increasing integrated through the global network of trade, communications, transport and immigration.

Question 2

What is an economy of scale?

Answer 2

Cost advantage of large scale output of a product as savings are made by spreading out the cost over more units

Question 3

What are international flows of capital?

Answer 3

All financial transfer between companies for investment, trade or production

Question 4

What are remittances?

Answer 4

Transfers of money from migrants to relatives back home

Question 5

What is migration?

Answer 5

Generally now the outmigration of labour from poorer to richer nations

Question 6

What is FDI?

Answer 6

Foreign Direct Investments. Money or assets invested by TNCs in overseas enterprises. Either by merging with another company, setting up subsidiary companies or through shares.

Question 7

What are BRIC countries?

Answer 7

Brazil, Russia, India and China. Rapid economic advances during 1990s

Question 8

What are MINT countries?

Answer 8

Mexico, Indonesia, Nigeria, Turkey. Recently emerging economies after the year 2000.

Question 9

What is repatriation of profits?

Answer 9

Sometimes known as economic leakage. TNCs will extract profits from abroad and bring back to their HQ

Question 10

What is aid?

Answer 10

Either from NGOs, as bilateral agreements between 2 governments or via multinational organisations such as the UN which puts aid from many nations together

Question 11

What is the IMF?

Answer 11

International Monetary Fund which aims to allow economic stability and foster international trade.

Question 12

What are the impacts of flows of labour?

Answer 12

• Most migrants have some level of education
• Can afford to move, therefore not very poorest in giving nation
• Long term issue as people stop sending remittances after 2/3 generations
• Inter-continental as well as long distance

Question 13

What are flows of services?

Answer 13

An economic activity which is traded without the production of material goods

Question 14

What are high level services?

Answer 14

Services to business, such as finance, advertising

Question 15

What are low level services?

Answer 15

Services to consumers, such as banking, travel, communication

Question 16

What are the impacts of flows of services?

Answer 16

• Easily traded in a globalised world, no locational grounding, offices and call centres can be located anywhere
• Low level services may be outsourced to developing nations, eg call centres in India

Question 17

What are the impacts of flows of products?

Answer 17

• Gloablisation means more products need to be transported from pace of manufacture to chosen market
• Containerisation makes shipments quick, easy, cheap
• Removal of taxes and encouragement of global trade groups allow for greater levels of trade
• Some objections caused by protectionism

Question 18

What are flows of information?

Answer 18

Both migrants and technology allow flows of information, recent and historic migrants allow for multiculturalism and information sharing

Question 19

What are factors in globalisation?

Answer 19

• Communication development
• Transport development
• Financial development
• Information Systems
• Security development
• Trade agreements
• Management systems

Question 20

What are financial factors in globalisation?

Answer 20

Linked to technological developments as well as relaxed trade barriers allowed by governments, the movement of finances around the world has grown hugely.

Question 21

What is protectionism?

Answer 21

Putting barriers in place to prevent and reduce trade in order to maintain internal markets and own manufacturing industries

Question 22

What is trade and finance liberalisation?

Answer 22

Groups such as the WTO encouraging governments to remove tariffs and barriers to trade, to encourage free movement of goods

Question 23

What is the world customs organisation?

Answer 23

An intergovernmental organisation noted for its work in areas covering the development of international conventions, instruments and tools on topics such as commodity classification, valuation, rules of origin etc.

Question 24

What is the EU secure operator initiative?

Answer 24

Set up and run by the EU in order to ensure a secure and reliable end to end supply chain for all goods and services.

Question 25

How is air freight a factor in globalisation?

Answer 25

Faster, more places reached, fresh goods transported in large quantities, anywhere in the world, cheap, ease of ordering goods

Question 26

How are cargo ships a factor in globalisation?

Answer 26

Shipping containers are standardised so can be transported universally, large quantities of goods can be transported easily, takes a long time but cheap and easy form of transport.

Question 27

How are warehouses and robotics a factor in globalisation?

Answer 27

Anything can be ordered from anywhere in the world and arrive potentially next day due to ease of robotics, less likely to make mistakes and very quick. Robots run 24/7

Question 28

How are budget airlines a factor in globalisation?

Answer 28

Makes more places accessible for normal people, travel on a budget, competition between airlines increases the number of destinations around the world, encourages travel.

Question 29

What are trade blocs?

Answer 29

A type of intergovernmental agreement where regional barriers to trade (tariff + non-tariff) are reduced or eliminated among countries

Question 30

What are the advantages of trade blocs?

Answer 30

Allows trade between many countries
One economy, one workforce
Travel between countries is easy, free travel
Encourages growth of economies, risk sharing
Trade of services and people as well as goods

Question 31

What are the disadvantages of trade blocs?

Answer 31

Countries surrounded by trade blocs but not in them struggle to trade
Hinders development of countries outside the trade bloc
Creates problem sharing, if one country suffers, all do
Uneven reward for input
Migration issues, often uncontrolled
Lack of national control and identity

Question 32

When did the volume of world trade first increase dramatically?

Answer 32

The late 19th century

Question 33

What aided world trade to increase in the 19th century?

Answer 33

Multinational banks and global pricing systems, as well as the invention of the telegraph

Question 34

By how much did global trade increase between 1870 and 1913?

Answer 34

It tripled

Question 35

How has internal migration affected China?

Answer 35

As it has opened to international trade, most factory employees are from China’s rural interior, moving to the cities for low-grade service and construction jobs

Question 36

How many rural migrants are there in China’s major cities?

Answer 36

150-200 million