3.3 winners and losers

Question 1

3.3a
give 2 ways of measuring globalisation

Answer 1

The KOF Index

AT Kearney Index

Question 2

explain the KOF Index

Answer 2

-uses a score of 1 to 100 (100 being most globalised nation)
MEASURES COUNTRIES
-political, economic and social factors
economic e.g. distances of flows of goods, services, capital and FDI
social e.g. telephone calls, tourist flows, internet users and cultural proximity
political e.g. international organisations, trade blocs

Question 3

explain the AT Kearney Index

Answer 3

-assess 29 metrics across 5 dimensions
MEASURES CITIES
-political, communication, technology and business factors
1. business activity e.g. capital flow, markets
2. human capital e.g. education levels
3. information exchange e.g. internet and media
4. cultural experience e.g. museums, events
5. political engagement e.g. international organisations, political events and embassies

Question 4

what are some other simple measures of globalisation?

Answer 4

GNI
-value of goods and services by a country
Income per capita
-mean average income per person
GDP
-measures total value of goods and services produced in a country

Question 5

3.3b
TNCs about

Answer 5

trans-national corporations
-been around since 18-1900
-key players and drivers of globalisation
-in 2016, there were over 60,000 TNCs

Question 6

what is a corporation?

Answer 6

a business which exists separately from its owners who are shareholders
-appoint directors to direct the business

Question 7

what is a motive for global production

Answer 7

PROFIT
-companies minimise costs with labour and materials and maximise profits and revenye
-expand markets and take over competitors
-do this through economies of scale
-develop new markets

Question 8

why do many companies expand their product range?

Answer 8

to future proof their sales
(if one product fails, another will succeed)

Question 9

how do companies operate global production?

Answer 9

banking and the free flow of capital around the world has caused growths of companies

Question 10

what is a fundamental factor for the spread of globalisation?

Answer 10

mobility
-includes faster and cheaper transport
-rapid communication systems
-new flexible technologies

Question 11

what do global production networks do?

Answer 11

they link raw materials, finance, manufacturing, markets and sales together that are run from companies headquarters in high income countries

Question 12

outsourcing

Answer 12

workers are contracted out to another company

Question 13

offshoring

Answer 13

a company does work overseas

Question 14

glocalisation

Answer 14

when a company restyles its products to suite local tastes

Question 15

example of cultural globalisation and glocalisation

Answer 15

Disney was one of the first global TNCs to glocalise
e.g. Lion King for the African Market
Aladdin for Middle Eastern Market
Finding Nemo for Australian Market

Question 16

global shift

Answer 16

how manufacturing and industrial activity has shifted from different parts of the world

Question 17

why has outsourcing of services to India been successful?

Answer 17

-citizens speak fluent english and are well educated in this way
-the government has invested in infrastructure like broadbands capacity, attracting hi-tech companies

Question 18

benefits of outsourcing

Answer 18

-workers gain disposable incomes, mulitplier effect of more money in the economy for economic growth
-company has seen increased profits from this

Question 19

costs of outsourcing

Answer 19

-some workers are still exploited and work in harsh conditions
-employees become demotivated as the work is very repetitive
-the inequality between rich and poor is increasing, the poor is not well educated so they do not benefit from these outsourced jobs

Question 20

what do mergers and acquisitions by TNCs achieve?

Answer 20

-they maximise the reach across global markets, companies get their products more recognised and therefore more sales if they look similar in different countries
-this simplifies marketing strategy and strengthens brand image for businesses

Question 21

why do companies need to develop strong brands for their products?

Answer 21

sales can be affected and companies can lose market share and experience a damaged reputation if these factors aren’t considered:
-products need to be socially, culturally, linguistically and politically transferrable across different countries.

Question 22

why do some regions remain detached from globalisation?

Answer 22

the parts which aren’t integrated into the global economy are detached, lacking strong flows of trade and FDI

Question 23

name a detached place
(politically)

Answer 23

North Korea

Question 24

why is North Korea a detached country?

Answer 24

its a hereditary autocracy ruled by Kim Jong-Un (communist dictator)
-he has control over the population, excluding them from the global economy
-Koreans cannot travel freely within the country or leave it without government permission
-tightly controls all media
-any political criticismeco is strictly prohibited.

Question 25

economic reasons behind North Korea being a detached country

Answer 25

exclusion from trade blocs, means that the free movement of people, labour, capital etc is not facilitated -citizens are assigned jobs by the state, and they have little choice over their career due to allocation -additionally, any sort of private enterprise is banned, however the criminalised, informal black market is emerging for basic goods- very risky

Question 26

social reasons behind North Korea being a detached country

Answer 26

foreign media is largely banned, and those caught consuming any international media face severe penalties, including imprisonment -religious practices are heavily restricted, only one state approved religious organisation permitted -culture is not diverse, only one way of life- not looking at another angle to life- restricting

Question 27

environment reasons behind North Korea being a detached country

Answer 27

citizens are threatened by severe flooding and landslides, resulting directly in casualties, contributing to food insecurity and famine for the country -with little connection to the outer world, they are a very self-contained country, meaning having food insecurity and famine is a problem they have so solve and deal with accordingly on their own

Question 28

name another detached region

Answer 28

The Sahel Region -Sub-Saharan Africa

Question 29

The Sahel Region

Answer 29

-some of the countries in this region have the lowest GDP in the world -detached due to economic, political, social and environmental reasons

Question 30

political reasons for why The Sahel Region is a detached place

Answer 30

there are frequent civil wars due to weak governance and a corrupt political system in many of the countries, deterring and unattracting any FDI and global partners -mismanagement undermine any economic progress -instability on ethnicity and religion in these countries lead to poor long-term investment, hindering development

Question 31

economic reasons for why The Sahel Region is a detached place

Answer 31

there is wide spread poverty here, with low levels of industrialisation and heavy reliance on the primary sector of work- subsidence farming, with families only producing enough for themselves, and not the global market- hard to compete -poor infrastructure and low literacy rates make it an unattractive region for offshoring or FDI

Question 32

social reasons for why The Sahel Region is a detached place

Answer 32

there is limited access to education or higher education basis, and healthcare, which reduces the workforce's productivity and global competitiveness -social inequality and high populations strain the limited resources in these regions -ongoing violence and criminal activity disrupts any trade routes

Question 33

environmental reasons for why The Sahel Region is a detached place

Answer 33

countries within the Sahel region are landlocked, meaning they rely on poor quality roads for transportation, which costs lots of money for exportation, not attracting foreign markets or FDI -desertification and droughts have severely impacted agriculture and water availability for any productive and fertile land, weakening economic resilience -climate change has reduced land area available for agricultural exports production -people are forced to migrate, distablishing the nation more due to environmental challenges