4.1 Globalisation

Question 1

What does BRICS and MINT stand for

Answer 1

Brazil, Russia, India, China, South Africa

Mexico, Indonesia, Nigeria, Turkey

Question 2

Globalisation and the reasons for it

Answer 2

The increased integration between countries and the growth of international trade.

Increased infrastructure and communication
Migration
FDI
Political stability
Increased size of labour force
Reduction of trade barriers
Increase in transnational companies

Question 3

Opportunities due to emerging economies

Answer 3

Higher employment so more disposable income = higher demand

More skilled workers due to better quality of education

Increased FDI

Better infrastructure

Question 4

GDP

Answer 4

Gross Domestic Product- the measure of all the good and services in a country divided by the population
(A way of measuring growth)

Question 5

HDI

Answer 5

Human Development Index- combines life expectancy, years of schooling and gross national income to measure growth

Question 6

Why is health an important indicator of a country’s growth

Answer 6

People have better health and live longer in wealthier countries as they have more access to healthcare

Question 7

Why is literacy an important indicator of a country’s growth

Answer 7

Higher literacy rate is an indication of the level of skills in the workforce

Question 8

FDI

Answer 8

Foreign Direct Investment- direct investment into a country which coild involve setting up a production facility, a joint venture with a local firm or buying assets in a foreign country.

Question 9

Why is exporting less risky than setting up production in a foreign country?

Answer 9

Because the business does not need to invest capital into a foreign market, where it may have little knowledge and control

Question 10

Tariff and its effect

Answer 10

A tax on imports increases government income and makes domestic businesses more competitive

Question 11

Import Quota

Answer 11

Physical limits set on the number of goods that can be imported

Question 12

Subsidies

Answer 12

Government grants given to support exporting businesses so they can lower their prices in order to compete globally

Question 13

Risks of protectionism

Answer 13

May force businesses to use more expensive domestic therefore making them less competitive

Businesses may move abroad to avoid trading barriers