Chapter 15

Question 1

globalization

Answer 1

Globalisation is the process by which countries become much more interdependent. This is achieved
through increased trade and improved international collaboration through organisations such as The
World Trade Organisation (WTO), The International Monetary Fund (IMF) and The World Bank.

Question 2

factors that have caused an increase in globalisation:

Answer 2

Rise in real living standards

Multinational corporations (MNCs)

Reduced transport costs

Global institutions

New technology

Question 3

How does a rise in living standards increase globalization

Answer 3

as economies have achieved economic growth, consumers have seen
a rise in incomes and this has meant that they have wanted to try new goods and services or explore
new places, and this has led to huge movement around the world and a vast cultural exchange bringing
increased trade between countries.

Question 4

how do Multinational corporations (MNCs) increase globalization

Answer 4

as firms have got bigger, they have expanded outside of their
original market in order to make more profit. They do this in several ways, for example, setting up
production facilities in places where labour and other costs are cheaper or setting up shops in order
to target a new market.

Question 5

how does Reduced transport costs increase globalization

Answer 5

over several years, transportation costs have reduced due to new technology
meaning transportation is financially viable benefiting producers and consumers from this new technology. Leading to cheaper flights and a cultural exchange

Question 6

Global institutions

Answer 6

it becomes easier to trade

Question 7

new technology

Answer 7

over the last decade, we have seen how much easier it is to communicate withthe
other side of the world due to advances in technology such as the internet. This has made it easier for
businesses to expand across the world and allow workers to communicate across the world.

Question 8

GDP per capita is used to measure what

Answer 8

GDP per capita
is used as it gives a measure of development that relates to the population as whole

Question 9

if GDP per capita is high it suggests what for the economy

Answer 9

it suggests the economy
is well developed and the population can afford goods and services that boost their welfare

Question 10

factors for measuring development

Answer 10

Life expectancy
GDP per capita
Access to health care
Education

Question 11

How is life expectancy act as a measurement for development

Answer 11

if a country sees an increase in life expectancy, then it is fair to suggest that there
has been development within their country as it shows that they have improved their health care facilities,
can afford better diets and have better sanitation. It also might reflect greater education as the population
know how to look after themselves and better governance, as there is less fighting over resources and
better allocation of resources.

Question 12

how does Access to health care act as a measurement for development

Answer 12

if a country has better access to health care, then you would expect it to have
a healthier workforce and then further development is likely. Family planning can also be improved
because if children are expected to live, then families can plan ahead for the future. High levels of child
mortality and maternal deaths in child birth reflect poor access to health care, as does a high rate of
diseases that have little impact in the developed world.

Question 13

how does Education act as a measurements for development

Answer 13

f a country can provide education for all, then there is a likely to be an increase in the literacy
rate, which acts as a sign of development. The number of years of schooling has a clear role to play here,
as well as bridging the gap between males and females being educated. It is the case in some developing
countries that many girls are not educated compared to boys.

Question 14

A developed country

Answer 14

y is one with a high GDP per capita and has seen a movement from the primary/
secondary sector to the tertiary sector as its main contributor to GDP

Question 15

A less developed country

Answer 15

is one with a low GDP per capita and still has an economy that is highly
dependent on the primary sector but has seen some growth in the secondary/tertiary sector.

Question 16

For developed countries:
Benefits for developed countries of globalization

Answer 16

Consumers have benefited from globalisation as there has been an increase in the range of goods and
services for them to purchase. Competition should also lead to an increase in the quality of the goods and
services, as well as innovation within those markets, which also leads to better products.

Consumers are able to visit more places and experience new cultures, and this can be of benefit to
society as a whole.

Question 17

For developed countries:
Globlisation increases peoples incomes but how is it not worth it

Answer 17

Consumers’ incomes have risen everywhere due to globalisation, there has been a rise in demand for
scarce resources. As demand increases, this leads to a rise in prices (as we have seen with commodities
such as oil and copper) which then makes people worse off in real terms.

Question 18

For developed countries:
They might also benefit from the increased amount of immigration that has occurred across the globe… how?

Answer 18

This has meant ‘skills gaps’ have been filled in the developed countries and this has suppressed business
costs and therefore lowered prices.

Question 19

For developed countries:
disadvantages of immigration

Answer 19

However, increased immigration does mean that demand has increased for local goods and services
and this can be problematic for consumers as prices will rise accordingly.

Question 20

For developed countries:
advantage of producers being able to set up almost anywhere in the world

Answer 20

Producers are able to set up almost anywhere in the world and this means they can find the workers
with the lowest wages plus governments with the lowest taxes and environment regulations in order to
lower their costs and boost their profits.

Question 21

For developed countries:
Producers also benefit from expanding across the globe

Answer 21

this also allows
them to benefit from economies of scale, which reduces their average costs, which should increase
profits. They can also learn quickly from other producers as ideas spread rapidly

Question 22

For developed countries:
Producers costs from expanding across the globe

Answer 22

However as economies are interconnected, producers are often trying to cope with quite volatile
markets. This has certainly been the case for manufacturing firms in the UK that have found it
extremely difficult to compete with Asian producers and have found themselves collapsing due to this.

Question 23

For developed countries:
producers that are able to buy resources from all around the world allows them to do what benefits

Answer 23

Producers are able to buy resources from all around the world and attract skilled labour, which should lead
to lower costs and boosting productivity

Question 24

For developed countries:
producers that are able to buy resources from all around the world allows them to do what costs of this

Answer 24

However the price of certain resources may increase due to a rise in global demand and it may actually
lead to increased costs.

Question 25

For developed countries:
workers benefits of globalization

Answer 25

Workers have more opportunities in the global market place as long as they are free to move. However
if producers are selling more due to a globalised economy, then profits are likely to rise and workers can
receive an increase in their pay.

Question 26

For developed countries:
disadvantages for workers of globalisation

Answer 26

However many jobs have been lost in developed countries due to outsourcing by producers to cheaper.

Question 27

For developing countries:

how may producers struggle to cope with the abroad competition

Answer 27

Producers in developing countries may struggle to cope with increased competition from abroad as
they do not receive as much assistance from their governments due to a lack of finance. The amount of
subsidies that developed countries provide their farmers can really skew the specialisation model of world
trade.

Question 28

For developing countries:
However, even though local producers can be faced with increased competition and may not be able to cope advantages

Answer 28

However, even though local producers can be faced with increased competition, it could lead to better
infrastructure as governments will often build more roads and ports in order to attract foreign direct
investment and then benefits all producers within a country. This is an example of externaleconomies
of scale

Question 29

For developing countries:
why may producers find it difficult to retain the most skilled workers

Answer 29

as there is an opportunity now to move
abroad and find jobs elsewhere.

Question 30

For developing countries:
workers who go abroad still benefit their country they were originally in how suggest a way

Answer 30

However, it is important to note that those who earn money overseas will often send money back in the
form of remittances to their family and this can increase demand domestically for local producers.

Question 31

consumers in less developed countries can access global brands but cannot buy life saving products such as medicine and payment systems on your phone.

Answer 31

because they don’t have these products in their local markets

Question 32

how may rising prices in lower income countries effect them in terms of welfare

Answer 32

living standards would decrease as they can afford less.

Question 33

ethical argument about MNCs exploiting less developed countries both sides

Answer 33

Workers in less developed countries have seen their incomes improve as a result of globalisation but there
is an argument to be made that they are exploited by MNCs and their work is very precarious as firms can
easily move from one country to another

However globalisation has opened up the job market and there are clear opportunities for workers in
the less developed world.

Question 34

why are less developed country’s costs even greater even though r that many of the costs and benefits of globalisation for developed countries are
the same for less developed countries

Answer 34

but the lack of money in the less developed country makes many of the
costs even worse as there might be no support structure for those workers or producers that struggle due to
globalisation.

Question 35

globalization effects the environment how

Answer 35

Increases in trade and income lead to a large rise in pollution as more goods and services are consumed
that lead to resources being used up. This is particularly the case in less developed countries as it has been
argued that much of the ‘dirty’ production (significant pollution) has been outsourced to them. It is also true
to suggest that rise in consumption has devastated the rainforest and other natural habitats as the plundering
of the planet continues. Rising sea levels due to climate change is leading to situations where countries are in
threat of being submerged (such as Bangladesh) and this has a knock-on effect on other countries as well as
this leads to migration caused by environmental damage. This leads to a huge strain on other countries and
therefore it impacts social and economic sustainability also. However, increased globalisation has meant that
as countries have become more interdependent, general agreements are being reached on certain issues such
as the environment. There is also a greater sharing of information across the globe that can also help improve
environmental sustainability. As countries have higher incomes, they can invest more into ‘green’ technology and
this can lead to a sustainable future.

Question 36

Economic how has globalisation effected it

Answer 36

From an economic perspective, globalisation has led to continued growth through trade and this has created
increases in income for the majority. However, it is important to note that it has also created greater inequality

Question 37

Social how has globalisation effected it

Answer 37

how has globalisation effected it