Development and Globalisation

Question 1

Define development

Answer 1

An imporovement in a number of characteristics of a population. It can be economic, demographic, social, political, cultural

Question 2

Ways development can be measured

Answer 2

GDP - gross domestic product

GNP - gross national Product

Question 3

Define GDP

Answer 3

The total value of goods and services a country produces in a year

Question 4

Define gross national product

Answer 4

The total value of all finished goods and services produced by a country in a year plus all net income earned by that country and its population and its population from overseas sources

Question 5

What is the development continuum

Answer 5

Describes the difference between developed and undeveloped countries. Places greater emphasis on recognising the increasing gap between rich and poor countries.

Question 6

Define the development gap

Answer 6

The difference in wealth and associated development indicators eg life expectancy between developed and developing countries

Question 7

Better measures of development

Answer 7

HDI - human development index - figure below 0.5 is low level of development highest is 1

Question 8

What does HDI take into account

Answer 8

Life expectancy at birth
Adult literacy and education at primary and secondary and tertiary levels
Real GDP per capita

Question 9

Define foreign direct investment (FDI)

Answer 9

Investment by a TNC in countries other than its parent. Helps developing countries to develop.

Question 10

Define globalisation

Answer 10

The increasing interconnection of the worlds economic, political and cultural systems

Question 11

Define newly industrialised countries (NICs

Answer 11

Countries in the developing world that have undergone rapid industrialisation since 1960s

Question 12

Define the north south divide

Answer 12

Imagined line that separates the richer countries of north from poorer ones in south

Question 13

Define sustainable development

Answer 13

Development that meets the needs of the present without compromising the ability of future generations to meet their needs

Question 14

Define least developed countries ( LDCs)

Answer 14

Countries with very low living standards, low life expectancy. High infant mortality, low levels of education, . Imcludes sub Saharan countries.

Question 15

Who are the 2 main players in the global economy

Answer 15

Transnational companies ( TNCs)
Nation states as recognised by the un

Question 16

Forms of globalisation

Answer 16

Economic 
Cultural 
Political
Urban
Demographic 
Linguistic
Environmental

Question 17

Some believe globalisation began when

-late 19th century

Answer 17

• Transport and communication networks expanded around the world
• World trade growth - increase interdependence between rich and poor nations
• Capital flows expanded as European companies started operations in other parts of the world

Question 18

What two events shaped the processes of globalisation in the late 20th century

Answer 18

• Emergency of free market ideas

- Deregulation of world financial markets so no longer within their own national boundaries

Question 19

Types of trade blocs

Answer 19

Free trade areas
Customs unions
Common markets
Economic unions

Question 20

Key financial players

Answer 20

IMF - International Monetary Fund

The world bank

Question 21

Globalisation brought about a new international division of labour
- two major groups

Answer 21

• The highly skilled,highly paid decision making ,research and managerial occupations - in developed countries
• The unskilled, poorly paid assembly occupations in developing countries with lower labour costs

Question 22

What is global marketing

Answer 22

Marketing on a world wide scale taking advantage of global operational differences, similarities and opportunities to meet global objectives

Question 23

Case study for global marketing

Answer 23

Coca Cola

Question 24

Coca Cola case study

Answer 24

Company with a single product only minor elements are tweaked for different markets uses same formulas for all markets

Question 25

Positive impacts of globalisation

Answer 25

• Increases economic prosperity as well as opportunity especially among developing nations
• Enhances civil liberties
• Leads to a more efficient allocation of resources
• All countries benefit in the end

Question 26

Negative impacts of globalisation

Answer 26

• Opportunities in richer countries take talent away from poorer countries
• Impact on culture; more dominant nations eg USA dominate over other countries culture
• NICs taking advantage of countrys lower wage rate to employ a low cost Workforce commonly in sweatshops due to outsourcing of service work