Factors Affecting Globalisation

Question 1

What 3 factors affect globalisation?

Answer 1

Development of:
-systems
-technology
-relationships

Question 2

What are systems and how do they affect globalisation?

Answer 2

Ways of working that slow a specific function to be carried out. New systems make the flows of globalisation easier to cross national boundaries.

Question 3

How has technology affected globalisation?

Answer 3

Technology used for communication, information and transport has advanced rapidly allowing information to be shared globally and people and goods to be transported around the works efficiently.

Question 4

What does the global financial system do?

Answer 4

Governs flows of capital between countries.

Question 5

How did information technology advancement affect the financial system?

Answer 5

Allowed investors greater access to information meaning banks could easily find out whether Company was successful or struggling.

Question 6

What is financial deregulation?

Answer 6

Rules about what banks could do were relaxed such as letting banks invest in a greater range of businesses.

Question 7

What is a trade agreement?

Answer 7

An agreement that removes barriers to trade and makes a country agree to remove controls in exchange for another country doing so.

Question 8

Who regulates trade?

Answer 8

Countries governments.
They control what products enter the country and at what price.

Question 9

What are tariffs?

Answer 9

Taxes on products coming into the country.

Question 10

How do controls by governments affect the prices that companies can sell their products?

Answer 10

Controls make it more expensive for companies to sell their products abroad, as well as for consumers to buy them.

Question 11

What is a bilateral trade agreement?

Answer 11

A trade agreement between 2 countries.

Question 12

What is a multilateral trade agreement

Answer 12

A trade agreement between several countries.

Question 13

Who governs the global trade system?

Answer 13

The world trade organisation

Question 14

What does the global trade system do?

Answer 14

Set rules in hire countries can trade with each other and helps settle trade disputes.

Question 15

How have travel systems improved global business?

Answer 15

Improved transport systems (containerisation and faster travel) have allowed people and products to get around the world easier than ever.

Question 16

How have management and information systems increased the efficiency of companies?

Answer 16

• Supply chains have become global, production may be in developing to reduce costs.
  -Large companies benefit from economies of scale.
  -Companies can outsource
  -More casual contracts of employees

Question 17

What are economies of scale?

Answer 17

Larger companies can reduce average cost of making a product of they buy in bulk giving them an advantage over smaller companies.

Question 18

What is an economy of scale?

Answer 18

When larger companies buy materials in bulk to make production cost cheaper giving them an advantage over smaller companies.

Question 19

What is outsourcing?

Answer 19

When a company pays another company to do work to save costs. Eg: rather than developing a call centre will pay another company to take on these services.

Question 20

How has globalisation helped prevent security threats?

Answer 20

Globalisation helps create trading relationships so countries are interdependent so war would not be their best interest.

Question 21

How can globalisation make conflict more likely?

Answer 21

Developed countries might intervene in conflicts in developing countries to secure resources like oil.