G 4 and 5 and 6

Question 1

globalization definition and forms

Answer 1

an increasing interdependence of countries
economic: accelerated by the growth of TNCs
social: the impact of western culture, art, media, sport and leisure activities around the world
political: the growth of western democracies and their influence on poor countries, and the opening up of centralized economies

Question 2

the KOF index of globalization

Answer 2

index covers the economic, social, and political dimensions of globalization
economic dimension: long distance flows of goods, capital and services, foreign direct investment (36% of index)
social dimension: the spread of ideas, information, images and people, international toursim, and cultural proximity (the number of mcdonalds and ikea per capita) (38% of index)
political dimension: the number of embassies in a country and membership of international organization (26% of index)

Question 3

EY globalization index

Answer 3

measures 60 largest countries by GDP according to the level of globalization and it looks at the oipenness to trade, capital flows, exchange of technology and ideas, labour movements and cultural intergration

Question 4

superpowers vs soft or regional powers

Answer 4

superpowers are countries that influence policy on an international scale is different world regions at the same time, they have economic cultural military and geographical influence on a large scale : USA, USSR, China
soft power refers to ability to change individuals, communities, and nations without using force, by for example, spreading their films, movies, therefore spreading their language as USA did.
supoerpowers have soft and hard power. hard is by force

Question 5

USA as the superpower

Answer 5

during the cold war, usa was a superpower but after 1991 they military involved in Iraq and Afghanistan, some argue that USA is loosing its superopower label, however, military speaking it has the world’s largest and most technologically advanced fleet of warplanes, ships, tanks, etc. they are able to supply weapons and military training to many countries around the world. spending is billions, employs over 2 million people

Question 6

China as a rising superpower case study

Answer 6

China’s demand for raw materials for this economic growth had a major impact on world markets in oil, iron, metals.
it has over 30% employed in industry which accounts for 40% of GDP and this reflects the fact that China has become the world’s leading manufacturing centre. according to IMF, in 2014 China produced 17% of the world’s gross domestic product, surpassing the USA’s 16%. However, anywhere else it still a regional supoerpower.

Question 7

OECD

Answer 7

ORGANIZAITON FOR EUROPEAN ECONOMIC COORPERATION
for the reconstruction of Europe after the WW2
it aims to idenitfy problems and discuss them, find policies to solve them, like restore confidence in markets, reastablish healthy public finances, etc

Question 8

OPEC

Answer 8

ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES
tackles oil prices cuts by Amercian and European oil companies.
in 1979 it produced 65% of world’s petroleum but only 36% by 2007, MIC gained political and economic power therefore must be in good relations

Question 9

remittances

Answer 9

emigrants who travel from poorer to richer countries. the most receives is south Asia like india and pakistan.

some countries are very dependent on remittances. 1\4 haiti’s GDP comes from remittances and in jordan over 1\5th. in india and china, the two largest recipients, remittances in 2014 acocunted for around 3% and 1% of GDP.

Question 10

TYPES OF ILLEGAL FLOWS

Answer 10

trafficked people, fraudulent medicines, flows of drugs

Question 11

The international monetary fund (IMF)

Answer 11

international organization that oversees the global financial system.
member states with balancce of payment problems may request loans to help fill gaps between what they earn or are able to borrow from other official lenders.

critics: they sometimes increase taxes and reduce social spending even when the economy is weak to generate government revenue and reduce spendings.

Structural adjustment programmes - loans from the IMF requiring the borrowing country to cut its government expenditure, reduce state intervention in its exonomy and promote liberali`ationa nd international trade. encourages long-term economic growth.

requirements:
- greter use of a country’s resources
- social and economic reforms to increase economic efficiency
- a reduction in the active role of the state in the economy

Question 11

The world bank

Answer 11

established in 1944 as a source of financial and technical assistance to LIC and NIC, it mission is to fight poverty by providing resources, sharing knowledge and building capacity.
it focuses on the sustainable development goals

critics:
its free-market reform policies are harmful to economic development
since it is run by a small number of rich countries it might not work due to the fact that these countries can modernize only with money aids.

Question 12

merchandise trade by region 2005-2015

Answer 12

this trade was worth over 16 trillion dollars in 2015 and was dominated by china and usa. top 10 trading nations accounted for over half of theworld’s trade in merchandise in 2015.
in 2015 china remained the world’s leading exporter and the USA the world’s leading importer. China’s exports in 2015 were valued over 2 trillion dollars and usa by 1.5 trillion. The usa imports were over 2.3 trillion dollars and china’s around 1.7 trillion

Question 13

development aid - donors and recipients

Answer 13

donors - HICs (USA, Japan, France and UK)
recipients - NICs and LICs (sub-saharan africa, eastern europe, russian and south east asia)

Question 14

loans

Answer 14

a trasnfer of money or skills that require payment over a set time. the main pattern of loans is a transfer from richer countries to poorer countries.

Question 15

debt relief

Answer 15

sub saharan africa includes most of the countries classified as heavily indebted poor countries. in 1962 sub-saharan africa owned 3 billion dollars. in 2017 its debt was about 230 billion. the most heavily indebted country is nigeria around 113 billion dollars.

Question 16

trafficked people

Answer 16

global scale crime. The UN office on drugs and crime reported in 2016 that there were 63 000 over victims of trafficking between 2012-2014 from data provided by 106 countries.

Question 17

fraudulent medicines

Answer 17

the trade according to UNODC in fraudulent medicines from east asia and the pacific to south east asia and africa is worth about 5 billion a year. The world health organization claims that it makes 1% of medicines in HIC and 30% in LIC.

Question 18

flows of drugs

Answer 18

drug trafficking is a major global trade involving the cultivation, manufacture, distribution and scale of substances prohibited by the law. it is worth more than 300 billion dollars or 1% if a total global trade

Question 19

FDI (foreign - direct - investment) + case study

Answer 19

investment by a company into the structures equipment or organizations of a foreign country. it does not include investments in shares of companies of other countries.
advantages in HIC - cheaper imports, growth in LIC may lead to a demand for exports from HIC, greater industrial effciency.
disadvantages in HIC - rising unemployment of unskilled workers
large gaps between skilled and unskilled workers

advatnages in NIC AND LIC - employment growth in labour-intensive manufacturing spreads wealth. higher export generated income
disadvantages in NIC and LIC- jobs tend to be more concentrated in the core region of urban areas, TNCs may be exploitative, food supplies may be reduces as people give up agriculture.

Botsava has received FDI form “DE BEERS JEWELERS” to develop its diamond business it has increased Botsava’s economy and improved their economic stability more investments were made - GDP per capita before the investment 70$, after, GDP per capita is now over 7000$

Question 20

trading bloc

Answer 20

type of intergovernmental agreement, often part of a regional intergovernmental organization, where barriers to trade (tariffs and others) are reduced or eliminated among the participating states.

Question 21

Free trade areas

Answer 21

area where members abolish tariffs and quotas on trade between member nations but restrict improts from non-member countries. Nafta is an example

Question 22

Customs unions

Answer 22

an arrangement between countries to allow free trade between member countries but impose tariffs on external countries that wish to trade with them

glaudesnė ekonominio bendradarbiavimo forma, laisva prekyba tarp narių, visos narės taiko bendrus išorės tarifus importui iš užsienio

Question 23

common markets

Answer 23

customs unions ehich in addition to the free trade in goods and services allow free movement of people and capital

Question 24

economic unions

Answer 24

groups of nations that not only allow free trade and free movement of people and capital, but also require members to have common policies on such sectors as agriculture, industry and regional development. example: european union

Question 25

shrinking world concept

Answer 25

everything is reachable online, everyone is able to get what they want via online and USA, Europe and Singapore are at the centre of the world’s digital networks. not everyone benefit from it because elderly or immigratn do not have equal access.

when the trade was dominated by physical goods, it was largely dependable on TNCs in HIC, however, now global data flows are accelerating, more countries and smaller enterprises are increasingly able to compete on the global market.

Question 26

UN SUSTAINABLE DEVELOPMENT GOALS

Answer 26

started from 2015 - 193 countries of the United Nations adopted the 2030 agenda for sustainable development.

efforts like to end poverty, reduce inequalities and tackle environmental degradation, including climate change

Question 27

Human development index

Answer 27

The HDI was created to emphasize that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone.

measurment of development
- life expectancy
- mean years of schooling, expected years of schooling,
- income adjusted to local cost of living, that is, purchasing power

with the highest HDI the HIC are most common, like Norway, Australia, Switzerlans, Germany, but countries with the lowest HDI are LIC - Central African republic, Niger, Chad, Burundi

Question 28

Gender Inequality index

Answer 28

measures gender inequalities
- reproductive health - measured by maternal mortality ratio and adolescent birth rates
- gender empowerment measured by the proportion of parliamentary seats held by women
- economic status

directly connected - when there is inequality, then smaller GDP, but when equality - GDP is high.

Question 29

microfinance

Answer 29

its lending schemes are aiming to reduce poverty, address social issues including gender discrimination and enable market access for the poor. Most pople take loans in rural areas, mainly farmers that cannot access other forms of finance. It is lend with an idea that they will somehow improve their business and would have an opportunity to develop economically. This however is mostly used to repay old debts and does not work as people go deeper into the poverty. People most likely would use it for health or food rather than for improving business.

Question 30

corporate social responsibility + case study

Answer 30

refers to the practices of companies to manage the social, economic and environmental impacts of their activities, and take action to reduce these impacts if necessary.

rana plaza disaster, bangladesh
on 24th of april 2013, a factory collapsed killing more than 1 100 people, mostly children and women. the owners threatened to fire those who did not carry on as usual even after warning that the building is unsafe. after thsis many companies have improved their CSR.

Question 31

diaspora

Answer 31

the scattering of a population
irish - contains 80 million people around the world (usa, canada, europe) which is 14 times bigger population of Ireland.

Question 32

TATA GROUP AS TNC

Answer 32

TATA group comprises over 100 companies, covering sectors such as cars and consulting, steel, tea.

Tata steel is India’s largest steelmaker and Tata consultancy services in Asia largest software company. Tata global beverages is the world’s second-largest maker of branded tea.

Tata steel in India operates in over 80 countries and employs about 600 000 people, over half of its revenue comes from outside India.

it prides itself above all on its culture (loyalty, dignity and corporate social responsibility). the company in 1912 introduced a 8hour working day, paid leave in 1920.

Question 33

TNC

Answer 33

organization that operates in a number of countries. Generally, TNC headquarters are in HIC cities, with research and development and decision-making concentrated in growth areas of hIC. the assembly and production located in LIC and NIC and depressed parts of the HIC.

Question 34

MULTI-GOVERNMENT ORGANIZATIONS

Answer 34

operate across a number of different states. some are international like World bank or IMF or the UN, and other are regional as the European Union.

most of them focus on economic matters to increase trade and interactions. however, there is increasing nationalism and calls for protectionism in many countries.

Question 35

EPZ (EXPORT PROCESSING ZONES) vs FTZ (FREE TRADE ZONES)

Answer 35

EPZ are areas that offer incentives (skatina) to foreign companies to develop export-oriented industries.

FTZ are areas where goods can be stored, manufactured and re-exported without customs duties (taxes)

Question 36

concept of empowering women

Answer 36

UN women and UN Global Compact have developed the following women’s empowerment principles:

establishing corperate leadership for gender equality
treat all womena nd men fairly at work
ensure the health, safety, and well-being of all workers
promote education, training and professional development for women
promote equality through community initiatives
measure and report on progress to achieve gender equality.

in social media, women are enabled of political activism:
- hashtag activism bringing women’s issues to the forefront of political agendas
- tackling violence against women through social media tools
- public accountability towards gender equality.

Question 37

technologies for transportation

Answer 37

for communication is satellite technology to transmit data, or OFCs (optical fibre cables) - have a huge carrying capacity and a very high speed signal.

containers for non-bulk cargo goods to be transported worldwide. TEUs (20 foot) and FEUs (40 foot), they are carried by ships, trains.

jets are also very importnat in transportation.

Question 38

friction effect of distance or distance decay

Answer 38

suggests that areas that are close together are usually more likely to interact with one another whereas areas far apart are less likely to interact with one another.

Question 39

changing trends concerning internet and technologies

Answer 39

facebook had 50 million users in one year, twitter took even less time.

mobile cellular subscriptions are most frequent in north Asia and europe, as well as south America

internet users are most present in asia, europe and north and south america.

since 2005 sales of mobile handsets have increased by 20% PER YEAR in Africa and 15% per year in Asia and Latin America. China and India havbe more than 1 billion mobile phones each.

smartphones ables people to have access to internet, financial services, can improve health care, for example in Bangladesh where 90% of births occur ourside hospitals and clinics, smartphones can help to notify midwives when labour starts. such scheme has resulted in almost 90% of briths taking place with a midwife present.

it can help to have online courses that are available for anyone.

HOWEVER, poor and old usually do not have the knowledge or resources to have such thing.

Question 40

Fair trade

Answer 40

trade that attempts to be socially, economically and environmentally responsible. it is trade in which companies take responsibility for the wider impact of their business.

It is to ensure that producers in poor countries get a fair deal, including a fair price for goods and services, decent working conditions, security, etc.

Question 41

culture

Answer 41

way of life of a particular society or group of people. It includes - beliefs, traditions, rituals, dress, language, etc.

music - usa and uk
religion - islam and christianity
language - english

Question 42

cultural diffusion

Answer 42

the spread of cultural traits, occurs when two countries intermingle.

this occurs when members of different cultures interacts with one another through trade, intermarriage or warfare

the export of entertainment is one of the most important sources of cultural diffusion.

Question 43

cultural imperialism

Answer 43

this usually results from economic forces, as when the dominant culture (usually USA) captures markets and gains influence and control over the popular culture of other countries.

it is a cultural diffusion just forced, when one culture defeats another and forces its beliefs and customs on their people.

countries are pressured to shape their culture to follow the values and structures of the dominant.

Question 44

Glocalization

Answer 44

Glocalization is when an international corporation modifies some of its offerings in order to accommodate local consumer tastes or preferences.

Question 45

local commercial production vs globalized production

Answer 45

local:

• fresh food, local products in season, smaller carbon footprint
• higher cost of local farm products, less choice

global:

• ability to produce foods cheaply and to a uniform standard, cheap food available year round, all type of food available
• higher costs of inputs, especially fertilizers and oil, indirect costs such as pollution control

Question 46

non-government organizations NGOs

Answer 46

global environmental movement, anti-globalization movement and women’s empowerment movement attempting to reform the global system.

examples: Greenpeace, The Fair Trade Network. - all agree that major globalizing bodies such as the world bank and the G7/G8 countries are pushing an agenda that favours rich western countries

they aim to:
- free access to information
- global civil society more accountable and transparent

Question 47

CIVIL SOCIETY

Answer 47

society composed of all the civic and social organizations or movements that form the basis of a functioning society. include non government organizations (NGOs), trade unions, academic institutions

Question 48

cybercrimes

Answer 48

hacking, identity theft

Question 49

how does technologies invade privacy?

Answer 49

by placing taps on the cables, state can achieve almost complete control of telecommunications and online communications, for example in by Egyptian or Libyan governments because of Arab-spring. their governments also buy technologies that has loss of personal freedom because the industry is virtually unregulated and often operates outside existing legal standards.

Question 50

supply-chain risks

Answer 50

natural disasters, extreme weather, bangladesh floodings usually disrupt the supply chain there, and the outbreak of Ebola in West Africalimited the movement of people and goods to and from the region.

political factors include protectionism, trade restrictions, conflicts. supplies of goods from the midle east and north africa were disrupted becuase of arab spring. over ukraine due to conflict with russia.

economic factors include trade restrictions imposed by the government. debt crisis in Europe among the PIIGS (portugal ireland italy greece and spain) provided much economic uncertainty to risk managers.

Question 51

globalization disadvantages

Answer 51

increases risks for businesses and individuals as hacking, identity theft, and not enough personal freedom. there are also emerging threats to states including tax avoidance by TNCs and wealthy individuals. there is a link between increased nationalism and globalization. this also results in technological developments like drones and 3D printing. Drones are linked with civilian deaths in war and increased insensitivity among military personnel, while 3D printing has created new organs and tissues but also weapons.

Question 52

how is agriculture a pollutor?

Answer 52

now they have adopted technologies as agro-chemicals and machinery that highly contributes to greenhouse has emissions, air pollution, water polluion, land erosions and loss of biodiversity.
the cleaning up the chemicals caused by industrial farming costs 2.3pounds in the UK alone per year. - the cost of agriculture with all of its losses nutritien run-offs and so one is 26billion

AGRICULTURE IN OTHER COUNTRIES ARE SUFFERING due to this, because, like flower farms in Kenya that are owned by UK, for example, are using as much water as 100,000 small farmers do in the local area.

Question 53

GDP vs GDP per capita

Answer 53

GDP
total money value of all the finished goods and services produced within a country’s borders in a specific time period

GDP PER CAPITA

economic metric that breaks down a country’s economic output to a per-person allocation.

for economic development we use GDP per capita

Question 54

Human poverty index

Answer 54

a composite index of poverty that focuses on deprivations in human lives, aimed at measuring poverty as a failure in capabilities in multiple dimensions, in contrast to the conventional headcount measure focused on low incomes.

HPI 1 - for low and middle income countries
three dimensions:
longevity - as measured by the probability at birth of not surviving to age 40
knowledge - as measured by the adult illiteracy rate
living standards, public and private - as measured by the percentage of people without sustainable access to drinking water, without access to health services, and the percentage of children underweight for their age

HPI 2 - for High-income countries
four dimensions:
longevity - as measured by the probability at birth of not surviving to age 60
knowledge - as measured by the adult functional illiteracy rate
living standards - as measured by the percentage of people living below the income poverty line
social exclusion - as measured by the long-term unemployment rate (12 months or more)