Globalisation

Question 1

Define globalisation?

Answer 1

The increasing connections between people and places= the integration of economies and societies

Question 2

What are types of flows within globalisation?

Answer 2

Commodities (goods)
Capital (finance)
Information
Migrants and Tourists

Question 3

How has the internet increased globalisation?

Answer 3

Logistics companies such as DHL use companies such as BLACKROCK to allow capital to flow internationally

Question 4

Define trade Bloc?

Answer 4

A group of countries have an agreement to trade without as many barrier= liberation of trade eg: the Schengen agreement

Question 5

What are the different types of globalisation?

Answer 5

Cultural- the spread of western ideas such as globalisation- GEORGE Ritzer’s “Mcdonaldisation concept”
Political- the growth of trade blocs as different countries work together eg: World Bank
Economic- Increased MNC’s and TNC’s eg:Apple
Social- increased number of international migrants, increased quality of education

Question 6

Is globalisation new/ founded within the 21st century ?

Answer 6

NOT a new process- THE BRITISH EMPIRE

However the 21st Century has lead to “leap frogging”- not using landlines and just mobile phones

Question 7

Define time-space Compression?

Answer 7

ICT advances have lowered the costs of global communications over time, making the world feel closer together/ compressing distances.

Question 8

What three things can increase FDI?

Answer 8

Removal of tariff’s= taxes on goods that are imported and exported

Removal of quotas= limits on the number of goods that can be exported

Free movement of people eg: EU

Question 9

What does globalisation affect on an international scale?

Answer 9

International Trade (The import and export of goods and services between countries)
International Investment (FDI)

Question 10

What significant event affected International Trade?

Answer 10

The 2008 Global Financial Crisis
The pattern of global trade is now changing, developed countries will now invest in undeveloped and emerging economies (Mexico) instead of developed countries.

But change is SLOW (In 1995 African countries only held 2% of world trade)

Question 11

What two factors have lead to an increase in International Trade?

Answer 11

Trade blocks introduction

A rise in fair trade- increases trading supports in less developed countries.

Question 12

What is FDI?

Answer 12

When countries invest in another country in order to generate a profit

“ETHICAL INVESTEMENT” is on the rise- when a person, group or company invests in areas that are considered “socially responsible”.

Question 13

What factors affect the chance of FDI?

Answer 13

Size of Market
STABILITY- not civil war
Possibility of EXTRACTING RESOURCES
Access to FINANCIAL SERVICES eg; Luxembourg has a large banking sector.

Question 14

Which organisation sets the Trade Rules?

Answer 14

WTO- World Trade Organisation

• Countries can’t use trade tariffs to create protectionism for their trade
• Countries should promote free trade eg: by removing as many barriers as possible
• Countries should act PREDICTABLY in their trading eg: not raising the tariff on products when the deal has been reached
• Should be a FAIR COMPERTITION for trade.