Globalisation

Question 1

What is Globlastion

Answer 1

the process by which national economies, societies id cultures have become increasingly integrated through the global network of trade, telecommunications, transport and immigration.

Question 2

What is an economy of scale

Answer 2

Cost advantage of large scale output of a product as savings are made by spreading out the cost over more units

Question 3

What are international flows of capital

Answer 3

All financial transfer between companies for investment, trade or production

Question 4

What are remittance

Answer 4

Transfers of money from migrants to relatives back home

Question 5

What is migration

Answer 5

Generally the outmigration of labour from poorer to richer nations

Question 6

What is FDI

Answer 6

Foreign Direct Investments. Money or assets invested by TNCs in overseas enterprises. Either by merging with another company, setting up subsidiary companies or through shares.

Question 7

What are the BRIC countries

Answer 7

Brazil, Russia, India and China. Rapid economic advances during 1990s

Question 8

What are the MINT countries

Answer 8

Mexico, Indonesia, Nigeria, and Turkey. Recently emerging economies after the year 2000.

Question 9

What is the repatriation of profits

Answer 9

Sometimes known as economic leakage. TNCs will extract profits from abroad and bring them back to their HQ

Question 10

What is aid

Answer 10

International Monetary Fund which aims to allow economic stability and foster international trade.

Question 11

What is IMF

Answer 11

International Monetary Fund which aims to allow economic stability and foster international trade.

Question 12

What are the impacts of flows of labour

Answer 12

• Most migrants have some level of education
• Can afford to move, therefore not very poorest in giving nation
• Long-term issue as people stop sending remittances after 2/3 generations
• Inter-continental as well as long distance

Question 13

What are the flows of services

Answer 13

An economic activity which is traded without the production of material goods

Question 14

What are high-level services

Answer 14

Services to business, such as finance, advertising

Question 15

What are low levels of services

Answer 15

Services to consumers, such as banking, travel, communication

Question 16

What are the impacts of flows of services

Answer 16

• Easily traded in a globalised world, no locational grounding, offices and call centres can be located anywhere
• Low-level services may be outsourced to developing nations, eg call centres in India

Question 17

What are the impacts of flows of products

Answer 17

1. Economic Impact: Product flows affect GDP, employment, and trade competitiveness.
2. Market Dynamics: Influence supply, demand, prices, and market stability.
3. Environmental Impact: Increase carbon emissions, resource depletion, and pollution.
4. Social Impact: Affect consumer behavior, access to goods, and lifestyle changes.
5. Technological Impact: Innovate logistics, automation, and real-time tracking.
6. Policy and Regulation: Govern trade agreements, customs, and environmental standards.

Question 18

What are flows of information

Answer 18

Both migrants and technology allow flows of information, recent and historic migrants allow for multiculturalism and information sharing |

Question 19

What are the factors in globalisation

Answer 19

Communication development
Transport development
Financial development
Information Systems
Security development
Trade agreements
Management systems

Question 20

What are the financial factors in globalisation

Answer 20

Linked to technological developments as well as relaxed trade barriers allowed by governments, the movement of finances around the world has grown hugely.

Question 21

What is protectionism

Answer 21

Putting barriers in place to prevent and reduce trade in order to maintain internal markets and own manufacturing industries

Question 22

What is trade and finance liberalisation

Answer 22

Groups such as the WTO encouraging governments to remove tariffs and barriers to trade, to encourage free movement of goods

Question 23

What is the World Customs organisation

Answer 23

An intergovernmental organisation noted for its work in areas covering the development of international conventions, instruments and tools on topics such as commodity classification, valuation, rules of origin etc.

Question 24

What is the EU secure operator initiative

Answer 24

Set up and run by the EU in order to ensure a secure and reliable end to end supply chain for all goods and services.

Question 25

How is air freight a factor in globalisation

Answer 25

Faster, more places reached, fresh goods transported in large quantities, anywhere in the world, cheap, ease of ordering goods

Question 26

How are cargo ships a factor in n globalisation

Answer 26

Shipping containers are standardised so can be transported universally, large quantities of goods can be transported easily, takes a long time but cheap and easy form of transport.

Question 27

How are warehouses and robotics a factor in globalisation

Answer 27

Anything can be ordered from anywhere in the world and arrive potentially next day due to ease of robotics, less likely to make mistakes and very quick. Robots run 24/7

Question 28

How are budgets airlines a factor in globalisation

Answer 28

Makes more places accessible for normal people, travel on a budget, competition between airlines increases the number of destinations

Question 29

What are trade blocs

Answer 29

A type of intergovernmental agreement where regional barriers to trade (tariff + non-tariff) are reduced or eliminated among countries

Question 30

What are the advantages of trade blocs

Answer 30

One economy, one workforce
Travel between countries is easy, free travel Encourages growth of economies, risk sharing Trade of services and people as well as goods

Question 31

What are disadvantages of trade blocs

Answer 31

-Countries by trad blocs but not in them struggle to trade
-Hinders the development of countries outside the trade blocs
-Creates problems sharing, if one country suffers, all do
-Uneven reward for inputs
-Migration issues, often uncontrolled
-Lack of national control and identify