Globalisation

Question 1

Globalisation is…

Answer 1

the ever-increasing interconnectedness between countries

Question 2

Types of flows in globalisation

Answer 2

• Commodities (goods)
• Capital (finance)
• Information
• Migrants & Tourists

Question 3

Types of Globalisation: Economic help in the acceleration of globalisation

Answer 3

Transnational companies (TNCs):
- The volume and influence of TNCs have increased
- Many TNCs have incomes higher than GDPs of many
countries

Online purchasing:
- online purchasing between countries is becoming increasingly common

Stocks:
- are traded from across countries and countries invest in each other, Foreign Direct Investment (FDI)
- Some financial businesses (pension funds and Investment banks) trade large amounts of currencies in order to make profit

Question 4

Types of Globalisation: Political help in the acceleration of globalisation (+ examples)

Answer 4

Trade blocs:
- have become more influential and have reduced tariffs and other protectionist measures.
E.g.
- NAFTA (North American free trade agreement)
- EU (European union)

IGOs:
- work to harmonise economies, whilst promoting democratic ideology, (e.g. The world Bank)

Worldwide media outlets:
- political views and ideology are expressed in worldwide media outlets (e.g. BBC)

Question 5

cultural help in the acceleration of globalisation

Answer 5

Westernisation of other (often developing) parts of the world

Question 6

Migration

Answer 6

• international migration has led to extensive family networks living across the globe, leading to the spread of culture and finance (through payment)

Question 7

Technology

Answer 7

Internet:
- The internet has rapidly allowed the spread of information and Knowledge

Social networking sites:
- have become very popular
- networks can allow the spread of culture, ideology, opportunities for migration and tourism

Server farms:
- Enormous server farms exists currently (e.g. Microsoft’s data centre in Washington) which store substantial amounts of data

Question 8

Flow of commodities

Answer 8

Imports:
- Goods can easily be imported, increasing countries interdependence on one another (UK bottled water imported from Fiji which is 10,000 miles away)

Manufactured goods:
- The volume of manufactured goods has increased rapidly due to low cost countries such as bangladesh and vietnam

Question 9

What are regional Blocs?

Answer 9

a group of countries or political parties with common interests who have formed an alliance.

Examples:
- ASEAN (Association of southeast Asian Nations)
- NAFTA (North American Free Trade Agreement)

Question 10

What is Economic globalisation?

Answer 10

The increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services. Also the wide and rapid spread of technologies and international capital flow.

International Capital Flow = the transfer of financial assets, such as cash, stocks, or bonds, across international borders.

Question 11

What do FDIs (foreign direct investment) do to help globalisation.

Answer 11

An increase in FDI will increase the demand for the currency of the receiving country, and raise its exchange rate.

And an increase in a countries currency will lead to an improvement in its terms of trade.

Question 12

Factors in Globalisation - Transport

Answer 12

Science and Technology are involved in almost everything we know and use (e.g. smartphone). You can shop, chat with people all over the world, find transport, have access to the news and information, check the weather etc.

Transport:
- transport has improved and has reduced the costs of production and disruption
- This is because transport has become cheaper and faster
- lower cost of ocean shipping means the constant transport of large cargo ships becomes more common

This factor has completely shaped the route of globalisation.

Question 13

Interdependence

Answer 13

The dependence of two or more people or things on each other