Globalisation

Question 1

Definition of globalisation

Answer 1

Process of the worlds economies, political systems and cultures becoming more interconnected

Question 2

3 aspects of globalisation (3++)

Answer 2

Economic = long distance flows of goods, capital and services
Social = spread of ideas, info, images + people
Political = diffusion of gov policies

Question 3

What if there was NO globalisation

Answer 3

There would not be any interaction between different countries

Question 4

If there was complete globalisation

Answer 4

Whole world would act like a single community

Question 5

What does the KOF index do

Answer 5

It scores each country:
A = Most globalised countries = Canada + Australia
B = Not as globalised = USA, China and Russia
C = Least globalised = Afghanistan, Nepal + Myanmar

Question 6

What are global systems (2+)

Answer 6

Any organisations, groupings or activities that link different parts of the world
E.G = TNC operate in 2 or more countries = linking their economies

Question 7

What are the driving forces of glbalaisation (3)

Answer 7

Development of systems, tech, and relationships in a range of sectors

Question 8

How do systems create globalisation (2+)

Answer 8

Includes ways of working, procedures and methods of organisation that allow a particular function to be carried out
Easier for flows of information, capital, products, services and labour to cross national boundaries

Question 9

How has globalisation improved relationships (2)

Answer 9

Before WW2 most relationships between countries involved one country losing and another gaining
Nowadays relationships are based on trade and common rules – these allow everyone involved to gain

Question 10

Global Financial system what (2)

Answer 10

Governs the flows of capital between countries
Based on companies called investment banks

Question 11

Main role of investment banks (3)

Answer 11

To help companies raise capital by selling shares on behalf of those companies
People or groups who buy shares are called investors
They receive a fraction of the profits that the company makes

Question 12

What global trad system

Answer 12

Governs the flow of products between countries

Question 13

Trade Controls (3)

Answer 13

Tariff
Banning
Non tariff - technical standards

Question 14

What do controls do and what can be done to offset this (2+)

Answer 14

Make products more expensive
Cheaper if enter a trade agreement
Example = NAFTA

Question 15

What type of trade agreements

Answer 15

Bilateral = 2 countries
Multilateral = between several

Question 16

What WTO(5)

Answer 16

Established 1995
Governs world trade system
Sets rules on trading
Acts as a forum to negotiate trade deals
Settles disputes

Question 17

How have transport + communication improved global business

Answer 17

People + products can go anywhere

Question 18

Examples of improved transport (2)

Answer 18

Containerisation = quicker + cheaper
Developed over past 20 years = Free communication = email

Question 19

What systems have increased companies efficiency (2)

Answer 19

Management and information systems
New ways of working = products can be made cheaper

Question 20

How do companies supply chains minimise costs (3)

Answer 20

They’ve become global
A company’s supplier, factory, research + development department may all be in different countries
Cheaper

Question 21

What can large companies benefit from (3)

Answer 21

Economies of scale
They can reduce the average cost per item by purchasing specialised equipment and using production lines.
Buy raw materials at a lower price = bulk buy

Question 22

What is outsourcing (3)

Answer 22

When a company pays another company to do work that in the past would have been done in-house
Saves costs
Cheap labour costs mean many companies choose to outsource abroad

Question 23

How have work practices chnaged (2)

Answer 23

Casual and temporary contracts allow companies to take on workers as they are required
Not having to pay fixed yearly wages saves money

Question 24

How does globalisation improve security (2)

Answer 24

War is less likely = interdependent
Security = increased flows of capital, labour, products, services + info

Question 25

Why can globalisation make conflict more likely (3)

Answer 25

Developed countries intervene in conflicts in developing countries
So they can secure resources = oil

Question 26

What is capital

Answer 26

Money that invested

Question 27

Trade blocs

Answer 27

Associations between different countries that promote and manage trade

Question 28

TNC

Answer 28

Companies that operate in more than 1 country

Question 29

HICs relationship with LICs (3)

Answer 29

Mainly export high value goods to LICs
Import primary products which are of less value
BoT surplus

Question 30

LICs relationship with HICs (3+)

Answer 30

Export low value goods to HICs (if any)
BOT deficit
Mainly import manufactured goods (expensive)