Globalisation

Question 1

Globalisation

Answer 1

the process of the world’s economies, political systems and cultures becoming more strongly connected to each other.

Question 2

3 main forms of globalisation

Answer 2

Economic
Social
Politicalm

Question 3

Economic globalisation

Answer 3

Largely caused by growth of TNCs and by growth in international trade

Question 4

Social globalisation

Answer 4

Impact of Western culture, art, media, sport and leisure pursuits in the world

Question 5

Political globalisation

Answer 5

Growth of Western democracies and their influence on poor countries and the decline of
centralised economies

Question 6

KOF index of globalisation

Answer 6

was introduced in 2002 and covers the economic, social and political
forms of globalisation
Scores each country
Most globalised - Canada, Australia, New Zealand
Not as globalised - china, USA, Russia
Least globalised - Afghanistan, Nepal, Myanmar.

Question 7

Global systems

Answer 7

refers to any organisations, groupings or activities that link different parts of the world. TNCs, for example, operate in 2 or more countries, therefore linking their economies.

Question 8

Dimensions of globalisation

Answer 8

Flows - capital, labour, services, information, products
Global marketing
Patterns of production and consumption

Question 9

Flows of information

Answer 9

Information, such as financial data or news of current events can be spread across the world very quickly and easily.

email, internet and social media mean large amounts of information can be exchanged instantly across the globe.

Question 10

Flows of capital

Answer 10

Global FDI increased from about $400 billion in 1996 to nearly $1500 billion in 2016.

Improvements in information and communications technology (ICT) have encouraged flows of capital round the world

most countries’ economies are now dependent of flows of investment to and from other countries.

Question 11

Movement of Flows of products

Answer 11

a movement of high value manufactures from the more developed countries to the less developed countries, and of low value manufactures from the less developed countries to the more developed

Question 12

Flows of services

Answer 12

Improvements to ICT mean that services can locate anywhere in the world and still be able to serve the needs of customers anywhere else in the world

High level services tend to be concentrated in cities in more developed countries (e.g. in London and New York and vise versa

Question 13

Flows of labour

Answer 13

international migration increased by over 40% between 2000 and 2015.

Question 14

Global marketing

Answer 14

Global marketing involves treating the world as one single market and using one marketing strategy to advertise a product to customers all over the world.

Question 15

Patterns of production, distribution and consumption

Answer 15

TNCs dictate where products are made – generally where labour costs are lower in LICs.

Products are distributed around the world to meet the demands of consumers in HICs.

Question 16

Systems

Answer 16

include ways of working, procedures and methods of organisation that allow a particular function to be carried out

Question 17

Opportunities of advanced tech

Answer 17

the Internet allows people from all over the world to access information, aeroplanes allow people and goods to be transported across the world swiftly and efficiently.

Question 18

Role of investment banks

Answer 18

is to help companies raise capital by selling shares on behalf of those companies

Question 19

Example of financial deregulation

Answer 19

barriers to capital coming in and out of a country were removed, so it became easier for
investment banks to buy and sell shares and other products across the world.

Question 20

Controls

Answer 20

make it more expensive for companies to sell their products abroad, as well as for consumers to buy them.

Question 21

Trade agreements

Answer 21

To make trade cheaper, countries can enter into a trade agreement. These are formed by countries joining together to form a trade bloc that encourages trade between themselves and promotes

Question 22

What makes up a trade system

Answer 22

Multilateral and bilateral agreements

Question 23

Who governs the global trade system

Answer 23

the WTO (World Trade Organisation)

Question 24

Improved transportation

Answer 24

high sped rail network, larger and faster ships and faster planes have allowed people and products to get to places around the world more easily than ever before.
Containerisation

Question 25

Improved communication systems

Answer 25

people / companies in rural or remote areas can access the Internet and communicate with others.

Question 26

Globalised company supply chains

Answer 26

a company’s supplier, factory, research and development department may all be in different countries. This allows companies to minimise costs.

Question 27

Economies of scale

Answer 27

Large companies can reduce the average cost per item by purchasing specialised equipment and using production lines.

Question 28

Safety

Answer 28

Trade reduces chances of conflict between countries