Globalisation

Question 1

What is the consequence of globalisation?

Answer 1

Increasing independence between countries all over the world
People in one country or region being affected more and more by economic events or decisions made in other parts of the world, thousands of kilometres away from where they live

Question 2

Why is there exchange between different countries?

Answer 2

Because if the country is something another doesn’t or cannot make cheaply they exchange or trade and in doing so become dependant on one another

Question 3

What can poor countries supply?

Answer 3

• Varied environments for tourists
• Low priced manufactured goods
• Tropical food
• Raw materials including minerals and timber

Question 4

What can rich countries supply?

Answer 4

• Knowledge of modern technology
• High-tech manufactured goods
• People seeking different/new holiday new destinations
• Skilled workers

Question 5

Why has globalisation taken place?

Answer 5

Revolution in global communications

• For people
• For goods

Question 6

Why has globalisation taken place for people?

Answer 6

• Allows instant contact by email, fax, text over the Internet
• Jet aircraft allows company’s to fly to most countries in less than 24 hours

Question 7

Why has globalisation taken place for goods?

Answer 7

• Containers for moving goods by Sea
• Ease of transport
• Security
• Cheapness

Question 8

What does globalisation involve flows of?

Answer 8

• Ideas (religion, tech. Transferred by media, TV)
• Goods (transferred by container ships, airplanes)
• Infomation (transferred through stock exchange, Internet)
• Capital (transferred through banks, cheques)
• People (transferred by airplanes, ships, trains)

Question 9

What is a TNC?

Answer 9

Transnational Organisation

- A firm which has its headquarters in one country while having factories and other offices/shops and others

Question 10

Some examples of TNCs

Answer 10

BP and Shell (oil and mining)
Ford and Toyota (Motor Vehicles)
Coca Cola and Nestle (Food and drinks)

Question 11

Advantages of TNCs

Answer 11

• Bring capital, modern technology and infrastructure to less developed countries
• Create jobs

Question 12

Disadvantages of TNCs

Answer 12

Economic, Social and Enviromental

• Low wages, tax avoidance, profits taken out of the country to developed countries, TNCs can leave as quickly as they came
• Poor working conditions, low safety standards
• Water and air pollution, pollution controls are weak or ignored

Question 13

What is globalisation?

Answer 13

• The spread of customs from other countries like products. When these customs are spread there is also a spread of knowledge people and ideas.
• Increasing importance of international operations of people and companies
• The process of international integration arising from the interchange of worldviews product ideas and other aspects of culture