Globalisation

Question 1

What is globalisation?

Answer 1

Ways in which a country becomes increasingly connected with each other

Question 2

How does globalisation occur?

Answer 2

• an increasing volume and variety of trade in goals and services
• increased spread of technology

Question 3

What is the primary industry?

Answer 3

The extraction of raw materials from the land or sea

Question 4

What is the secondary industry?

Answer 4

Manufacturing where raw materials are converted into a fishing product

Question 5

What is the tertiary industries?

Answer 5

There is a wide range of service industries associated with both manufacturing (retailing) and people (education)

Question 6

What is quaternary industry?

Answer 6

Provide information and expert help

They are often associate with creative or knowledge based industries

Question 7

What is meant by consolidation?

Answer 7

Involves merging with companies that make similar products

Question 8

What is meant by conglomeration?

Answer 8

Involves buying companies which make different products to make conglomerate

Question 9

What is TNC growth?

Answer 9

Growth in sales of popular products

Question 10

What is TNC merger?

Answer 10

Merger with other companies by consolidation or creating a conglomerate

Question 11

How do TNCs grow?

Answer 11

By moving their operations to different countries

Question 12

Why is brand recognition important?

Answer 12

It can help companies become global and due to global shift

Question 13

WTO

Answer 13

World trade organisation

promotes free trade by persuading countries to reduce or remove trade barriers like taxes, tariffs

Question 14

UN

Answer 14

United Nations

Question 15

IMF

Answer 15

International Monetary Fund

gives loans to developing countries for infrastructure and encourages countries to create new jobs

Question 16

TNC

Answer 16

TransNational Corporation
aim to reduce costs and increase profits by moving factories to cheaper locations
creates new jobs in developing countries

Question 17

How does the IMF TNC and WTO encourage the world to be more global?

Answer 17

Free trade
Reducing State involvement
Privatisation

Question 18

What are the 4 main functions of the IMF?

Answer 18

Stop existing crisis
Stop potential future crisis
Check investments
Reduce global poverty

Question 19

What is trade?

Answer 19

The action of buying and selling goods and services

Question 20

What is FDI?

Answer 20

Foreign Direct Investment FDI is direct investment into a foreign country, the pattern and quantity has changed overtime due to globalisation

Question 21

What has made trade easier over time?

Answer 21

• FDI
• state led companies
• communication improvements
• free trade
• skilled labour
• better / cheaper transport
• TNC growth
• company mergers

Question 22

Explain how McDonalds is a tertiary industry?

Answer 22

• worlds largest chain of hamburger restaurants
• serving 68 mn customers daily in 119 countries
• founded in 1940
• started as a typical drive thru
• in 1974 they opened the Ronald McDonald House
• aims are to provide customers with food of high standard, quick service and value for money
• within the UK there are 1200 restaurants and 600 are franchises
• 1 million employees world wide

Question 23

why is brand recognition important?

Answer 23

it can make a company more global due to global shift

Question 24

what do global institutions do to economies?

Answer 24

improve them and improve the quality of life in all member nations

Question 25

what are the reasons for FDI?

Answer 25

access to foreign markets
exploiting new sources of energy and minerals
increasing food supply
taking advantage of cheap labour