Globalisation

Question 1

What is Globalisation

Answer 1

The merge of economics around the world, through trade and money across borders.

Question 2

5 types of Globalisation

Answer 2

• Cultural
• Economic
• Political
• Environment
• Social

Question 3

Cultural

Answer 3

E.g. McDonalds 120 countries, 30,000 outlets

Question 4

Economic

Answer 4

Growth of TNC’s with global presence and brand image, global presence and brand image, global spread of foreign direct investment and world trade

Question 5

Political

Answer 5

Dominance of Western democracies in decision making. View that democratic, consumerist societies are the ‘model’ to aspire to.

Question 6

Environment

Answer 6

Environmental threats are global and require global solutions

Question 7

Social

Answer 7

Increasing migration and mixing populations, global improvements in health and life expectancy

Question 8

Lengthening

Answer 8

Connections between places are growing (greater distances)

Question 9

Deepening

Answer 9

More deeply inter-connected, cheaper travel, more people connect with far-away places

Question 10

Types of global connections

Answer 10

• Commodities
• Capital
• Tourists
• Migrants
• Information

Question 11

NIC

Answer 11

Newly industrialised country

Question 12

OECD

Answer 12

Organisation for economic co-operation and development

Question 13

IMF

Answer 13

International monetary fund

Question 14

FDI

Answer 14

Foreign direct investment

Question 15

NAFTA

Answer 15

The north American free trade agreement

Question 16

RIC

Answer 16

Recently industrialised country

Question 17

TNC

Answer 17

Transnational cooperation

Question 18

G8

Answer 18

Group of 8 (France, Germany, Italy., UK, Japan, US, Canada, Russia

Question 19

APEC

Answer 19

Asia-pacific economic cooperation

Question 20

ASEAN

Answer 20

Association of southeast Asian nations

Question 21

Obstacles in globalisation

Answer 21

• Countries are left out
• Cheaper imported good can threaten domestic industries
• Political barriers (rules + regulations)

Question 22

Tariff

Answer 22

A tax imposed on imported good and services

- Restrict trade, increase price of goods

Question 23

Why does the gov have tariffs

Answer 23

• Protect domestic jobs
• Help a young industry develop
• Protect customers

Question 24

Free trade

Answer 24

Where the gov doesn’t discriminate against imports or interfere with exports by applying tariffs

Question 25

Protectionism

Answer 25

Adding tax or tariffs to goods to protect trade within country from competition

Question 26

World bank AIM

Answer 26

- Financial assistance to developing countries - Low interest loans - End world poverty

Question 27

World bank examples

Answer 27

Developing infrastructure + services in Burkina Faso | Hydro electric power in Ghana

Question 28

World bank criticisms

Answer 28

Conditions of loans (cant pay back)

Question 29

WTO AIM

Answer 29

- Ensure global trade is smooth - Promote fair trade - Rule over trade disputes

Question 30

WTO role

Answer 30

Reduced tariffs, more countries can trade without extra cost -> More trade

Question 31

WTO examples

Answer 31

Singapore conference remove barriers of trade -> support globalisation process

Question 32

IMF AIM

Answer 32

189 of countries - Secure financial stability + economic growth -> reduce poverty - Keep track of local economy - Lending to countries - Practical help

Question 33

IMF examples

Answer 33

- Reduce unproductive spending - Prioritise healthcare + education - Maintain effective, efficient tax systems - Provides money to support + assist counties

Question 34

IMF criticisms

Answer 34

Easy exit of financial situations | e.g. Eurozone in 2010, reduces funds -> still allows trade

Question 35

Free - market liberalisation

Answer 35

- Government intervention in markets impedes economic development - As wealth increases trickle down will take place from the richest + poorest