Globalisation

Question 1

what is globalisation?

Answer 1

the worldwide interfacing and interaction of economies with trade as an important element and ICT making it possible

Question 2

What elements need to take place for trade to happen?

Answer 2

Production
Communication
Transport

Question 3

How did international trade start?

Answer 3

When the first ships began to sail between foreign ports and established regular communication

Question 4

What is internationalisation?

Answer 4

The extension of economic activities across national borders

Question 5

What are the characteristics of internationalisation?

Answer 5

Increased quantities

Increased numbers

Question 6

How does an integration of economies occur?

Answer 6

Same businesses and new businesses establish themselves in more and more countries

Question 7

What is the integration of economies?

Answer 7

• Things are done in the same way
• Things are used for the same purposes
• Same technology is used
• Limitations on trade and production

Question 8

What do we have to consider when speaking about globalisation?

Answer 8

The integration of economic activities on a worldwide scale

Question 9

What does globalisation establish?

Answer 9

Regional economic blocs which effectively promote the integration of economic activities and the key role of trade and investments, communication and transport logistics

Question 10

How are economic activities integrated?

Answer 10

• Establishing production units where the cost of production is lowest
• Creating quality changes in the ways economic activities are organised
• Networking, creating collaborative relationships with legally independant businesses

Question 11

What is regionalisation?

Answer 11

The present day tendancy to promote economic integration by establishing economically co operating regions

Question 12

How is production driven?

Answer 12

By multinational enterprises, most with strong brand names

Question 13

How does communication happen?

Answer 13

Electronically by means of signals, faxes, e-mails etc.

Question 14

How does transport take place?

Answer 14

In terms of time it takes to move from one part of the world to the next, the world has shrunk dramatically

Question 15

How does trade take place?

Answer 15

Trade is being liberated from all kinds of controls, the result is that trade is growing more than production

Question 16

What are the causes of globalisation?

Answer 16

technological change
Trade liberalisation
Multinational enterprises
Capital liberalisation
Standardisation

Question 17

How does technological change take place?

Answer 17

Through:

• information technology
• new production processes
• transportation and communication

Question 18

What is information technology based on?

Answer 18

The convergence of:
Communication technology
Computer technology

Question 19

How are new production processes a result of technological change?

Answer 19

IT brought about new systems of production and processes

Question 20

How did technological change result in better transport and communication?

Answer 20

Globalisation in dependant on communication and transportation

Question 21

What are transportation systems?

Answer 21

Transportation systems are means by which materials products and other tangible things are transported from place to place

Question 22

What are communications systems?

Answer 22

The means by which information is transported from place to place in the form of messages, ideas etc.

Question 23

What is trade liberalisation?

Answer 23

The removal of restrictions like tarriffs and quotas

Question 24

What contributed to the liberalization and stimulation of global trade?

Answer 24

• The general agreement on taroffs and trade
• Export promotion
• Free Trade Areas

Question 25

What are multinational enterprises?

Answer 25

International businesses that produce goods and services in several countries, without being concentrated in a single country.

Question 26

How did capital liberalisation take place?

Answer 26

- Together with free trade, financial markets where also liberated - As exchange and investment controls where removed, capital was allowed to be traded in international markets - This allowed capital to move where it earned the highest returns

Question 27

What is standardization?

Answer 27

Making something conform to a fixed set of rules

Question 28

What does the UN work to standardise?

Answer 28

The UN works to standardise the human rights of various groups of people

Question 29

What does the IMF work to standardise?

Answer 29

The IMF works to standardise trade, balance of payments and exchange rates, international lending and borrowing

Question 30

What does the world trade organisation work to standardise?

Answer 30

International trade relationships, tariffs and other forms of protection agreements

Question 31

What does the world health organisation work to standardise?

Answer 31

healthcare, responsibilities of hospitals, clinics and medical personnel and practitioners and training of health workers

Question 32

What does the international Labour office work to standardise?

Answer 32

Labour laws, worker behaviour and employer behaviour

Question 33

What does the consequences of globalisation impact?

Answer 33

- The structure of economies - Economic growth - Changing patterns of trade - Changes in employment conditions - Environmental degredation - Labour - Cultural change

Question 34

How does globalisation change the structure of an economy?

Answer 34

The proportions in which different sectors contribute to GDP are changed

Question 35

How is economic growth affected by globalisation?

Answer 35

The total economy grows, benefiting from new technology and the liberalisation and growth of trade

Question 36

How are changing patterns of trade a result of globalisation?

Answer 36

Globalisation resulted in an enormous growth in trade, volume of world trade grew double compared to world GDP

Question 37

How are changes in employment positions are result of globalisation?

Answer 37

Employment in services increased far more rapidly than manufacturing

Question 38

How is environmental degeneration a result of globalisation?

Answer 38

Consumption patterns of richer countries impacts the state of renewable resources being exhausted

Question 39

How does globalisation affect labour?

Answer 39

The number of people moving is increasing every year

Question 40

How is cultural change a result of globalisation?

Answer 40

The availability of some consumable goods and the exposure of society to outside are visible signs of globalisation

Question 41

What is absolute advantage?

Answer 41

When a country can produce more output with the same input than another country

Question 42

What is comparative advantage?

Answer 42

When a country can produce the same output at a lower resource input cost than another country.