globalisation ai

Question 1

what is globalisation ?

Answer 1

it involves widening and deepening global connections, interdependence and flows through commodities, capital, information, migrants and tourism

Question 2

what are the 5 flows that result from globalisation?

Answer 2

commodities
toursim
capital
information
migration

Question 3

explain the flow of commodities in globalisation

Answer 3

• these are things being sold and bought within different countries
• it is the flow of goods

Question 4

explain the flow of tourism in globalisation

Answer 4

• improvements in aircraft made trips quicker and cheaper
• low-cost airlines have raised aspirations
• emerging nations are travelling more than ever, westernisation

Question 5

explain the flow of migration in globalisation

Answer 5

the most restricted flow unless there is deemed to be a need

• if there is a need for a person with your job they will accept you
• brain drain vs brain gain
• impact of remittances

Question 6

explain the flow of information in globalisation

Answer 6

• goes to the cloud
• real time communication
• buying at the click of a button
• information exchange and access 24/7 via the internet

Question 7

explain the flow of capital in globalisation

Answer 7

• money, global capital flows through global stock markets
• companies buy and sell currency to make a profit
• these companies can be investment banks or TNCs
• moves in a data sense, fibre optics

Question 8

what are the developments in transport and trade in the 19th century?

Answer 8

• railways
• telegraph
• steam ships

Question 9

what are the developments in transport and trade in the 20th century?

Answer 9

jet aircraft

- containerisation

Question 10

explain the development of railways

Answer 10

• in the 1800s, railway networks expanded globally, today railway buildings remain a priority for governments across the world

Question 11

explain the development of telegraph

Answer 11

first telegraph cables were laid across the Atlantic in 1860s which allowed for almost instantaneous communication and revolutionised how businesses operate
- the transatlantic telegraph cable in the 1960’s replaced a 3 week boat journey with instant morse code nmessages

Question 12

explain the development of steam power

Answer 12

in the 1800s, Britain was leading the world in the use of steam technology. this allowed the British to move their goods and armies very quickly into key areas like Africa and asia

Question 13

explain the development of jet aircraft

Answer 13

• newer and more efficient aircraft have allowed goods to be transported quickly between countries
• increasing competition between affordable airlines has led to more people being able to travel abroad, arrival of the intercontinental jet aircraft in the 1960s
• the Boeing 747 introduced I the 1960s lowed the cost of international air travel, bringing international tourism within the purchasing capabilities of the middle class

Question 14

explain the development of containerisation

Answer 14

• the ‘backbone’ of the global economy since the 1950s, with around 200 million individual container movements taking place each year, lowering costs of transport is beneficial for businesses and customers
• process is easily mechanised, containers are unload by crane, increasingly automatically. previously it was loaded manually in crates or stacks, much quicker
• dramatically sped up goods trade and reduced costs, making consumer goods cheaper , dramatically lowered the costs of ‘break bulk cargo’ (when products have to be loaded individually) as there is less time spent when products change transport type (e.g. at. dock = more trade = cheaper)
• container ships are so efficient that the transport costs of moving an iPhone or television form china to the uk is less than £1.
• shipping cost reduced as fewer days are wasted queuing at a port waiting to unload, faster transport times increase the distance perishable products can be transported, e.g. cut flowers from Kenya, opening up more distant markets and reducing losses.

Question 15

explain the effect of the shrinking world

Answer 15

the physical distance between places remains unchanged but new technologies reduce the time taken to transport goods/people/communicate information

Question 16

explain the technology that has led to globalisation

Answer 16

• telephone and the telegraph
• broadband and fibre optics
• GIS and GPS
• internet
• electronic banking

Question 17

explain how the telephone and telegraph contribute to globalisation

Answer 17

• core technologies for communicating across distance
• allowed for better global communication
• reduced mobile phone costs expanded usage from an expensive business tool to an essential consumer product

Question 18

explain how broadband and fibre optics have contributed to globalisation

Answer 18

• since the 1990s, enormous flows of data are converted across the ocean floor through the use of fibre optics
• fibre optic cables has allowed for instant, global communication

Question 19

explain how the internet has contributed to globalisation

Answer 19

• connects people and places across the globe
• as of april 2022 63% of the world’s population have access to it.
• social media has led to the rapid spread of news, knowledge and opinions
• the development of social media has led to space-time compression were the cost of communicating over distance has fallen rapidly, so people can communicate regardless of distance
• social networks have allowed people to communicate instantly and without charge

Question 20

explain how electronic banking has contributed to globalisation

Answer 20

the ease of transferring money abroad

• digital economy is worth $1.5 trillion
• investment, links between other countries
• in real areas, fishermen and farmer use mobiles to check market parties before selling produce
• e banking allows migrants to transmit remittance sos money back to their own home countries

Question 21

explain the work of the world bank

Answer 21

it has the role of lending money and giving grants to the developing world to fund economic development and reduce poverty.
- most of the world bank’s funds come from the world’s financial markets by selling world bank bonds to investors
- it has 189 member countries who share ownership, the US has a controlling voting interest
- they encourage free trade by removing legal restrictions and capital controls along with adopting structural adjustment programmes to reduce government budget deficits.
it involves government spending cuts, privatisation of state-owned firms and opening up to foreign competition
- since 1947, they have funded over 12,000 projects
- the WB provides low-interest loans, interest-free credit and grants. it focuses on improving education, health and infrastructure
- it has helped developing countries develop deeper ties to the global economy but has been criticised for having policies that put economic development before social development.

Question 22

explain the work of the IMF

Answer 22

• aims to maintain a stable international financial system and this promotes frees trade and globalisation
• their funds come from quota subscriptions paid by member states and loans. quotas are pooled funds of member nations and the size of a member’s quotes depends on its economic and financial importance in the world
• it is made up of 189 member countries
• since 1945 the IMF has worked to promote global economic and financial stability and encouraging more open economies, and encourage more open economies through trade liberalisation programmes and opening up to FDI
• as of January 2012, the largest borrowers from the IMF in order were Greece, Portugal, Ireland, Romania and Ukraine)
• the IMF has been criticised for promoting a ‘western’ model of economic development that works in the interests of developed countries and their TNCS

Question 23

explain the work of the world trade organisation (WTO)

Answer 23

an international organisation that works to reduce trade barriers (both tariff and non-tariff) and creating free trade leading to an increased movement of goods and increased interdependency

• their funds come from the WTO’s regular budget, voluntary contributions from WTO members and cost-sharing either by countries involved in an even tor by international organisations
• the WTO has 164 members. in addition to states, the EU and each EU country in its own right, is a member. members that have joined after rate original members were the result of negotiation

Question 24

explain the EU

Answer 24

• composed of 28 members
• they aim to a political and economic organisation and it operates a distinct political entity with its own parliament and laws
• it is the largest free trade bloc in the world today
• holds 500 million people and 20% of global GDP
• the issues it faces are: the euro not being used in all countries, migration and open borders, brexit
• it guarantees the free movement of goods, capital and people

Question 25

explain NAFTA

Answer 25

• its aim is to allow free trade between countries
• it is made up of 3 countries: USA, Canada and Mexico
• it has allowed for free flow of goods and encourage migration between countries
• the issues it faces are that USA is the dominant country which can cause conflict and trump wants a wall

Question 26

wha tare two examples of trade blocs?

Answer 26

EU

ASEAN

Question 27

what have international political and economic organisations contributed to?

Answer 27

they have contributed to globalisation through the promotion of free trade policies and FDI. these include: the WB, IMF and WTO

Question 28

what do trade blocs enable?

Answer 28

• if a foreign firm is located abroad, for exporting you will have to pay tax, as seen by apple when delivering to the UK
• the higher the export tax, the less investors
• trade blocs aims to remove these barriers between countries involved
• the very nature of trade is orchestrated to disadvantage poor countries (frank’s dependency theory)

Question 29

explain the work of ASEAN

Answer 29

• a free trade area with 10 members with a population of 625 million
• association of south East Asian countries
• encourages free trade between countries and encourages FDI
• china is an affiliated member of this trade bloc, they didn’t want to damage their economic power, they negotiated a deal in order to get preferential conditions, benefit rom cheap china exports
• ASEAN pledged to remin nucelar weapons free in 1995
• it has allowed the movement of skilled workers
• one may question the success as 80% of trade happens outside of ASEAN countries

Question 30

what are the advantages of a trade bloc membership?

Answer 30

1) bigger markets (but no extra cost)- uk companies like Tesco have benefitted by expanding into other EU countries and sourcing their good at the best price from within the 28 member states
2) national firms can merge to form TNCS- TNCs can compete globally but they need large domestic markets to generate economies of scale. increased sales leads to lower relative production costs and so higher profits and consequent investment. Vodafone became the world’s largest mobile telecommunications company in 2000 by merging with Germany’s mannesmann.
3) protection from foreign competitors and political stability- in 2007 the EU blocked £50 million of Chinese-made clothes from entering the UK because the annual quota had already been filled. the idea is to limit the import of cheap goods to protect domestic manufacturers, this brings trade blocs political stability

Question 31

what are the disadvantages of trade bloc membership?

Answer 31

1) los of sovereignty- a trading bloc is likely to lead to some loss of sovereignty (the ability for Govs to make their own decisions). the EU not only deals with trade but also with human rights, greenhouse gases and consumer protection
2) interdependence- because trading blocs increase trade among participating countries, the countries become increasingly dependant on one another. a disruption of trade within a trading bloc may have severe consequences for thee economies of all participating countries.
3) compromise and concession- countries entering a trade bloc must allow foreign firms to gain domestic market share, sometimes at the expense of the local companies. they do this in the expectation that their co summers will benefit from better products and keener prices, as well as in the hike that their firms will expand abroad.
4) cultural erosion- cheap uniform products across the bloc replace more expensive local variants