Globalisation EQ1 (3.1)

Question 1

what is globalisation ?

Answer 1

process by which the world is becoming more interconnected and interdependent due to increase trade, technology, cultural exchange and communications

Question 2

why has globalisation increased so much in recent years ?

Answer 2

increase in technology e.g better communication and cheaper and quicker travel

Question 3

what are the different forms of globalisation ?

Answer 3

• economic such as TNC’s
• political
• cultural such as food, clothes, music and media
• demographic such as migration and tourism

Question 4

what is time-space compression ?

Answer 4

heightened connectivity changing our conception of time, distance and potential barriers to the migration of people, goals, money and information

Question 5

what is the shrinking world effect ?

Answer 5

due to faster travel times places feel closer together

Question 6

what where the breakthroughs in trade during the 19th and 20th centuries ?

Answer 6

• railways in the 1800s
• steam ships in the 1800s increase the speed of cargo and the amount that could be transported
• jet aircraft in the 1960s
• containerisation sped up goods transportation

Question 7

how have comunications developed over the years ?

Answer 7

• the invention of the telegraph allowed the first long distance communications
• mobile phones became widespread
• internet access in the 90s meant you could communicate anywhere in the world
• fibre optic cables are a recent discovery and transfer signals quicker then ever

Question 8

how has world trade changed since the 70’s ?

Answer 8

• it increases slowly from 1970-2000
• at 2000 it suddenly shoots up
• it dips at 2008 due to the financial crisis and then returns to normal

Question 9

how have countries protected their own industries in the past ?

Answer 9

• taxes and tariffs on imported goods
• quotas
• banning foreign firms
• banning foreign companies from investing in their country

Question 10

what does the IMF do ?

Answer 10

It is set up to stabilise currencies, economies and encourage more open economies. Loans are given from rich to poor countries. It has however been criticised of working in favour of developed countries and their TNC’s.

Question 11

what does the world trade organisation do ?

Answer 11

It sets rules for the trading of goods. It removes government interference and removes taxes off of goods. Also it creates a free global economy.

Question 12

what does the world bank do ?

Answer 12

lends money on the global scale for emergencies like natural disasters or to help reduce poverty.

Question 13

what threats do global flows posses ?

Answer 13

• imports of raw materials and commodities can threaten a nations industries
• information can provide citizens with threatening knowledge
• migrants can bring cultural change

Question 14

how can countries promote globalisation ?

Answer 14

• joining free trade blocs such as the EU
• privatistaion of previously nationalised sectors e.g in the UK gas, electricity, water
• grants and loans offered to start ups

Question 15

why do the IMF and world bank require its countries receiving loans to make cuts ?

Answer 15

to reduce the role of government in a country which opens up private investment which can increase globalisation. Also the cuts allow the country to pay back the loan.

Question 16

what are the effects of having TNC’s on a nation ?

Answer 16

-they bring new ideas, products and culture to the nation
-they generate wealth to increase standard of living
the nations become more interconnected

Question 17

what policies where used by the UK to globalise ?

Answer 17

• free market liberalisation
• privatising state owned businesses
• encouraging business start ups

Question 18

what policies where used by China to globalise ?

Answer 18

• the one child rule allowed economy to grow
• people where encouraged to move to cities to increase work force
• open door policy lets foreign companies move
• low wage factories to attract international business

Question 19

what ares special economic zones (SEZ) ?

Answer 19

areas in a country that are promoted as ideal locations for FDI. they are tarrif and quota free and the increased demand and volume of the products make them cheaper

Question 20

what is the KOF index ?

Answer 20

it measures the degree of globalisation in a country. It measure the 3 aspects of globalisation: economic, social and political.

Question 21

what is the A.T Kearney index ?

Answer 21

measures how economically successful cities are.

Question 22

what are the similarities and differences between ASEAN and NAFTA ?

Answer 22

• both have free trade
• ASEAN has peace agreements
• both have different currencies
• NAFTA is only about trade
• both eliminate qoutas

Question 23

what is a switched on country ?

Answer 23

somewhere that is connected to the world through consumption of goods.

Question 24

why are some places switched off ?

Answer 24

• physical reasons such as poor resources, natural hazards and physical isolation
• human reasons such as lack of skills, political isolation, war, respurces being controlled by foreign TNC’s

Question 25

why are large parts of africa bypassed by globalisation ?

Answer 25

western businesses tend to see it as:

• corruption and political instability
• negative image
• dangerous to operate in
• unskilled labour force
• weak market

Question 26

How has FDI helped Zambia to become more switched on ?

Answer 26

before investment they where switched off as where a landlocked country and so struggled to trade. However Chinese investment in to a railway has led to copper exports rising and debt cancellation. Also the FDI has meant they can part process the copper adding value to it and increasing the country’s income.

Question 27

how do TNC’s contribute to globalisation ?

Answer 27

• outsourcing jobs to other countries
• offshoring parts of the business to special economic zones
• developing new markets
• Glocalisation- adapting products to meet the culture e.g Mcdonalds don’t serve beef in India

Question 28

what is the global production network ?

Answer 28

company’s sourcing parts from all over the world for example renault source parts from Korea and the Netherlands but make the cars in France.