Globalisation KQ1

Question 1

Define Globalisation?

Answer 1

A process by which national and regional economies, societies and cultures have become integrated through the global network of trade, communication, immigration and transportation

Question 2

What are the 4 flows of globalisation?

Answer 2

Goods

Capital - between people, banks, TNCs and governments

Information - via the Internet

People - migrants and tourists

Question 3

What is economic globalisation?

Answer 3

Involves growth of TNCs, spreading of investment and rapid growth in world trade

Question 4

What is political globalisation?

Answer 4

Dominance of western democracies in political and economic decision making, spreading the view that democratic consumerist societies are the most successful

Question 5

What is cultural globalisation?

Answer 5

People increasingly eating similar food, wearing similar clothes, liking similar music and sharing similar values which are western in origin

Question 6

What is Demographic globalisation?

Answer 6

Occurs as a result of migration and tourism, populations become ever more fluid and mixed

Question 7

What is the ‘shrinking world’ idea?

Answer 7

The idea that the world feels smaller because places are closer in terms of travel time due to advancements in technology making places evermore connected

Question 8

What is containerisation?

Answer 8

Before containers, cargo was loaded in crates and sacks, manually into the hold. Now containers are loaded and unloaded by crane. Containers are intermodal and can be transported by ship, lorry or train. Each ship can carry up to 18,000 containers

Question 9

What is space-time compression?

Answer 9

The cost, in terms of time and money, of communicating over distance has fallen rapidly. Distance is now largely irrelevant in terms of the ability to communicate with them.

Question 10

What factors have contributed to space time compression?

Answer 10

Mobile phones - widespread from mid 1990s and are now common in many developing countries

Internet access - became common from mid 1990s followed by fast broadband. Almost 50% of the worlds population uses the Internet. Allows individuals at home to trade with other countries and carry out online banking.

Question 11

What is the role of taxes and tariffs in trade?

Answer 11

Demanding payment of taxes and tariffs on imported goods makes them more expensive to buy than home produced goods thus protecting sales of goods.

Question 12

What is the role of quotas in trade?

Answer 12

Limits the volume of imported goods thus protecting home producers from foreign competition which can undercut prices.

Question 13

What is foreign direct investment?

Answer 13

A business from one country invests in another such as opening a chain of shops or building a factory.

Question 14

What is the role of the world trade organisation?

Answer 14

Works to reduce trade barriers and create free trade. A series of global agreements has gradually reduced trade barriers and increased free trade.

Question 15

What is the role of the IMF?

Answer 15

Encourages developing economies to accept FDI and open up their economy to free trade.
Promotes a western model of economic development that works in the interests of developed countries and their TNCs.

Question 16

What is the role of the world bank?

Answer 16

Provides loans to developing countries to aid economic development and reduce poverty. Helps develop deeper ties to the global economy.

Question 17

What is privatisation?

Answer 17

Governments sell off industries such as electricity, gas, and water which allows foreign investment creating competition within the market, driving down costs.

Question 18

What is free market liberalisation?

Answer 18

Opening up markets to competition meaning you can chose your supplier based upon quality and price.

Question 19

What are grants and loans?

Answer 19

Made to new businesses by the government in globally important growth areas such as IT and Pharmacy.

Question 20

What are special economic zones?

Answer 20

Tariffs and quota free allowing goods to be exported at no cost.
Unions are banned so workers cannot strike.
Infrastructure is provided by the government.
All profits can be sent to headquarters over seas.
Taxes are usually very low.
Few environmental regulations.

Question 21

Define transnational corporation.

Answer 21

A company that operates in more than one country.

Question 22

Define outsourcing.

Answer 22

Moving parts of their business, usually administration, to third party companies.
e.g call centres in Bangalore, India

Question 23

Define offshoring.

Answer 23

Moving parts of their business to cheaper foreign locations e.g Asian SEZs

Question 24

Define Glocalisation.

Answer 24

TNCs adapting brands and products to suit local market tastes for example McDonalds in India.

Question 25

What is exploitation?

Answer 25

TNCs outsource manufacturing to developing countries where the workers work long hours in poor conditions for low wages.
(Lower safety standards)

Question 26

Switched off from globalisation

What is political isolation?

Answer 26

North Korea deliberately isolated itself from the rest of the world, shunning world trade and limiting the use of technologies such as mobile phones and the Internet in pursuit of its own state ideology.

Question 27

What is physical isolation?

Answer 27

Himalayan mountain countries such as Nepal and Tibet are isolated by terrain and winter snow, limiting their connections.

Question 28

What is economic isolation?

Answer 28

Rural parts of Sub-Saharan Africa, especially the Sahel, are dominated by a subsistence farming economy. These places are poor and their capacity to make connections is limited.

Question 29

What are environmental barriers?

Answer 29

Harsh desert, polar, and tropical rainforests all limit development, transport and trade connections.