Globalization Flashcards
Globalization
Globalisation is the process by which the world is becoming increasingly interconnected as a result of increased trade and cultural exchange.
Globalisation has increased the production of goods and services.
1) Review the Sanction Timeline. Why the sanction on Feb 26th was a significant punishment to Russia and their economy.
The sanctions of February 26 was a significant punishment because the US, EU, Canada, France, Germany and Italy decided to remove Russian banks from the SWIFT financial messaging system. Moreover, they limit Russian people to obtain citizenship on other countries. Also, Japan frozen assets of Russian people, imports and exports to DNR and LNR.
2) Review the sanctions imposed on Russia and explain below which one do you think will have the largest impact on their economy.
Russia in 2022 became the country with most sanctions in the world due to their attack to Ukraine. I believe that stopping all sea imports of oil from Russia, will impact most in a negative way to their economy. This is because the oil imported by sea is two-thirds of the total amount of oil they import. Russia depends a lot from their oil exports since lots of countries rely on their oil, meaning that they receive so much money from the countries that buy their oil.
3) Explain why sanctioning ‘Oligarchs’ is seen as a vital move to try and impede the Russian invasion
Sanctioning the ‘Oligarchs,’ Putin’s chosen billionaires, is a vital move to stop Russia’s invasion because all of these important people have always trusted Putin’s decisions and ideas, and Putin benefits them by giving them power and money. When the entire world takes away those Russian billionaires’ privileges and imposes a lot of sanctions, their perspective and convenience change, and Putin cannot help them get rid of all the sanctions the countries are imposing. This plan is to have these influential people act against Putin and tell him to stop the invasion. Putin may heard them and will do what is best for the Russian people and the selected Russian billionaires.
What is inflation?
Demand is higher than supply
Inflation is when there is more money in the economy than in stuff to spend on
To lower demand and make more profit they raise their prices
When there is extra money and all of the business raice their prices
Write a paragraph explaining how Covid has led to increased global inflation. Use specific evidence.
Covid has led to an increase in global inflation since many governments of different country`s as the USA and Canada gave bonuses to people to keep the economy flowing. This made the demand not be able to meet supply, as demand is too high. Furthermore, due to not having economic growth at the start of the pandemic the government implemented policies which led to an unstable economic growth. Like, with interest rates, controlling them to the extent that causes inflation that is when there is more money in the economy than in stuff to spend on, or a recession that is when there is no economic growth in a quarter term.
Explain what impact lower interests had on inflation
lower interest rates mean people have more money to spend. This makes the economy grow and inflation increase.
In short, inflation is one of the indicators used to measure economic growth, which can be controlled by interest rates, which in turn affect inflation.
international trade
trade is the exchange of goods and services between one country and another.
Without international trade nation would need to live with their country goods and services.
It gives us the modern and commercial world
the patter of world trade
when MEDCs export valuable manufactured goods such as electronics and cars and import cheaper primary products such as tea and coffee.
making LEDCs have little purchasing power, increasing trade is essential for the development of LEDCs.
Trade Interdependence
Interdependence between countries means countries that depend on each other in some way.
For example, many LEDCs are dependent on MEDCs for manufactured goods or aid.
MEDCs are dependent on LEDCs for primary products such as steel and iron.
LEDCs are also dependent on MEDCs for income from tourism, whilst MEDCs require LEDCs to provide the climate and hospitality for some holiday destinations.
free trade
when countries can trade freely, importing and exporting as many goods and services as they want.
Free focus in their economy to grow, but it does not protect workers’ rights or attempt to improve working conditions.
Fair trade
Fair trade means that the producer receives a guaranteed and fair price for their product regardless of the price on the world market.
Workers in primary industries in LEDCs loses.
They receive low wages and often have poor standards of living.
They cannot afford education for their children and many children work to help their families earn a living.
Why has China’s been putting tariffs on Australian products?
foreign meddling, the COVID-19 epidemic, and human rights violations. Previously, Beijing maintained that taxes on Australian exports were justified by legitimate trade concerns.
