globalization test

Question 1

Types of flows in globalisation:

Answer 1

1
Commodities (goods)
2
Capital (finance)
3
Information
4
Migrants and tourists

Question 2

Types of globalisation

Answer 2

Economic globalisation:
Growth of MNCs and TNCs

Social globalisation:
More migration, tourism and social media use

Cultural globalisation:
Spread of Western ideas and lifestyles

Political globalisation:
More trade blocs

Question 3

Free Trade Blocs: what are they and give examples

Answer 3

Free trade blocs can increase the interconnections between countries by removing tariffs and quotas for trade in goods and services. The EU and NAFTA are examples of free trade blocs.

Question 4

what are tariffs

Answer 4

taxes on goods that are imported and exported

Question 5

what are quotas

Answer 5

Quotas are limits on the number (or quantity) of goods and services that can be imported

Question 6

what is privatization

Answer 6

Privatization is where state-owned businesses or infrastructure is sold to private TNCs. It allows foreign investors to gain a share and so can represent a form of FDI.

Question 7

3 Indicators of globalisation:

Answer 7

human flows of migrants, trade flows of FDI, membership of trade blocs and membership of IGOS

Question 8

The KOF Index is calculated from three aspects of globalisation…

Answer 8

(economic, social and political globalisation)- volume of FDI is heavily weighted

Question 9

The AT Kearney Index uses four main indicators to publish a globalisation index… name them

Answer 9

political engagement, technological connectivity, personal contact and economic integration.

Question 10

what is offshoring

Answer 10

Offshoring is where a TNC moves parts of its production process to other countries. This is often developing countries where production costs (e.g. labour or land) are lower.

Question 11

what is outsourcing

Answer 11

Outsourcing is where a TNC gives a contract to another company to complete part of their work. For example, they might outsource their call-centres to parts of the world where labour costs are lower.

Question 12

Glocalisation

Answer 12

TNCs adapt their products to the needs of local consumers.

Question 13

what are 5 reasons why a country is switched off from globalisation (GENERAL)

Answer 13

physical, political, economic, social and
environmental reasons