lesson 6

Question 1

define merchandise trade

Answer 1

the manufactured goods brought and sold in any business, stock of goods in a store- good specially manufactured goods and commodities

Question 2

define commercial services

Answer 2

any type of trade or business involving the transportation of goods or individuals, except service performed by a combatant vessel

Question 3

define protectionist policies

Answer 3

policies that allow countries to protect their own industries through tariffs and quotas, limiting trade etc

Question 4

define demographic dividend

Answer 4

when a country benefits from economic growth that stems from the decline in fertility and mortality rates etc

Question 5

what is a superpower state?

Answer 5

A country which projects its power and influence at a global or world- region scale using a range of strategies and mechanisms e.g. USA

Question 6

what is foreign direct investment (fdi)?

Answer 6

A financial investment made by a TNC or other international player (such as a sovereign wealth fund) into a state’s economy

Question 7

what is south to south investment?

Answer 7

Movements of capital from one part of global south (Africa, Asia, Latin America) to another e.g. Chinese investment into Sudan, migration and trade between China and African states

Question 8

How did WWs and the great depression impact globalisation?

Answer 8

1914-1945-‘deglobalisation’, many countries adopted protectionist policies
after ww2, globalisation resurfaced + est of UN, IMF, world bank, WTO- keep the peace + reduce economic nationalism

Question 9

What is the IMF?

Answer 9

IMF- International monetary fund, est in 1944
- helps countries build and maintain stronger economies, makes loans to help countries make policy programs- loans and short and medium term (diff to world bank- long term)

Question 10

What is the world bank?

Answer 10

est in 1944, promotes long term economic development and poverty reduction
-> provides technical and financial support to help countries with specific projects/sectors e.g. fighting disease
assistance= long term

Question 11

What is the WTO?

Answer 11

World trade organisation, est in 1995
- deals with rules of trade, involved in all major trading economies, helps global aid flow smoothly

Question 12

What is the united nations (UN)?

Answer 12

est in 1945, international organisation- 193 member states guided by the purposes and principles contained in its founding charter

Question 13

What has happened to the distribution of trade since 1990?

Answer 13

trade is becoming more regionalised especially in Asia, share of intra-regional trade in Asian exports rose from 42% to 56% between 1990 and 2000

Question 14

how do people impact trade relationships?

Answer 14

some countries have more favourable demographics than others- youthful pops ( causes a demo divi), others deal with ageing pops- shrinking workforce
,expensive for govs
migration- migrant networks promote trade between source and host countries- boosting trade, buying things from origin country in new host etc= immigrant elasticity

Question 15

How did Naura become one of the wealthiest countries per capita?

Answer 15

1967- purchased assets of British phosphate commission-> 70s, price increased as phosphate became a main ingredient in fertilisers needed to rebuild part of the world after WWII

Question 16

How has colonial rule and trade impacted Naura?

Answer 16

Trade- made them dependent on importation of food, mainly canned preservatives-> most obese country per capita
Colonial rule- any money earned under the colonial rule isn’t earned under Naura

Question 17

What is China’s belt and road initative?

Answer 17

• announced by Chinese government in 2013
• infrastructure and lending project linking China to rest of Eurasia and Africa
• aims to create a cohesive, economic area, increased political cooperation and cultural exchanges= helping China increase it’s global ‘soft power’, promoting world economic growth and development and amplifying own influence within global systems

Question 18

Name a positive of the belt and road iniative

Answer 18

1. South to south lending indicates a new emergence of a new multi-polar world (invested at least $900 billion in key infrastructure projects e.g. rail links in south east asia)-> could make the world more stable OR increase conflict

Question 19

How many major global institutions are partners with BRI?

Answer 19

30 major global institutions e.g. UN, IMF, World Bank

Question 20

List 3 criticisms of the Belt and Road iniative

Answer 20

1. China’s aims are not development orientated BUT strategic- can gain control in Indian Ocean region, establish dominance over former soviet union states
2. High interest payments attached to the loans may leave some countries trapped in debt and beholden to China (debt trap diplomacy)
3. If debtor countries cannot repay the money lent, China will gain control of whatever strategic assets the loans have paid for e.g. airports, power stations etc