Lesson 7

Question 1

Define globalisation

Answer 1

Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange.

Question 2

Recall the three different stages of the Clark Fisher Model

Answer 2

1. Pre-industrial stage
2. Industrial stage
3. Post-industrial change

Question 3

Explain why stage 3 of the Clark Fisher model of employment change is called the post-industrial stage.

Answer 3

When economies have passed through the pre-industrial and industrial stages, they often enter the post-industriak stage. At this point, tertiary sector, providing services such as transport, education and health, becomes more important than the secondary or manufacturing sector, such as steel, textiles, engineering and chemicals. This is because more and more people are living in town ps and are demanding a wide range of services. This pattern was typical of Britain in the 1950s.

Question 4

Describe what happens in the Clark Fisher model after the post-industrial stage

Answer 4

Employment in the quaternery sector begins to grow in importnace. The quaternary sector is based on research and development and information technology, discovering new products and services.

Question 5

Describe working conditions in the secondary employment sector in middle-income countries

Answer 5

Working conditions in the manufacturing and construction industries of middle-income countries are likely to be poor, even unsafe, due to lack of regulation. Hours of work are long but pay is quite good.

Question 6

What case study can you use from lesson 7?

Answer 6

The Clark Fisher Model

Question 7

Other than outsourcing, identify one method used by Transactional Companies to reduce costs.

Answer 7

They can spread the work over lots of different place to find cheaper resources.

Question 8

For a named TNC explain why it operates in different part of the world.

Answer 8

Apple.
Apple operates in different parts of the world so it can get the best and cheapest product available. It has its headquaters, research and development in America. They do this there so that the employees are well-educated and they have the money for the expensive equipment for designs and development. However, they manufacture in LCD’s like china and india where the materials, employees and resources are cheapest. This allows them to create and manufacture a good product at a cheap expense.

Question 9

Describe the impact of globalisation on different groups of people in the developing world.

Answer 9

For male factory workers in places like china, there are more job opportunities, despite being low paid. Some male workers may lose their jobs to cheaper labourers as competition increases so not much has changed. For women workers there are far more opportunities as women are finally allowed to work and have jobs. Despite the fact that they are low paid, it is still a step towards change for women in the developing world.

Question 10

What does the Clark Fisher Model show?

Answer 10

It shows how employment structure of a country changes as it develops.

Question 11

Describe what is meant by the term Primary Sector

Answer 11

This sector involves people working with natural resources. The largest and most important activity in this sector is agriculture, but it also includes fishing, forestry, mining and quarrying.

Question 12

Describe what is meant by the term Secondary Sector

Answer 12

This sector involves making new things. This could either be by manufacturing a good, such as a car, or constructing something, like a house or a road.

Question 13

Describe what is meant by the term Tertiary Sector

Answer 13

This sector provides services for the population. The services include commercial services (shops and banks), professional services (solicitors and dentists), social services (schools and hospitals), entertainment services (restaurants and cinemas) and personal services (hairdressers and fitness trainers).

Question 14

Describe what is meant by the term Quaternary Sector

Answer 14

This sector is mainly found in developed countries only and involves research, information and communication.

Question 15

Name factors attracting TNCs to a country

Answer 15

cheap raw materials
cheap labour supply
good transport
access to markets where the goods are sold
friendly government policies

Question 16

What is globalisation a result of?

Answer 16

increased international trade
a company operating in more than one country
greater dependence on the global economy
freer movement of capital, goods, and services
recognition of companies such as McDonalds and Starbucks in LEDCs

Question 17

Name some ot the reason of globalisation

Answer 17

Imporvements in transportation, freesom of trade, improvements in communication

Question 18

What is a TNC?

Answer 18

A TNC is a large company which operates in countries all around the world

Question 19

Why may a TNC go global?

Answer 19

A TNC may have wanted to go global for various reasons:
take advantage of incentives
to spread business risk
to sell inside trade barriers
to reduce costs of buildings/land
to reduce labour costs
to be close to markets

Question 20

What are the three critical parts that are needed for globalisation to occur?

Answer 20

Networks - the things which link countries together, e.g.: transport networks, phones, internet and trade blocs, known as ‘spider’s webs’
Flows - the things which move through the networks, e.g.: raw materials, manufactured goods, money, migrant workers, information and aid.
Players - the organisations which influence the workings of the global economy, including transnational corporations (TNCs), the huge businesses empires, as well as many other global organisations.