Paper 1 Globalisation Flashcards
What are the two main factors that accelerated globalisation?
Transport and communication.
What are the transport factors accelerating globalisation?
Containerisation
Jet Air Craft
Railways
Steam-ships
What are the communication factors affecting globalisation?
Mobile phones Fibre optics Social networking Internet Electronic banking
What is privatisation?
Moving businesses out of government ownership into private ownership.
What is the advantage of privatisation?
Creates a competition led market, which encourages more FDI.
What is deregulation?
Getting rid of certain rules/ tarrifs.
Who privatised lots of companies in Britain?
Margaret Thatcher in the 1980s. Privatised BT in 1984 and British gas in 1986.
What is a trade bloc?
International agreement where barriers to trade are reduced or eliminated among the participating states.
What are the advantages of trade blocs?
Serve a larger market
Protection from foreign competition
National firms can merge to form transnational companies
What are the disadvantages of trade blocs?
Interdependence
Loss of sovereignty
Compromise and concession
How do national governments attract FDI?
Change in policy (Open-door policy in China 1978)
Privatisation (Margaret Thatcher UK 1980s)
Improvement of infrastructure (China has 234 civil airports since 2018)
How does privatisation attract foreign direct investment?
Creates a competition-led market which brings great opportunity to bring in profit. Therefore companies are attracted to that area.
What are the special economic zones in China?
Shenzhen, Shantou, Zhuhai
When did China join the WTO?
December 2001
Why are special economic zones significant?
They create a high proportion of jobs in an area, which brings in a lot of money to the national economy.
What questions the significance of SEZ’s?
They only help certain areas, and may only profit certain cities and not the people living in rural areas.
When was the open door policy introduced in China?
1978 by Deng Xiaoping
What are the four SEZ in China?
Shenzhen
Zhuhai
Shantou
Xiamen
What is the role of the World Bank?
- Provide loans in order to rebuild economies as well as alleviate poverty
- Reduce the % of people living on less than $1.25 a day to less than 3% by 2030
- Also works in partnership with governments and other multilateral institutions as well as commercial banks to help deliver projects
What is the role of the WTO?
- Reduce tariffs and barriers to trade
- Established in 1995
What is the role of the IMF?
- Help governments balance their payments when suffering economic difficulties
- Gives loans to member countries if they are unable to pay their debts
- Members are given financial ratings, representing their economic power
- Main purpose is to maintain the stability of the International Monetary System
