Politics

Question 1

Define ‘tariff’

Answer 1

A tax imposed on imports

Question 2

Define ‘subsidy’

Answer 2

Financial assistance to a business by the government to make it more competitive to prevent it from collapsing

Question 3

Define ‘quota’

Answer 3

A limit on the quantity of goods a country allows in

Question 4

Define ‘protectionism’

Answer 4

Policies to protect businesses and workers in a country by restricting or regulating trade with foreign nations

Question 5

Define ‘free-market economy’

Answer 5

A market economy based on supply and demand with little or no government control

Question 6

Define ‘free-trade’

Answer 6

A policy where a government does not interfere with imports or exports

Question 7

Define ‘privatisation’

Answer 7

Transferring ownership of a service/ agency or property to private ownership run for profit

Question 8

Define ‘neo-liberalism’

Answer 8

A political philosophy of free markets, free trade, privatisation and increasing the role of business in society and decreasing influence of the government. It is thought that by making trade more accessible, there will be more of it and so poverty reduction

Question 9

Name three NGO players in trade and capital

Answer 9

• WTO
• IMF
• World Bank

Question 10

How many members are in the WTO, IMF and World Bank?

Answer 10

WTO - 161
IMF - 188
WB - 452

Question 11

What is the aim and role of the WTO in globalisation?

Answer 11

A - free trade between all members

R - restricts protectionism and took over the general agreement on trade and tariffs in 1995

Question 12

Name an achievement of the WTO in 2014

Answer 12

China was persuaded to lift export restrictions on rare earth minerals

Question 13

What is the aim and role of the IMF?

Answer 13

Control loans from wealthy to poor nations making the receiving governments agree to free market economies for TNC investment and make restrictions on spending elsewhere e.g. schools/ healthcare

Question 14

Who controls the IMF and why is this a problem?

Answer 14

Controlled by the USA who exert major influence despite European president

Question 15

What is the approximate worth of the IMF?

Answer 15

$755 billion currently holding

Question 16

What is the aim of the World Bank?

Answer 16

Finance the development of nations through loans to promote shared prosperity

Question 17

What did the World Bank do in 2014?

Answer 17

Distributed $65 billion in loans and grants, $470m went to the Philippines for poverty reduction

Question 18

In what six ways does free trade increase globalisation?

Answer 18

• Gov takes away barriers that make trade costly and difficult
• As costs reduced TNCs invest
• TNCs bring new ideas, products, cultures etc
• TNC generates wealth
• Wealth develops increases SoL and demand for foreign products
• As an economy has more TNCs they become interconnected and interdependent

Question 19

What is a positive and negative impact of a developing country receiving a loan

Answer 19

+ temporary debt relief

X not permanent solution also LEDCs may become reliant

Question 20

What is a positive and negative impact of a developing country receiving debt relief?

Answer 20

+ Can prioritise and develop fundamental services

X increases debt and reliance

Question 21

What is a positive and negative impact of a developing country stoping protectionalism and adopting the free-market?

Answer 21

+ increases places they can trade

X reduces profit from tariffs

Question 22

Give a positive and negative impact of the IMF restructuring loans

Answer 22

+ spend less time in debt

X lower profit margin for IMF

Question 23

Give a positive and negative impact of the developing country privatising services such as water

Answer 23

+ improves national economy as they pay less to provide services
X makes government inferior and increases cost to people

Question 24

Give a positive and negative impact of the developing country having to be cut on education

Answer 24

+ gov can prioritise money elsewhere

X reduces youth prospects and less people in high earning sectors

Question 25

Give a positive and negative impact of the developing country having to privatise it’s drilling facilities

Answer 25

+ gov spending elsewhere

X less profits to national economy and makes gov inferior

Question 26

What are structural adjustment programmes? (SAPs)

Answer 26

Economic policies promoted by the World Bank and IMF to provide loans conditional on the adoption of policies since the 1980s

Question 27

SAPs aim to achieve long-term or (1) economic growth by (2) and reducing gov (3) including currency (4) through public spending cuts and (5) state owned industries

Answer 27

1 - accelerated 
2 - restructuring the economy 
3 - intervention
4 - devaluation 
5 - privatising

Question 28

What is the biggest criticism of SAPs?

Answer 28

Policies have slowed improvements/ worsened health services especially nutritional status of children, maternal mortality rates and infectious diseases

Question 29

‘The great (1) of China prevents internet users from using (2) services, the government sets a strict quota of (3) foreign films a year, Western culture is still gaining a foothold by many Chinese people celebrating (4)

Answer 29

1 - firewall
2 - BBC and Facebook
3 - 34
4 - Christmas

Question 30

Reports of serious degradation of Nigeria’s (1) due to (2). The leader of protests was executed by the government in (3) causing international outcry, Since then companies like (4) have been accused by (5) for environmental damage

Answer 30

1 - Ogoniland 
2 - Oil spillages 
3 - 1995
4 - Royal Dutch Shell 
5 - Amnesty International

Question 31

France is fiercely protective of its culture and language, the government is supportive of (1) and subsidies for films in (2), (3)% of TV output must consist of French productions

Answer 31

1 - French film makers
2 - the French language
3 - 40%