Superpowers and the Global economy

Question 1

What does free trade mean?

Answer 1

International trade that is free from restrictions such as import/export taxes and quotas restricting the volume of trade.

Question 2

The USA, EU and Japan account to how much of the worlds GDP?

Answer 2

about 60%

Question 3

Explain Western capitalist economies

Answer 3

They are capitalist,, i.e. people own businesses and employ workers, and make profits for themselves.
They promote free trade in goods and services across borders.
They are dominated by private enterprise, rather than government-owned companies.
They promote wealth creation and accumulation by companies and individuals.

Question 4

After the second world war, what did Europe and the USA create that still exist today?

Answer 4

Inter-governmental organisations

Question 5

What does the World Bank (WB) do and when was it formed?

Answer 5

Formed in 1944.
Lends money to developing and emerging economies to promote economic development.
This is done within a Western capitalist model.
The money originated from developed economies.

Question 6

What does the World Trade Organisation (WTO) do and when was it formed?

Answer 6

Formed in 1947.
Works to remove barriers to international trade.
Has negotiated a sequence of global free trade agreements that have gradually removed trade taxes and quotas.

Question 7

What does the International Monetary Fund (IMF) do and when was it formed?

Answer 7

Formed in 1945.
Promotes global economic stability.
Aids economies in opening up to world trade and investment.
Comes to the aid of countries in economic difficulty.

Question 8

What does the World Economic Forum (WEF) do and when was it formed?

Answer 8

Formed in 1971.
A Swiss non-profit organisation.
It acts as a forum for discussion between business, politicians and IGOs
It is pro-free trade and pro-TNCs

Question 9

What is a TNC or a trans-national corporation?

Answer 9

A company that operates in more than one country.

Question 10

What is a public TNC and examples?

Answer 10

TNCs that are owned by shareholders; examples include Apple, Tesco, Shell and Zara.

Question 11

What is a state-led TNC and examples?

Answer 11

TNCs that are owned by governments; examples include Bank of China, EDF, Petronas and Gazprom.

Question 12

State led TNC’s are often within strategic industries such as what?

Answer 12

Banking, oil and gas, vehicle manufacturing and the steel industry.

Question 13

The world’s biggest state-led TNCs are dominated by what country?

Answer 13

China

Question 14

The world’s biggest public TNCs are dominated by who?

Answer 14

USA and Europe

Question 15

What are the top three public TNCs in the world?

Answer 15

Walmart
Shell
Exxon Mobil

Question 16

What are the top three state-led TNCs in the world?

Answer 16

State Grid
CNP
Sinopec

Question 17

Apple’s annyal revenue is roughly the same size as the total GDP of which two countries?

Answer 17

Finland and Chile

Question 18

How many people does Walmart employ worldwide?

Answer 18

2.3 million

Question 19

What percentage of the world’s 2000 biggest companies are from the EU, USA and Japan?

Answer 19

62%

Question 20

What percentage of the world’s 2000 biggest companies are from the USA alone?

Answer 20

25%

Question 21

What percentage of global patent royalties are paid to the EU, US and Japanese companies?

Answer 21

90%

Question 22

What is Foreign Direct Investment?

Answer 22

When TNCs invest money abroad such as in building factories or opening offices.

Question 23

What is a patent?

Answer 23

A patent is the legal protection given to a new invention: other companies can use it, but only on payment of a royalty fee to the inventor (usually a company)

Question 24

Definition of culture

Answer 24

System of shared beliefs, values and traditions including behaviour, dress, art, language, food, relationships, religion an even political views.

Question 25

What is western culture and values?

Answer 25

Individual freedom and rights, including gender equality and religious freedom.
The idea that accumulating wealth, owning property and consuming goods and services indicate a successful life.
The importance of having the latest technology, and the idea that technology can solve problems.
Living in a small family unit, rather than an extended family.

Question 26

In Asia and South America, in which areas is westernisation most obvious?

Answer 26

Dress.
Types of food people eat (McDonald’s and KFC)
Films (Disney)
Spread of American English as a ‘global language’

Question 27

What are the top ten global brands?

Answer 27

Google
Apple
Microsoft
At&T
Facebook
Visa
Amazon
Verizon
McDonald's
IBM