Topic Three

Question 1

Trade

Answer 1

The exchange of one thing for another. Typically a commercial transaction

Question 2

Globalisation in trade

Answer 2

No need to do something yourself when someone else can do it for you. Only if there are no barriers

American Steel

Question 3

Protectionism

Answer 3

A country likes to produce their own goods and services (keeping the money internally) another country may produce the exact same thing but cheaper. Impose a tax/tariff on this item so it will end up more expensive - limits import

Question 4

Features of globalisation

Answer 4

It is not inevitable or irreversible

Over the last 40 years international trade has increased massively

Improvements in transport/communications have been the main drivers of global economic integration over the last 200 years

Question 5

Pattern of international Trade between the world

Answer 5

Trade is almost global

Europe has the highest level of inter-regional trade

Question 6

Inter-Trade

Answer 6

Trade Between

Question 7

Intra-Trade

Answer 7

Trade Within

Question 8

Features of trade within Europe

Answer 8

Most intra-trade within Europe

Value of intra-trade is $3.5 trillion

Advantages - Same language, same currency, many countries

Question 9

Trends in international trade by 2020

Answer 9

World trade in goods will be £35 trillion

Asia-Pacific region will experience the fastest growth in international trade

Europe will be the most important market for sub-sahara exports

Question 10

What is FDI

Answer 10

Foreign Direct Investment
It is investment in another country by a TNC, government, or an individual

Question 11

Trends in Investment

Answer 11

FDI flows have been slow in recent years

A 2% decrease in growth since 2015

Flows to developing countries increased by 30% in 2020.

Question 12

China - Belt and Road Initiative

Answer 12

China wanted to invest in Africa

Biggest development project in the world

China had a clear objective to extract raw materials.

They build a new trainline in Kenya connecting tow of the major cities. - Beneficial for the economy as people would get to places much quicker

In debt to china - Rich getting richer

Question 13

China’s Role in Africa

Answer 13

Buying up land for food production - It won’t be food for the Africans, the food will be exported to china

Infrastructure - Infrastructure such as roads will be improved

Migration of the chinese - 1.5 million chinese people now live in africa

Tourism - Around 1 million chinese people visit Africa on holiday.