Week 1

Question 1

Globalisation

Answer 1

Merging of historically distinct and separate national markets into one huge global marketplace (e.g. falling barriers to cross-boarder trade and investment)

Question 2

Globalization of production

Answer 2

Sourcing goods to take advantage of difference in cost and quality of factors of production (e.g. importing labour to 3rd world countries)

Question 3

WTO

Answer 3

World Trade Organisation
-Policies the world trading system
-Ensures nation-state adherence to to the roles
-Facilities multi nations agreements
-As at 2021, 164 nationals

Question 4

IMF

Answer 4

International Monetary Fund
-Established to maintain order in the international monetary system
-Often seen as the lender of last resort
-In return for loans, requires nations to adopt specific economic policies aimed at retuning their economies to stability and growth.

Question 5

World Bank

Answer 5

World Bank
-Promotes economic development
-Focused on making low-interest cash strapped governments in poor nations that wish to undertake significant infrastructure investments

Question 6

UN

Answer 6

United Nations
-Promotes peace through international cooperation and collective security
-193 members
-4 basic purposes: maintain international peace and security , cooperate in solving issues, develop friendly relations among nations, be a centre for harmonising the actions of nations

Question 7

G20

Answer 7

Group of Twenty
-comprised of the 19 largest economies in the world, plus EU and European Central Bank
-Represents 90% of the global GDP and 80% of international global trade

Question 8

International Trade

Answer 8

When a firm exports goods and services to consumers in another country

Question 9

Foreign Direct Investment

Answer 9

When a firm invests resources in business activities outside its home country

Question 10

Roles of technology in change

Answer 10

Communications: development of the microprocessor single most important innovation since WW2
The internet: more that half of the world’s population uses the internet, global e-commerce sales close to $4 trillion, the internet acts as an equaliser
Transportation technology: commercial jets, super freighters, and containerisation have all “shrunk the globe”.

Question 11

Implications for the globalisation of production

Answer 11

Locating production in geographically separate locations has become more economical

Question 12

Implications for the globalisation of markets

Answer 12

Cultural distance has been reduced and has brought some convergence of consumer taste and preferences.

Question 13

Changing world order

Answer 13

Former communist countries present export & investment opportunities
-signs of growing unrest & commitment to market-based economic systems cannot be assumed
-risks of doing business in these countries are high
CHINA MOVING TO INDUSTRIAL SUPERPOWER
-In Latin America, debt & inflation are down, more private investors, expanding economies