Yr12 UCAS Globalisation

Question 1

globalisation definition

Answer 1

the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services, freer international capital flows and more rapid and widespread diffusion in technology

Question 2

what factors have accelerated the process of globalisation

Answer 2

TNCs, Lower Transport Costs, Computer and Internet Technology, International Organisations, New markets

Question 3

what is containerisation

Answer 3

a method in which goods and products are transported in containers, meaning that they can easily be transferred on and off ships onto trains or lorries

Question 4

what is the role of the world bank

Answer 4

to provide loans in order to help rebuild economies as well as to alleviate poverty

Question 5

what are the aims of the world bank

Answer 5

to reduce the % of people living on less than $1.25 a day to no more than 3% of the world’s population by 2030, as well as reduce inequalities by encouraging income growth for the bottom 40% of every country

Question 6

what is the WTO

Answer 6

the World Trade Organisation, its role is to reduce tariff in order to allow the standardisation of products, reduction of trade barriers and the elimination of preferences, established in 1995

Question 7

what is the IMF

Answer 7

the International Monetary Fund, to help governments balance their payments when they are suffering from economic difficulties, gives out loans to its member countries that are unable to pay off their debts

Question 8

what is FDI

Answer 8

Foreign direct investment

Question 9

what is privatisation

Answer 9

transferring ownership of a business, agency, service or property from the public sector (government controlled) to the private sector, governments do it as they believe that rules make businesses inefficient and reduce motivation and innovation

Question 10

what are the advantages of trade blocs

Answer 10

Protection from Foreign Competitors and Political Stability, National firms can merge to form TNCs, Bigger markets but no extra taxes

Question 11

what are the disadvantages of Trade Blocs

Answer 11

loss of Sovereignty, increase in interdependence, Compromise and Concession

Question 12

what are special economic zones

Answer 12

areas of land set aside by governments in locations well-placed for international trade, companies can import raw materials and export finished products from these zones, without incurring common domestic taxes e.g China set up 4 in open door policy 1980

Question 13

What is the KOF Globalisation Index

Answer 13

measures the extent that countries are socially, politically and economically linked to others. Considers political factors, but its major weakness is that data from some countries is not available

Question 14

what is AT Kearney

Answer 14

produces a Global Cities index which uses measures of business activity, human capital, information exchange, cultural experience and political engagement to rank cities

Question 15

what is the IMF Annual Report on Exchange Arrangements and Exchange Restrictions

Answer 15

records the existence of restrictions to trade in different countries.

Question 16

what is the role of TNCs in globalisation

Answer 16

link together different national markets through their supply chains and marketing strategies, they partake in offshoring and outsourcing

Question 17

what is offshoring

Answer 17

where a company moves parts of its operation to other countries due to cheaper labour costs, or for lower taxes and tariffs

Question 18

what is outsourcing

Answer 18

where a business makes a contract with another company to complete some of the work, rather than doing within the company

Question 19

what is glocalisation

Answer 19

adapting the goods or services of a business to increase consumer appeal in different local markets

Question 20

environmental reasons for global isolation

Answer 20

distance from market, wilderness (desert), low agricultural potential, lack of energy and mineral deposits

Question 21

political reasons for global isolation

Answer 21

corruption and presence of organised crime/ terrorist groups, weak commitment from the government to develop, civil or tribal conflict, exclusion from trade blocs

Question 22

economic reasons for global isolation

Answer 22

high level of government debt, weak education levels and poor workforce skills, poor transport and telecommunications infrastructure, dependence on particular industries

Question 23

push factors of rural to urban migration

Answer 23

increasing use of technologies so less need of manual workers, young people don’t want to farm, increase pop means less land for everyone, education and health standards lower

Question 24

pull factors of rural to urban migration

Answer 24

better jobs in cities, better facilities in cities, increased quality of life, most migrants know people in the cities

Question 25

what are the benefits of migration for the source country

Answer 25

reduced pressure on welfare spending, money is sent back, returning migrants bring professional social and political experience

Question 26

costs for source country

Answer 26

skills shortages in key areas of the economy, demographic imbalance ( reduced birth rate and higher dependency ratios), depopulation leading to dereliction

Question 27

benefits for the host country

Answer 27

filling of skills shortages, migrants contribute to the economy as consumers, more taxpaying workers

Question 28

costs for host country

Answer 28

need for extra school and health services (130,000 more primary schools needed), pressures on the rented section of the housing market

Question 29

what are hyper-globalisers

Answer 29

believe that globalisation is a successful process, think that one day the world will become a homogenous culture

Question 30

what are transformalists

Answer 30

they don’t think that its inevitable that the world will move towards a homogenous culture, new hybrid cultures will emerge

Question 31

what are sceptics

Answer 31

globalisation only includes the richer core capital economies and reflects their interdependence, there is marginalisation of other poorer groups and their cultures

Question 32

what are indicators of development

Answer 32

freedom of speech and political voice, conflict and corruption, quality of the environment, equality of opportunity, individual perception, sustainability, religion and respect for tradition

Question 33

what is the gender equality index

Answer 33

measures gender disparity, it has three dimensions that are reproductive health, empowerment and labour market participation

Question 34

what is the Air pollution index

Answer 34

measures quantities of Sulphur Dioxide, nitrogen dioxide, carbon monoxide and Ozone, if it exceeds 500 a state of emergency is declared

Question 35

what is the Gini Coefficient

Answer 35

a number between 1 and 0 that measures the degree of inequality, in the distribution of income or wealth, 0 is good

Question 36

what is trade protectionism

Answer 36

the economic policy of limiting trade between countries through tariffs on imported goods, restrictive quotas and regulations that disadvantage foreign companies compared to domestic ones.