2.4.1 Globalisation

Question 1

what is globalisation

Answer 1

the process through which an increasingly free flow of ideas, people, goods, services and capital leads to the integration of economies and societies.

Question 2

what is FDI

Answer 2

occurs when businesses or governments invest in other countries

Question 3

negatives of globalisation

Answer 3

• focuses on the unhealthy dominance of US and European corporate culture across the globe
• See a process by which rich western economies exploit less well-endowed nations

Question 4

pros of Globalisation

Answer 4

• that brings wealth and development to many countries
• that has made billions of people around the world better off in both financial and material ways
• interdependence may bind countries together and help maintain peace and stability on a global level

Question 5

factors contributing to globalisation in last 50 years

Answer 5

• reduction in trade barriers
• IMF/world bank
• WTO
• containerisation/internet

Question 6

what is the IMF

Answer 6

co-ordinates the international monetary system. It tries to maintain stability, and provide adequate finance for world trade to continue without interruption

Question 7

what is the world bank

Answer 7

lends money to developing countries in order to fund projects which help them to raise incomes and make their economies more efficient

Question 8

what is the WTO?

Answer 8

the general agreement of tariffs and trade. It supervises world trading arrangements and trade negotiations and helps to resolve disputes between governments

Question 9

what is containerisation

Answer 9

reduced cost of transport and communications making it easier and cheaper to communicate with other countries and travel to them, so the amount of trade increases.

Question 10

what are multinational corporations

Answer 10

businesses which are active in more than one countries. They might have distribution outlets or factories abroad, or they may offer services which are bought by organisations or people located in other countries.

Question 11

define outsourcing

Answer 11

buying inputs from foreign suppliers, or locating the whole production process abroad. The objective is to exploit cost savings, most often lower wage rates