4.1.1 Globalisation

Question 1

5 characteristics of globalisation

Answer 1

1) Increased international movement of labour
2) Increased international movement of financial capital
3) Increased specialisation
4) Increased international trade
5) Increased trade-to-GDP ratios

Question 2

4 factors contributing to globalisation?

Answer 2

1) Increased improvements in transport - movement of labour
2) Increased improvements in IT - increased FDI
3) Containerisation
4) Trade liberalisation

Question 3

Impact of globalisation on individual countries?

Answer 3

+ Increased living standards - comparative advantage means specialisation – leads to increase in world real GDP e.g. China 14trn

• Overdependence – more specialisation means more dependence on that industry 80% of Nigerian exports is oil

Question 4

Impact of globalisation on governments?

Answer 4

+ Increased tax revenues – due to increased international trade

• Transfer pricing - Apple was fined £11bn by the EU for doing this

Question 5

Impact of globalisation on producers?

Answer 5

+ Lower production costs - trade liberalisation makes imports of raw materials cheaper

• Increased international competition - can force some t close if they can’t compete

Question 6

Impact of globalisation on consumers?

Answer 6

+ Wider choice & cheaper prices – Containerisation lowers costs and hence prices - increased international trade - wider range of goods available

• Loss of culture - e.g. KFC in Nigeria

Question 7

Impact of globalisation on workers?

Answer 7

+ Increase in international job opportunities – improvements in transport - easier to find jobs abroad – IT has allowed remittances - incentive to work abroad

• Structural unemployment – Lower costs abroad meant countries gained comparative advantage – increased specialisation – industries are move abroad – people lose jobs e.g. UK Steel industry to China

Question 8

Impact of globalisation on environment?

Answer 8

+ Global cooperation to fight climate change – increased interdependence - relationships must be good between nations – more likely to cooperate on climate change e.g. Kyoto protocol

• Increase in global warming – increase in international trade & production - more CO2 emissions