Globalisation

Question 1

What is globalisation

Answer 1

increasing connectedness of countries around the world through movement of goods, services and capital across borders

Question 2

Examples of global flows

Answer 2

Capital – money flows through world’s stock markets
Commodities – valuable raw mats being traded
Information – internet allows real-time comm btwn countries

Question 3

How has global flows impacted the economy

Answer 3

Global flows have increased the interconnectedness of places which has increased the interdependence of places

Question 4

Explain how trade and transport are interdependent

Answer 4

Improvements in transport led to an increase in amount and value of trade
As countries make profit through trade, they will invest in developing transport technologies to increase profit

Question 5

Name and explain developments in transport in 19th/20th century

Answer 5

Railway networks - expanded globally staff remains important for governments globally
Jet aircraft - intercontinental aircraft made travel easier -Boeing747 in 1960s
Container ships - vital to global economy, largest container ships carry 24,000 containers

Question 6

Explain the concept of a shrinking world

Answer 6

This is when places globally would take less time to reach as there is an increased development in technology = start to feel closer
Also referred to as time-space compression

Question 7

Examples of development in ICT

Answer 7

Telephone - vital for communicating in real time
Broadband + fibre optics - large chunks of data carried across ocean floor via fibre optic cables; reducing loss of comm
Mobiles - countries with limited communication infrastructure skilled telephones and nice straight to mobiles to enable efficient connectivity

Question 8

Role of WTO in globalisation +/-

Answer 8

(+) 1995 - took over Global Agreement on Tarriffs and Trade
(-) failed to stop USA and EU from subsidising their own food producers which hinders farmers in LDCs.

Question 9

Role of IMF in globalisation +/-

Answer 9

(+) transfer loans from HICs to countries that have applied for help.
(-) strict conditions on governments borrowing which may result in govs reducing spending on healthcare, education etc

Question 10

Role of World Bank on globalisation +/-

Answer 10

(+) lends money on global scale, gives direct grants to developing countries.
(-) imposes strict conditions on loans and grants + controversially, all world bank presidents have been US citizens

Question 11

What are free trade blocks

Answer 11

Allow govs to trade freely with neighbouring countries and allies.

Question 12

What is privatisation

Answer 12

Allowing companies to take over important national services (railway, energy supply) = Attractive to TNCs = gain a stake in vital services

Question 13

Factors contributing to increase of globalisation

Answer 13

Special Economic Zones (SEZs) – industrial areas near coast – favourable conditions created to attract TNCs.

Changing attitudes to FDI – countries working to attract FDI to increase global presence. E.g Saudi Arabia changed official weekend to Fri-Sat to be more in line with other countries to be able to participate in the global market.