Globalisation

Question 1

What factors have made globalisation possible?

Answer 1

• Relaxation of laws allowing foreign investment in countries (encouraged rise of TNCs)
• Increased provision and speed of international transport
• Developments in communication with fax, telephone and email

Question 2

What is interdependence?

Answer 2

The relationship between two or more countries, usually in terms of trade

Question 3

What are call centres?

Answer 3

Offices where groups of people answer telephone queries from customers. Employees use a computer to give them information that helps them answer questions

Question 4

What is a transnational corporation?

Answer 4

A corporation or enterprise that operates in more than 1 country

Question 5

What is the multiplier effect?

Answer 5

Where initial investment and jobs lead to a knock-on effect, creating more jobs and providing money to generate services

Question 6

What is leakage?

Answer 6

Where profits made by the company are taken out of the country of origin and so do not benefit the host country

Question 7

Advantages of TNCs

Answer 7

• Offer jobs in factories making supplies and services where products are sold
• Additional income benefits local businesses, creating a multiplier effect
• Training workforce helps develop skills
• Infrastructure improves as better access and communications are needed

Question 8

Disadvantages of TNCs

Answer 8

• Leakage
• Some locations wages are very low and key jobs go to outsiders
• Worldwide economic problems or problems within the country can cause branches to close
• Working conditions are poor and and hours are long
• Health and safety is an issue
• Pollution in countries with less strict regulations

Question 9

What is deindustrialisation?

Answer 9

A process of decline in some types of industry over a long period of time. It results in fewer people being employed in this sector and falling production

Question 10

What are assisted areas/enterprise zones?

Answer 10

Areas that qualify for government help. Enterprise zones are on a smaller scale than assisted areas

Question 11

What is globalisation? (Basic definition)

Answer 11

The increasing links between different countries throughout the world and the greater interdependence that results from this.

Question 12

What are advanced factories?

Answer 12

Where buildings for production are built in the hope they will encourage businesses to buy or rent them

Question 13

What types of Government legislation have been introduced that have influenced industrialisation?

Answer 13

• Setting up assisted areas/enterprise zones where conditions are favourable for new industry - e.g. lower taxes
• Providing advanced factories of various sizes
• Offering retraining and removal expenses
• Ensuring educational reform is high on the list in areas such as the four Asian ‘Tigers’
• Some countries have minimum wage
• Some countries have a maximum number for hours worked per week

Question 14

What types of health and safety regulations have been put in place that influence industrialisation?

Answer 14

• Working conditions vary globally but in the UK, employees working 6+ hours are entitled to a 20 minute break
• Workers have the right to know how to do their job safely and be trained to do so, know how to get first aid, know what to do in emergency and be supplied with protective clothing
• > these regulations do not exist in some poorer countries or are not enforced

Question 15

What are strikes?

Answer 15

Periods of time when large numbers of employees refuse to work due to disagreements over pay or other grievances

Prohibition of strikes is also an influence on industrialisation

Question 16

How has the prohibitions of strikes affected industrialisation?

Answer 16

• Companies such as Nissan and Toyota came to the UK on the understanding that strike action would not be allowed
• Strikes themselves can have an adverse effect on manufacturing and industry which led to the prohibition of strikes and reduction in the power of trade unions

Question 17

What are tax incentives and tax free zones and how have they influenced industrialisation?

Answer 17

• Tax incentives take a variety of forms but all seek to offset costs. This can be done through job-creation grants, business rate/rent free periods and help preparing business plans.
• Tax free zones are areas in which businesses do not need to pay tax

Question 18

Reasons for China’s rapid growth

Answer 18

• Government legislation
• The home market
• The Olympics factor
• Energy
• Labour

Question 19

How has government legislation caused rapid growth in China?

Answer 19

• In 1977 Deng Xiaoping wanted to end China’s isolation and stimulate industry.
• Foreign investment was encouraged but the government maintained overall control over the economy so that China would have maximum benefit
• Between 1980 and 1994 special economic zones (SEZs) were set up to provide tax incentives to foreign companies to encourage foreign investment

Question 20

How has the home market caused rapid growth in China?

Answer 20

• The one child policy (1979) reduced population growth, making families wealthier and increasing consumer demand
• China has a large and rich urban population demanding air conditioning, electrical household goods, cars and computers
• The home market will continue to grow

Question 21

How has the Olympics factor influenced China’s rapid growth?

Answer 21

• The 2008 Olympics were held in Beijing, providing China with the opportunity to showcase the country,
• The opening ceremony was an attempt to convey China as a modern, open and friendly country

Question 22

How has energy influenced China’s rapid growth?

Answer 22

• China generates 2/3 of its electricity at coal-fired power stations and many new plants are being built
• China produces more HEP than any other country and it accounts for 13.9% of electricity (2010)
• Industrial development on a large scale demands large resources of electricity

Question 23

How has labour influenced China’s growth?

Answer 23

Cheap labour helps the economy thrive - wages are 95% lower than in the USA

Question 24

What are they causes of increasing global demand for energy?

Answer 24

• World population growth
• Increased wealth
• Technological advances

Question 25

Why does increased wealth cause a higher global energy demand?

Answer 25

As people become wealthier they demand more products and consumer items, such as electrical items, which require more energy to make and use

Question 26

Technological advances and their role in increasing global demand for energy

Answer 26

- Supplied us with increasing amounts of energy and a wide variety goods to buy - Development of steam using coal led to large scale production in the UK and it fuelled the Chinese economy - Led to development of other sources of energy (e.g. nuclear) and resources can be more easily exploited from areas that they could not have been taken from before - Companies compete with each other to produce products, this requires energy to run, make and develop

Question 27

Effects of increasing global demand for energy

Answer 27

- Incidence of lung related diseases (e.g. emphysema, bronchitis) increase as more areas experience industrialisation (e.g. In UK) - Many people choose to cycle for environmental and economic reasons - Areas people go on holiday can change because of changing air fares and rising fuel costs - Energy becomes more expensive as energy sources are used - Some cities are shrouded in a haze made up of chemicals from coal, smoke and ozone etc - Transportation of oil has led to major oil spills and pollution

Question 28

Notes on renewable energy

Answer 28

Important in sustainable development | -HEP, solar, tidal and wind power

Question 29

Kyoto protocol

Answer 29

An international agreement to cut carbon dioxide emissions to help reduce global warming.

Question 30

Environmental impacts of increasing global food production

Answer 30

- Transporting food longer distances increases carbon footprint. People in the UK demand out of season produce which means greater food miles - Food produced within the UK can also produce greater emissions because of the technology used - Land can become even poorer quality in countries where there is pressure on food production. As crops are harvested, no goodness is returned to the soil so it becomes exhausted and prone to soil erosion

Question 31

Political impacts of increasing global food production

Answer 31

-Disagreements can occur over water that is necessary for irrigation (e.g. Problems over the river Indus)

Question 32

Social impacts of increasing global food production

Answer 32

- Health and safety can be problematic in some areas - Water supplies are often affected by fertiliser - Population can increase - Food shortages because land is not grown for food production but for cash crops

Question 33

Economic impacts of increasing global food production

Answer 33

- Small scale farmers sell surplus food for money - This can be invested in their farms - Rural debt can be created as use of fertiliser and pesticides needs to increase