Globalisation Eq1

Question 1

Define globalisation

Answer 1

The process by which people, culture, capital, commodities and information are becoming increasingly connected

Question 2

What are the four flows of globalisation

Answer 2

Commodities
Information
People (tourists + migrants)
Capital (money)

Question 3

What are the 4 strands of globalisation

Answer 3

Political
Economic
Social
Cultural

Question 4

How is Cuba switched off

Answer 4

History of USA trade embargo so there is limited access to new technology, transport, has become popular with tourists

Question 5

How is North Korea switched off

Answer 5

Politically - censorship of social media and tv

Question 6

How is the Himalayas switched off

Answer 6

Physically - isolated, mountains, difficult access

Question 7

How is the Sahel region of Africa switched off

Answer 7

Economically - remote, difficult to travel and trade, poor infrastructure for trade, lack of resources to trade

Question 8

what is the China Open Door Policy

Answer 8

China opened its doors to foreign businesses that want to invest in the country

Question 9

What impact did the china open door policy have

Answer 9

Causes huge amounts of FDI, global shift of industry towards the East

Question 10

IGO meaning

Answer 10

Intergovernmental organisation - organisations like WTO, WB and IMF which have a significant role in global economies

Question 11

What is a quota

Answer 11

A limit placed on the number of goods that are imported from other countries

Question 12

Space time compression meaning

Answer 12

While distances remain unchanged, developments in technology and transport make places feel closer than in the past

Question 13

Special economic zone example

Answer 13

Shenzhen, China, created 30 million jobs, increased income in area by 30%

Question 14

Special economic zone meaning

Answer 14

An area designed to encourage investment and create employment to promote economic growth

Question 15

4 Things governments can do to encourage globalisation

Answer 15

• free market liberalisation
• privatisation
• encouraging business start ups
• china open door policy

Question 16

Trade bloc meaning and examples

Answer 16

A tax placed on goods that are imported from other countries that aren’t members of the group
E.g EU, ASEAN (which also promotes peace as members pledge not to have nuclear weapons

Question 17

What are the two measures of globalisation

Answer 17

KOF index, AT Kearney index

Question 18

What developments have there been in ICT which allow globalisation to take place

Answer 18

1. Telephones and telegraphs 1860s
2. Broadband and fibre optics (more than 1.2 million km of undersea cables today)
3. GIS and GPS 1970s
4. Internet and social networks (58% now use the internet)

Question 19

What developments have there been in transport to allow globalisation

Answer 19

1. Steam power 1800s
2. Railways 1800s
3. Jet aircraft 1960s
4. Containerisation - large capacity storage units which can be transported long distances using multiple types of transport

Question 20

What do governments do to encourage business start ups

Answer 20

Low business taxes, changes in the law to allow more profit to be made

Question 21

What factors does the AT Kearney index include

Answer 21

• political (membership of IGOs and trade blocs)
• communication (telephone traffic, tourists)
• technology (internet users + hosts, secure servers
• economic (imports, exports, FDI)
  Measures globalisation of cities

Question 22

What factors does the KOF index include

Answer 22

• political (membership to IGOs and trade blocs)
• economic (flows of FDI, flows of goods + services)
• social (information, phone calls, tourist numbers)

Question 23

What impact have mobile phones had in Africa

Answer 23

• access to free insurance
• access to free online education
• communication with doctors
• mobile bank accounts M-Pesa

Question 24

What is free market liberalisation

Answer 24

Government intervention in markets prevents economic development, as overall wealth increases, money trickles down

Question 25

What is offshoring

Answer 25

Doing something through your own company but in a different country to increase profits

Question 26

What is outsourcing

Answer 26

Hiring another company to provide a service

Question 27

What is privatisation + example

Answer 27

Allowing foreign investors to gain a stake in privatised national services and infrastructure to help fund it E.g UK railways

Question 28

What is the IMF and what do they do

Answer 28

International monetary fund - offers emergency loans for short periods of time to it's members e.g after natural disasters such as 2004 tsunami

Question 29

What is the WTO and what do they do

Answer 29

World trade organisation - advocates for trade liberalisation, oversees rules of international trade

Question 30

What is WB and what do they do

Answer 30

World bank - offers to help with infrastructure, education and health on a global scale, it's main function is to ensure that trade flows smoothly, predictably and freely

Question 31

What is wrong with the AT Kearney index

Answer 31

Only includes 62 countries, too much emphasis on ICT which allows USA to gain high score without political connections

Question 32

What is wrong with the KOF index

Answer 32

Only measures international interactions, doesn't include recent technological developments