Answers 2025/2026
Globalisation - CORRECT ANSWER-The growing interdependence of countries,
people and cultures worldwide through increasing connections including trade in
goods and services and flows of capital, technology and ideas/
Shrinking world - CORRECT ANSWER-Although physical distances around the
world are unchanged, technology has massively reduced the time it takes to
trade, travel, and communicate globally.
Transport developments for globalisation - CORRECT ANSWER-- Railways
- Aircraft
- Containerisation
ICT developments for globalisation - CORRECT ANSWER-- Mobile
phones/telephones
- The internet
- GIS/GPS
- Broadband/fibre optics
,Political and economic organisations - CORRECT ANSWER-1. World bank
2. International monetary fund (IMF)
3. World Trade Organisation (WTO)
Why were political and economic organisations needed post WW2? - CORRECT
ANSWER-Following the second-world-war, the economically weak western
nations wanted to prevent the spread of communism from the east, which they
saw as a threat. These organisations were established for economic development,
and to control and oversee international agreements.
Trade restrictions - CORRECT ANSWER-- Tariffs
- Quotas
- Embargo
- Subsidies
Tariffs - CORRECT ANSWER-A tax placed on goods that are imported from other
countries
Quotas - CORRECT ANSWER-A limit placed on the number of goods that are
imported from other countries
Embargo - CORRECT ANSWER-A ban placed on certain goods imported from other
countries
,Subsidies - CORRECT ANSWER-A sum of money granted by the government to
help an industry or business keep the price of goods low
WTO goal - CORRECT ANSWER-The WTO wants to eradicate barriers to trade
Free Trade - CORRECT ANSWER-Trade without any restrictions
Free Trade process - CORRECT ANSWER-1. Governments take away barriers that
make trade more difficult and costly.
2. As coasts are reduced, TNCs will see a profit and want to invest in nations.
3. TNCs will bring new ideas, products, cultures, etc. to a nation
4. Also the TNC will generate wealth.
5. Their wealth and development will increase standard of life and demand for
foreign products.
6. As an economy has more TNCs, they become more interconnected and
interdependent for each other.
Trading Blocs - CORRECT ANSWER-Countries which group together to improve
their economic interest and trading patterns. They often do this by placing
barriers to trade with countries outside the group.
NAFTA - CORRECT ANSWER-North American Free Trade Agreement
- USA, Mexico, Canada
- Population = 472m
, - Combined GDP (PPP) = $20.2 tn
EU - CORRECT ANSWER-European Union
- Population = 508m
= GDP (PPP) $19 tn
MERCOSAR - CORRECT ANSWER-Southern Common Market
- Six full members
- Population = 289m
- GDP (PPP) $4 tn
- South America
OPEC - CORRECT ANSWER-Organisation of petroleum exporting countries
- A group of 12 major oil producing countries
- African, South American, and Middle Eastern members
- Control around 2/3 of global oil reserves
- They can make sure they get a fair price from oil consuming countries
ASEAN - CORRECT ANSWER-Association of South East Asian Nations
- 10 countries formed in 1967
- Combined population of 625 million
- Combined GDP (PPP) = $3.6 tn