Globalisation exam questions And Answers

Assess the extent to which globalisation of trade can bring problems as well as benefits- (12), 4 points, 2 benefits + 2 Problems (+ intro). - Answer- Intro- Globalisation of trade is focused on trade liberalisation, removing trade barriers and free movement of goods between countries, with this mainly developed by WTO who are an IGO encouraging free trade, reduced tariffs, quaotas and restrictions, as well as trade blocs that have developed with the grouping up of countries further helping to reduce trade barriers between its members and imposing trade barriers against those who are not members, further helping to protect the member industries. -When looking at the main groups benefiting from this globalisation it can be seen to benefit the more developed countries who have more control within things such as the WTO, having more influence over the voting system and therefore benefiting from the importing of goods such as raw materials from lower developed regions. For example of its members 75% of these are lower developed all mainly based within primary economies of raw goods therefore the members that are from the more well developed regions are able to benefit from taking advantage of the reduced barriers put on them. It must also be said that when looking at trade blocs other perhaps not as developed regions can also benefit, with a good example being when looking at the EU and Asian NICs such as Vietnam. Through a trade deal made with EU and ASEAN based on WTO rules in 2015 both EU countries and Vietnam can be seen to be benefiting, with over 30million European jobs relying upon exports such as raw materials, goods and produce made in Vietnam (that are made at lower costs also) as well as these European countries having an access into vietnams large market this clearly benefits them. Then Vietnam benefits from machinery, vehicles being sent to them, showing how globalisation of trade does clearly have benefits. -however these trade blocs and especially the joining of WTO can also lead to large problems and so losers, especially for developing countries, as by them liberalising trade this can lead to the exploitation and end up destroying producers. Example can be seen in Ghanas cacao trade, since joining WTO this has posed strict conditions onto Ghana reducing the Ghanian government being able to subsidise farmers, therefore limiting how well they can compete with overseas producers leading many to just give up. This is also then seen with the EU, who due to the tariffs port upon imported processed cocoa, Ghana is then forced to only import it in raw form, something that carries a much lower value further reducing Ghanas development and hindering its economy, whilst this again clearly shows an advantage for the more developed regions. - Within a country theres both winners and losers too as a result of more free trade, e.g in the UK Benefits- big cities like london and Canary Wharf benefiting due to increase in foreign banks and businesses as a result of subsidies/deregulation, also helping increase FDI, therefore increasing the UKs economic and financial sector as well as for those that work their, however Problems- the northern cities in UK/rust belt in the north losing out due to deindustrilisation and UK government no longer funding industries they can get for cheaper overseas, clearly showing not all people even within individual countries are benefiting. also seen within developing countries, e.g. in China where still large rural urban divide etc between large cities and the rural farming community. therefore it can be seen that although benefits arise for those in developed regions and those accessing things such as trade blocs as well as the consumers within these nations, clear problems develop for those exploited for this. Explain 2 ways in which international organisations have contributed to globalisation (4) - Answer- -One way can be seen with the World trade organisation that has helped initiate and increase trade liberalisation, aiming to reduce trade tarriffs and barriers between c