GEOGRAPHY A LEVEL EDEXCEL
PAPER 2
Globalisation correct answers 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 answers 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 answers - Railways
- Aircraft
- Containerisation
ICT developments for globalisation correct answers - Mobile
phones/telephones
- The internet
- GIS/GPS
- Broadband/fibre optics
Political and economic organisations correct answers 1. World bank
2. International monetary fund (IMF)
3. World Trade Organisation (WTO)
Why were political and economic organisations needed post WW2? correct
answers 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 answers - Tariffs
- Quotas
- Embargo
- Subsidies
Tariffs correct answers A tax placed on goods that are imported from other
countries
Quotas correct answers A limit placed on the number of goods that are
imported from other countries
Embargo correct answers A ban placed on certain goods imported from
other countries
,Subsidies correct answers A sum of money granted by the government
to help an industry or business keep the price of goods low
WTO goal correct answers The WTO wants to eradicate barriers
to trade Free Trade correct answers Trade without any
restrictions
Free Trade process correct answers 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 answers 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 answers North American Free Trade Agreement
- USA, Mexico, Canada
- Population = 472m
- Combined GDP (PPP) = $20.2 tn
EU correct answers European Union
- Population = 508m
= GDP (PPP) $19 tn
MERCOSAR correct answers Southern Common Market
- Six full members
- Population = 289m
- GDP (PPP) $4 tn
- South America
OPEC correct answers 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 answers Association of South East Asian Nations
- 10 countries formed in 1967
- Combined population of 625 million
- Combined GDP (PPP) = $3.6 tn
,- Seventh largest economy in the world
Social positives of trading groups correct answers - Withing social and
political unions people are often free to live and work in the country of their
choice within the union.
- Living standards go up as trade prospers
Social negatives of trading groups correct answers - With relaxed borders
it is easier for illegal immigrants to move around within the bloc
- Legislation can limit workers as well as protect them
Economic positives of trading groups correct answers - Trade blocs protect
the are'as economy from competition
- Free trade within the bloc
- Market access and trade creation
- Economies of scale
-Jobs may be created as a consequence of increased trade between
member economies
- Firms inside the bloc are protected from cheaper imports from
outside.
-Inefficient producers within the bloc can be protected from more efficient
ones outside the bloc.
- Being within a trading bloc encourages FOREIGN DIRECT INVESTMENT from
TNCs
- Trading blocs can help companies grow
Economic negatives of trading groups correct answers - The benefits of
global free trade can be lost as countries concentrate trade withing their
trade area or bloc
- Trade blocs cost money
Environmental positive of trading groups correct answers Social and
economic unions can set high environmental standards
Environmental negative of trading groups correct answers Trading blocs
increase food miles as the cheapest product within the bloc will be the most
traded.
Political positives of trading groups correct answers - Weaker disadvantaged
peripheral regions can be supported by the stronger areas.
-The incentives of trade and political cooperation help to reduce the
chances of violent conflict.
-Giving smaller, individual countries greater political influence when
dealing with other nations.
Political negatives of trading groups correct answers - Trade wars
- Non-member countries of the trade bloc will be ostracised
- Loss of some financial controls to a central authority
-Trading blocs add another layer of government which costs
money and add complications for countries making their own
decisions
- Loss of sovereignty
, -Some smaller regions don't like big government and this has led
the drive to SEPERATISM
Foreign Direct Investment (FDI) correct answers an investment made by a
company based in one country, into a company based in other countries
(money, people...)
Types of foreign direct investment correct answers - Offshoring
- Foreign Merging
- Foreign Acquisition
- Transfer Pricing
Offshoring correct answers Some TNCs build their own production facilities
in 'offshore' low-wage economies.
Foreign Merging correct answers Two firms in different countries join forces
to create a single entity
Foreign acquisitions correct answers When a TNC launches a takeover of a
company in a different country.
Transfer Pricing correct answers Some TNCs have sometimes
channelled profits through a subsidiary company in a low-tax county.
Government policies encouraging globalisation correct answers -
Neoliberalism
- Privatisation
- Enterprise Zones
New Global Regions correct answers Developing/emerging economies
Privatisation correct answers Allowing foreign investors to gain a stake in
privatised national services and infrastructure.
Neoliberalism beliefs correct answers - Government intervention is
markets impedes economic development.
- As wealth increases, trickle down will take place from the richest to the
poorest.
Open Door Policy (1978) correct answers Deng realised that China needed
Western technology and investment, and opened the door to foreign
businesses who wanted to set up in China.
SEZ correct answers Special Economic Zones in China, similar to UK
enterprise zones.
Open Door Policy timeline correct answers 1. In 1978 Deng Xiaoping Began
the open door policy.
2. The first reforms were in rural areas - agricultural communes were
dismantled and farmers were allowed to make a small profit.
PAPER 2
Globalisation correct answers 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 answers 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 answers - Railways
- Aircraft
- Containerisation
ICT developments for globalisation correct answers - Mobile
phones/telephones
- The internet
- GIS/GPS
- Broadband/fibre optics
Political and economic organisations correct answers 1. World bank
2. International monetary fund (IMF)
3. World Trade Organisation (WTO)
Why were political and economic organisations needed post WW2? correct
answers 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 answers - Tariffs
- Quotas
- Embargo
- Subsidies
Tariffs correct answers A tax placed on goods that are imported from other
countries
Quotas correct answers A limit placed on the number of goods that are
imported from other countries
Embargo correct answers A ban placed on certain goods imported from
other countries
,Subsidies correct answers A sum of money granted by the government
to help an industry or business keep the price of goods low
WTO goal correct answers The WTO wants to eradicate barriers
to trade Free Trade correct answers Trade without any
restrictions
Free Trade process correct answers 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 answers 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 answers North American Free Trade Agreement
- USA, Mexico, Canada
- Population = 472m
- Combined GDP (PPP) = $20.2 tn
EU correct answers European Union
- Population = 508m
= GDP (PPP) $19 tn
MERCOSAR correct answers Southern Common Market
- Six full members
- Population = 289m
- GDP (PPP) $4 tn
- South America
OPEC correct answers 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 answers Association of South East Asian Nations
- 10 countries formed in 1967
- Combined population of 625 million
- Combined GDP (PPP) = $3.6 tn
,- Seventh largest economy in the world
Social positives of trading groups correct answers - Withing social and
political unions people are often free to live and work in the country of their
choice within the union.
- Living standards go up as trade prospers
Social negatives of trading groups correct answers - With relaxed borders
it is easier for illegal immigrants to move around within the bloc
- Legislation can limit workers as well as protect them
Economic positives of trading groups correct answers - Trade blocs protect
the are'as economy from competition
- Free trade within the bloc
- Market access and trade creation
- Economies of scale
-Jobs may be created as a consequence of increased trade between
member economies
- Firms inside the bloc are protected from cheaper imports from
outside.
-Inefficient producers within the bloc can be protected from more efficient
ones outside the bloc.
- Being within a trading bloc encourages FOREIGN DIRECT INVESTMENT from
TNCs
- Trading blocs can help companies grow
Economic negatives of trading groups correct answers - The benefits of
global free trade can be lost as countries concentrate trade withing their
trade area or bloc
- Trade blocs cost money
Environmental positive of trading groups correct answers Social and
economic unions can set high environmental standards
Environmental negative of trading groups correct answers Trading blocs
increase food miles as the cheapest product within the bloc will be the most
traded.
Political positives of trading groups correct answers - Weaker disadvantaged
peripheral regions can be supported by the stronger areas.
-The incentives of trade and political cooperation help to reduce the
chances of violent conflict.
-Giving smaller, individual countries greater political influence when
dealing with other nations.
Political negatives of trading groups correct answers - Trade wars
- Non-member countries of the trade bloc will be ostracised
- Loss of some financial controls to a central authority
-Trading blocs add another layer of government which costs
money and add complications for countries making their own
decisions
- Loss of sovereignty
, -Some smaller regions don't like big government and this has led
the drive to SEPERATISM
Foreign Direct Investment (FDI) correct answers an investment made by a
company based in one country, into a company based in other countries
(money, people...)
Types of foreign direct investment correct answers - Offshoring
- Foreign Merging
- Foreign Acquisition
- Transfer Pricing
Offshoring correct answers Some TNCs build their own production facilities
in 'offshore' low-wage economies.
Foreign Merging correct answers Two firms in different countries join forces
to create a single entity
Foreign acquisitions correct answers When a TNC launches a takeover of a
company in a different country.
Transfer Pricing correct answers Some TNCs have sometimes
channelled profits through a subsidiary company in a low-tax county.
Government policies encouraging globalisation correct answers -
Neoliberalism
- Privatisation
- Enterprise Zones
New Global Regions correct answers Developing/emerging economies
Privatisation correct answers Allowing foreign investors to gain a stake in
privatised national services and infrastructure.
Neoliberalism beliefs correct answers - Government intervention is
markets impedes economic development.
- As wealth increases, trickle down will take place from the richest to the
poorest.
Open Door Policy (1978) correct answers Deng realised that China needed
Western technology and investment, and opened the door to foreign
businesses who wanted to set up in China.
SEZ correct answers Special Economic Zones in China, similar to UK
enterprise zones.
Open Door Policy timeline correct answers 1. In 1978 Deng Xiaoping Began
the open door policy.
2. The first reforms were in rural areas - agricultural communes were
dismantled and farmers were allowed to make a small profit.
