Podcast
Questions and Answers
What role has the World Trade Organisation (WTO) played in global politics?
What role has the World Trade Organisation (WTO) played in global politics?
Which factor has contributed to reducing the cost of transport in global trade?
Which factor has contributed to reducing the cost of transport in global trade?
What is one significant effect of reduced communication costs on global trade?
What is one significant effect of reduced communication costs on global trade?
Which of the following is a requirement for a country to be a member of the G7?
Which of the following is a requirement for a country to be a member of the G7?
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How do developments in transport affect global trade?
How do developments in transport affect global trade?
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What does FDI stand for in the context of globalisation?
What does FDI stand for in the context of globalisation?
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Which of the following statements best describes MNCs?
Which of the following statements best describes MNCs?
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How does FDI typically impact a host country?
How does FDI typically impact a host country?
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What is a likely reason for companies like Honda, Nissan, and Toyota to manufacture in the UK despite being based in other countries?
What is a likely reason for companies like Honda, Nissan, and Toyota to manufacture in the UK despite being based in other countries?
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What role do large companies play in the process of globalisation?
What role do large companies play in the process of globalisation?
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Study Notes
Political Change and Globalization
- Politics used to be handled by individual countries prioritizing national interests.
- Now, it's on a global scale, with summits and organizations like the EU and WTO.
- This shift has led to less protectionist trade policies and more open trade between nations.
- Protectionist policies are questioned, leading to further discussion.
The World Trade Organization (WTO)
- WTO is the international body responsible for global trade rules.
- Agreements, negotiated and approved by nations, are the core function.
- The WTO's impact on businesses is investigated.
The G7 Countries
- The Group of 7 (G7) comprises major advanced economies.
- These countries (Canada, France, Germany, Italy, Japan, UK, and the US) represent over 64% of global wealth.
- Criteria for membership include high net national wealth and a strong Human Development Index (HDI).
Reduced Cost of Transport and Communication
- Advancements in transportation (e.g., jets, container ships) decreased per-unit transport costs, making products more accessible globally.
- Physical distance hasn't changed, but reduced transportation and communication costs effectively shrink the global distance for trade.
- Communication technologies (like the internet and email) enabled instant and inexpensive cross-border communication.
Increased Significance of Multinational Corporations (MNCs)
- Globalisation is driven by large companies setting up or acquiring businesses in other countries.
- These multinational companies (MNCs) are often based in developed countries.
- Examples include Starbucks and Coca-Cola.
Revenue of Major Companies
- Revenue data for major companies (Apple, Coca-Cola, and McDonald's) is included.
GDP of Developing Countries
- GDP figures of developing countries (Nepal, Afghanistan, and Sierra Leone) are shown, and a comparison is suggested with MNC revenue.
Increased Investment Flows (Foreign Direct Investment - FDI)
- FDI is the movement of capital across borders to purchase or invest in foreign companies.
Globalisation due to FDI
- Companies outside key trading zones invest within them to access markets.
- This has increased global participation by companies.
- FDI gives countries employment, development and consumer benefits.
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Description
Explore the evolution of politics in the context of globalization. This quiz delves into the roles of international organizations like the WTO and G7, and examines the transition from protectionist policies to open trade. Understand how these shifts affect global business and economic dynamics.
