4.1 – International Economies

Recap (hopefully)! Country/Economy Example(s) Characteristics Developed UK US Japan Australia Germany Developing Somalia Morocco Kenya Nigeria Emerging China Brazil India South Africa people have lower life expectancy people have less education and literacy rate people have less money (income) women have higher fertility rate and pregnancy

Globalisation ‘The deepening of relationships between countries of the world’ Essentially it is about the world becoming more like a single economy (increased integration).

How can countries ‘deepen relationships’ and ‘increase integration’? By trading more goods and services between countries By making more joint decisions e.g. UN political decisions Adopting characteristics/practices from each other Increasing financial capital flows between countries Integration of production (spreading it out) Increase in foreign ownership of firms and FDI Division and movement of labour Integrate processes (sectors of industry) Cultural globalisation (yoga is a good example) Global brands have helped with some of these points FDI – foreign direct investment Sectors of industry – de-industrialisation of developed countries, industrialisation of developing/emerging countries

Learning aims Identify the characteristics of globalisation Explain the factors contributing to globalisation in the last 50 years Assess the impacts of globalisation and global companies on individual countries, governments, producers and consumers, workers and the environment

MNCs ‘Over the past two decades, developing countries, such as India, have seen increased investment from multinational corporations (MNCs). Explain why an MNC might invest in a country like India’ [6 marks] What are they? What might influence their decision to invest in a country? Availability of cheap labour and raw materials Good transport links Access to different markets Pro-foreign investment governement policies (ease of doing business)

Contributing factors (drivers) to globalisation Trade/market liberalisation Global product standards (WTO) Reduction in cost/time of transportation Improvements in communications technology MNCs seeking larger profits More MNCs

Discussion Time Drivers of globalisation 1. Rank the boxes in order of their influence on globalisation. MNCs Improvements in communication technology 2. Write a sentence for each “driver” explaining how a business is affected. Trade liberalisation Reduction in cost/time of transport

Converging Economies – Data

Impacts of Globalisation

Who does Globalisation impact? Countries Governments Producers Consumers Workers Environment Specialisation and economic dependency, costs and markets, footloose capitalise, tax aviodance Choice, prices, incomes Employment and unemployment, migration, wages, multinationals

Employment and Unemployment Specialisation and economic dependency Increased choice Tax avoidance Migration Costs and markets Employment and Unemployment Specialisation and economic dependency Wages Prices Incomes

Impact on individual countries Multinationals Footloose capitalism Impact on governments Impact on environment Impact on individual countries

Data response question Read the scenario Check understanding of key terms: PPP Global brands Outsourcing Ecosystem Ancillary PPP – purchasing power parity - purchasing power of a currency refers to the quantity of the currency needed to purchase a given unit of a good, or common basket of goods and services. Global brands - ​the name of a product or service that is known and sold in all part of the world by a particular company Outsourcing - contracting out of a business process and operational, and/or non-core functions to another party Ecosystem - a complex network or interconnected system Ancillary - providing necessary support to the primary activities or operation of an organization, system

Overall approach to the questions Consider your answers for the questions (you can make notes on the whiteboards, look back through notes, look at how to structure questions)

Explain what is meant by ‘globalisation’, illustrating your answer with examples from the data To fully explain: P – point (definition/make a relevant point to the question) (AO1) E – example – in context, using data where possible (AO2) E – Explain – a linked development of your example and/ or point (AO2) E – Explain – a linked development of your example and/or point (AO2) Exam speak – this format shows a ‘logical chain of reasoning’ and ‘steps in development’ Words to use: ‘as a result’, ‘this leads to’ IN THE EXAM – 2-5 MARKS

Analyse why globalisation is taking place, providing evidence from the data. An analysis will also want you to use a ‘logical chain of reasoning’ and ‘steps in development’. As a general rule an analysis will look at causes and effects A good analysis will include: supported claims explanations to back them up (very similar to examine) Words to use: ‘so’, ’because’, ‘unless’, ‘therefore’ IN THE EXAM – 8-10 MARKS

Discuss whether globalisation is having a positive impact on both the UK and the Chinese economies. Discussions also use a ‘logical chain of reasoning’ and ‘steps in development’. In addition analysis (‘supported claims’ and ‘explanations to back them up’) The additional skill you need to show is making ‘evaluative comments’. This will require BALANCE and JUDGEMENT. MWEST – will help you to make evaluative comments. Also look at the suggested methods on the hand out from the Edexcel about your exams. Evaluation recognises different viewpoints and/or is critical of the evidence. IN THE EXAM – 12-15 MARKS