1. 4.1 – International Economies

2. 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

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

4. 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

5. 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

6. 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)

7. 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

8. 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

10. Converging Economies – Data

11. Impacts of Globalisation

12. 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

13. 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

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

15. 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

16. 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)

17. 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

18. 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

19. 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 – MARKS