AP Human Geography

Chapter 2 Study Guide (Part 1)

Globalization
1. What is globalization?

2. What two factors does globalization stem from?

3. How does contemporary globalization differ from historical

globalization?

4. Analyze how globalization happens through horizontal

expansion as well as vertical expansion.

5. Briefly describe each of the five factors that have encouraged

globalization in the 20th and 21st centuries.

6. Define capital as it relates to global financial markets.

7. What organization, created in 1995, contributed to the expansion of

globalization?

8. What is this organizations primary purpose?

9. How many countries belong to this organization?

10.
What is the defining characteristic of a multinational
corporation?

11.

What are multinational corporations also referred to as?

12.

What are their overseas operations known as?

13.

How many countries does GE have business operations in?

14.
How much of its yearly revenue comes from its overseas
business endeavors?
15.
How many MNCs are there today?

16.

How many foreign affiliates do they have?

17.

What are the worlds 3 largest MNCs?

18.
Approximately how much did their combined revenues total to in
2011?

19.

Why do MNCs seek business endeavors abroad?

20.
Explain how foreign direct investment (FDI) relates to
MNCs?

21.

Identify the positive effects of FDI.

22.
23.

What are FDIs negative consequences?

Who is the main benefactor of FDI?

24.

What is the total value of FDI inflows worldwide?

25.

What regions of the world receive more than 50% of that money?