1. Globalisation & 2. Global Systems Flashcards
what is globalisation
a set of processes leading to the integration of…economic, cultural, political, social systems…that stretch across geographical boundaries
globalisation largely refers to
the economic integration of countries especially in relation to trade and movement of capital
NICs
newly industrialised countries
free trade areas
countries agree to abolish tariffs/quotas between themselves but still maintain restrictions from elsewhere
customs unions
place tariffs on imports from outside
common markets
all free movement of labour and capital
economic or monetry unions
incorporate all but also adopt common policies in areas like agriculture, pollution, energy eg eurozone
how is OPEC different from other trade blocs
mainly members from middle east, s america and africa
focus on trade of oil globally
other groups are more loose knit with an interest in cooperation/development but no formal trade agreement
what is the main success criteria of the Organisation for Economic Cooperation and Development (OECD)
deal between rich/emerging economies lifted goods traded duty-free to 87%
duty-free deals between emerging economies advance from 28-92% -> can lower barriers
OECD aim
studied 55 regional trade agreements to discover if barriers to agri produce were lowered
source country
where a companies HQ is located and business operates from
host country
country where a TNC operates in
roles of the IMF and WB
support structure of global economy by…regulating/intermediaries in flow of int’n capital, stabilise global market, support LICs
difference between IMF and WB
IMF acts a regulator of financial flows and stabiliser of system
WB is the provider of support for less developed countries and aims to reduce poverty
role of WTO
deals with the global rules of trade between nations and responsible for facilitating int’n trade
issues associated with interdependence tend to be around…
employment and outsourcing, between countries, within countries, geopolitical issues
outsourcing
one directional movement of manufacturing from developed to developing economies
consequences of outsourcing
loss of jobs and the de-multiplier effect, de-industrialisation of the economy and structured unemployment
2 measures of inequality
difference between richer and low income countries (growing or shrinking)
how inequality within countries is affected by globalisation
capital flows
the movement of money for the purpose of investment, trade, produce goods/services
globalisation
a process by which national economies, societies, cultures have become increasingly integrated through global network of trade, communication, transportation and immigration
international trade
the exchange of capital, goods, services across international borders
labour
factor of production defined as the aggregate of all human physical and mental effort used to create goods or services
factors of production
land, labour, capital, enterprise
BRIC
brazil, russia, india, china whos economies have advanced rapidly
diaspora
large group of people with a similar heritage or homeland who have moved and settled in places all over the world
economic leakages
a loss of income from an economic system
profit repatriation
profits sent back to their base country by TNCs
MINT
more recently emerging economies of mexico, indonesia, nigeria, turkey
containerisation
standardised transport that uses large steel containers to transport goods between ships, trains, lorries for cheaper/efficient transport
protectionism
policy by government to impose restrictions on trade in goods/services with other countries usually done to protect from foreign competitors
tariffs
a tax or duty placed on imported goods with the intention of making them more expensive to consumers so they don’t sell at a lower price than home-based goods (protectionism strategy)
conglomerates
a collection of different companies or organisations but may be involved in different business activities but all reports to one parent company
Maquiladora
a manufacturing operation (plant or factory) located in free trade zones in Mexico. they import materials for assembly and then export the final product without any trade barriers
bottom up
when local people are consulted and supported in making decisions to undertake projects or developments than meet one or more of their specific needs
top down
when the decision to undertake projects/developments is made by a central authority such as government, with little/no consultation
