4.1 Flashcards
define globalization
the process of deeper economic integration between countries and regions of the world
state 5 causes of globalisation
deregulation of markets
political changes
removal of trade barriers
lower transport costs
improved communication
disadvantages of globalisation
unskilled workers in developed countries jobs relocated
domestic businesses have increased competition
increased transport contributes to global warming
what impact does a reduction in GDP have on a business
increase in imported goods if country cannot keep up with demand
increased prices leads to inflation
what are the BRIC MINT countries
Brazil
Russia
India
China
Mexico
Indonesia
Nigeria
Turkey
developed economies
mature economies with a relatively high standard of living with generous welfare provision
developing countries
still have a large primary sector, incomes are low and work force is labor intensive
emerging economies
fast growing economy with rapidly rising standards of living & growth in secondary and tertiary sector
migration to urban areas
what is GDP per capita
measures the total output of a country divided by the population, indicated average incomes, doesn’t consider inequality
state the 4 factors used in measuring growth
GDP per capita
literacy rates
health
HDI
what does HDI take into account
gross national income
life expectancy
average years of education
what is FDI
foreign direct investment
investment in a foreign country by a business to obtain control of another business
advantages of FDI
develops the country
builds relationships with businesses and countries
improves infrastructure & technology
increased employment and improves skills
disadvantages of FDI
exploitation of resources
unethical practices
expensive & takes a long time
may take advantage of land
takes away from domestic sales
what is greenfield FDI
a company will build on its own with brand new facilities from the ground up
what is brownfield FDI
when a company purchases or leases an existing business
what is exporting
selling goods/services to other countries
domestic products sold abroad
what is franchising
selling a lisence to use the firms name/product/service in return for initial payment & royalties control over market
cost of expansions goods