Definitions Flashcards
globalisation is
- the increasing integration of economic, political, cultural and information systems across the globe, leading to an interconnected world
- a process by which national economies, societies and cultures have become increasingly integrated through the global network of trade, communication, transportation and immigration
outsourcing is
companies that hire third-party providers to perform the work overseas at a cheaper rate (e.g. Apple hiring Foxconn in China). This can be done by offshoring or nearshoring
Special and Differential Treatment (SDT) is
LDCs (least developed countries) are allowed to bypass developed countries’ tariffs which gives them greater market access. This is decided by the WTO, and LDCs are usually only given SDT is they have resources of value to HICs, such as oil.
Transnational Corporations (TNCs) are
organisations that operate in one or more countries and own the majority of shares in their industry, with no centralised management system
the global commons are
areas outside the jurisdiction of any one nation (e.g. outer space, the atmosphere, the oceans and Antarctica)
Foreign Direct Investment (FDI) is
When an organisation (usually a TNC, but sometimes a government) based in one country makes an investment in another country’s assets or enterprises based in another country
Repatriation of profits is
economic leakage, whereby TNCs investing overseas take out any profit they make and invest it back into their home country
capital flows are
the movement of money for the purpose of investment, trade or to produce goods/provide services. Usually regarded as investment into a production operation
international trade is
the exchange of capital, goods and services across international borders. Inbound trade is defined as imports and outbound trade as exports
labour is
the factor of production defined as the aggregate of all human physical and mental effort use to create goods or provide services
BRIC is
an acronym used to identify a group of four countries- Brazil, Russia, India and China- whose economies have advanced rapidly since the 1990s
diaspora is
a large group of people with a similar heritage or homeland who have moved and settled in places all over the world
MINT is
an acronym referring to the more recently emerging economies of Mexico, Indonesia, Nigeria and Turkey
the flows of products is
the international movement of products facilitated especially for developing countries by the reduction in costs of trade
remittance payments are
transfers of capital from foreign workers back to their families in their homeland. For countries which have large diasporas abroad, remittance payments form a large portion of the economy
