Dimensions of globalisation Flashcards
What is globalisation?
the process of the world becoming more globally connected on a variety of scale
flows of capital
money that moves between countries and which is used for investment trade and production
Foreign direct investment
investment made mainly by TNC’s based in one country into the physical capital or assets of foreign enterprises
repatriation of profits
TNc sending any profits back to their headquarters in HIC’s
Aid
financial support for poorer countries that can be provided through the UN, from richer countries, or provided bilaterally from one government to another
migration
usually takes place from poorer countries to richer countries and involves skilled workers from poorer countries moving to richer countries
remittance payments
transfers of money made by foreign workers to family in home country
flows of labour
movement of migrants mainly seeking better employment opportunities
flows of products
international movement of products which is facilitated by the reduction in costs of trade
containerisation
a system of standardised transport that uses large standard sized steel containers to transport goods
protectionism
policy by government to impose restrictions on trade in goods and services with other countries
tariffs
tax or duty placed on imported goods with the intention of making them more expensive to consumers so that they do not sell at a lower price than home based industries
flows of services
economic activities that are traded without the production of material goods
e.g international call centres
high level services
services to businesses such as finance investment and advertising
low level services
services to consumers such as banking travel and tourism
flows of information
movement of cultural ideas language industrial technology design and business management support
facilitated by internet
global villlage
concept predicted by Marshall McLuhan in 1960’s where economic factors and information would flow freely across the globe
Kofi Annan
said ‘it has been said that arguing against globalisation is like arguing against the laws of gravity
economic globalisation
TNC’s outsourcing and offshoring
industries moving to developing countries for cheaper labour
trade blocs create economic integration
political globalisation
governments form connections to trade (trade blocs)
western democracies have had global influence on political ideas
development of marker economies
deregulation
international organisations exist to harmonise national economies
deregulation
activities of financial institutions were no longer controlled and confined by their goverments
core countries
industrialised and capitalist countries
control and benefit from the global market
periphery regions
less developed. receive a disproportionately small share of global wealth
footloose
industries that are unrestricted in their location or field of operations and able to respond to fluctuations in the marker
