dimensions of Globalisation Flashcards
what is globalisation? (short)
the growing interdependence of countries between the exchange of goods and services
what is globalisation (long)?
a process by which national conomies, societies and cultures have become increasingly intgrated through the global network of trade communication transportation and immigration.
what are the 4 dimensions of globalisation?
flows of information, technology and capital
flows of products and labour
flows of services and gloal marketing
patterns of production, distribution and consmption
what are captial flows?
the movement of money for the purpose of trade
what is money moved between countries used for?
all money moved between countries is used for investment, trade and production
what are BRIC countries?
a group of 4 countries whos economies have gorwn rapidly since the 1990''s brazil russia india china
what are MINT countries?
more recently emerging economies of mexico, indonesia, nigeria and turkey
foreign direct investment
investment is made mainly by TNC’S based in one country into the physical capital or assets of foreign enterprises
repatriation of TNC’S
TNC’s investing in overseas production will normally take any profit made from that investment back to their home ountry
migration
the majority of out migration of labour takes place from poorer to richer countries
remmintance payments
transfers made by foreign workers to family in their home country
what is laboour?
the aggregate of all human physical and mental effort used to create goods or provide services
flows of products and labour
- global transport systems have never been cheaper or more efficient in moving both people and goods
- high speed rail networks and international airport hubs
- people move around the world for employment
- tourists travel increasing distances to remote locations
what is a transaction cost?
a fee charged by exchange of goods and services
what are tarrifs?
a tax or duty placed on the import of goods with the intention of making them more expensive to consumers.
flows of services and global marketing
- follow flows of capital information, people and products
- marketing is now globalised
- global products rely on a common global brand
what are services?
economic activities that are traded without the production of material goods
low level services
services to consumers such as banking, travel and tourism and customer call centres
high level services
services to businesses such as finance investment and advertising
what does a footloose service mean?
services such as banking and insurance that work based on technology and can meet the needs of customers worldwide
conglomerates
a collection of different companies or organisations which may be involved in different business activities but all report to one company
flows of informaton
- governed by migration and the speed of data
- contributes to the expansion of knowledge
- technology have transformed these flows of information
globalisation has created a new international division of labour with 2 main recognisable groups
- highly skilled, highly paid, developed countries
2. unskilled, poorly paid, developing countries, low labour costs
factors of production
roots of globalisation lie in international trade factors include: land labour capital
distribution and consumption
- consumption mainly in developed world
- products manufactured in NIC economies are sold to developed regions
