Enquiry question 1 key words

Question 1

Globalisation

Answer 1

Complex definition (IMF):
The growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, freer international capital flows, and more rapid and widespread diffusion of technology. Also shown through culture, lifestyle, and global processes (eg. climate change, natural disaster impacts)
Simple definition:
The spread of economic, social and cultural ideas across the world.

Question 2

Containerisation

Answer 2

The development of standardised metal containers for cargo, which can be transferred between train, lorry, and ship carriers. This revolutionised haulage by replacing large numbers of labourers with crane technology.

Question 3

Economic liberalisation

Answer 3

The lessening of government regulations and restrictions in an economy with the goal of expanding the role of private and foreign investment.

Question 4

Foreign Direct Investment (FDI)

Answer 4

A financial injection made by a TNC into a nation’s economy, either to build new facilities (factories or shops) or to acquire, or merge with, an existing firm already based there.

Question 5

Flow

Answer 5

The movement of people, money, resources, goods and services (etc) between places.

Question 6

Free Market

Answer 6

A system in which the prices of goods and services are determined by supply and demand, and free from intervention from governments.

Question 7

Free Trade

Answer 7

Trade taking place free from any barrier such as taxation, tariffs or quotas.

Question 8

Global Shift

Answer 8

the movement of the global economic centre of gravity to Asia.

Question 9

Glocalisation

Answer 9

The adaptation of a global market product for a local market place.

Question 10

International Monetary Fund (IMF)

Answer 10

An international organisation consisting of 189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

Question 11

Interdependence

Answer 11

If two places become over reliant on financial/political connections with one another, they have become interdependent. EG: if a recession adversely affects a host country for migrant workers, then the economy of a source country may shrink too.

Question 12

Offshoring

Answer 12

When TNCs move part of their production process (factories/offices) to other countries to reduce labour and other costs.

Question 13

Outsourcing

Answer 13

TNCs contract another country to produce the goods and services they need rather than do it themselves.

Question 14

Privatisation

Answer 14

The change of ownership of a firm or industry sector from government to private hands.

Question 15

Quota

Answer 15

A limit to production or trade. May be determined by volume or value.

Question 16

Shrinking world

Answer 16

Due to technology, distant places start to feel closer and take less time to reach.

Question 17

Start-ups

Answer 17

Newly emerged businesses aimed at market demand.

Question 18

Tariff

Answer 18

The taxes that are paid when importing or exporting goods and services between countries.

Question 19

Time-space compression

Answer 19

The set of processes that cause the relative distances between places (eg. in travel time or cost) to contract, effectively making places grow closer.

Question 20

World Bank

Answer 20

An international financial institution that provides loans to countries of the world for capital projects.