Flow of Capitals

Question 1

FDI

Answer 1

Foreign Direct Investment. Money or assets invested by TNCs in oversees enterprises. Done by merging with another company, setting up a subsidiary company or through shares

Question 2

What does this refer to?

Answer 2

The financial transfer between companies for trade, production and investment.

Question 3

What is it boosted by?

Answer 3

Delegation of finances. This allows banks and companies to move money across nation boundaries.

Question 4

What has this lead to?

Answer 4

A flow between wealthy and developed cores and poorer, less developed periphery normally exploited and receives little investment.

Question 5

What has the global economy become

Answer 5

A single market where rises and falls are roughly in unison.

Question 6

Remittance

Answer 6

Transfer of money from migrants to relatives back home

Question 7

Mitigation

Answer 7

The out migration of labour from poorer to richer nations

Question 8

BRIC

Answer 8

Brazil, Russia, India and China. Rapid economic advances in 1990s.

Question 9

MINT

Answer 9

Mexico, Indonesia, Nigeria and Turkey. Recently emerging economies after 2000s

Question 10

Reparation of profits

Answer 10

TNCs extracting profits from abroad and brining it back to HQ. Referred as an economic leakage

Question 11

Aid

Answer 11

Either from NGOs ( as a bilateral agreement between two governments) or a multinational organisation (UN) which companies the aid together.

Question 12

IMF

Answer 12

International monetary funds. Aims to allow economic stability and faster international trade.