Global Systems Abd Governance definitions Flashcards
What is outsourcing ?
Cost saving strategy used by companies who arrange for goods or services to be produced/provided by other companies usually at a location where costs are lower
Subsidies
Government grants to local products to assist production of particular crops or goods. Opponents critique this assistance as it makes production of these goods economically viable= leads to unfair competition for producers with no assistance
Multiplier effect ?
Situation where initial investment into economy creates additional income by e.g increasing employment
Agglomeration ?
Companies in similar industries locate near to each other due to benefits of sharing ideas/resources
Conglomerates?
Collection of different companies which may be involved in different businesses but all report to one parent company
Protectionism ?
Protecting domestic producers by limiting the importation of foreign goods or services (done through tariffs and quotas)
Economic leakage ?
The which revenue generated by tourism is lost to other countries’ economies e.g a McDonalds in china
Diaspora
Large group of people with similar heritage who have moved and settled in places all over the world
Deregulation?
Lifting of government controls over industry= usually results in greater competition and lower prices for consumers
FDI?
Foreign direct investment
- investment by a firm based in on country (often implemented in newly emerging economies e.g Mexico received FDI when joining NAFTA in 1994
Economies of sale ?
When more units of a good or service can be produced on a larger scale but on average fewer input costs
Free market economy ?
Market based on supply and demand with little or no governmental control
Privatisation
Transferring a public service into a private ownership run for fun
Neoliberalism
A political philosophy of free markets (making trade easier = more trade = wealth and reduction of poverty)
