Global systems and Global Governance Flashcards
Globalisation
A process whereby national economies, societies and cultures have become increasingly interconnected/integrated through the global network of trade,communication, transportation and migration
Global governance
The steering rules, norms, and regulations used by global organisations, such as the united nations to regulate human activity at an international scale
A movement of political integration aimed at negotiating response to problems that affect more than one state or region
What is the focus of globalisation on?
Focus has primarily been on economic relationships such as international trade, international direct investment (FDI) and international capital flows
Globalisation has been expanded to encompass cultural, social, technological and healrh related factors
What is a nation state?
A nation state is a political unit where the state and nation are congruent
International trade
International trade = The exchange of capital, goods and services across international boarders.
Inbound trade is defined as imports
Outbound trade is defined as exports
Capital flows = The movement of
Capital flows = The movement of money for the purpose of investment, trade or to produce goods/services
Usually regarded to as investment into a production operation
BRIC
An acronym used to identify a group of four countries - Brazil, Russia, India and China - whose economies hace advanced rapidly since the 1990s. Sometimes South Africa is added to the list so it becomes BRICS
- Four largest economies outsie of OECD (organisation for economic co-operation and development - rich mans club)
- Only developing economies with annual GDPs of over 1 trillion
- They sustained better growth than most during the great recession
- China became the worlds largest exporter
- Brics are increasing their trade with oneanother: Chinese-indian trade has soared as is likley to reach 60 billion this year
- China has become the largest market for the fast industrilisating countries of east asia
Diaspora
A large group of peopel with a similar heritage or place of origin who have moved and settled in places all over the worlds
Economic leakage
Refers to a loss of income from an economic system. It most usually refers to profits sent back to their base country by tncs (profit repatriation
MINT
An acronym reffering to the more recently emerging economies of Mexico, Indonesia, Nigeria and turkey
Trans-national corporation (TNC)
any enterprise that undertakes foreign direct investment, owns cor controls income gathering assets in more than one country, produces goods and services outside its country of origin or engages in international production
Branch plants
A manufacturing production or service facility operated by a parent company in another city or country
Horizontal integration
Involves improving links between different countries and also between units of the same corporation in more than one country
Vertical integration
Derscribes an industry where one compant either owns or controls multiple stages in the production
Vertical disintegration
Refers to when big brand name corporations, such as nike, bypass production completley by sourcing products from suppliers rather than directly employing factory workers themselbes
Glocalisation
Is a mashup of globalisation and local. It describes the process in which TNCS adapt what they offer depending on where in the world they work or at least market it differently
Merger
This occurs when two companies combine to form a new entity with one of the orginal companies ceasing to exit
Aquisition
This happens when one company (acqurier) purchases a majority stake in another company (target) which continues to operate under its own name and legal strtucfure
Agglomeration
When companies in similar industries locate near each other because of the benefits gained by sharing ideas and resouces - agglomeration economies
Multiplier effect
A situation where an initial injection of investment or capital into an economy at any scale in turn creates additional income by for example increasing employment, wages, spending and tax revenues
Export processing zones
Refers to a phenomenon developed by host countries within which goods were imported cheaply, infrastructure was provided and normal restrictions concerning foreign ownership of assets was waived.
Cross investment
An increasing tendency for those countries which have their own TNCs to also be the destination country ( host country ) for other countries TNCs.
Cumulative causation
Refers to when transnationals may set up in a new country and this may rapidly attract many more businesses into the area.
Autonomy
A country’s ability to self govern
Transfer pricing
The deliberate manipulation of pricing to reduce taxes to the host country
OECD
Organisation for economic cooperartion and development.
Membership includes the industrialized countries of western europe, north america, japan and australia
The rich mans club
Remittance payments
Refers to the transfers of money made by foreign workers to family in their home country.
Remittances are becoming increasingly important source of income for developing countries
