Global Systems and Global Governance Flashcards
Capital Flows
The movement of money for the purpose of investment, trade or to produce goods/provide services
Globalisation
A process by which national economies, societies and cultures become increasingly integrated
International Trade
The exchange of capital, goods and services across international borders
Factors of production
Land
Labour
Capital
Enterprise
The 3 main dimensions of globalisation
Economic
Social/Cultural
Political
Foreign direct investment (FDI)
Investments made mainly by TNCs based in one country, into the physical capital or assets of foreign enterprises
Reparation of profits
TNCs investing in overseas production will normally take any profit made from that investment back to their home country. This is also known as economic ‘Leakage’
Aid
This is an important source of financial support for poor countries
BRICS
Brazil, Russia, India, China, South Africa - An international organisation (IGO) that aims to coordinate its economic and political ambitions
Diaspora
A large group of people with a similar heritage or homeland who have moved and settled around the world
Remittance Payments
Transfers of money made by foreign workers to family in their home country
WTO
World Trade Organisation
Protectionism
A deliberate policy by governments to impose restrictions on trade in goods and services with other countries
Trariffs
A tax or duty placed on imported goods with the intention of making them more expensive to consumers so that they do not sell at a lower price than home-based goods - A strategy of protectionism
Factors that impact the locational decisions made by entrepreneurs
-The availability of skilled and educated workforce
-The opportunity to use the latest technology
-Access to large markets without tariffs barriers
