Global Systems and governance

Question 1

Acquisition

Answer 1

A transaction where a TNC buys another company in order to expand (usually
a smaller company).

Question 2

Asylum Seeker

Answer 2

People who have left their country and are seeking asylum in another,
waiting to be granted residency and to become a refugee.

Question 3

China’s Open Door Policy -

Answer 3

1978 - China allows foreign industry and TNCs in to promote a
modern and thriving China.

Question 4

Containerisation

Answer 4

A logistical system of transporting large amounts of goods in steel containers.

Question 5

Core Region

Answer 5

Wealthier, industrially developed countries that benefit and control global markets, making periphery regions depend on them.

Question 6

Cultural Diffusion

Answer 6

The spread of cultural beliefs and social activities into different cultures.

Question 7

Cultural Erosion

Answer 7

The reduction of a culture due to globalisation.

Question 8

Cumulative Causation -

Answer 8

Like a multiplier effect, “Success breeds Success”. As the core
regions increase in prosperity the periphery regions will too due to their links with the core.

Question 9

Deindustrialisation

Answer 9

Long-term decline of a country’s heavy and manufacturing industry, leading to economic and social changes

Question 10

Diaspora

Answer 10

Global flows of people: ‘To scatter about’ - People displaced from their homeland, voluntarily or forced. ​The parts of cities that have been shaped by t migrant communities, such as the ‘Chinatowns’ in are obvious examples of ‘diaspora spaces’.

Question 11

Downward Transition Zones

Answer 11

-Regions on the periphery with depleted resources, outdated industry or low agricultural productivity. There is a predicted economic decline, industrial reduction or switched off from globalisation (e.g. Scotland, Turkey, Brazil).

Question 12

Economic Migration -

Answer 12

Movement of migrants to improve financial income or standard of living

Question 13

Economies of Scale

Answer 13

• The concept of increasing profits by producing a larger amount of products, as overall the average cost per unit is lowered.

Question 14

Foreign Direct Investment (FDI)

Answer 14

An investment by one country or business with an
interest in another country.

Question 15

Global Common

Answer 15

An area that does not belong to one country, but instead belongs to everyone, including: the atmosphere, international waters, outer space, and Antarctica.

Question 16

Global Common

Answer 16

An area that does not belong to one country, but instead belongs to everyone, including: the atmosphere, international waters, outer space, and Antarctica.

Question 17

Global Governance

Answer 17

The process of global management, where multiple nations act together in matters that affect the entire world

Question 18

Global Hubs

Answer 18

Cores that demonstrate connections to the world (through trade, ideas, migration, etc). TNCs and foreign direct investors will show an interest to base here.

Question 19

Globalisation

Answer 19

The growing interdependence of countries through cross-border transactions (capital, technology, migration, knowledge, culture, etc).

Question 20

Glocalisation

Answer 20

The adaptation of a good offered by a TNC to suit a local market.

Question 21

High-Level Service

Answer 21

• Services that require skilled employees and can have complicated processes e.g. financial services

Question 22

Interdependence

Answer 22

The theory that nations depend on each other economically, politically,
socially and environmentally

Question 23

International Bank for Reconstruction & Development (IBRD) and World Bank Group
(WBG)

Answer 23

Both offer loans and temporary financial assistance to developing countries

Question 24

International Monetary Fund (IMF) -

Answer 24

A fund of 189 member countries with the aim to aid
each other to achieve financial stability and provide loans for development. (only during economic crisis)

Question 25

KOF

Answer 25

Index of Globalisation which takes into account the social, economic and political globalisation of a state.

Question 26

Liberalisation

Answer 26

– A reduction in government control within industry, creating opportunity for greater participation from private businesses and TNCs within an industry

Question 27

Low-Level Service

Answer 27

Services that require little training e.g. customer service call centres.

Question 28

Merger

Answer 28

TNCs join to form one larger company, helping to form foreign links if the TNC is from a foreign country.

Question 29

NGOs

Answer 29

Non-government Organisations - these organisations usually have a weaker influence over global governance.

Question 30

Offshoring -

Answer 30

- Company moves parts of its operations to another country to save money.

Question 31

Outsourcing

Answer 31

A business contracts outside businesses to complete some of their work to reduce costs.

Question 32

Periphery Region -

Answer 32

Less wealthy, less developed countries that have less power over global markets.

Question 33

Potential Areas of Growth

Answer 33

Regions where future economic development are predicted due to their undeveloped resources (e.g. Canada, Qatar).

Question 34

Privatisation -

Answer 34

When state-owned services become owned by private businesses.

Question 35

Sovereignty

Answer 35

Control over a country's own laws and regulations.

Question 36

Special Economic Zones (SEZ) -

Answer 36

Regions where the government offer incentives like tax cuts to attract industry.

Question 37

Transnational Company (TNC) -

Answer 37

A company which operates in different countries to where they are originally based, often with their HQs set in wealthier country of origin and factories in host country

Question 38

Trade Bloc -

Answer 38

A group of countries that act together to promote trade and a free movement of goods/services between member states

Question 39

Transformationalist

Answer 39

This is the belief that globalisation won’t lead to the formation of a homogeneous culture. Instead, the flow of culture is two-way.

Question 40

Upward Transition Zones

Answer 40

A country or city with predicted industrial and economic increase (e.g. Mexico, Iceland, “The Asian Tigers”).

Question 41

World Trade Organisation (WTO)

Answer 41

Global financial governance: members seek substantial reductions on tariffs and trade barriers and the elimination of preferences on a mutually advantageous basis.