Global Systems and Governance Key Terms/Definitions

Question 1

Neoliberalism

Answer 1

A political philosophy where you remove the influence of the state in the economy allowing for markets to act more freely and increases the role of businesses and competition in society

Question 2

Aid

Answer 2

The international transfer of money, goods or services from a country or organisation for the benefit/assistance of the recipient country and/or its’ population

Question 3

Capital

Answer 3

Liquid assets used to produce value in an economy/obtained for expenditures

Question 4

Conglomerates

Answer 4

A corporation made of up of several different, independent businesses. One company owns a controlling stake in smaller companies that each conduct operations separately. Examples include: Alphabet and Meta

Question 5

Diaspora

Answer 5

A group of people who don’t live in their original country but still maintain their heritage in their new land/all over the world. E.g. the African diaspora refers to the African people brought to America

Question 6

Footloose (Industry)

Answer 6

An industry that can be placed and located at any location without effect from factors of production such as resources, land, labour and capital

Question 7

FDI(Foreign Direct Investment)

Answer 7

Cross-border investment in which a foreign company or individual gains a lasting interest in an enterprise in the a foreign country. For example, Toyota, a Japanese company, has assembly plants in the US

Question 8

Periphery

Answer 8

Less developed areas or countries, often rural, with minimal investment, inferior infrastructure and limited economics activities. Often reliant on exporting raw materials and labour-intensive production

Question 9

Protectionism

Answer 9

The imposition of trade barriers/restrictions by the government such as tariffs and quotas to safeguard its domestic industries from foreign competition

Question 10

Remittances

Answer 10

The transfers of money or goods that migrants send back to families and friends in origin countries

Question 11

Repatriation

Answer 11

The act of restoring or returning someone or something to the country of origin. For example, Brittons coming back from holiday in Greece will repatriate their currency from Euros to GBP

Question 12

Tariffs

Answer 12

A government tax on goods imported from another country, making it more expensive to buy, and thus makes domestically produced goods more price competitive(protecting local industries from foreign competition)

Question 13

Glocalization

Answer 13

Companies(TNCs mainly) adapt brands and products to suit the local market conditions such as tastes, laws or culture to help spread globalisation. For example, KFC sells no beef burgers in India due to it being a majority Hindu country.

Question 14

Absolute Poverty

Answer 14

When households or individuals don’t earn enough money to meet the basic necessities of life such as food, water, clothing and shelter

Question 15

NGO(Non-Governmental Organisation)

Answer 15

Organisations economically and politically separate from the government, raising money to help humanitarian issues

Question 16

Relative Poverty

Answer 16

When households receive 50% less than average household incomes; households cannot afford anything above basic necessities

Question 17

IGO(Inter-Governmental Organisation)

Answer 17

A group of sovereign states with mutual interests that work towards a unified goal. Examples include EU, WTO

Question 18

TNC(Transnational Corporation)

Answer 18

A company which operates in at least two countries, with the headquarters typically located in the country of origin with centres of production overseas

Question 19

Sovereignty

Answer 19

The legal right to govern a physical territory and a government possesses full control over affairs in this location

Question 20

Global Commons

Answer 20

Resources that are shared and accessible by all with no single governing country or power. 4 notable global commons: high seas, atmosphere, outer space and Antarctica

Question 21

Sustainability

Answer 21

A process, resource or state can be maintained at a certain level for as long as is needed

Question 22

Absolute Advantage

Answer 22

The ability of an entity(country, company etc.) to produce a particular good or service more efficiently than a competitor. Factors such as geography, technology, wealth and education can give an entity an absolute advantage over other entities

Question 23

Comparative Advantage

Answer 23

When an entity(country, company etc.) can produce a good or service at a lower opportunity cost than another and so they can produce a good relatively cheaper than competitors

Question 24

Quotas

Answer 24

A government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a particular period. For example, US limits the number of Japanese-made automobiles imported to 2 million annually

Question 25

Subsidies

Answer 25

Payments by the governments to producers to help them decrease their costs of production. This leads to an increase the output sold of a good or service at a lower market price.

Question 26

Globalisation

Answer 26

Process by which the world’s local and regional economies, societies, and cultures have become integrated together through a global network of communication, transport and trade