Global Systems & Global Governance Flashcards
What is Capital Flow ?
The movement of money for the purpose of investment, trade or to produce goods/ provide services. Usually regarded as investment into a production operation.
Define Globalisation
A process by which national economies, societies and cultures have become increasingly integrated through the global network of trade, communication, transportation and immigration.
What is International Trade ?
The exchange of capital, goods and services across international borders. Inbound trade is defined as imports and outbound trade as exports.
What are the factors of Globalisation ?
-Economy
-Society
-Culture
-Technology
-Environment
-Politics
What are the Economic dimensions of Globalisation ?
-trade & aid
- TNCs
-capital flows
What are the Social dimensions of Globalisation ?
-migration
-social media networks
What are the Cultural dimensions of Globalisation ?
-‘westernisation’
- cultural diffusion (the spreading out and merging of pieces from different culture)
What are the Technological dimensions of Globalisation ?
-higher productivity
-transfer to LEDCs
-communication
(less economically developed countries)
What are the Environmental dimensions of Globalisation ?
-increasing greenhouse gas emissions, globalisation has caused many animals’ natural habitats to fall victim to increased farming, ranching, fishing, and other economic activities. The more forests are cut down and the more waterways are overfished, the poorer and unhealthier our environment becomes.
What are the Political dimensions of Globalisation ?
-trading blocs (EU, OPEC)
-governmental & global institutions
(Organisation of the Petroleum Exporting Countries)
What are the factors of production in Globalisation ?
- Land (All natural resources provided by the earth including minerals, soils, water, forests, etc.)
- Labour (The human resource available in any economy. The quantity and quality of the workforce are key considerations to any producer of goods and services.)
- Capital (buildings, factories, machinery, etc. ‘Capital flows’ can involve the transfer of these physical resources from one place to another.
- Enterprise (This is a very particular form of human capital describing those who take the risk of establishing businesses and organising the production of goods or provision of services.)
What led to an increase in Capital Flows ?
opening of the free market
What is economic Leakage ?
Refers to a loss of income from an economic system. It most usually refers to the profits sent back to their base country by transnational corporations - also known as profit repatriation.
What is the acronym BRIC ?
An acronym used to identify a group of four countries - Brazil, Russia, India and China - whose economies have advanced rapidly since the 1990s.
What is a diaspora ?
A large group of people with a similar heritage or homeland who have moved and settled in places all over the world.
What is the acronym MINT ?
An acronym referring to the more recently emerging economies of Mexico, Indonesia, Nigeria and Turkey.
What is FDI ?
This is investment made mainly by TNCs based in one country, into the physical capital or assets of foreign enterprises.
Define Migration ?
The majority of out-migration of labour takes place from poorer to richer countries. This will exacerbate disparities as the less developed nations lose their most skilled and talented labour, who will pay taxes and spend much of their earnings in their destination country.
What are remittance payments ?
These are transfers of money made by foreign workers to family in their home country. Remittances have become the second most important source of income in developing countries. India receives more remittance payments from their diaspora than any other country.
Define Containerisation ?
A system of standardised transport that uses large standard-size steel containers to transport goods. The containers can be transferred between ships, trains and lorries, enabling cheaper, efficient transport.
What is Protectionism ?
A deliberate policy by government to impose restrictions on trade in goods and services with other countries - usually done with the intention of protecting home-based industries from foreign competition. (Trump 2016)
What are Tariffs ?
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 protectionist strategy. (US / China trade war)
What are high level services ?
Services to businesses such as finance, investment and advertising.
What are low level services ?
Services to consumers such as banking, travel and tourism, customer call centres or communication services.
Define Footloose industry ?
Footloose industry is a general term for an industry that can be placed and located at any location without effect from factors such as resources or transport.
(clothing factories)
What are Conglomerates ?
A collection of different companies or organisations which may be involved in different business activities but all report to one parent company - most transnational corporations are conglomerates.
(Amazon , Unilever)
What are economies of scale ?
The cost advantages that result from the larger size, output or scale of an operation as savings are made by spreading the costs or by rationalising operations.