Global Systems & Governance Flashcards
PMT & Quizlet
Access to markets
how easy it is for countries and companies to trade within the international market.
Acquisition
A transaction where a TNC buys another company in order to expand (usually a smaller company).
Asylum Seeker
People who have left their country and are seeking asylum in another, waiting to be granted residency and to become a refugee.
Barrier to trade
Government-imposed restraint on the flow of international goods and services.
Bilateral aid
Assistance given by a government directly to the government of another country
Bilateral trade agreement
A trade agreement between 2 countries
Capital
Money that is invested. It is spent on something to produce an income or increased profit from it
China’s Open Door Policy
1978 - China allows foreign industry and TNCs in to promote a modern and thriving China.
Containerisation
A logistical system of transporting large amounts of goods in steel containers (each carrying 25000kg of goods)
Core Region
Wealthier, industrially developed countries that benefit and control global markets, making periphery regions depend on them.
Cultural Diffusion
The spread of cultural beliefs and social activities into different cultures.
Cultural Erosion
The reduction of a culture due to globalisation
Cumulative Causation
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
Deindustrialisation
A reduction in industrial capacity, leading to social and economic change within a region
Deregulation
The removal of regulations (rules) or restrictions in a particular industry. Businesses can operate internationally more easily and it increase competition.
Diaspora
People displaced from their homeland, voluntarily or forced, who are around the world.
Downward Transition Zones
A country or city with predicted economic decline, industrial reduction or switched off from globalisation (e.g. Scotland, Turkey, Brazil).
Economic Migration
Movement of migrants to improve financial income or standard of living.
Economies of Scale
The concept of increasing profits by producing a larger amount of products, as overall the average price to manufacture each product is lowered.
Ethical investment
When the choice on whether to invest capital is based on the activities of the firm or organisation they are putting money in.
Fair trade
A social movement, looking at helping producers achieve better trading conditions and to promote sustainability.
FDI
Foreign Direct Investment is where a person, company or other group spends money in another country.
Financial deregulation
A process undertaken by governments where they relaxed rules about what banks were allowed to do. Banks could charge more for their services and invest in a greater range of businesses. Barriers to capital coming into and out of a country were also removed. Removal of rules to increase competition
Free trade
When international trade is left to its natural course. It involves removing barriers to trade.
Globalisation
The process of the world’s economies, political systems and cultures becoming more strongly connected to each other
Global Common
An area that does not belong to one country, but instead belongs to everyone, including: the atmosphere, international waters, outer space, and Antarctica.
Global Governance
The process of global management, where multiple nations act together in matters that affect the entire world
Global Hubs
Cores that demonstrate connections to the world (through trade, ideas, migration, etc). TNCs and foreign direct investors will show an interest to base here.
Global institution
A large, important organisation that operates across the world.
For example, the International Monetary Fund and World Bank govern the global financial system.
Global marketing
Using one strategy to promote and sell a product to customers all over the world. The world is treated as one market.
Global systems
The global-scale economic, social and political structures that are created when humans interact with each other across national borders on a global scale.
Globalisation
The growing interdependence of countries through cross border transactions (capital, technology, migration, knowledge, culture, etc).
Glocalisation
The process in which transnational corporations adapt what they offer their customers depending on where in the world they work, or at least market (advertise) it differently.
High-level Service
Services that require skilled employees and can have complicated processes e.g. financial services
Horizontal integration
When a company merges with or takes over another company in the same stage of production.
Institution
Political and legal organisations. They pass and enforce laws. 3 examples: United Nations, World Trade Organisation and Intergovernmental Panel on Climate Change.
Interdependence
The theory that nations depend on each other economically, politically, socially and environmentally.
Interest
Money paid regularly at a particular rate for the use of money lent.
International Bank for Reconstruction & Development (IBRD) and World Bank Group
(WBG)
Both offer loans and temporary financial assistance to developing countries.
International Monetary Fund (IMF)
A fund of 189 member countries with the aim to aid each other to achieve financial stability and provide loans for development.
KOF
Index of Globalisation which takes into account the social, economic and political globalisation of a state.
Law
Established through international agreements. They are legally binding e.g. human rights, labour standards, trade regulations.
Liberalisation
A reduction in government control within industry, creating opportunity for greater participation from private businesses and TNCs within an industry.
Loan
Money that is borrowed.
Low-level Service
Services that require little training or skills that can be easily learnt e.g. customer service call centres.
Merger
TNCs join to form one larger company, helping to form foreign links if the TNC is from a foreign country.
Multilateral trade agreement
A trade agreement between several countries.
Neo-liberalism
A political approach that involves less government control of the economy. It involves removal of trade barriers, privatisation and cuts in government spending. It has increased free trade.
Non Governmental Organisation (NGO)
Organisation that operates independently of any government and with a common interest.
Norm
Accepted standards of behaviour - usually negative consequences if not followed. E.g., right to freedom of speech.
Offshoring
Company moves parts of its operations to another country, often to save money.
Outsourcing
When a company pays another company to do work that in the past would have been done in house e.g call centres
Periphery Region
Less wealthy, developing/ less developed countries that have less power over global markets
Potential Areas of Growth
Regions where future economic development are predicted due to their undeveloped resources (e.g. Canada, Qatar)
Privatisation
The transfer of an industry, or service from public to private ownership and control.
Protectionism
When countries limit trade to shield their industries from foreign competition.
Quota
A restriction on the number of a product that can be imported
Refugee
Those granted permanent or temporary residency by the host country or the UN refugee agency (UNHCR), who have been forced to leave their homes and travel to another country due to fleeing conflict, political or religious persecution
Remittance
A sum of money that is transferred to another person or party. This could be from migrants from peripheral regions living in core regions sending money back.
Reparation
The sending of money back to one’s own country.
Services
Economic activities that aren’t based around producing any material goods e.g banking
Sovereignty
The right of a country to govern itself.
Special and Differential Treatment (SDT) agreements
Arrangements put in place by the World Trade Organisation (WTO) to let the poorest countries get around paying tariffs to richer countries which gives them greater market access.
Special Economic Zones (SEZs)
Areas within a country that have different trade and investment rules to the rest of the country.
Sustainable Development Goals (SDGs)
New UN goals from 2015 to end poverty, protect the planet and ensure all people enjoy peace and prosperity. The 17 goals build on the Millennium Development Goals with new areas such as climate change.
Tariff
A tax or duty on imports or exports
Trade
The exchange of capital, goods and services between countries. These are known as imports and exports.
Trade agreement
Set of rules that cover trade between countries who make an agreement.
Trade bloc
A group of countries that act together to promote trade and a free movement of goods/services between member states.
Trade deficit
A situation in which the value of goods that a country imports (buys from other countries) is more than the value of goods it exports (sells to other countries).
Trade surplus
A situation in which the value of goods that a country exports (sells to other countries) is more than the value of goods it imports (buys from other countries).
Transformationalist
This is the belief that globalisation won’t lead to the formation of a homogeneous culture. Instead, the flow of culture is two-way.
Transnational Company (TNC)
A company which operates in multiple different countries to where they are originally based.
United Nations
An international organisation founded in 1945 made up of 193 member states whose aim is to promote international peace and co-operation.
Upward Transition Zones
A country or city with predicted industrial and economic increase (e.g. Mexico, Iceland, “The Asian Tigers”).
Vertical integration
When a company either owns or controls multiple stages in the supply chain.
Global Supply Chain
The organised management of product flows, from when they are manufactured to when they are delivered to consumers
