Global Systems & Governance: All Quizlets Flashcards
Capital
Money that is invested. It is spent on something to produce an income or increased profit from it
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 rationalising operations
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
FDI
Foreign Direct Investment is where a person, company or other group spends money in another country.
Globalisation
The process of the world’s economies, political systems and cultures becoming more strongly connected to each other
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.
Outsourcing
When a company pays another company to do work that in the past would have been done in house e.g call centres
Services
Economic activities that aren’t based around producing any material goods e.g banking
Tariff
A tax or duty on imports or exports
Trade agreement
Set of rules that cover trade between countries who make an agreement.
Bilateral trade agreement
A trade agreement between 2 countries
Multilateral trade agreement
A trade agreement between several countries.
Trade blocs
Associations between different countries that promote and manage trade
Transnational corporations
Companies that operate in more than one country
Bilateral aid
Assistance given by a government directly to the government of another country
Deregulation
The removal of regulations (rules) or restrictions in a particular industry. Businesses can operate internationally more easily and it increase competition.
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.
Interdependence
When 2 or more things rely (are dependent) on each other.
Interest
Money paid regularly at a particular rate for the use of money lent.
Loan
Money that is borrowed.
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.
Privatisation
The transfer of an industry, or service from public to private ownership and control.
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.
Sovereignty
The right of a country to govern itself.
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).
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).
Access to markets
how easy it is for countries and companies to trade within the international market.
Barrier to trade
Government-imposed restraint on the flow of international goods and services.
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.
Free trade
When international trade is left to its natural course. It involves removing barriers to trade.
Global marketing
Using one strategy to promote and sell a product to customers all over the world. The world is treated as one market.
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.
Horizontal integration
When a company merges with or takes over another company in the same stage of production.
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
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.
Trade
The exchange of capital, goods and services between countries. These are known as imports and exports.
Vertical integration
When a company either owns or controls multiple stages in the supply chain.
Global governance
The rules and organisations used to manage issues that affect the whole world.
Institution
Political and legal organisations. They pass and enforce laws. 3 examples: United Nations, World Trade Organisation and Intergovernmental Panel on Climate Change.
Law
Established through international agreements. They are legally binding e.g. human rights, labour standards, trade regulations.
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.
United Nations
An international organisation founded in 1945 made up of 193 member states whose aim is to promote international peace and co-operation.
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.
