Globalisation (1)

Question 1

Transnational corporations

Answer 1

Businesses whose operations are spread across the world.
operating in many nations as both makers and sellers of goods and services.
Many of the largest are recognisable as global brands that bring cultural change in the areas they are consumed in

Question 2

Gross Domestic Product

Answer 2

measure of the financial value of goods and services produced within that country including foreign firms located there,

Question 3

Emerging economies

Answer 3

countries that have begun to experience high rates of economic growth,
usually due to the rapid factory expansion and industrialisation
There are numerous sub groups to emerging economics (
NICS RICS BRICS

Question 4

Remittances

Answer 4

money that migrants send home to their families via formal and informal channels

Question 5

Interdependency

Answer 5

if two places become over reliant on financial and/or political connections with one another, then they have become interdependent

Question 6

Spatial division of labour

Answer 6

the common practice among TNCs of moving low skilled work abroad(or offshore) to places here labour costs are low
this is also called the new international division of labour

Question 7

intermodal containers

Answer 7

large capacity storage containers which can be loaded onto ships or trains
without the freight being take out

Question 8

Shrinking World

Answer 8

thanks to technology distant places start to feel closer and take less time to reach

Question 9

Foreign direct investment (FDI)

Answer 9

a financial injection made by a TNC into a nations economy either to build new infrastructure, to build new facilities or to acquire or merge with an existing firm already located there.

Question 10

Trickle-down

Answer 10

the positive impacts on peripheral regions (and poorer people) caused by the creation of wealth in core regions

Question 11

Sovereign wealth funds

Answer 11

Government owned investment funds and banks typically associated with China and countries that have large revenues from oil,such as Qatar

Question 12

Trade blocks

Answer 12

Voluntary international organisations that exist for trading purposes, bringing greater economic strength and security to the nations that join

Question 13

Tariffs

Answer 13

taxes paid when
importing or exporting goods and services
between countries

Question 14

Special economic zone

Answer 14

industrial area, often near a coastline,
where favourable conditions are created to attract TNC’s .

These conditions include
low tax rates and
exemption from tariffs and
export duties

Question 15

Offshoring

Answer 15

TNCs move parts of their own production process to other countries to reduce labour or other costs

Question 16

Outsourcing

Answer 16

TNCs contract another company to produce the goods and services they need rather than do it themselves.

Can result in growth of complex supply chains