Globalisation Flashcards
Define Spatial division of labour
The common practice amount TNCs of moving low-skilled work abroad/offshore to place where cost are low. Imported skilled managerial roles tend to remain in the place of origin.
Define FDI
Foreign direct investment: a financial addition made by a TNC into a nations economy, either to build a new facilities or to acquire/merge with a firm already based there.
BRICs group
The four large(fast growing economies)-Brazil, Russia, India, China and more recently South Africa
Digital divide
A term that refers to the gap between people and regions that have access to modern information and communications technology, and those that don’t or restricted access. This technology can include the telephone, television and the internet.
Why are some global flows seen as a threat
- Imports can threaten a countries own industries
- migrants can bring cultural change with, not everyone well comes this
Economic globalisation
- Growth of TNCs accelerates
- Online purchases allow consumers to buy goods from further away
Social globalisation
- International immigration has created family networks that expand across borders
- Education has improved, higher literacy rates
Political Globalisation
Trade agreements have allowed TNCs to merge and make acquisitions of firms I’m neighbouring countries
Cultural globalisation
Western culture has dominated some territories in terms of taste and fashion choices
Local cultures start to merge with global influences
Benefits of container ships
Ships have high volumes allowing the economy of scale to reduce shipping prices to an all time low
Problems with container ships
The flow of high value products is usually one way
Benefits of E-Tailing
Allows consumers to have access to a larger quantity of goods from one place
Problems of e-tailing
The ease of buying products and getting them almost instantly creates a throw away society
How has technology sped up the process of globalisation?
- Allowed consumers to buy products from overseas more easily.
- Provided opportunities for outsourcing e.g. BT customer service
Define subsidies
Money a government gives out to stimulate the economy
Open door policy
Letting any company operate in a country
SEZ
Special economic zone- areas setup by national governments which after tax breaks to companies to attract investment
EPZ
Export processing zone- same as SEZ e.g. Hong Kong
Define IMF
International Monetary Fund:
- Lends money for development purposes
Define remittance
When a person sends money earned in one country back to another
Define transfer pricing
When a company channels profits through a subsidiary company in a low tax company
Define switched off
Somewhere that hasn’t been globalised due to physical ,social or economic reasons
Define global shift
The changing geographical location of manufacturing to Asia and the outsourcing of services to India.
What factors lead tot the global shift?
-Individual Asian countries such as India, began to allow overseas companies access to their markets,
with an open-door policy.
- TNCs began to seek new cheaper areas for manufacturing (e.g. factories in China) and for outsourcing
services (call centres and software development in India).
- FDI begin to flow into the emerging Asian economies.
Costs of the global shift
- loss of productive farmland
- An increase in unplanned settlements
- pollution and health problems
- land degradation
- over exploitation of resources