Globalisation Flashcards
Connection
Links between people and places
TNCs
Trans-national corporations. Businesses that operate in more than one country
ICT
Informations and communications technology
Spatial division of labour
TNCs moving low skilled work abroad to places where labour costs are low. Skilled management jobs are in TNCs headquarters in its country of origin
Immigration
The international movement of people in order to settle as residents
Colonialism
Political and economic domination involving the control of a country by a foreign power
Trading bloc
Voluntary international organisations that exist for trading purposes, bringing greater economic strength and security to nations that join
BRICS
An association of emerging economies (Brazil, Russia, India, China, South Africa) established the New Development Bank
Glocalisation
The idea that products are changed to meet local tastes. TNCs use it to sell to new markets
Sovereign wealth funds
Government-owned investment funds and banks, typically associated with China and countries that have large revenues from oil (Qatar)
Tariff
Taxes that are paid when importing or exporting goods and services between countries
Privatisation
The transfer of assets from the public (government) to the private sector
Special export/economic zones
An industrial, often coastal area where favourable conditions are created to attract foreign TNCs e.g. exemption from tariffs, fewer labour laws
KOF index of globalisation
A composite index of globalisation. Ranks countries
A.T Kearney World cities index
An index of globalisation. Ranks 62 cities
Global production network
A chain of connected suppliers of parts and materials that contribute to the manufacturing or assembly of consumer goods for a TNC
FDI
Cross-border investment. A financial injection made by a TNC into a nation’s economy to build new facilities or to acquire an existing firm there
Emerging economy
Countries that have begun to experience high rates of economic growth, due to factory expansion and industrialisation
Outsourcing
TNCs contract another company to produce the goods and services. This results in a global supply chain
Hyperglobal
The dramatic change in the length, depth and speed of globalisation that happened from the late 1990s to the beginning of the 21st century
Hukou
A system of household registration in mainland China, connected to social programs which assign benefits based on agricultural and non-agricultural residency. A source of rural urban inequality. Prevented rural villages from emptying completely during China’s 1978 open door policy
Offshoring
TNCs move part of their own production process to reduce costs
Globalisation
Increasing global connections between people and places
Trade
The transfer of goods or services from one person or entity to another
Interconnectivity
The state or quality of being interconnected (linked)
Hybridisation
The creation of hybrids, mixing two things together
Free trade
A trade policy that does not restrict imports and exports
Recession
A period of time when the economic activity of a country declines and conditions for business is bad
Cultural homogeneity
An aspect of cultural globalisation, reduction in cultural diversity
Goods, services and capital
The production, distribution and consumption of goods, services and capital makes up the world’s economic activity
Commodity
A basic economic good used in commerce that can be traded, bought or sold
Network and flow
A movement of something from one place to another, through a large system
GDP
Gross domestic product. A measure of the financial value of goods and services produced within a territory, often divided by population size to produce per capita for comparisons
Migrant
A person who moves from one country to another
Remittance
Money sent home to a migrant’s family
Interdependency
Two or more things being dependent or mutually reliant on each other
Feedback loop
An effect where an amount or level produced by a process, system etc increases or decreases the amount produced by the same process, system etc at a later time (positive or negative)
Intermodal containers
Transport containers that can be used on different modes of transport without having to take the product out of its container
Time-space compression
The set of processes that cause the relative distances as measured in travel time, cost etc to decrease
Shrinking world
The result of time-space compression, distant places feel closer than in the past
Digital divide
The gap between demographics and regions that have access to modern ICT, and the economic, education and social inequalities it causes