Globalisation Flashcards
Define Globalisation
The process by which culture, people, finance and goods transfer between countries with few barriers
List some of the top Trade Blocs
EU
NAFTA
ASEAN
CARICOM
Define FDI
When one country invests money in another country. For example McDonald’s in China.
What is throw away culture?
Cheaper to buy new and from far away countries than to fix something
What are Trade Blocs?
Voluntary organisations for trading purposes. Free trade is encouraged by removing tariffs.
Define spatial division of labour
When large firms move low skilled workers abroad to places where labour costs are low, also establishing call centres and factories in poorer countries
Define Glocalisation
The adaptation of a global product for a local market place (McDonald’s not selling beef in India).
What’s the KOF index and what are the 3 indicators it’s made up of
An index of the degree of globalisation. Made up of: Economic globalisation (volume of FDI) Social globalisation (cross border contacts, information flows) Political globalisation (membership to international organisations like the WTO)
What is China’s open door policy and when did it begin?
In 1978 China allowed FDI and TNCs into their country to promote a modern and thriving China
Define containerisation
A shipping method designed to reduce costs by packing large amounts of material into containers
Define cultural diffusion
The spread of cultural beliefs and social activities into different cultures
Define cultural erosion
The reduction of a culture due to globalisation
Define cumulative causation
The process of self-sustaining economic growth in a city or region
Define deindustrialisation
A reduction In industrial capacity, leading to social and economic change within a region
Define downward transition zone
A country or city with predicted economic decline
Define economic migration
Movement of migrants to improve financial income or standard of living
Define global hub
A city that has lots of connections to the world through trade, ideas or migration. TNCs will want to base here
What does a “shrinking world” mean?
New technology has reduced time taken to transport goods
What does the IMF do and what does it stand for?
The International Monetary Fund is a fund of 189 member countries with the aim to aid each other to achieve financial stability
What does the WTO do and what does it stand for?
The World Trade Organisation works to reduce barriers and create free trade
What is a TNC?
A Transnational Company is a company that operates in different countries to where they were originally based
Role of the World bank?
To give grants and lend money in order to reduce poverty and aid development
CASE STUDY- Leicester
In the 1920s people worked in the textile mills
Employment peaked in the 1960s
Fast decline post 1970s due to the industry moving to Asia
Less employment led to less money leading to decline
