Globalisation Flashcards
AT kearney Index
Measures how globalised a country has become.
Capital
Money or assets
Capitalism
A belief in a market economy, where people are free to set up businesses and keep their profits (subject to taxes), and where supply and demand determine the prices of goods and services.
Commodities
Raw materials
Commodity traders
People who trade raw materials in financial centres, thus guaranteeing the supply, price and delivery date of the product months ahead.
Communism
A belief in communal wealth where property is owned communally and wealth is distributed equally. The state owns or controls most land, as well as the banks, natural resources, and the media.
Cultural diffusion
The spread of one culture to another by various means.
Cultural erosion
The changing and loss of culture in an area, such as the loss of language and traditional food.
Deindustrialisation
The decline of manufacturing industry in an area.
Depopulation
When the population of an area declines.
Deregulation
The reduction in rules which means that any foreign businesses can set up in the UK and bring their overseas staff with it.
E-tailer
An electric online retailer
Ecological footprint
A measure of the land area and water reserves that a population needs in order to produce what it consumes (& absorb the waste it generates), using current technology.
Economic sector balance
The percentage contribution of primary, secondary, & tertiary sectors to GNI.
Economies of scale
The ability to reduce costs proportionately by increasing the scale of production.
Elite Migrants
Skilled, wealthy migrants, often experts in finance and investment.
Ethnic enclaves
Concentration of particular communities in an area, such as a high concentration of Asian or Asian British residents with a Pakistani background in East London.
Export processing zones
The term now used by china instead of SEZ which describes areas set up by national governments to offer financial or tax incentives to attract FDI, which differ from those incentives normally offered by a country.
Fairtrade
An independent not-for-profit organisation which aims to return a bigger proportion of the revenue to producers or growers.
Foreign direct investment (FDI)
Investment made by an overseas company or organisation which is based in another country.
Free enterprise
When companies operate in competition with each other, with minimal governmental control.
Futures market
A market where traders can buy and sell futures contracts, in which contractors agree to supply and deliver goods at an agreed time in the future.
G8
An IGO consisting of the USA, UK, France, Canada, Germany, Italy, Japan & Russia, which meets annually to discuss development.
G20
An IGO which comprises 19 individual countries plus the EU. It brings together developed and developing countries to discuss key economic issues.
Gini Coefficient
A measure of inequality which considers how far wealth distribution within a country deviates from perfect equality.
Global Homogenisation
The idea that everywhere is becoming the same.
Global shift
The movement of manufacturing from Europe & the USA to many Asian countries.
Globalisation
The process by which people, culture, finance, goods and information travel between countries with few barriers.
Glocalisation
When a company re-styles its products to suit local tastes.
Gross domestic product (GDP)
The same as Gross National Income, but excluding foreign earnings.
Gross national income (GNI)
The value of goods and services earned by a country, including overseas earnings, formerly known as GNP.
Heavily Indebted poor countries (HIPC)
38 of the least developed countries with the greatest debts which, since 1996, have been eligible to have their debts with the IMF and the World Bank either cancelled or rescheduled.
Horizontal integration
When a company expands at one level in the production process.
Host locations
Areas where migrants move to
Human development index (HDI)
A measure of development which takes into account life expectancy, education, & GDP for every country and converts them into a value between 0 and 1
Hyper-Urbanisation
Rapid urbanisation
Informal homes
Housing which has been built illegally, often comprising of poor quality dwellings.
Inter-Governmental Organisations (IGOs)
Organisations which comprise of two or more countries working together. Examples include the EU and the UN.
International monetary fund
A global organisation whose primary role is to maintain international financial stability.
Just in time
(Parts arrive for product precisely when it will be made). The means by which the time gap between product and delivery to the customer is sharply reduced. - cutting warehouse and storage costs.
KOF index
An annual index of Globalisation where a score is calculated for each country by assessing economic, social and political globalisation.
Land degradation
Where land loses quality and fertility.
Liberalism
The idea that the government’s role in business and the economy should be minimal, to allow individual decision making, a free market and open competition between companies.
Mega cities
Cities with a population of over 10 million
Million cities
Cities w a pop over 1 million
Neo-liberalism
A belief in the free flows of people, capital, finance, and resources. Under neo-liberalism, state interventions in the economy are minimised, while the obligations of the state to provide for the welfare of its citizens are diminished.
New economy
Where GDP is earned more through expertise and creativity in services such as finance and media than from the manufacture of goods.
OECD
Organisation for Economic Co-operation and development- an IGO which is a global ‘think tank’ of the 34 wealthiest nations.
Off-shoring
When a company does work overseas, either itself or using another company.
Outsourcing
When work is contracted out to another company (known as off-shoring when that company is overseas).
Purchasing power parity (PPP)
Relates average earnings to local prices and what they will buy. This is the spending power within a country, & reflects the local cost of living.
Quotas
A fixed level indicating the maximum amount of imported goods or persons which a state will allow in.
Remittance payments
Income sent home by individuals working elsewhere (usually abroad but can be in urban areas).
Remittance payments
Income sent home by individuals working elsewhere (usually abroad but can be in urban areas).
Reverse colonialism
The concept that previous colonies, or lower-income countries, are now established high or middle income countries, and are all net providers of overseas investment, sometimes in the country which used to be the coloniser.
Shrinking world
The concept that the world is becoming metaphorically smaller because the time it takes to trade and communicate globally has been massively reduced.
Source locations
Areas where migrants come from.
Special economic zones (SEZ)
Set up by national governments to offer financial or tax incentives to attract FDI, which differ from those incentives normally offered by a country.
Subsidies
Grants given by the governments to increase the profitability of key industries.
Tariffs
A tax that is paid on goods coming into or going out of a country.
The race to the bottom
A race by companies to deliver ever-cheaper goods.
Trade liberalisation
The removal of trade barriers such as subsidies, tariffs and quotas.
Trade protectionism
The use of methods such as tariffs and quotas to attempt to boost a country’s exports or reduce its imports.
Trading blocs
When countries have grouped together to promote free trade between them. The EU is an example of a trading bloc.
Transition town
A town where local groups and NGOs promote local sourcing of goods to increase sustainability, reduce their carbon footprints and increase their resilience.
Transnational companies (TNCs)
Companies that operate in several different countries.
Vertical integration
When a company controls and owns every stage of production from exploration to sales.
World bank
A global organisation which uses bank deposits placed by the world’s wealthiest countries to provide loans for development in other countries.
World cities (or hub cities)
Cities with a major influence, based on: finance, law, political strength, innovation and ICT.
World trade organisation (WTO)
A global organisation which looks at the rules for how countries trade with each other.
