Globalisation

Question 1

Globalisation

Answer 1

The process whereby the world is becoming increasingly interconnected and interdependent through trade and travel

Question 2

Thomas Friedman “The world is flat”

Answer 2

1492-1820: Driven by countries
1820-2000: Driven by companies
2000-present Driven by individuals

Question 3

IGOs

Answer 3

Inter-governmental organisation, such as the WTO, World Bank and IMF

Question 4

Tariff

Answer 4

Added cost to importing a good internationally

Question 5

Quota

Answer 5

Amount of trade that’s allowed

Question 6

Protectionism

Answer 6

Uses tariffs and quotas to restrict trade, so protecting producers in the nation

Question 7

Free Trade Blocs

Answer 7

Groups of countries that allow free flow of goods and money, eg the EU

Question 8

Offshoring

Answer 8

TNCs producing in low wage economies and shipping to HICs

Question 9

Foreign mergers

Answer 9

2 firms from different countries merge

Question 10

Foreign aquisitions

Answer 10

A TNC taking over a foreign company, often hostile

Question 11

Transfer pricing

Answer 11

Channeling profits through low tax countries

Question 12

Lengthening connections

Answer 12

Connections from further away

Question 13

Deepening connections

Answer 13

Connections penetrating deeper

Question 14

KOF index

Answer 14

Measure of globalisation, compares countries (mainly by economic factors)

Question 15

AT Kearney Index

Answer 15

Measures globalisation of cities by business activity, information exchange, cultural experience, political engagement and human capital

Question 16

Outsourcing

Answer 16

A TNC pays a foreign country to fulfill a job for them (production)

Question 17

Global Production Networks

Answer 17

Chains of production through multiple countries

Question 18

Glocalisation

Answer 18

When a TNC adapts its product to suit local culture