Globalisation Flashcards
What is globalisation?
The increasing interconnectedness of the world’s economic, cultural and political systems.
What are 3 common themes for globalisation?
Economic
Social
Political
What is happening more than ever in history?
Globalisation
List 4 examples of why globalisation is leading to a shrinking world.
Technological advances
Transportation
Economies of scale
FDI
What are 3 factors that increase globalisation?
Expansion of TNCs
The economy
Development of Transport
Where can TNCs be found now?
Clone Towns like Totnes
What is a TNC?
Trans-national company/corporation
What is an example of a TNC?
Mcdonalds
What is a MNC?
Multi-national corporation
Where do MNCs operate?
2 or more countries
What effect do MNCs have on emerging markets?
Similar effect like TNCs
How has the development of transport increased globalisation?
Growth of budget airlines
More road networks
What are 3 economic factors that increase globalisation?
The rise of TNCs
Promoting business start-ups
Increased awareness of competitive advantage
What does increased awareness of competitive advantage mean?
An economy’s ability to produce a good at a lower opportunity cost than its partners
What is opportunity cost?
The potential benefit lost by choosing one option over another
What is a node?
Points on a network and are often cities and major towns
What are connections between nodes called?
Flows
What are places with many flows called?
Global hubs
What is an example of capital flow?
Use of cards and bank transfers
What is an example of labour flows?
People can get around easily for work
What is an example of information flows?
People can access info at any time.
What does interdependence mean?
The state of being dependent upon one another
What does cross-border transactions mean?
Financial transactions that occur between parties located in different countries.
What does international credit flow mean?
The transfer of financial assets such as cash and stocks across borders internationally.
What does diffusion of technology mean?
A theory that seeks to explain how, why and at what rate new ideas and technology spread.
What are the 5 flows?
Capital
Labour
Info
Services
Products
What does the periphery model assume?
That global power is concentrated in the hands of MEDCs known as the ‘core’ and LEDCs known as the ‘periphery’.
Name the BRICs countries
Brazil
Russia
India
China
South Africa
What are the BRICS?
A nation with an economy that is progressing towards developed status.
Name the MINT countries
Mexico
Indonesia
Nigeria
Turkey
What are the BRICS & MINT countries doing?
Outperforming the developed world
What are remittances?
Capital Flows
Money sent home to friends and family by migrants living in a different location.
What is foreign direct investment (FDI)? Capital Flow
Investment made by overseas governments, businesses, TNCs in foreign enterprises.
What has happened in Greece in 2008?
Financial crisis
What is the IMF?
International Monetary fund
What is repatriation of profits?
Capital Flow
TNCs operating in foreign countries will normally send any profits made back to the headquarters.
What else is repatriation of profits known as?
Economic leakage
What is containerisation? Product Flow
A system of transport that uses containers to transport goods.
What is marketing?
The process of promoting and selling products or services
What does global marketing involve?`
Treating the world as one single market
What is an example of global marketing?
Autoglass
What does global marketing give businesses?
Economies of scale
What do economies of scale refer to?
The cost advantages a company gains with the increase in production and becomes more efficient
What can global marketing create?
Global brand awareness
Why does marketing need to be adapted?
To regional markets through glocalisation
What percentage of the world recognises Coca Cola’s logo?
94%
How did Coke develop its global brand strategy by going from print advertising to digital?
Debranding
What is a global shift?
The changing location of secondary industries around the world.
Name 2 things businesses consider when choosing where to locate.
Skilled workforce
Access to markets
What is outsourcing?
Delegating tasks to a third-party business
What is offshoring?
Moving jobs or operations to another country.
What are outsourcing and offshoring affecting?
Patterns of production, distribution and consumption
