Globalisation Flashcards
What is globalisation
the process by which people their culture money good and info can be transferred between countries
three types of globalisation
Political, Social, Economic
Shrinking world definition
the world is becoming theoretically closer due to the increase in trade and therefore globalisation
Concepts increasing shrinking world
(8)
internet, fibre optics, containerisation, steam ships, mobile phones, mobile banking, jet aircraft, telegraph
containerisation how and why its been improved
each container same size and shape to trading off becomes easier as each partner knows the capacity of its good receiving, helping to improve speed of trade for globalisation
players definition
anyone with a vested interest or involvement with a particular process or event
1930s key players
global economic shut down free trade into protectionism and economic were shattered
1944 43 countries met so this would not happen again
Tariff
a tax placed on goods that are imported from other countries
Quotas
a limit placed on the number of goods that are imported from other countries
Embargos
a ban placed on certain goods imported from other countries
Subsides
a sum of money grantee by the government to help an industry or business keep the price of goods low
Barriers to trade (4)
Tarrif, quota, embargo, subsides.
discourage trade and encourage protectionism
Trading blocs
countries which group together to improve their economic interests and trading patterns
trade blocs (2)
ASEAN, European union
ASEAN
association of south-east asian nations, 10 countries, formed in 1967, combined gdp of $3.6tn
European union
27 countries, formed in 1993, gdp of $19tn, free trade zone, free migration,
advantage of trade blocs
removes intra community trade, producers focus on what there good at making, smaller nations merge with tncs
Disadvantages of trade blocs
loss of sovereignty, interdependence(example oil problem, one problem has knock on effect)
IMF
international monetary fund, 1944, supporting economic policies that promote financial stability and monetary cooperation essential to increase productivity and job creation
World bank
1944, 187 countries, reduce poverty by lending money to members to help improve their economies by building schools, facilities and medical centres
WTO
world trade organisation, 1995, governments can negotiate trade agreements and all major decisions made by the membership as a whole
What is offshoring
Off loading ur business onto another country taking advantage of cheap labour
Offshoring example
Royal Dutch shell has headquarters in uk and Netherlands
What is free market liberalisation
Restrictions being lifted on how companies and banks operate
What is Open door policy
the economic policy initiated by Deng Xiaoping in 1978 to open China to foreign businesses that wanted to invest in the country.
Open door china facts
Foreign TCS are allowed to invest in some sectors of chinas domestic market, china agreed to export more rare earth materials