Globalisation Flashcards
What is globalisation?
Growing interconnection of the world’s economies
What are emerging economies
Rapidly growing economies, they have huge growth potential but also pose significant risks
Features of globalisation
Free trade
Free labour
Interdependence
Free flow of capital
Exchange of technology and intellectual property
Reasons for globalisation
Developments in technology
Improvements in international transport networks
Deregulation
Tourism
Firms want to sell abroad bc domestic markets are saturated
Reasons why globalisation cannot occur
If governments keep international borders closed
Trade barriers
Inability to live and work in overseas countries
If planning permission is denied
Benefits of globalisation
Larger markets
Lower costs
Access to labour
Reduced taxation
Disadvantages of globalisation
Competition
International takeovers
Increased risk of external shocks
What is intellectual property
People’s knowledge or creative ideas that have commercial value and are protectable under different forms of copyright
What is a monetary system
System of money in a particular country or world as a whole, and the way that it is controlled by governments and central banks
What does saturate mean
To offer so much of a product for sale that there is more than people want to buy
What is a predator
Business that tries to use another’s weakness to get advantages
What is a hostile takeover
Takeover that the company being taken over does not want or agree to
What does it mean to bid?
Offer to pay a particular price for something
What is an auction site
Online website where products are sold to the person who offers the most money for them
