Globalisation

Question 1

What is:

Globalisation

Answer 1

the growing interdependence and intergration of the world economies

Question 2

What is:

interdependence

Answer 2

where the actions of a large country or firm will have a direct effect on others

Question 3

What are:

MNCs

Answer 3

firms that operate and produce goods and services in more than one country

Question 4

What is:

FDI

Answer 4

Foreign Direct Investment is when a company makes an investment in a foreign country. This usually involves purchase of capital gods in a foreign country, such as a building or factory.
Can also be purchase of shares, with FDI usually coming from MNCs

Question 5

What is:

International debt

Answer 5

the debt owed by a government to another, which can be reaid with interest

Question 6

What are:

Trading blocs

Answer 6

Agreement between governments to reduce or eliminate barriers to trade between participating countries

Question 7

What are:

Commodities

Answer 7

natural resources that come from the Earth

Question 8

What is:

Development Aid or Foreign aid

Answer 8

financial aid given by governments or other agencies to support the development of developing countries. Aims to alleviate poverty in the long term rather than short-term

Question 9

What is the:

Development gap

Answer 9

Widening different in levels of development between the world’s richest/poorest countries