Globalisation Flashcards
Transnational corporations
Businesses whose operations are spread across the world, operating in many nations as both makers and sellers of goods and services. Many of the largest are instantly recognisable global brands that bring cultural change to the places where products are consumed
Spatial division of labour
The common practice among TNCs of moving low-skilled work abroad (or offshore) to places where labour costs are low. Important skilled management jobs are retained at the TNCs headquarters in its country of origin
Intermodal containers
Large capacity storage units which can be transported long distances using multiple types of transport, such as shipping and rail, without the freight being taken out of the container
Shrinking world
Thanks to technology distant places start to feel closer and take less time to reach
Foreign direct investment
A financial injection made by a TNC into a nation’s economy either to build new facilities or to acquire or merge with an existing firm already based there
BRICKS group
The four large fast growing economies of Brazil Russia India and China recently joined at their annual summit meeting by South Africa
Trickle down
The positive impacts on peripheral regions caused by the creation of wealth in core regions
Sovereign wealth funds
Government owned investment funds and banks typically associated with China and countries that have large revenues from oil such as Qatar
Trade blocs
Voluntary international organisations that exist for trading purposes bringing greater economic strength and security to the nations that join
Tariffs
The taxes that are paid when importing or exporting goods and services between countries
Special economic zone
An industrial area often near a coastline where favourable conditions are created to attract foreign TNCs. These conditions include low tax rates and exemption from tariffs and export duties
Offshoring
TNCs move part of their own production processes (factories or offices) to other countries to reduce labour or other costs
Outsourcing
TNCs contract another company to produce the goods and services they need rather than do it themselves. This can result in the growth of complex supply chains
Global production network
A chain of connected suppliers of parts and materials that contribute to he manufacturing or assembly of consumer goods. The network serves the needs of a TNCs such as Apple or Tesco
Least developed countries
The world’s very poorest income nations whose populations have little experience of globalisation. A number of these nations are described as “failed states” by politicians e.g. Somalia
Deindustrialisation
The decline of regionally important manufacturing industries. The decline can be charted either in terms of workforce numbers or output and production measures
Internal migrant
Someone who moves from place to place inside the boarders of a country. Globally most internal migrants move from rural to urban areas. In the developed world however people also move from urban to rural area too (counter-urbanisation)
Urbanisation
An increase in the proportion of people living in urban areas
