globalisation Flashcards
what is globalisation
globalisation is a long standing process which involves widening and deepening global connections, interdependence and flows (commodities, capital, information, migrants an tourists)
what are the different types of globalisation
economic
cultural
environmental
political
how can you measure globalisation
Kearney index - split into 4 categories economic intergration personal contact technological connectivity political engagement the lowest value is given a 0 the highest a 1 and relative values are given to the ones in between FDI, internet and telephone traffic are wighted double all scores are then summarised
KOF
- measures globalisation on economic, social and political
on a scale from 1-100
higher values denote greater globalisation
which is the least and most developed country in the world
HDI - norway
central african republic
Kearney - Uk
KOF - belgium
why do levels of globalisation vary between countries
levels of infrastructure
amount of fdi
innovative workforce
technology - money
FDI
a controlling ownership, in a business enterprise in one country by a company or organisation based in another country
Soverign wealth funds
a state owned investment fund - a country ability to run its own country
trade bloc
a type of intergovernmental agreement, where barriers to trade in a word region are reduced or eliminated among the participating states
Soverign wealth funds
bank of government use their money to invest in other countries - it gives a country great power
special economic zones
large areas of land set aside by the government in locations well placed for international trade
offshoring
where a company moves part of its operations to another country - where land and labour is cheaper or because the economic situation is more favourable for profit making
outsourcing
a business makes a contract with another company to complete the same work, rather than dong it within a company
reduced costs as other companies do the work at a lower cost
subsidies
a sum of money granted by the state or a public body to help an industry or business keep the price of a commodity or service low
capitalism
an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state
what role do TNC’s play in the globalisation process?
tncs are the architects of globalisation, without these being present globalisation cannot really develop
- global production markets
- investment in new markets
- glocalisation
- offshoring
- outsourcing
