GLOBALISATION! Flashcards
what is globalisation?
the ever increasing interconnectedness between countries
what is an MNC and TNC?
multinational corporations
transnational corporations
flows in globalisation:
capital
commodities
people (tourism, migrants)
information
four types of globalisation:
economic
social
cultural
political
what is a trade bloc?
a group of countries with an agreement to trade without as many barriers to the movement of goods. a type of intergovernmental agreement, usually goes along with other treaties about the free movement of people
what is the Schengen Agreement?
allows people who are from countries that have signed the agreement to move across most EU borders without being subject to border checks
what is social globalisation?
the increasing number of international migrants, increasing quality of educations and healthcare, rise of social media
what were jet aircrafts used for before carrying passengers?
military purposes
what is time space compression?
allows the relative distances between places to feel far smaller
what is the key idea in containerisation?
by making sure all containers are the same size, ships and ports around the world can be fitted to deal with all types of goods in the containers. makes global shipping far quicker and cheaper
what is an example of pre-1800s globalisation?
the British Empire and East India Company
what has accelerated globalisation?
rapid development of ICT and mobile communication (mobile phones, internet, social networking, electronic banking, fibre optics)
how many of the top 10 most valuable TNC brands in 2018 were technology companies?
six
what are special economic zones?
areas that national governments can set up to help attract FDI into a region
what is foreign direct investment?
when companies from abroad come and invest in industry within a country
what is China’s open door policy?
opened up the country to investment from abroad leading to significant economic growth
what is the limit on the number or quantity of good and services that can be exported called?
a quota
what are free trade blocs?
can increase interconnectedness between countries by removing tariffs and quotas for trade in goods and services eg. EU and NAFTA
what is a tariff?
taxes on goods that are imported and exported
what does China encourage to locate there and how?
TNCs by offering low labour costs and taxes
examples of free trade blocs:
EU
NAFTA
examples of china’s economic initiatives:
encourages TNCs by offering high low taxes and low labour costs
allows 34 foreign films a year in cinemas
joined WTO in 2011
how might a government attract start up businesses?
offering subsidies
offering lower tax rates
installing high quality infrastructure
what is it called where state-owner businesses or infrastructure are sold to private TNCs?
privatisation