Globalisation

Question 1

Capital Flows

Answer 1

Movement of money for investment, trade or to produce goods/provide services. Usually regarded as investment into a production operation.

Question 2

Globalisation

Answer 2

Process by which national economies, societies and cultures have become increasingly integrated through global network of trade, communication, transportation and immigration.

Question 3

International Trade

Answer 3

Exchange of capital, goods and services across international borders. Inbound is imports, outbound exports.

Question 4

Labour

Answer 4

Factor of production defined as the aggregate of all human physical and mental effort used to create goods or provide services.

Question 5

BRIC

Answer 5

Acronym to identify a group of four countries - Brazil, Russia, India and China - whose economies have advanced rapidly since the 1990s.

Question 6

Diaspora

Answer 6

Large group of people with similar heritage or homeland who have moved and settled in places all over the world.

Question 7

Leakages (economic)

Answer 7

Loss of income from an economic system. Usually refers to the profits sent back to their base country by transnational corporation - profit repatriation.

Question 8

MINT

Answer 8

Acronym referring to the more recently emerging economies of Mexico, Indonesia, Nigeria and Turkey.

Question 9

Containerisation

Answer 9

System of standardised transport that uses large standard-size steel containers to transport goods.

Question 10

Protectionism

Answer 10

A deliberate policy by government to impose restrictions on trade in goods and services with other countries - usually done with the intention of protecting home-based industries from foreign competition.

Question 11

Tariffs

Answer 11

Tax or duty placed on imported goods with the intention of making them more expensive to consumers so that they do not sell at a lower price than home-based goods - a strategy of protectionism.

Question 12

Conglomerates

Answer 12

A collection of different companies or organisations which may be involved in different business but report to one parent company - most tncs are conglomerates.

Question 13

Economies of scale

Answer 13

The cost advantages that result from the larger size, output or scale of an operation as savings are made by spreading the costs or by rationalising operations.

Question 14

Maquiladora

Answer 14

Manufacturing operation (plant or factory) located in free trade zones in Mexico. They import materials for assembly and then export the final product without any trade barriers.