Globalisation Flashcards
Transnational cooperations
Businesses whose operations are spread across the world, operating in many nations as both makers and sellers or goods and services. Many of the largest are instantly recognisable ‘global brands’ that bring cultural change to the places where products are consumed
Gross domestic product
A measure of the financial value of goods and services produced within a territory (including foreign firms located there). It is often divided by population size to produce a per capita figure for the purpose of making comparisons
Emerging economies
Countries that have begun to experience high rates or economic growth, usually due to rapid factory expansion and industrialisation. There are numerous sub-groups of emerging economies, including Brazil, Russia, India, China and South Africa (the ‘BRICS’ group). They are sometimes called newly industrialised countries
Remittances
Money that migrants send home to thei families via formal or informal channels.
Interdependency
If two places become over-reliant on financial and/or political connections with one another, then they have become interdependent. For example, if an economic recession adversely affected a host country for migrant workers, then the economy of the source country may shrink too, due to falling remittances
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 TNC’s headquarters in its country of origin
Intermodal containers
Large-capacity storage unites which an 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 interjection made by a TNC into a nations economy, either to build new facilities (factories or shops) or to acquire, or merge with, an existing firm already based there
BRFIS 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 impact on peripheral regions (and poor people) caused by the creation of wealth in core region and among richer people)
Soverign 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 organisation that exist for trading purposes, bringing greater economic strength and security to that nations that join
Tariffs
The taxes that are paid hen importing or exporting goods and services between countries
Special economic zone
An industrial area, often near a coastline, where favourable conditions are creates to attract foreign TNCs. These conditions include low tax rates and exemption from tariffs and export duties
Offshoring
TNCs move parts of their own production process (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 or connected suppliers of parts and materials that contribute to the manufacturing or assembly of the consumer goods. The network serves the needs of a TNC, such as Apple or Tesco
Least developed countries
The worlds very poorest low-income nations, whose populations have little experience of globalisation. A number of these nations are described as ‘failed states’ by politicians, for example Somalia and South Sudan
Deindustrialisation
The decline of regional important manufacturing industries. The decline can be charted either in terms of workforce number or output and production measures
