Globalisation

Question 1

Transnational corporations

Answer 1

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 recognisable as global brands that bring cultural change in the areas they are consumed in.

Question 2

Gross Domestic Product

Answer 2

A measure of the financial value of goods and services produced within that country, including foreign firms that locate there

Question 3

Emerging economies

Answer 3

Countries that have begun to experience high rates of economic growth usually due to the rapid factory expansion and industrialisation. There are numerous sub groups if emerging economies (NICs RICs BRICs)

Question 4

Remittances

Answer 4

Money that migrants send home to their families via formal and informal channels

Question 5

Interdependency

Answer 5

If two places become over reliant on financial and/ or political connections with one another they have become interdependent

Question 6

Spatial division of labour

Answer 6

The common practice among TNCs of moving low skilled work abroad ( or offshore) to places where labour costs are low. This is also called the new international division of labour

Question 7

Intermodal containers

Answer 7

Large capacity storage containers which can be loaded into ships or trains without the freight being taken out

Question 8

Shrinking world

Answer 8

Thanks to technology, distant places start to feel closer and take less time to reach

Question 9

Foreign direct investment

Answer 9

A financial injection made by a TNC unto a nations economy, wither to build new infrastructure, to build new facilities or to acquire or merge with an existing firm already located there.

Question 10

Trickle down

Answer 10

The positive impacts on peripheral regions (and poorer people), caused by the creation of wealth in core regions

Question 11

Sovereign wealth funds

Answer 11

Government owned investment funds and banks, typically associated with China and countries that have large revenues from oil e.g. Qatar and Norway

Question 12

Trade blocs

Answer 12

Voluntary international organisations that exist for trading purposes, bringing greater economic strength and security to the nations that join.

Question 13

Tariffs

Answer 13

The taxes that are paid when importing or exporting goods and services between countries

Question 14

Special economic zone

Answer 14

An industrial area, often near a coastline, where favourable conditions are created to attract TNCs. These condition include low end rates and exemption from tariffs and export duties

Question 15

Offshoring

Answer 15

TNCs move parts of their own production process to other countries to reduce labour or other costs

Question 16

Outsourcing

Answer 16

TNCs contract another company to produce the food and services they need rather than do it themselves. This can result in the growth of a complex supply chains

Question 17

Global production networks

Answer 17

A chain of connected suppliers of parts and material that contribute to the manufacturing or assembly of the consumer goods.

Question 18

Least developed countries

Answer 18

The worlds very poorest low-income nations whose population have little experience of globalisation. A number of these nations are described as ‘failed states’ by politicians

Question 19

Subsidies

Answer 19

Grants given by governments to increase the profatability of key industries

Question 20

Just in time

Answer 20

The means by which the time gap between production and delivery to the customer is sharply reduced- cutting warehouse storage costs