Globalisation

Question 1

Asian ‘tiger’ economies

Answer 1

The newly industrialised economies of South Korea, Taiwan, Hong Kong and Singapore

Question 2

BRIC

Answer 2

Brazil, Russia, India, China - 4 countries that have experienced rapid economic growth since 1990

Question 3

Capital flows

Answer 3

The movement of money for the purpose of investment, trade or services

Question 4

Commodity

Answer 4

A raw material or primary agricultural product e.g. copper or coffee

Question 5

The most important traded commodity

Answer 5

Oil

Question 6

Conglomerate

Answer 6

A collection of different companies (may be involved in a wide range of businesses) that all report to and are owned by one parent company. Most TNCs are conglomerates, e.g. Unilever

Question 7

Containerisation

Answer 7

A system of goods transport that uses standardised steel containers that can be quickly and cheaply transferred between ships, trains and lorries.

Question 8

Deindustrialisation

Answer 8

The reduction in industrial activity and capacity in an economy or region

Question 9

Diaspora

Answer 9

A significantly sized group of people with similar heritages who have moved and settled in new places together

Question 10

Economies of scale

Answer 10

The cost advantage that comes from larger size, output or scale as saving are made by spreading the cost or by rationalising operations.

Question 11

Rationalising operations

Answer 11

When a company changes its policies or procedures to meet a specific end

Question 12

Enterprise

Answer 12

A form of human capital describing those who take the risk of establishing a business and organising its production of goods or delivery of services

Question 13

Foreign direct investment

Answer 13

An investment made in the interests of one country or company, into a venture in another country. This can be through establishing business operations or acquiring assets in the other country.

Question 14

Global shift

Answer 14

The general movement of manufacturing from HICs to NEEs and LICs

Question 15

Global village

Answer 15

The idea that the the world’s society is ‘tied together in a single global marketplace’.

Question 16

Globalisation

Answer 16

The process by which national economies, cultures and societies have become increasingly interlinked and integrated through trade, communication, transport and immigration

Question 17

Interdependence

Answer 17

Mutual dependence on a global level; countries depend on each other for products, goods and services

Question 18

International trade

Answer 18

The exchange of capital, goods and services across international borders. Incoming trade is an import and outgoing trade is an export

Question 19

Labour

Answer 19

The aggregate of all human physical and mental effort used to create goods or provide services

Question 20

Economic leakages

Answer 20

A loss of income from an economic system. Usually refers to profits being repatriated to their base country by TNCs

Question 21

Maquiladora

Answer 21

A manufacturing operation in free trade zones in Mexico. They import materials and then export a final product without any trade barriers

Question 22

Migration

Answer 22

Movement of people from one place to another.

Question 23

MINT

Answer 23

Mexico, Indonesia, Nigeria, Turkey. Recently emerging economies

Question 24

Nation state

Answer 24

The convergence of a political state and a cultural/ethnic nation. Kurdistan is a nation but not a state. It could be argued that the UK is a state but several nations.

Question 25

NIC

Answer 25

Newly industrialised country. Countries that have recently had rapid industrialisation since roughly the 1960s.

Question 26

NGO

Answer 26

Non-governmental organisation. A non-profit organisation seeking to address a particular problem in society e.g. homelessness, refugee crises

Question 27

NAFTA

Answer 27

North American Free Trade Agreement. Mexico + USA + Canada, signed in 1994.

Question 28

ODA

Answer 28

Official development assitance. This is essentially a term for international aid. The term was coined by the OECD

Question 29

OPEC

Answer 29

Organisation of Petroleum Exporting Countries. Economic alliance between countries that produce enough oil to export the surplus and are responsible for roughly 50% of all oil exports. There are 12 members: Algeria, UAE, Nigeria, Kuwait, Qatar, Saudi Arabia, Libya, Ecuador, Venezuela, Angola, Iran , Iraq

Question 30

Protectionism

Answer 30

Government policy style to prioritise the business and industry of the home country by reducing foreign competition through tarrifs, restrictions, quotas

Question 31

Remittances

Answer 31

Money transferred by workers in foreign countries to their homelands. 2nd most important source of income for LICs

Question 32

Tarrifs

Answer 32

Tax or duty placed on imported goods. Used to prevent foreign industry undercutting the domestic industry.

Question 33

TNC

Answer 33

Transnational corporation. Company that has operations in more than one country. They do not necessarily own the foreign operations but rather use them through franchises

Question 34

World economy

Answer 34

The idea that supply and demand of products are influenced by global events and matters

Question 35

WTO

Answer 35

World trade organisation