Globalisation (Definitions) Flashcards
How have transport and technology improvements accelerated globalisation?
- Steam powered ships and trains, railways in the 1850s, jet air craft, containerisation
- Telephone and telegraph, internet, GPS, social networks, mobile phones, smart phones
China’s open door policy
1978 - China allows foreign industry and TNCs to promote a modern and thriving China
Containerisation
A logistical system of transporting goods in steel containers (each carrying 25,000kg of goods)
Cultural diffusion
The spread of cultural beliefs and social activities into different cultures
Cultural erosion
The reduction of a culture due to globalisation
Cumulative causation
Like a multiplier effect, “ success breeds success”. As the core regions increase in prosperity the periphery regions will to due to their links with the core.
Deindustrialisation
A reduction in industry capacity, leading to social and economic change within a region.
Diaspora
“To scatter about” - People displaced from their homeland, voluntarily or forced.
Downward Transition Zones
A country with predicted economic decline, industrial reduction or switched off from globalisation (e.g. Scotland, Turkey, Brazil)
Economic Migration
Movement of migrants to improve financial income or standard of living.
Foreign Direct Investment
An investment by one country or business with an interest in another country,
Global Hubs
Cores that demonstrate connections to the world. TNCs and foreign direct investors wil show an interest to base here.
Globalisation
The growing interdependence of countries through cross-boundary transactions, these 5 flows : Capital, Labour, Information, Services, Products
Glocalisation
The adaptation of a good offered by a TNC to suit a local market.
Hyper-Globaliser
Someone who believes that globalisation and cultural diffusion is a positive process, which will lead to the formation of a homogeneous culture (one “super” global culture)
International Bank for Reconstruction and Development (IBRD) and World Bank Group (WBG)
Both offer loans and temporary financial assistance to developing countries.
International Monetary Fund (IMF)
A fund of 189 member countries with the aim to aid each other to achieve financial stability and providing loans for development.
KOF Index
Index of Globalisation which takes into account the social, economic and political globalisation of a state
Liberalisation
A reduction in government rule within industry, creating opportunity for greater participation from private businesses and TNCs within an industry
Offshoring
Company moves parts of its operations to another country, for economic benefit.
Outsourcing
A business contracts outside businesses to complete some of their work, with the aim to reduce costs.
Potential Areas of Growth
Regions where future economic development are predicted due to their underdeveloped resources (e.g. Canada, Qatar)
Privatisation
When national public services become owned by private businesses
Skeptics
Someone who believes that globalisation only occurs within a core, therefore anyone living outside the core will receive no benefits from globalisation.
Sovereignty
Control over a country’s own laws and regulations
Special Economic Zones
Regions where the government offers incentives to attract industry.
TNC
A company which operates in different countries to where they are originally based
Trade bloc
A group of countries that act together to promote trade and a free movement of goods/services between member states.
Transformationalist
This is the belief that globalisation wont lead to the formation of a homogeneous culture. Instead, the flow of cultures is two-way.
Upward Transition Zones
A country with predicted industrial and econo0mic increase (e.g. Mexico, Iceland)
World Trade Organisation (WTO)
members seek substantial reductions on tariffs and trade barriers and the elimination of preferences on a mutually advantageous basis.
Tarrifs
- A tax placed on goods that are imported from other countries
Quotas
- A limit placed on the number of goods that are imported from other countries
