Globalisation definitions

Question 1

China’s open door policy

Answer 1

A 1978 policy where China allows foreign industry and TNCs in to promote a modern and thriving China

Question 2

Containerisation

Answer 2

A logistical system of transporting goods in steel containers

Question 3

Cultural diffusion

Answer 3

The spread of cultural beliefs and social activities into different cultures

Question 4

Cultural erosion

Answer 4

The reduction of a culture due to globalisation

Question 5

Cumulative causation

Answer 5

Like a multiplier effect- ‘success breeds success’
As the core region increases in prosperity the periphery regions will too, due to their links with the core

Question 6

Deindustrialisation

Answer 6

A reduction in industrial capacity, leading to social and economic change within a region

Question 7

Diaspora

Answer 7

‘To scatter about’
People displaced from their homeland, voluntarily or forced

Question 8

Downward transition zones

Answer 8

A country or city with predicted economic decline, industrial reduction, or switched off from globalisation, such as Scotland, Turkey and Brazil

Question 9

Economic migration

Answer 9

Movement of migrants to improve financial income or standard of living

Question 10

Foreign Direct Investment

Answer 10

An investment by one country or business with an interest in another country

Question 11

Global hubs

Answer 11

Cores that demonstrate connections to the world (through trade, ideas, migration etc)
TNC’s and Foreign Direct Investors will show an interest to base here

Question 12

Globalisation

Answer 12

The growing interdependence of countries through cross-border transactions (capital, technology, migration, knowledge, culture)

Question 13

Glocalisation

Answer 13

The adaption of a good offered by a TNC to suit a local market

Question 14

Hyper-Globaliser

Answer 14

Someone who believes that globalisation and cultural diffusion is a positive process, which will lead to the formation of a homogenous culture (one ‘super’ global culture)

Question 15

IBRD and WBG

Answer 15

IBRD- International bank for Reconstruction and Development
WBG- World Bank Group
- Both offer loans and temporary financial assistance for developing countries

Question 16

IMF

Answer 16

International Monetary Fund
- A fund of 189 member countries with the aim to aid each other to achieve financial stability and provide loans for development

Question 17

KOF

Answer 17

Index of globalisation which takes into account the social, economical and political globalisation of a state

Question 18

Liberalisation

Answer 18

A reduction in government control within industry, creating opportunity for greater participation from private businesses and TNCs within an industry

Question 19

Offshoring

Answer 19

Company moves part of its operations to another country, often to save money

Question 20

Outsourcing

Answer 20

A business contracts outside businesses to complete some of their work, with the aim to reduce costs

Question 21

Potential Areas of Growth

Answer 21

Regions where future economic development are predicted due to their undeveloped resources, such as Canada and Qatar

Question 22

Privatisation

Answer 22

When national public services become owned by private businesses

Question 23

Sovereignty

Answer 23

Control over a country’s own laws and regulations

Question 24

SEZ

Answer 24

Special Economic Zones
- Regions where the government offers incentives to attract industry

Question 25

TNC

Answer 25

Transnational Company
- A company which operates in different countries to where they are originally based

Question 26

Trade Bloc

Answer 26

A group of countries that work together to promote trade and a free movement of goods/services between member states

Question 27

Transformationalist

Answer 27

The belief that globalisation won’t lead to the formation of a homogenous culture. Instead, the flow of culture is two way.

Question 28

Upward Transition Zones

Answer 28

A country or city with predicted industrial and economic increase, such as Mexico or Iceland

Question 29

WTO

Answer 29

World Trade Organisation
- Members seek substantial reductions on tariffs and trade barriers and the elimination of preferences on a mutually advantageous basis

Question 30

Tariff

Answer 30

A tax posed on imports

Question 31

Subsidy

Answer 31

Financial assistance to a business by a government to make it competitive or prevent collapse

Question 32

Quota

Answer 32

A limit on the quantity of a good a country allows in

Question 33

Protectionism

Answer 33

Policies to protect businesses and workers in a country by restricting / regulating trade with foreign nations

Question 34

Free-market economy

Answer 34

A market economy based on supply and demand with little or no government control

Question 35

Free trade

Answer 35

A policy where a government does not interfere with exports or imports by applying tariffs, subsidies or quotas

Question 36

Neo-liberalism

Answer 36

A political philosophy of free markets, free trade, privatisation and increasing the role of business in a society (while decreasing the influence of a government). It is thought that by making trade easier, there will be more of it, meaning wealth and reduction of poverty