Globalisation EQ 1 Flashcards
Globalisation
The process by which the world is becoming increasingly interconnected and interdependent as a result of increased technology, communication, trade and cultural exchange
Time-space compression
The change of our conception of time due to heightened connectivity
Tariff
A tax imposed on imports
Subsidy
financial assistance to a business by government to make it competitive or prevent collapse
Quota
a limit on the quantity of a good a country allows into the country
Protectionism
policies to protect businesses and workers in a country by restricting and regulating foreign trade
Free-market economy
a market economy based on supply and demand with little to no government control
Free trade
a policy where a government does not interfere with imports or exports by applying tariffs, subsidies or quotas
Privatisation
transferring ownership of a public service into private ownership run for profit
Neoliberalism
a political philosophy of free markets, free trade, privatisation and increasing the role of business in society
Outsourcing
When one company hires a foreign company to produce goods and services for them for lower costs
Offshoring
When companies build their own facilities in another country for lower costs
Foreign mergers
When two firms in different countries join forces to create a single entity
Transfer pricing
determining the price that goods are bought or sold at between rival companies
Foreign aquisitions
When a TNC launches takeover of a company in another country
