Globalisation EQ1 Flashcards
BRICS group
The four large, fast-growing economies of Brazil, Russia, India, China and – most recently – South Africa.
Economies of scale
Where companies expand production to increase efficiency and reduce unit production costs
Emerging economies
Countries that have begun to experience high rates of economic growth, usually due to rapid factory expansion and industrialisation
Foreign direct investment (FDI)
A financial injection made by a TNC into a nation’s economy, either to build new facilities (factories of shops) or to acquire, or merge with, an existing firm already based there.
Global production network (GPN)
A chain of connected suppliers of parts and materials that contribute to the manufacturing or assembly of the consumer goods
Glocalisation
Changing the design of products to meet local tastes or laws
Glocalisation
Changing the design of products to meet local tastes or laws
Gross domestic product
A measure of the financial value of goods and services produced within a territory (including foreign firms located there)
Horizontal integration
Where a company expands at one level in the production process
Interdependency
When two places become over-reliant on financial and/or political connections with one another
Intermodal containers
Large-capacity storage units which can be transported long distances using multiple types of transport without the freight being taken out of the container
Intermodal containers
Large-capacity storage units which can be transported long distances using multiple types of transport without the freight being taken out of the container
International Monetary Fund
An organisation whose primary role is to maintain international financial stability, by stabilising currencies and granting loans to countries that cannot pay their debts.
Just in time
Where the time gap between production and delivery to the customer is sharply reduced, cutting warehousing and storage costs
Knowledge economy
Where GDP is earned more through expertise and creativity in services such as finance, media, law, technology and management, than from the manufacture of goods - the quaternary employment sector
Least developed countries (LDCs)
The world’s very poorest low-income nations, whose populations have little experience of globalisation. A number of these can be described as ‘failed states’ eg Somalia
OECD
A global ‘think tank’ of 34 of the worlds’ wealthiest nations that promote policies that will improve the economic and social well-being of people around the world.
OECD
A global ‘think tank’ of 34 of the worlds’ wealthiest nations that promote policies that will improve the economic and social well-being of people around the world.
OPEC
An Intergovernmental Organisation (IGO) that co-ordinates policies and prices related to oil production with its 12 members.
0ffshoring
TNCs move parts of their own production process (factories or offices) to other countries to reduce labour or other costs
Outsourcing
TNCs contract another company to produce the goods and services they need rather than do it themselves. This can then result in the growth of complex supply chains
Remittances
Money that migrants send home to their families via formal or informal channels
Shrinking world
Thanks to technology, distant places start to feel closer and take less time to reach
Sovereign wealth fund
Government-owned investment funds and banks typically associated with China and countries that have large revenues from oil, such as Qatar and Norway.
Spatial division of labour
The common practice among TNCs of moving low-skilled work abroad (or ‘offshore’) to places where labour costs are low. Important skilled management jobs are retained at the TNC’s headquarters in its country of origin.
Special Economic Zone (SEZ)
An industrial area, often near a coastline, where favourable conditions are created to attract foreign TNCs. These conditions include low tax rates and exemptions from tariffs and export duties.
Subsidies
Grants given by governments to increase the profitability of key industries e.g. farming.
Tariffs
The taxes that are paid when importing or exporting goods and services between countries.
Technological leap-frogging
The adoption of a new technology by a developing economy without it having to use a more basic technology first
Time-space compression
The perceptual change of time, distance and potential barriers to the migration of people, goods, money and information through heightened connectivity
Trade blocs
Voluntary international organisations that exist for trading purposes, bringing greater economic strength and security to the nations that join.
Trade liberalisation
Removing barriers (such as subsidies and tariffs/duties) so that Free Trade can occur.
Transnational corporations
Businesses whose operations are spread across the world, operating in many nations as both makers and sellers of goods and services
Trickle-down
The positive impacts on peripheral regions (and poorer people) caused by the creation of wealth in core regions (and among richer people).
Vertical integration
Where a company controls and owns every stage of production from exploration to sales
World Bank
An organisation that aims to tackle extreme poverty by providing low-interest loans for development in countries that agree to certain conditions concerning repayment and economic growth.
World Trade Organisation
An organisation which believes in trade liberalisation, seeking to encourage all trade between countries free of tariffs, quotas or restrictions on trade.
