Globalisation (Key Terms)

Question 1

What are tariffs?

Answer 1

A tariff is a tax on imported and exported goods

Question 2

What are quotas?

Answer 2

Quotas limit the number of goods and services that can be imported

Question 3

What is free market liberalisation?

Answer 3

Free market liberalisation is when there is zero influence of the state on economy and allows the market to move freely, increasing efficiency.

Question 4

What is offshoring?

Answer 4

Offshoring is when production is moved to other countries.

Question 5

What is outsourcing?

Answer 5

Outsourcing is when TNCs give contracts to another company to complete part of their work.

Question 6

What is glocalisation?

Answer 6

Glocalisation is when companies adapt products to the needs of local consumers.

Question 7

What is a spiral of decline?

Answer 7

A spiral of decline is when unemployment leads to depopulation, because of a lack of jobs.

Question 8

What is the KOF index?

Answer 8

The KOF index measures the social, economic and political dimensions of globalisation:
•+ Wide range of globalisation data (24 variables)
•+ Weighted system
•+ Compare countries over time (158 nations, 30 years)
•- Bias, smaller countries over represented at the top (Belgium, Ireland) as FDI is a greater proportion of GDP
•- Informal economies are discounted
•- Illegal migrants not included
TOP 5= Ireland, Netherlands, Belgium, Austria, Singapore
BOTTOM 5= Solomon Islands, Somalia, Kiribati, Lao PDR, Eritrea (As of 2016)