Globalisation key terms Flashcards
What are the Asian ‘tiger’ economies?
The first NICs of South Korea, Taiwan, Hong Kong, and Singapore.
What does BRIC stand for?
An acronym used to identify Brazil, Russia, India, and China, whose economies have advanced rapidly since the 1990s.
What are capital flows?
The movement of money for investment, trade, or to produce goods/provide services.
What is a commodity?
A raw material or primary agricultural product that can be bought and sold, such as copper or coffee.
Oil is the single most important traded commodity.
What are conglomerates?
A collection of different companies or organizations involved in various business activities but reporting to one parent company.
What is containerisation?
A system of standardized transport using large steel containers to transport goods efficiently.
What is deindustrialisation?
The reduction of industrial activity or capacity in a region or economy.
What is a diaspora?
A large group of people with similar heritage or homeland who have moved and settled in various places worldwide.
What are economies of scale?
The cost advantage resulting from the large size, output, or scale of an operation.
What is enterprise?
A form of human capital describing those who take the risk of establishing businesses and organizing production.
What is foreign direct investment (FDI)?
An investment made in business interests in one country by a company or individual from another country.
What is a global shift?
The filtering down of manufacturing industry from developed countries to lower wage economies.
What is a global village?
A ‘flat world’ where economic and information flows are unrestricted.
What is globalisation?
A process by which national economies, societies, and cultures become increasingly integrated through global networks.
What is interdependence?
Mutual dependence at a global level; countries rely on each other for products, goods, and services.
What is international trade?
The exchange of capital, goods, and services across international borders.
What is labour in economic terms?
The aggregate of all human physical and mental effort used to create goods or provide services.
What are leakages (economic)?
A loss of income from an economic system, often referring to profits sent back to their base country by TNCs.
What is a Maquiladora?
A manufacturing operation located in free trade zones in Mexico that imports materials for assembly and exports the final product without trade barriers.
Maquiladoras play a significant role in Mexico’s economy by facilitating cross-border trade with the United States.
Define Migration.
Movement of people from one place to another, which does not have to be international.
Migration can include internal movements within a country as well.
What does MINT stand for?
Mexico, Indonesia, Nigeria, Turkey.
MINT countries are recognized for their emerging economies.
What is a Nation state?
A political entity that combines the characteristics of a ‘state’ with a cultural entity of a ‘nation’.
Nation states are commonly referred to as countries.
What are Newly Industrialised Countries (NICs)?
Countries that have undergone rapid and successful development since the beginning of the 1960s.
NICs have transitioned from primarily agrarian economies to industrialized ones.
Define Non-governmental organisations (NGO).
A not-for-profit, voluntary organisation that operates independently of any government, addressing social or political issues.
Examples include local organizations like North London Hospice and international ones like Greenpeace.
What is the North American Free Trade Agreement (NAFTA)?
An agreement signed by the USA, Canada, and Mexico in 1994 creating one of the world’s largest free trade zones.
NAFTA aimed to eliminate trade barriers and increase economic cooperation between the three countries.
Define Official Development Assistance (ODA).
A term coined by the OECD to measure aid, first used in 1969, widely used as an indicator of international aid flow.
ODA includes government aid designed to promote the economic development and welfare of developing countries.
What is the Organisation of Petroleum Exporting Countries (OPEC)?
An economic alliance of countries with a surplus of oil, responsible for about 50% of crude oil exports.
OPEC includes 12 member countries such as Saudi Arabia, Iran, and Nigeria.
Define Protectionism.
A deliberate policy by government to impose restrictions on trade in goods and services to protect home-based industries from foreign competition.
Protectionist measures can include tariffs and quotas.
What are Remittances?
Transfers of money made by foreign workers to family in their home country.
Remittances are often a crucial source of income for families in developing countries.
What are Tariffs?
A tax or duty placed on imported goods to make them more expensive, protecting home-based goods.
Tariffs are a common tool in protectionist policies.
Define Transnational Corporations (TNCs).
Companies that coordinate and control economic operations in more than one country.
TNCs may not own the operations abroad, such as franchises.
What is meant by the World economy?
The interlinked system where prices, supply, and demand of products are affected by global events.
Global events can include economic crises, natural disasters, and political changes.
What is the World Trade Organisation (WTO)?
A group of (in 2016) 164 nations agreeing to trade without tariffs or duties, aimed at easing trade.
The WTO sets the global rules of trade between nations.
