Globalisation - Key Terms Flashcards
AT Kearney Index
Measures how globalised a country has become.
Capitalism
An economic system based on private ownership of investment capital and wealth production, whereby goods and services are sold for a profit - people look after their own individual interests first and foremost - often referred to as ‘free enterprise’ and the ‘market economy’, in which market forces determine the price of any service of item of produce.
Communism
A socio-economic system organisation, where the land and all property is owned by the community or by the state, so that every person contributes and receives according to their abilities and needs.
Corportation
A business which exists separately from its owners - its owners are shareholders, who mostly appoint directors to run the business.
Cultural Diffusion
The spread of one culture to another by various means.
Cultural Erosion
The changing and loss of culture in an area, such as the loss of language and traditional food.
Cultural Fractionisation
Measures how diverse communities are, by measuring people’s attitudes towards, for example, religion, democracy and the law.
Deregulation
The reduction in rules which means that any foreign business can set up in the UK.
Diaspora
The movement or migration of people who share a national and/or ethnic identity away from their perceived homeland.
Ecological Footprint
A measure of the land area and water resources that a population needs in order to produce what it consumes (and absorb the waster it generates) using current technology.
Enterprise Zones
Small areas which offer incentives to attract companies, such as tax discounts and a reduction in planning permission requirements.
Ethical Shopping
A deliberate choice of products produced under Fairtrade, organic and cruelty free terms.
Ethnic Enclaves
Concentrations of particular communities in an area, such as a high concentration of Asian or Asian British residents with a Pakistani background in East London.
Foreign Direct Investment
Investment made by an overseas company or organisation into a company or organisation that is based in another country.
Gini Coefficient
Measures how far wealth distribution within a country deviates from perfect equality - it is shown as a value between 0 and 1 - the larger the number, the greater the concentration of wealth will be amongst only a few.
Global Homogenisation
The idea that everywhere is becoming the same.
Glocalise / Glocalisation
When a company re-styles its products to suit local tastes.
Gross Domestic Product
The same as GNI, but excluding foreign earnings.
Gross National Income
The value of goods and services earned by a country (including overseas earnings).
Heavily Indebted Poor Countries Initiative
The HIPC consists of 38 of the least developed countries, with the greatest debts - which, since 1996, have been eligible to have their debts with the IMF and the World Bank either cancelled or rescheduled.
Host Location
Places to which migrants move.
Human Development Index
A single index figure, published by the UN each year, which expresses the level of education, health and GDP indicators for every country.
Inter-Governmental Organisations
Organisation that comprise of 2 or more countries working together - e.g. EU, United Nations.
International Monetary Fund
A global organisation whose primary role is to maintain international financial stability.
Just in Time
The means by which the time gap between production and delivery to the customer is sharply reduced, cutting warehousing and storage costs.
KOF Index
Measures how globalised a country has become by taking into account international interactions.
Lorenz Curve
A graph to show and measure any inequality by comparing it to a line of perfect equality.
Neo-Liberalism
A belief in the free flows of people, capital, finance and resources - intervention in the economy is minimised, while the obligations of the state to the welfare of its citizens are diminished.
New 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.
Non-Governmental Organisation
A non-profit organisation created by private organisations or people with no participation or representation by any government.
Off-Shoring
When a company does work overseas, either itself or using another company.
Outsourcing
When work is contracted out to another company.
Purchasing Power Parity
Relates average earnings to local prices and what they will buy - this is the spending power within a country and reflects the local cost of living.
Remittance Payments
Income sent home by individuals working elsewhere (usually abroad but can be in urban areas).
Social Clustering
A preference for people to live close to others they associate with, for example communities of similar ethnicity or religion.
Source Location
Places from which migrants move.
Special Economic Zones
Set up by national governments to offer financial or tax incentives to attract FDI, which differ from those incentives normally offered by a country.
Subsides
Grants given to governments to increase the profitability of key industries.
Tariffs
A tax that is paid on goods coming into or going out of a country.
Trade Liberalisation
The removal of trade barriers, such as subsides, tariffs and quotas.
Trade Protectionism
The use of methods such as tariffs and quota to attempt to boost a country’s exports or reduce its imports.
Trading Blocs
When countries have groups together to promote free trade between them - e.g. EU.
World Bank
A global organisation which uses bank deposits placed by the world’s wealthiest countries to provide loans for development in other countries.
World / Hub Cities
Cities with a major influence, based on finance, law, political strength, innovation and ICT.
World Trade Organisation
A global organisation which looks at the rules for how countries trade with each other.
