Globalisation Key Terms

Question 1

Protectionism

Answer 1

Gov policy to restrict trade with other countries - to protect home-based industries from foreign competition

Question 2

Privatisation

Answer 2

State owned businesses are sold to private TNCs so profits are concentrated within companies (eg in the 1980s under Thatcher - BP & British Airways were privatised)

Can benefit consumers in LDEs by lowering prices

Can increase inequality by retaining profits rather than reinvestment

Question 3

Free market liberalisation/ neoliberalism

Answer 3

Markets can act freely without state influence - aims to have a trickle down effect

Question 4

Special Differential Treatment Agreements

Answer 4

Put in place by the WTO to help regions with poor access to markets
- by reducing tariffs and taxes

Question 5

Special Economic Zones

Answer 5

Areas of low taxes and labour costs to encourage TNC investment (eg in China)

Question 6

Free Trade Blocs

Answer 6

Removed tariffs and quotas to allow markets to develop and can attract investment in LDEs

Question 7

Repatriation of Profits

Answer 7

TNCs investing overseas will take profit back to the home country (economic leakage for the host country)

Question 8

Remittance payments

Answer 8

Transfers of money from foreign workers to their family in their home country

Question 9

Chinas ‘Belt and Road’ Initiative

Answer 9

An overland road network over 60 countries to increase access for landlocked countries, for example to the Arabian port.

Opens access and diversifies exports to emerging markets

Question 10

‘Just in Time’ systems

Answer 10

Ensures correct quantities of materials and goods are available on time

Reduces costs by having fewer goods and materials held in stock