Globalisation key terms Flashcards
transnational corporations
Businesses whose operations are spread across the world, operating in many nations as both makers and sellers of goods and services. Many of the largest are recognisable as global brands that bring cultural change in the areas they are consumed in.
gross domestic product
A measure of the financial value of goods and services produced within that country including foreign firms located there
emerging economies
Countries that have begun to experience high rates of economic growth, usually due to the rapid factory expansion and industrialisation. There are numerous sub groups to emerging economics (NICS, RICS, BRICS)
remittances
Money that migrants send home to their families via formal and informal channels
interdepency
If two places become over reliant on financial and/or political connections with one another, then they have become interdependent.
spatial division of labour
The common practice among TNCs of moving low skilled work abroad (or offshore) to places where labour costs are low. This is also called the new international division of labour
intermodal containers
Large capacity storage containers which can be loaded onto ships or trains without the freight being taken out.
shrinking world
Thanks to technology, distant places start to feel closer and take less time to reach.
foreign direct investment (FDI)
A financial injection made by a TNC into a nations economy, either to build new infrastructure, to build new facilities or to acquire or merge with an existing firm already located there.
trickle-down
The positive impacts on peripheral regions (and poorer people), caused by the creation of wealth in core regions.
sovereign wealth funds
Government owned investment funds and banks typically associated with China and countries that have large revenues from oil such as Qatar
trade blocs
Voluntary international organisations that exist for trading purposes, bringing greater economic strength and security to the nations that join.
tariffs
The taxes that are paid when importing or exporting goods and services between countries
special economic zone
An industrial area, often near a coastline, where favourable conditions are created to attract TNCs. These conditions include low tax rates and exemption from tariffs and export duties.
offshoring
TNCs move parts of their own production process to other countries to reduce labour or other costs