Globalisation Key words Flashcards
What is China’s Open Door Policy?
China allows foreign industry and TNCs in to promote a modern and thriving China.
Define containerisation.
A logistical system of transporting goods in steel containers (each carrying 25000kg of goods).
What is cultural diffusion?
The spread of cultural beliefs and social activities into different cultures.
What does cultural erosion refer to?
The reduction of a culture due to globalisation.
Explain cumulative causation.
Like a multiplier effect, ‘Success breeds Success’. As the core regions increase in prosperity, the periphery regions will too due to their links with the core.
What is deindustrialisation?
A reduction in industrial capacity, leading to social and economic change within a region.
Define diaspora.
‘To scatter about’ - People displaced from their homeland, voluntarily or forced.
What are downward transition zones?
A country or city with predicted economic decline, industrial reduction or switched off from globalisation (e.g. Scotland, Turkey, Brazil).
What is economic migration?
Movement of migrants to improve financial income or standard of living.
Define Foreign Direct Investment (FDI).
An investment by one country or business with an interest in another country.
What are global hubs?
Cores that demonstrate connections to the world (through trade, ideas, migration, etc). TNCs and foreign direct investors will show an interest to base here.
What is globalisation?
The growing interdependence of countries through cross-border transactions (capital, technology, migration, knowledge, culture, etc).
Define glocalisation.
The adaptation of a good offered by a TNC to suit a local market.
Who is a hyper-globaliser?
Someone who believes that globalisation and cultural diffusion is a positive process, leading to the formation of a homogeneous culture.
What do the International Bank for Reconstruction & Development (IBRD) and World Bank Group (WBG) do?
Both offer loans and temporary financial assistance to developing countries.
What is the purpose of the International Monetary Fund (IMF)?
A fund of 189 member countries aimed to aid each other to achieve financial stability and provide loans for development.
What does KOF stand for?
Index of Globalisation which takes into account the social, economic and political globalisation of a state.
Define liberalisation.
A reduction in government control within industry, creating opportunity for greater participation from private businesses and TNCs.
What is offshoring?
Company moves parts of its operations to another country, often to save money.
Define outsourcing.
A business contracts outside businesses to complete some of their work, with the aim to reduce costs.
What are potential areas of growth?
Regions where future economic development is predicted due to their undeveloped resources (e.g. Canada, Qatar).
What does privatisation mean?
When national public services become owned by private businesses.
Define sovereignty.
Control over a country’s own laws and regulations.
What are Special Economic Zones (SEZ)?
Regions where the government offers incentives to attract industry.
What is a Transnational Company (TNC)?
A company which operates in different countries to where they are originally based.
What is a trade bloc?
A group of countries that act together to promote trade and a free movement of goods/services between member states.
What does a transformationalist believe regarding globalisation?
They believe that globalisation won’t lead to the formation of a homogeneous culture; instead, the flow of culture is two-way.
What are upward transition zones?
A country or city with predicted industrial and economic increase (e.g. Mexico, Iceland, ‘The Asian Tigers’).
What is the role of the World Trade Organisation (WTO)?
Members seek substantial reductions on tariffs and trade barriers and the elimination of preferences on a mutually advantageous basis.
