Globalisation Keywords Flashcards
Globalisation
the international flow of people, information and capital
Space time compression/shrinking world
the time it takes to travel over a certain distance is significantly decreased (compressed), therefore distance means nothing, as a result of advanced transport. Physical distance remains the same, but begin to feel closer. Can be uneven.
Spatial division of labour
different stages of the production process are nationally or internationally distributed
International Monetary Fund (IMF)
help governments balance their payments during economic difficulties by granting loans to member countries
WTO
encourages liberalisation of trade, as there are less trade barriers (taxes/tariffs).
World trade blocs
Reductions in taxes/tariffs and more standardisation of products. Money flows are controlled and they determine workers rights and movement of people. Econ integration leads to political integration.
Protectionism
tariffs on imports to allow own country’s industries to grow without competition
Tariffs
additional taxes on an import
Supranational
power that goes beyond national boundaries (e.g. decision making in the EU)
Foreign Direct Investment (FDI)
controlling ownership of a business or properties by a foreign organisation
Free market liberalisation
removal of barriers between countries to encourage free trade (free trade policies)
Special Economic Zone (SEZ)
area of land set aside to encourage FDI and economic growth with tax free policies. Encourage TNC investment and business start ups.
Subsidise
support financially e.g. provide money/loans/tax breaks for potentially unprofitable businesses (gives econ boost to certain sectors)
Indicators
Categories that can make up an index e.g. tourism, trade, FDI
Indices
Way to measure something using a set criteria e.g. KOF, HDI
Glocalisation
when a product/service is developed and distributed globally, but adjusted for local markets. Adhere to local regulations.
Outsource
to get another company to provide part of the supply chain; no need to pay for/repeat something that another company is already doing
Offshore
move operations to another country (e.g. to China for cheap labour)
Horizontal integration
business grows by acquiring a similar company at the same point in the supply chain (increases production of goods/services)
Vertical integration
acquiring a similar company in the industry before or after them in the supply chain
Switched off
Shallow/extremely low level of globalisation that is unlikely to increase.
Lack strong flows of trade and FDI, not integrated into global economy
Global economic centre of gravity
Main region where large sections of supply chains are based and most manufacturing happens
Deindustrialisation
Decline in manufacturing because of global shift
RUM
Movement due to economic and social conditions
Push/pull factors e.g. jobs, healthcare, education, income, safety
Megacity
City with a population of more than 10 million people
Interdependence
Two countries/places rely on each other
Mass low-wage economic migration
Relied on by emerging countries as they globalise
Migrate to emerging countries to receive wage and some sent back home as remittance
Culture
System of meanings shared by a group of people leading to a common influence
Global culture
Very similar culture around the world based on Western countries, overwhelming local/original cultures (can lead to cultural erosion)
Cultural diffusion
One culture spreading into another, slowly replacing it (often through globalisation)
Can be achieved through legal/military coercion
Cultural dilution
Disappearance of local traditions/languages/services
Pushing out local industries
HDI
GDP, life expectancy, literacy, years of schooling
Soft power
powerful wealthy states shaping global culture through disproportionate large influence over global media/entertainment
Lorenz Curve
Wealth distribution through the population
The closer it is the the equality line, the fairer the country is
Diasporas
Communities of migrants that arrive in new countries all over the world
Extremism
A viewpoint that doesn’t acknowledge alternatives, possibly resulting in aggressive behaviour e.g. anti-immigrant groups in Germany
Trade protectionism
Trade barriers promote buying from domestic companies
Believe it protects economy, standards of living and main culture
Impacts of a consumer society
Fast fashion and carbon emissions when transporting products
Transition towns
When a town transitions away from globalisation and tries to become more ethical and sustainable
Localised but rely on global knowledge scheme, and ideas come from different towns and countries
Gini Coefficient
Ratio between the two areas of a Lorenz Curve
The closer it is to 0 the more equal it is
Externality
something that is produced externally to the process (and the consequence of actions that are not paid for e.g. buy products from China, but don’t pay for poor health from pollution)
Organic products
Higher price for no pesticides
But farmers aren’t paid more, as it covers cost of being environmentally friendly
Recycling
Reusing and reprocessing manufactured goods
Circular economy
Shifting production cost/waste onto manufacturers e.g. leasing
