Globalization Definitions Flashcards
Globalization
Increasing Inter connectedness of world
Global system
Organizations that link different parts of the world with jobs, services, etc
Global governance
Regulation of systems and activities to help people, environment and economy
Foreign Direct Investment FDI
Amount of capital invested in foreign countries
Terms of trade
Cost of goods that a country imports compared to price at which exports sold
Special and Differential Treatmens
Terms for LICs to trade more effectively and fairly with HICs
World Trade Organisation
Cut trade barriers and make trade flow more easily
International Monetary Fund
Standardizes global financial relations and promotes trade whilst monitoring economy
World bank
Promotes global investment and sometimes gives out loans to countries
TNC
Country operating in more than one country
Outsourcing
Hiring another company to perform what is usually done by the main company
Spatial organization
Top-down, hierarchical order of organization
Horizontal integration
Improving links between different firms in same stage of production
Vertical integration
Where company controls multiple stages in production and distribution
Rules
Standard for activities carried out by everyone
