Key terminology Flashcards
BRICS
Brazil, Russia, India, China, and recently, South Africa, who are four fast-growing economies in the world.
Economies of scale
Where companies expand and buy the entire supply chain in order to reduce production costs and increase efficiency.
emerging country
a country that is beginning to experience large economic growth, this may be due to the large industrialisation, and the increase of secondary employment.
Foreign Direct Investment
An injection of investment made by a TNC into another country either by establishing new shops or factories, in order to expand business.
Global Production Network
A chain of suppliers and manufacturers that create consumer goods.
Glocalisation
Changing a product in order to conform to the local laws or customs in an area.
Gross Domestic Product
A measure of the capital created within a territory. Even foreign agencies located there.
Horizontal integration
Where companies expand on one level of the production line. E.g., Apple purchasing Logic.
Interdependency
Where two or more regions become over-reliant on each other politically, or economically.
Intermodal containers
containers shipped which have no freight of breaking or losing cargo.
IMF
An IGO which aims to maintain global financial stability. This may mean giving loans to countries who cannot afford to pay off their debts.
Just in Time
A service whereby the production in a factory to the consumer is severely cut down due to the reduction of warehousing and storage costs.
Knowledge economy
A system where GDP per capita is earned through creativity, expertise, and skill. This is contrary to the manufacturing of goods. - The quinary sector.
LDC (Least developed countries)
Countries which have very little exposure to globalisation, and therefore they may be deemed ‘failed states’ E.g., Somalia.
OECD
34 member countries which aim to be a ‘think tank’ of ways to improve the social lives of those in the world.
OPEC
12 member states are responsible for the decision-making surrounding oil price and production.
offshoring
Where TNC’s shift their production process such as factories to other countries in order to reduce labour costs.
outsourcing.
Where TNC’s contract other companies to create products for them in order to increase efficiency. This can lead to a complex supply chain.
remittances
money which migrants send home to their families, either in informal or formal employment.
shrinking world.
places start to feel closer to reach and easier to travel to thanks to technological advancement.
Sovereign wealth fund
an independent funds and banks, typically associated with China and other producers of oil, Qatar, Norway.
Spatial division of labour
The common practice among TNCs of moving low-skilled work abroad (or ‘offshore’) to places where labour costs are low. Important skilled management jobs are retained at the TNC’s headquarters in its country of origin.
Special Economic Zone
This is an area of land, usually near a coastline, where TNC’s are attracted due to lower tariffs and accessibility to port and transport.
Subsidies
Grants given by the government to increase the profitability of key indistries, such as farming.
Tarrifs
The tax which is apid due to the exchange of goods and services overseas.
Technological leap-frogging
The use of technology in a developing country without the adoption of more basic technology first.
time-space compression
The percieved change in time and distance between places concerning flows of globalisation due to heightened connectivity.
Trade blocs
Voluntary organisations which have a unified agreement to aim to increase stability economically and politically through the exchange of globalisation flows.
trade liberalisation
removing the barriers asssociated with trade so that more free trade can occur.
TNC’s
Transnational corporations are companies which function across many countries through different manufacturing and selling of goods and services.
Trickle-down
the positive impacts of the profits made by core regions, travelling backwards to periphery regions.
World Bank
An organisation which aims to tackle extreme poverty through granting low-interest loans to countries in debt. However, these countries have to conform to certain regulations.
