Key Terms Flashcards
Capital flows
The movement of money for the purpose of investment, trade or to produce goods/ provide services. Usually regarded as investment into a production operation
Globalisation
A process by which national economies, societies and cultures have become increasingly integrated through global network of trade, communication, transportation and immigration
International trade
Exchange of capital, goods and services across international borders. Inbound trade is defined as imports and outbound trade as exports
Labour
Factor of production defined as the aggregate of all human physical and mental effort used to create goods or provide services
BRIC
An acronym used to identify a group of 4 countries - Brazil, Russia, India and China- whose economies have advanced rapidly since the 1990s
Diaspora
A large group of people with a similar heritage or homeland who have moved and settled in places all over the world
Leakages (economic)
Refers to a loss of income from an economic system. It most usually refers to the profits sent back to their base country by transnational corporations- also known as profit repatriation
MINT
Acronym referring to the more recently emerging economies of Mexico, Indonesia, Nigeria and Turkey
Containerisation
A system of standardised transport that uses large standard- size steel containers to transport goods. Transferred between ships, trains, lorries, enabling cheaper, efficient transport
Protectionism
A deliberate policy by government to impose restrictions on trade goods and services with other countries- usually done with the intention of protecting home- based industries from foreign competition
Tariffs
A tax or duty placed on imported goods with the intention of making them more expensive to consumers so that they don’t sell at a lower price than home-based goods - a strategy of protectionism
Conglomerates
A collection of different companies or organisations which may be involved in different business activities but all report to one parent company
Economies of scale
The cost advantages that result from the larger size, output or scale of an operation as savings are made by spreading the costs or by rationalising operations
Maquiladora
A manufacturing operation (plant or factory) located in free trade zones in Mexico
Bottom up
When local people are consulted and supported in making decisions to undertake projects or developments that meet one or more of their specific needs
Top down
When the decision to undertake projects or developments is made by a central authority such as government with little or no consultation with the local people whom it will affect
Bilateral agreement
An agreement on trade that is negotiated between 2 countries or 2 groups of countries
Common markets
A group formed by countries in geographical proximity in which trade barriers for goods and services are eliminated
Customs unions
A trade bloc which allows free trade with no barriers between its members its member states but imposes a common external tariff to trading countries outside the bloc e.g. EU
Multilateral agreement
An agreement negotiated between more than 2 countries or groups of countries at the same time
Outsourcing
A cost saving strategy used by companies who arrange for goods or services to be produced or provided by other companies, usually at a location where costs are lower
Agglomeration
When companies in similar industries locate near to each other because of the benefits gained by sharing ideas and resources
Multiplier (effect)
A situation where an initial injection of investment or capital into an economy in turn creates additional income by, e.g., increasing employment, wages, spending and tax revenues
Glocalisation
Describes Products or services that are distributed globally but which are fashioned to appeal to the consumers in a local market e.g. McDonalds changing their menu for different places
