Key Terms- Globalisation Flashcards
Trans national corporations
Businesses whose operations are spread across the world, operating in many nations as both makers and sellers of goods and services. Many of the largest are recognisable as global brands that bring in cultural change in the areas they are consumed in.
Gross Domestic Product (GDP)
A measure of financial value of goods and services produced within that country including foreign firms located there.
Emerging economies
Countries which have begun to experience high rates of economic growth, usually due to the rapid factory growth and expansion and industrialisation. There are numerous sub groups to emerging economies (NICS, RICS, BRICS)
Remittances
Money that migrants send home to their families via formal and informal channels.
Interdependency
If two places became over reliant on financial and/or political connections with one another, then they have become interdependent.
Spatial division of labour
The common practice among TNCs of loving low skilled work abroad (or offshore) to places where labour costs are low. This is called the international division of labour.
Intermodal containers
Large capacity storage containers which can be loaded onto ships or trains without the freight being taken out.
Shrinking world
Thanks to technology, distant places start to feel closer and take less time to reach.
Foreign Direct Investment
A Financial injection made by a TNC into a nations economy, either to build new infrastructure, to build new facilities or to acquire or merge with an existing firm already located there.
Trickle-down
The positive impacts of peripheral regions (and poorer people), caused by the creation of wealth in core regions.
Sovereign wealth funds
Government owned investment funds and banks typically associated with China and countries that have large revenues from oil such as Qatar.
Trade blocs
Voluntary international organisations that exist for trading purposes, bringing greater economic strength and security to the nations that join.
Tariffs
The taxes that are paid when importing or exporting goods and services between countries.
Special Economic Zone (SEZ)
An industrial area, often near a coastline, where favourable conditions are created to attract TNCs. These areas include low tax rates and exemptions from tariffs and export duties.
Offshoring
TNCs move parts of their own production process to other countries to reduce labour or other costs.
Outsourcing
TNCs contract another company to produce the goods and services they need rather than do it themselves. This can result in the growth of complex supply chains.
Least developed countries
The worlds very poorest low-income nations whose population have little experience of globalisation. A number of these nations are described as ‘failed states’ by politicians.
Subsidies
Grants given by governments to increase the profitability of key industries.
Just-in-time
The means by which the time gap between production and delivery to the customer is sharply reduced- cutting warehouse and storage costs.
New Economy
Where GDP is earns more through expertise and creativity in services such as finance, media, law, technology and management of manufacturing goods.
Glocalise/Glocalisation
When a company restyles its products to suit local tastes.
Human Development Index
A single index figure, published by the UN each year, which expresses the levels of education, health and GDP indicators for every country.
