key word test- 8th November Flashcards
Capital Flows
the movement of money for the purpose of investment, tradeor business production.
Globalisation
the process by which the world is becoming increasingly interconnected as a result of a huge growth in trade and cultural exchange
BRICs
The main emerging powers
Brazil, Russia, India and China
MINTs
a group of countries with the potential to realize rapid economic growth
Mexico, Indonesia, Nigeria, Turkey
Deregulation
removing laws and regulations for new businesses in order to increase competition in the market
Remittances
the money or goods that migrants send back to families and friends in origin countries
Economic Leakage
Large companies have factories or production facilities in other LICs, and these factories create wealth for the company which is then not transferred to the economy of the host country (and instead to that of the corporation involved). The economic value of goods and profits lost here is leakage.
Containerisation
a shipping method in which a large amount of material is packaged into large containers
reduced the transport costs and time
Conglomerates
a corporation made up of several different, independent businesses
-one big business owns several smaller and independent businesses
Economies of Scale
producing a larger amount of products, so unit cost falls and profit increases
Global Shift
the movement of manufacturing and the outsourcing of services from the West to the East
Comparative Advantage
opportunity cost of producing a particular good or service is lower than of other countries.
IMF
International Monetary Fund (IMF)
Aims to maintain a stable international financial system, and promotes free trade and globalisation.
World Bank
lends money to the LICS/NEEs to fund economic development and reduce poverty.
Gini Coefficient
draw with lorenz curve
a statistical measure of economic inequality in a population.
