key words Flashcards
globalisation
the development of the world’s businesses, connections and transport due to global interdependance
interdependance
the success of more than one place due to the dependance on eachother
TNCs
transnational companies, large companies controlled from it’s home country but has businesses in many different countries
GDP
gross domestic product, goods and services at market value
NEEs
when a country is in the middle of development, improving healthcare, infrastructure and quality of life
Remittances
the money/goods that migrants send back to their family/friends in other countries
Interdependancy
the dependance of two or more people/countries
‘Shrinking World’
travel time decreases and distance declines in terms of significance. we are becoming more connected and easier to trade, travel and connect.
Trade
exchange of goods and services between people and countries
Spacial division of labour
TNCs moving low-skilled work abroad where labour costs are low
Time space compression
reductions in relative distance between places. for example cyberspace in 2000s allows information to travel more easier than letter back in 1500s
WTO
world trade organisation, took over general trade and tariffs in 1995. based in switzerland
IMF
international monetary fund, based in washington dc and helps TNCs and helps run free market economies
WB
world bank, lends money on a global scale based in washington dc, has strict loans
FDI
foreign direct investment, a business from one country invests in another such as opening chains/factories
Free Trade
trade that is free from tariffs, taxes and quotas so countries can export/import goods without additional costs from the government
Tariff
tax is lifted off of important goods, and can be levied as a fixed charge for each unit. this restricts trade volume, and you can only avoid a tariff if you’re apart a trading bloc
Quota
place taxes on exports and imports to limit the material coming in/out the country. this protects home owned businesses
Free trade blocs
countries who have signed a FTA to reduce trade barriers, quotas and tariffs to increase trading goods and services. examples are the ASEAN and the EU
SEZs
business and trade laws are different here to increase trade, investment and job creation.
Authoritarian
countries that lack human rights, or the government doesn’t alternate in power
Glocalisation
adapting goods or services of a business to increase consumer appeal in different markets
