Key words Flashcards
Globalisation
This is the integration of economies, industries, markets, cultures and policy-making around the world. Globalisation describes a process by which national and regional economies, societies, and cultures have become integrated through the global network of trade, communication, immigration and transportation.
In the more recent past, globalisation was often primarily focused on the economic side of the world, such as trade, foreign direct investment and international capital flows, more recently the term has been expanded to include a broader range of areas and activities such as culture, media, technology, socio-cultural, political, and even biological factors, e.g. climate change.
Containerisation
Transportation of cargo in containers (that can be interchanged between ships, trains, and trucks) with standardized handling equipment, and without rehandling the contents.
Economy of scale
Reduction in cost per unit resulting from increased production, realized through operational efficiencies. Economies of scale can be accomplished because as production increases, the cost of producing each additional unit falls.
Global marketing
Marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives.
Finance
The management of large amounts of money, especially by governments or large companies.
Bureaucracy
A system of government in which most of the important decisions are taken by state officials rather than by elected representatives.
Multiplier effect
The multiplier effect refers to the increase in final income arising from any new injection of spending.
Capitalism
An economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state.
Socialism
A political and economic theory of social organization, which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.
Communism
A theory or system of social organization in which the community owns all property and each person contributes and receives according to their ability and needs.
Free market
An economic system in which prices are determined by unrestricted competition between privately owned businesses.
Autocratic leader
In an autocratic leadership style, the person in charge has total authority and control over decision-making.
Democracy
A system of government by the whole population or all the eligible members of a state, typically through elected representatives.
terrorism
The unofficial or unauthorized use of violence and intimidation in the pursuit of political aims.
nationalism
Patriotic feeling, principles, or efforts.
Isolationism
A policy of remaining apart from the affairs or interests of other groups, especially the political affairs of other countries.
Fundamentalism
Strict adherence to the basic principles of any subject or discipline.
Protectionism
The theory or practice of shielding a country’s domestic industries from foreign competition by taxing imports.
WTO/ IMF
World Trade Organisation - global international organization dealing with the rules of trade between nations. International Monetary Fund - organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
OPEC
The Organisation of the Petroleum Exporting Countries - intergovernmental organisation of oil-exporting developing nations which aims to ensure oil prices remain stable within global oil markets.
GDP
Gross Domestic Product - It represents the total dollar value of all goods and services produced over a specific time period.
GNP
Gross National Product - Gross National Product. GNP is the total value of all final goods and services produced within a nation in a particular year, plus income earned by its citizens (including income of those located abroad), minus income of non-residents located in that country.
PPP
An economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency’s purchasing power.
Fordism
The use in manufacturing industry of the methods pioneered by Henry Ford, typified by large-scale mechanized mass production.
Just in Time
Denoting a manufacturing system in which materials or components are delivered immediately before they are required in order to minimize storage costs.
Outsourcing
Obtain (goods or a service) by contract from an outside supplier.
Global shift
Large-scale filter down of economic activity from MEDCs to NICs and LEDCs.
New International Division of labour
In economics the new international division of labour (NIDL) is an outcome of globalization. The term was coined by theorists seeking to explain the spatial shift of manufacturing industries from advanced capitalist countries to developing countries
ECOWAS
Economic Community of West African States - mandate of promoting economic integration in all fields of activity of the constituting countries.
EU
European Union - The EU is based on the rule of law: everything that it does is founded on treaties, voluntarily and democratically agreed by all member countries. These binding agreements set out the EU’s goals in its many areas of activity.
NAFTA
North American Free Trade Agreement - The goal of NAFTA is to eliminate barriers to trade and investment between the U.S., Canada and Mexico.
