Power, Places and Networks

Question 1

Resource curse

Answer 1

Also known as the paradox of plenty, refers to the paradox that countries with an abundance of natural resources, tend to have less economic growth, less democracy, and worse development outcomes than countries with fewer natural resources (Congo)

Question 2

Neo-colonial

Answer 2

the practice of using capitalism, globalization and cultural imperialism to influence a developing country instead of direct military control or indirect political control.

Question 3

Soft Power

Answer 3

a persuasive approach to international relations, typically involving the use of economic or cultural influence.

Question 4

Hard power

Answer 4

a coercive approach to international political relations, especially one that involves the use of military power.

Question 5

Protectionism

Answer 5

a set of government policies aimed at protecting jobs and industries at home from foreign imports that may be cheaper than home-produced goods.

Question 6

KOF index of globalisation

Answer 6

The KOF index is a score each country is given out of 100, the higher the number the more Globalised the country is considered to be (it measures the economic, social and political factors).

Question 7

Emerging economy

Answer 7

An emerging market is a country that has some characteristics of a developed market but does not satisfy the standards to be termed a developed market.

Question 8

GDP

Answer 8

gross domestic product. A measure of national income.

Question 9

Trickle-down

Answer 9

a model of product adaption in marketing that affects many consumer goods and services. It states that fashion flows vertically from the upper classes to the lower classes within society.

Question 10

Neoliberal

Answer 10

a policy model that transfers control of economic factors from the public sector to the private sector.

Question 11

Trade blocs

Answer 11

a type of intergovernmental agreement, where barriers to trade (tariffs and others) are reduced or eliminated among the participating states.

Question 12

Foreign Direct Investment

Answer 12

The investment by a company into the structures, equipment or organizations of a foreign country.

Question 13

Globalization

Answer 13

The growing interdependence of countries worldwide through the increase of cross-border transactions, and through the diffusion of technology.

Question 14

Global village

Answer 14

The idea that the world has been transformed into
a “village” by the almost instantaneous transmission of information, facilitated by improvements in technology

Question 15

Offshoring

Answer 15

The process by which firms move
production overseas.

Question 16

Outsourcing

Answer 16

When a firm obtains inputs such as skills and services from separately owned suppliers instead of sourcing them internally.

Question 17

TNC

Answer 17

Transnational corporations are businesses whose operations are spread across the world.

Question 18

Smart power

Answer 18

The skilful combined use of both hard and soft power in international relations.

Question 19

Acquisitions

Answer 19

When an international corporate merger takes place, two firms in different countries join forces to create a single entity.

Question 20

Time-space compression

Answer 20

Otherwise known as the shrinking world. The heightened connectivity changes our conception of time, distance and potential barriers to the migration of people, goods, money and information.

Question 21

Joint venture

Answer 21

This involves two companies forming a partnership to handle business in a particular territory (but without merging into a single entity).

Question 22

Spatial division of labour

Answer 22

The common practice among TNCs of offshoring low-skilled work abroad to places where labour costs are low.

Question 23

MNC

Answer 23

Multi-national corporations operate in more than one country however have a centralized management system.

Question 24

Examples of migration

Answer 24

• Brain drain
• Shrinking world

Question 25

Brain drain

Answer 25

the emigration of highly trained or qualified people from a particular country.