Session 3

Question 1

Directional imbalances

Answer 1

Mismatches in the volumes or types of freight moving in opposite directions in a freight market (leading to different freight rates being charge in opposite directions)

Question 2

Ethnocentricity

Answer 2

Thinking only in terms of the home country environment

Question 3

FDI

Answer 3

Financial flows from a company in one country to invest in another country

Question 4

Geocentricity

Answer 4

Acting completely independent of geography and adopting a global perspective

Question 5

Globalisation

Answer 5

An umbrella term for a complex series of economic, social, technological, cultural and political changes which continue to take place throughout the world

Question 6

Glocalisation

Answer 6

Thinking on a global, world market scale, but adapting to local wants as appropriate

Question 7

Offshoring

Answer 7

Offshoring is the transfer of specific processes to lower cost locations in other countries

Question 8

Polycentricity

Answer 8

Adopting the host country perspective

Question 9

Regional trade agreements

Answer 9

Agreements between neighbouring countries that allow free trade between those countries

Question 10

Transnational corporations (TNCs)

Answer 10

Companies that trade across many borders with operations in many countries