unit 4 key terms

Question 1

foreign direct investment

Answer 1

the investment by a company into the equipment, structures, or organizations of a foreign country. It does not include investment in shares of companies of other countries

Question 2

globalisation

Answer 2

is the increasing interdependence of countries
this includes:
- economic systems
- physical systems (global warming)
- sociocultural systems (fashion, music, film)
- political systems

Question 3

global village

Answer 3

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

Question 4

offshoring

Answer 4

the prices in which firms move production overseas

Question 5

outsourcing

Answer 5

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

Question 6

superpower

Answer 6

nation or a group of nations with a leading position in international politics

Question 7

how does the KOF Index of Globalisation define the term of globalisation

Answer 7

as “the process of creating networks of connections among actors at multi-continental distances, mediated through a variety of flows including people, information and ideas, capital and goods. Globalisation is conceptualised as a process that erodes national boundaries, integrates national economies, cultures, technologies, and governance and produces complex relations of mutual interdependance”