eq1 key terms Flashcards
globalisation
process by which people, cultures, money, goods and information can be transferred between countries with little barriers, increasing interconnections between global locations
interdependence
two places over-reliant financially or politically with one another
spatial division of labour
movement of low-skilled work abroad to keep labour costs low. HQ’s remain in HICs usually
intermodal containers
large capacity storage units to transport freight without items needing to be removed from the container
offshoring
TNCs building production facilities in ‘offshore’ low wage economies
eg. 1987 Fender (Us guitar company in mexico
foreign merger
two firms in different countries join forces to make single business/entity
eg. shell - Uk and netherlands
foreign acquisition
TNC launching a takeover of a company in another country
eg. Kraft takeover cadbury 2010 for £12bn
transfer pricing
where a business channels profit through a subsidiary company in low tax country (like ireland)
OEDC is trying to prevent this
eg. Starbucks, Amazon
FDI
foreign direct investment
investment from TNC into nations economy to build facilities to acquire/merge with existing firm
protectionism
policies to protect businesses/workers in a country through restrictions trade with foreign nations
neoliberalism
political idea which aims to increase importance of businesss and decreasing influence of the government (idea is wealth increases, poverty decreases)
privatisation
public services become privately owned to increase profit
free trade
government doesnt interfere with imports/exports (no tariffs/subsidies/quotas)
free-market economy
market economy based on supply and demand with little intervention from the government
tariff
tax imposed on imports