eq1 key terms Flashcards

1
Q

globalisation

A

process by which people, cultures, money, goods and information can be transferred between countries with little barriers, increasing interconnections between global locations

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2
Q

interdependence

A

two places over-reliant financially or politically with one another

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3
Q

spatial division of labour

A

movement of low-skilled work abroad to keep labour costs low. HQ’s remain in HICs usually

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4
Q

intermodal containers

A

large capacity storage units to transport freight without items needing to be removed from the container

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5
Q

offshoring

A

TNCs building production facilities in ‘offshore’ low wage economies

eg. 1987 Fender (Us guitar company in mexico

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6
Q

foreign merger

A

two firms in different countries join forces to make single business/entity

eg. shell - Uk and netherlands

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7
Q

foreign acquisition

A

TNC launching a takeover of a company in another country

eg. Kraft takeover cadbury 2010 for £12bn

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8
Q

transfer pricing

A

where a business channels profit through a subsidiary company in low tax country (like ireland)
OEDC is trying to prevent this

eg. Starbucks, Amazon

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9
Q

FDI

A

foreign direct investment
investment from TNC into nations economy to build facilities to acquire/merge with existing firm

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10
Q

protectionism

A

policies to protect businesses/workers in a country through restrictions trade with foreign nations

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11
Q

neoliberalism

A

political idea which aims to increase importance of businesss and decreasing influence of the government (idea is wealth increases, poverty decreases)

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12
Q

privatisation

A

public services become privately owned to increase profit

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13
Q

free trade

A

government doesnt interfere with imports/exports (no tariffs/subsidies/quotas)

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14
Q

free-market economy

A

market economy based on supply and demand with little intervention from the government

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15
Q

tariff

A

tax imposed on imports

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16
Q

quota

A

limit on quantity of a good a country allows in

17
Q

subsidy

A

financial assistance to a business by government to prevent collapse / make it competitive

18
Q

free-market liberalisation

A

businesses able to dictate prices due to less influence from the government, aiming to transfer control to private sector

19
Q

trade blocs

A

voluntary intergovernmental agreements regarding trade and security (encouraging neoliberalism)

20
Q

remittances

A

sending money to other countries (e.g live in one and transfer money back to families)

21
Q

glocalisation

A

changing the design of products to meet local tastes and laws (e.g. no beef burgers in India)