Global Systems & Global Governence Flashcards
What is FDI?
- Foreign direct investment, an investment by one country or business with another country
What is deindustrialisation?
- A reduction in industrial capacity, leading to social and economic change within a region
What is diaspora?
- ‘To scatter about’
- People displaced from their homeland, voluntarily or forced
What is glocalisation?
- The adaptation of a good offered by a TNC to suit a local market
What is offshoring?
- Company moves parts of its operation to another country, often to save money
What is outsourcing?
- A business contracts outside business to complete some of their work, with aim to reduce costs
What is periphery region?
- Less wealthy, developing countries that have less power over global markets
What is special economic zones (SEZ) ?
- Regions where the government offer incentives to attract industry
What is a TNC?
- A company which operates in different countries to where they are originally based
What is a trade bloc?
- A group of countries that act together to promote trade and a free movement of goods and services between member states
What is World Trade Organisation?
- Members seek substantial reductions on tariffs and trade barriers and the elimination of preferences on a mutually advantageous basis
What is remittances?
- Money sent home to friends and family by migrants living in a different location
What is repatriation of profits?
- TNC’s operating in foreign countries will usually send profits back to TNC headquarters
What is the definition of globalisation?
- The increasing interconnectedness of economies across the world
Suggest some of the causes of flows of capital around the world
- FDI
- Aid
- Trade
- Migration
- Remittances
Describe the main pattern of flows of labour across the world
- Most migrants move within regions/neighbouring regions rather than across large distances
- Most economic migrants have a reasonable level of education and wealth
- North America and Europe have received the largest number of Asian migrants
What has facilitated increasing flows of products across the globe?
- Reduced transaction costs
- Containerism
- Reduction in trade tariffs
Why are flows of information important in globalisation?
- Facilitates the spread of industrial technology
- Helps businesses develop by providing business services
- Leads to expansion of knowledge of intensive goods
- Supports development of hi-tech products
What 3 countries receive the largest amount of FDI?
- USA, China, Belgium
What attracts investors to invest in certain countries than others?
- Natural resources
- Large populations
- Strong financial business services
What type of countries is the growth rate of global trade the greatest?
- Emerging economies