Define globalisation
A process where national economies, societies and cultures have become increasingly integrated through communities, trade and transportation
Define labour
The aggregate of all human physical and mental effort in production
Define foreign direct investment (FDI)
Net transfer of funds to acquire physical capital overseas
Give an example of FDI
Nissan building a car factory in the UK
Define diaspora
Group of people with similar heritage who have settled elsewhere
Define leakages
Loss of income from an economic system
Can include people
Define repatriation profit
TNCs sending profits back to country of origin
Define aid
Financial support for poor countries
Define remittance payments
Transfers of money by foreign workers back home
Define the BRIC acronym
Identify four countries who have rapidly advanced economically (Brazil, Russia, India and China)
Define the MINT acronym
Identifies recently emerging economies (Mexico, Indonesia, Nigeria and Turkey)
Outline the flows of capital
- money that moves
- deregulation of financial markets allows for financial institutions not to be confined to a single nation
What problems can occur with the flows of capital
- 40% of Somalians rely on remittance payments
- this promotes an informal economy
- this money could be going to terrorist group Al-Shabaab
Outline the flows of information
- boosted by the development of the internet
- cheap and easy communication
- quickly reaches a global audience
Define containerisation in terms of the flow of products
- standardised shipping containers
- makes transporting products cheap and efficient
Define protectionism
- attempts to restrict trade from overseas
- promotes home products
Define tariffs
Taxes on imported goods
Outline flows of labour
- the movement of people (harder)
- generally seen in outmigration of educated people from LICs to HICs
- largest flows are in Asia
Outline flows of services
- traded without any production
- high level services tend to be in world cities
- decentralised, low level services tend to be in LICs (call centres)
Define economies of scale
The cost advantages of having a larger operation
What are the 7 factors in globalisation
- development of technology
- financial systems
- transport systems
- communications
- trade agreements
- management and information systems
- security
How is the development of technology a factor in globalisation
- 3 billion internet users
- very few digital borders
- information can be shared easilyH
How are financial systems a factor in globalisation
- the deregulation of these systems allowed for more relaxed or removed barriers
- increased repatriation profits and remittance payments
How is transport a factor in globalisation
- products and commodities can be shipped more quickly and in larger quantities
- the growth of low cost airlines makes more areas accessible
- containerisation
