Booklet 1 - Globalisation Flashcards
(13 cards)
LIC Definition
A Low Income/Least Industrialised Country, with low levels of economic development.
Usually a peripheral country.
MIC Definition
A Middle Income Country, usually newly industrialised.
$1,045 < GNI pc < $12,535.
NEE Definition
A country with a high percentage of the population working in the secondary sector.
HIC Definition
A High Income Country.
$14,005 < GNI per capita.
Globalisation Definition
The process by which national and regional economies, societies, and cultures have become integrated through the global network of trade, communication, immigration and transportation.
Shrinking World and Time-Space Compression Theories
Improvements in transportation have meant that the entire world can be accessed within a very short period of time.
Dimensions of Globalisation
Flows of:
- Capital
- Labour
- Products
- Services
- Information
Flows of Capital Definition
The movement of money for the purpose of investment, trade or business production.
Flows of Labour Definition
The movement of people between nations for the purpose of working.
Flows of Products Definition
The movement of physical goods from one country to another.
Flows of Services Definition
As services are footloose industries, they can locate anywhere without constraints from resources or other obstacles. Services can be produced in one country and received in another.
Flows of Information Definition
Any type of information can flow from one place to another via the internet, SMS, phone calls etc.
Factors in Globalisation
- Improvements in Transportation
- Improvements in IT & Communication
- Trade Agreements and Blocs
- Security Relationships
- Management Systems
- Financial Systems
