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Flashcards in Global groupings Deck (14):
1

Development gap

The difference in levels of economic and social well-being between the richest and poorest people on the planet

2

Gross domestic product

A measure of the financial value of the goods and services produced within a territory (including foreign firms located there). It is often divided by population size to produce a per capita figure for the purpose of making comparisons

3

Human development index

A United Nations measure of economic and social development that takes into account income per capita, life expectancy and adult literacy

4

Poverty

A lack of wealth. Absolute poverty describes income levels below what is needed to maintain an adequate diet. Relative poverty describes income levels that are below average for a region

5

Petrodollars

Money derived from selling oil (e.g. the United Arab Emirates has experienced increases in levels of national wealth since the formation of OPEC)

6

Spatial division of labour

The common practice among large firms of moving low-skilled work abroad to places where labour costs are low, establishing factories and call centres in poorer countries. Important skilled jobs are retained at the firm's headquarters in its country of origin

7

Assembly industries

Manufacturing operations that take the products of many different industries and fit them together to make finished goods

8

Transnational corporation

A company that has operations in more than one country

9

Branch plant

A factory built in a country by a TNC which has its headquarters elsewhere

10

Consumption

The purchase and use of commodities (food and goods) as well as services

11

Glocalisation

The local sourcing of parts by TNCs in places where they assemble their 'global products' close to markets. At the same time, they are able to customise their products to meet local tastes or laws

12

Parent company

The original business that a global TNC has developed around, and whose directors still make decisions that affect the organisation as a whole

13

Tertiary sector

Also called the service sector, this consists of businesses that produce no physical product, but sell the products of manufacturing or agricultural industries, or offer a service such as education or tourism

14

Minimum wage

An hourly wage set by a nation's government that all companies must pay to their employees. The UK has a national minimum wage of over £5 an hour, but most poorer countries have no such rules