global systems and global governance

Question 1

acquisiton

Answer 1

transaction where a TNC buys another company in order to expand - usually a smaller company (e.g. coca-cola buying the canned costa coffees)

Question 2

asylum seeker

Answer 2

people who have left their country and are seeking asylum in anothe, waiting to be granted residency and to become a refugee

Question 3

china’s open door policy

Answer 3

1978- china allows foreign industry and TNCs in to promote a modern and thriving china

Question 4

containerisation

Answer 4

the movement of large amounts of goods in steel containers (each carrying 25,000kg of goods) - logistical system

Question 5

core region

Answer 5

wealthier, industrially developed countries that benefit and control global markets making periphery regions depend on them

Question 6

cultural diffusion

Answer 6

the spread of cultural beliefs and social activities into different cultures

Question 7

cultural erosion

Answer 7

reduction of a culture due to globalisation

Question 8

cumulative causation

Answer 8

like a multiplier effect, ‘success breeds success’. as core regions increase in prosperity, the periphery regions will too due to their links with the core

Question 9

deindustrialisation

Answer 9

reduction in industrial capacity, leading to social and economic change within a region

Question 10

diaspora

Answer 10

‘to scatter about’ - people displaced from their homeland, whether by their own accord or whether they were forced to by another cause

Question 11

downward transition zones

Answer 11

country or city with predicted / projected economic decline, industrial reduction or switched off from globalisation (e.g. Scotland, Turkey, Brazil)

Question 12

economic migration

Answer 12

movement of migrants to improve financial income or their standard of living

Question 13

economies of scale

Answer 13

concept of increasing profits by producing a larger amount of products, as overall the average price to manufacture each product is lowered

Question 14

foreign direct investment (fdi)

Answer 14

investment by one country or business with an interest in another country

Question 15

global common

Answer 15

area doesn’t belong to a country but belongs to everyone (neutral ground). some global commons include: Antarctica, atmosphere, international waters, outer space

Question 16

global governance

Answer 16

process of global management, where multiple nations work together in affects of the whole world

Question 17

global hubs

Answer 17

cores that demonstrate connections to the world. TNCs and foreign direct imvestors will show an interest to base here

Question 18

globalisation

Answer 18

growing interdependence of countries through cross-boundary transactions (capital, technology, culture etc.)

Question 19

glocalisation

Answer 19

adaptation of a good offered by a TNC to suit a local market

Question 20

high-level service

Answer 20

services that require skilled employees and can have complicated processes (e.g. financial services)

Question 21

interdependence

Answer 21

theory that nations depend on each other economically, politically, socially and environmentally

Question 22

IBRD and WBG

Answer 22

IBRD - international bank for reconstruction and development
WBG - world bank group

both offer loans and temporary financial assistance to developing countries

Question 23

IMF

Answer 23

international monetary fund

• 189 member countries with the aim to aid each other to achieve financial stability and providing loans for development

Question 24

KOF

Answer 24

index of globalisation which takes into account the social, economic and political globalisation of a state

Question 25

liberalisation

Answer 25

reduction in government rule within industry creates opportunity for greater participation from private businesses and TNCs within an industry

Question 26

low-level service

Answer 26

services require little training or skills that can be easily learnt (e.g. customer service call centres)

Question 27

merger

Answer 27

TNCs join to form one large company, helping to form foreign links if the TNC is from a different country

Question 28

NGOs

Answer 28

non-governmental organisations - usually have a weaker influence over global governance

Question 29

offshoring

Answer 29

company moves parts of its operation to another country - usually with the aim to save money

Question 30

outsourcing

Answer 30

large businesses contract outside businesses to complete some of their work with the aim to reduce costs

Question 31

periphry regions

Answer 31

less wealthy, developing/less developed countries that have less power over global markets

Question 32

potential areas of growth

Answer 32

regions where future economic development are predicted due to their undeveloped resources (e.g. Canada, Qatar)

Question 33

privatisation

Answer 33

when national public services become owned by private businesses

Question 34

refugee

Answer 34

granted permanent or temporary residency by the host country or the UN refugee agency

Question 35

sovereignity

Answer 35

control over a country's own laws and regulations

Question 36

special economic zones (sez)

Answer 36

regions where the government offer incentives to attract industry

Question 37

Transnational Corporation (TNC)

Answer 37

company which operates in different countries to where they are originally based

Question 38

trade bloc

Answer 38

group of countries that act together to promote trade and a free movement of goods/services between member states

Question 39

transformationalist

Answer 39

belief that globalisation won't lead to the formation of a homogenous culture, instead the flow of culture is two-way

Question 40

upward transition zones

Answer 40

country or city with predicted industrial and economic increase (e.g. Mexico, Iceland, the 'Asian Tigers')

Question 41

world trade organisation (wto)

Answer 41

members seek substantial reductions on tariffs and trade barriers and the elimination of preferences on a mutually advantageous basis