Globalisation Flashcards
(21 cards)
What is globalisation?
Globalisation is the process of countries becoming more connected.
List the 4 different aspects of globalisation and example for each
- Economic - growth of companies into TNCs that operate in more than one country
- Cultural - Westernisation (food and fashion)
- Political - international bodies such as the UN reduce conflict across different countries
- Social - growth of international migration
What role do trade blocs play in globalisation?
Trade blocs exist for trading purposes and bring economic strength and security to nations.
What are Trans-National Corporations (TNCs)?
TNCs are companies that operate in more than one country.
What is Foreign Direct Investment (FDI)?
FDI is when individuals or companies from one country invest money in an industry in another country.
What is a remittance payment?
A remittance payment is money sent home by migrants to support family and friends.
What is the ‘shrinking world’ effect?
The ‘shrinking world’ effect refers to how improvements in transport make distant places feel closer.
What does time-space compression refer to?
Time-space compression refers to the perception that distant places feel closer due to reduced travel time.
What is the significance of containerisation in global trade?
Containerisation allows large volumes of goods to be transported efficiently worldwide.
What is the impact of international migration on globalisation?
International migration connects people with other countries and can involve seeking better economic opportunities or safety.
What is the impact of technological advances in ICT on globalisation?
They allow people to connect more easily, quickly, and over greater distances.
What is the significance of tourism in globalisation?
Increased international tourism enhances people’s experience of other cultures and generates wealth for host countries.
What is the purpose of the World Trade Organisation (WTO)?
The WTO advocates for free trade and opposes protectionism.
What does the International Monetary Fund (IMF) do?
The IMF provides loans to member countries in exchange for lifting trade restrictions.
What is the World Bank’s function?
The World Bank loans money for development and impose SAPs on developing countries
What are Structural Adjustment Programmes (SAPs)?
SAPs are strict rules and conditions imposed on countries receiving loans from the IMF and World Bank.
What is Foreign Direct Investment (FDI)?
FDI is when a person or company invests in another country to generate profit, e.g., by opening a new branch.
What are the advantages of trade blocs?
Trade blocs provide a larger market, streamline operations, and protect member industries.
What is a Special Economic Zone (SEZ)?
SEZs are areas with special economic rules to encourage foreign investment, such as low tax rates.
What was China’s ‘Open Door Policy’?
The ‘Open Door Policy’ initiated in 1978 opened China to foreign investment and established SEZs.
What is the significance of trade blocs?
Trade blocs remove tariffs on goods traded between member countries, enhancing economic cooperation.
