Globalisation (Definitions)

Question 1

How have transport and technology improvements accelerated globalisation?

Answer 1

• Steam powered ships and trains, railways in the 1850s, jet air craft, containerisation
• Telephone and telegraph, internet, GPS, social networks, mobile phones, smart phones

Question 2

China’s open door policy

Answer 2

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

Question 3

Containerisation

Answer 3

A logistical system of transporting goods in steel containers (each carrying 25,000kg of goods)

Question 4

Cultural diffusion

Answer 4

The spread of cultural beliefs and social activities into different cultures

Question 5

Cultural erosion

Answer 5

The reduction of a culture due to globalisation

Question 6

Cumulative causation

Answer 6

Like a multiplier effect, “ success breeds success”. As the core regions increase in prosperity the periphery regions will to due to their links with the core.

Question 7

Deindustrialisation

Answer 7

A reduction in industry capacity, leading to social and economic change within a region.

Question 8

Diaspora

Answer 8

“To scatter about” - People displaced from their homeland, voluntarily or forced.

Question 9

Downward Transition Zones

Answer 9

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

Question 10

Economic Migration

Answer 10

Movement of migrants to improve financial income or standard of living.

Question 11

Foreign Direct Investment

Answer 11

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

Question 12

Global Hubs

Answer 12

Cores that demonstrate connections to the world. TNCs and foreign direct investors wil show an interest to base here.

Question 13

Globalisation

Answer 13

The growing interdependence of countries through cross-boundary transactions, these 5 flows : Capital, Labour, Information, Services, Products

Question 14

Glocalisation

Answer 14

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

Question 15

Hyper-Globaliser

Answer 15

Someone who believes that globalisation and cultural diffusion is a positive process, which will lead to the formation of a homogeneous culture (one “super” global culture)

Question 16

International Bank for Reconstruction and Development (IBRD) and World Bank Group (WBG)

Answer 16

Both offer loans and temporary financial assistance to developing countries.

Question 17

International Monetary Fund (IMF)

Answer 17

A fund of 189 member countries with the aim to aid each other to achieve financial stability and providing loans for development.

Question 18

KOF Index

Answer 18

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

Question 19

Liberalisation

Answer 19

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

Question 20

Offshoring

Answer 20

Company moves parts of its operations to another country, for economic benefit.

Question 21

Outsourcing

Answer 21

A business contracts outside businesses to complete some of their work, with the aim to reduce costs.

Question 22

Potential Areas of Growth

Answer 22

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

Question 23

Privatisation

Answer 23

When national public services become owned by private businesses

Question 24

Skeptics

Answer 24

Someone who believes that globalisation only occurs within a core, therefore anyone living outside the core will receive no benefits from globalisation.

Question 25

Sovereignty

Answer 25

Control over a country’s own laws and regulations

Question 26

Special Economic Zones

Answer 26

Regions where the government offers incentives to attract industry.

Question 27

TNC

Answer 27

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

Question 28

Trade bloc

Answer 28

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

Question 29

Transformationalist

Answer 29

This is the belief that globalisation wont lead to the formation of a homogeneous culture. Instead, the flow of cultures is two-way.

Question 30

Upward Transition Zones

Answer 30

A country with predicted industrial and econo0mic increase (e.g. Mexico, Iceland)

Question 31

World Trade Organisation (WTO)

Answer 31

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

Question 32

Tarrifs

Answer 32

• A tax placed on goods that are imported from other countries

Question 33

Quotas

Answer 33

• A limit placed on the number of goods that are imported from other countries