globalisation glossary

Question 1

growing economies

Answer 1

countries that have growth prospect that are higher than average

Question 2

globalisation

Answer 2

the growth of international trade that has made an increasing number of markets globals rather than national

Question 3

gross domestic product

Answer 3

the value of all the goods and services within an economy over a specified time-period such as a year

Question 4

gdp per capita

Answer 4

looking at data per head of population, to make it easier to compare statistics from countries of different size

Question 5

purchasing power parity

Answer 5

adjusting income levels to allow for differences in the cost of living

Question 6

balance of payments deficit

Answer 6

imports outweighs exports, if it continues indefinitely it means ever greater build up of foreign currency debt

Question 7

fixed capital formation

Answer 7

an economists way of saying investment in long term assets, such as roads or buildings

Question 8

invisible export

Answer 8

the sale of a service to an overseas customer

Question 9

free trade

Answer 9

when countries can export to each other without hurdles such as import taxes or import quotas

Question 10

trading bloc

Answer 10

a regional grouping of countries agreeing to free trade and sometime free movement of labour

Question 11

foreign direct investment

Answer 11

when a company either sets up a new business abroad or where a company takes over or merges with another business abroad

Question 12

inward foreign direct investment

Answer 12

investment into a country such as the uk from companies abroad, perhaps in the form of buying up one of our businesses, or buying up property assets

Question 13

outward direct investment

Answer 13

investment from a country such as the uk, perhaps building a factory in Brazil or buying property in Nairobi

Question 14

saturated market

Answer 14

a market where everyone who wants an item already has it, so sales can stabilise or slip back

Question 15

scientific management

Answer 15

a type of management where managers should maximise worker productivity by calculating how best to divide up tasks into smaller fragments, then incentivise workers to produce exactly as set out by managers

Question 16

Greenfield fdi

Answer 16

building a new factory or business in a foreign country

Question 17

brownfield fdi

Answer 17

buying an existing business in a foreign country

Question 18

specialisation

Answer 18

when businesses produce a limited range of products

Question 19

liberalisation

Answer 19

minimising the rules and regulations faced by businesses, or on a global scale, reducing the barriers to freely moving international trade

Question 20

regulations

Answer 20

rules created as a result of laws passed by parliament

Question 21

MNCs, multi national corporation

Answer 21

a large business that trades in more than one country

Question 22

world trade organisation

Answer 22

exists to reduce barriers to trade and ensure that countries keep to the agreements they have made

Question 23

LEDC

Answer 23

less economically developed country

Question 24

TNC

Answer 24

transnational corporations

Question 25

migration

Answer 25

the movement of people fro one place to another with the intention of settling in the new location

Question 26

protectionism

Answer 26

economic policy of restricting trade between states through methods such as tariffs on imported goods, quotes

Question 27

tariff

Answer 27

a tax on imports or exports

Question 28

domestic

Answer 28

the home country

Question 29

import quotas

Answer 29

a physical limit on the quantity of a good imported or exported

Question 30

trade barriers

Answer 30

government imposed restrictions on international exchange of goods or services

Question 31

technical barriers to trade

Answer 31

technical regulations and standards that set out specific characteristics of a product before it enters the market place

Question 32

subsidies

Answer 32

money given to local producers to make their goods cheaper on the domestic market

Question 33

counter-cyclical

Answer 33

expansionary government policies to counter a downturn in the economic cycle

Question 34

keynesian

Answer 34

an economic policy based on the views of British economist John Maynard Keynes, who urged governments to take action to boost economies when hit by recession

Question 35

structural unemployment

Answer 35

potentially long term unemployment as a fundamental economic shift makes an industry and therefore the skills of its workers obsolete

Question 36

trade war

Answer 36

an economic battle between two countries based entirely on protectionist measures such as import quotas

Question 37

home market

Answer 37

the number of customers that can be reached without needing to jump administrative hurdles

Question 38

single market

Answer 38

dismantling trading barriers within Europe so that all 28 countries can treat the whole region as their home

Question 39

ASEAN

Answer 39

association of south eastern asian nations

Question 40

NAFTA

Answer 40

North American free trade area

Question 41

APEC

Answer 41

asian-pacific economic cooperation, a regional economic forum established in 1989 to leverage the growing interdependence of the Asia-pacific