Globalisation - Key Terms

Question 1

AT Kearney Index

Answer 1

Measures how globalised a country has become.

Question 2

Capitalism

Answer 2

An economic system based on private ownership of investment capital and wealth production, whereby goods and services are sold for a profit - people look after their own individual interests first and foremost - often referred to as ‘free enterprise’ and the ‘market economy’, in which market forces determine the price of any service of item of produce.

Question 3

Communism

Answer 3

A socio-economic system organisation, where the land and all property is owned by the community or by the state, so that every person contributes and receives according to their abilities and needs.

Question 4

Corportation

Answer 4

A business which exists separately from its owners - its owners are shareholders, who mostly appoint directors to run the business.

Question 5

Cultural Diffusion

Answer 5

The spread of one culture to another by various means.

Question 6

Cultural Erosion

Answer 6

The changing and loss of culture in an area, such as the loss of language and traditional food.

Question 7

Cultural Fractionisation

Answer 7

Measures how diverse communities are, by measuring people’s attitudes towards, for example, religion, democracy and the law.

Question 8

Deregulation

Answer 8

The reduction in rules which means that any foreign business can set up in the UK.

Question 9

Diaspora

Answer 9

The movement or migration of people who share a national and/or ethnic identity away from their perceived homeland.

Question 10

Ecological Footprint

Answer 10

A measure of the land area and water resources that a population needs in order to produce what it consumes (and absorb the waster it generates) using current technology.

Question 11

Enterprise Zones

Answer 11

Small areas which offer incentives to attract companies, such as tax discounts and a reduction in planning permission requirements.

Question 12

Ethical Shopping

Answer 12

A deliberate choice of products produced under Fairtrade, organic and cruelty free terms.

Question 13

Ethnic Enclaves

Answer 13

Concentrations of particular communities in an area, such as a high concentration of Asian or Asian British residents with a Pakistani background in East London.

Question 14

Foreign Direct Investment

Answer 14

Investment made by an overseas company or organisation into a company or organisation that is based in another country.

Question 15

Gini Coefficient

Answer 15

Measures how far wealth distribution within a country deviates from perfect equality - it is shown as a value between 0 and 1 - the larger the number, the greater the concentration of wealth will be amongst only a few.

Question 16

Global Homogenisation

Answer 16

The idea that everywhere is becoming the same.

Question 17

Glocalise / Glocalisation

Answer 17

When a company re-styles its products to suit local tastes.

Question 18

Gross Domestic Product

Answer 18

The same as GNI, but excluding foreign earnings.

Question 19

Gross National Income

Answer 19

The value of goods and services earned by a country (including overseas earnings).

Question 20

Heavily Indebted Poor Countries Initiative

Answer 20

The HIPC consists of 38 of the least developed countries, with the greatest debts - which, since 1996, have been eligible to have their debts with the IMF and the World Bank either cancelled or rescheduled.

Question 21

Host Location

Answer 21

Places to which migrants move.

Question 22

Human Development Index

Answer 22

A single index figure, published by the UN each year, which expresses the level of education, health and GDP indicators for every country.

Question 23

Inter-Governmental Organisations

Answer 23

Organisation that comprise of 2 or more countries working together - e.g. EU, United Nations.

Question 24

International Monetary Fund

Answer 24

A global organisation whose primary role is to maintain international financial stability.

Question 25

Just in Time

Answer 25

The means by which the time gap between production and delivery to the customer is sharply reduced, cutting warehousing and storage costs.

Question 26

KOF Index

Answer 26

Measures how globalised a country has become by taking into account international interactions.

Question 27

Lorenz Curve

Answer 27

A graph to show and measure any inequality by comparing it to a line of perfect equality.

Question 28

Neo-Liberalism

Answer 28

A belief in the free flows of people, capital, finance and resources - intervention in the economy is minimised, while the obligations of the state to the welfare of its citizens are diminished.

Question 29

New Economy

Answer 29

Where GDP is earned more through expertise and creativity in services such as finance, media, law, technology and management, than from the manufacture of goods.

Question 30

Non-Governmental Organisation

Answer 30

A non-profit organisation created by private organisations or people with no participation or representation by any government.

Question 31

Off-Shoring

Answer 31

When a company does work overseas, either itself or using another company.

Question 32

Outsourcing

Answer 32

When work is contracted out to another company.

Question 33

Purchasing Power Parity

Answer 33

Relates average earnings to local prices and what they will buy - this is the spending power within a country and reflects the local cost of living.

Question 34

Remittance Payments

Answer 34

Income sent home by individuals working elsewhere (usually abroad but can be in urban areas).

Question 35

Social Clustering

Answer 35

A preference for people to live close to others they associate with, for example communities of similar ethnicity or religion.

Question 36

Source Location

Answer 36

Places from which migrants move.

Question 37

Special Economic Zones

Answer 37

Set up by national governments to offer financial or tax incentives to attract FDI, which differ from those incentives normally offered by a country.

Question 38

Subsides

Answer 38

Grants given to governments to increase the profitability of key industries.

Question 39

Tariffs

Answer 39

A tax that is paid on goods coming into or going out of a country.

Question 40

Trade Liberalisation

Answer 40

The removal of trade barriers, such as subsides, tariffs and quotas.

Question 41

Trade Protectionism

Answer 41

The use of methods such as tariffs and quota to attempt to boost a country's exports or reduce its imports.

Question 42

Trading Blocs

Answer 42

When countries have groups together to promote free trade between them - e.g. EU.

Question 43

World Bank

Answer 43

A global organisation which uses bank deposits placed by the world's wealthiest countries to provide loans for development in other countries.

Question 44

World / Hub Cities

Answer 44

Cities with a major influence, based on finance, law, political strength, innovation and ICT.

Question 45

World Trade Organisation

Answer 45

A global organisation which looks at the rules for how countries trade with each other.