Globalisation Keywords

Question 1

Globalisation

Answer 1

the international flow of people, information and capital

Question 2

Space time compression/shrinking world

Answer 2

the time it takes to travel over a certain distance is significantly decreased (compressed), therefore distance means nothing, as a result of advanced transport. Physical distance remains the same, but begin to feel closer. Can be uneven.

Question 3

Spatial division of labour

Answer 3

different stages of the production process are nationally or internationally distributed

Question 4

International Monetary Fund (IMF)

Answer 4

help governments balance their payments during economic difficulties by granting loans to member countries

Question 5

WTO

Answer 5

encourages liberalisation of trade, as there are less trade barriers (taxes/tariffs).

Question 6

World trade blocs

Answer 6

Reductions in taxes/tariffs and more standardisation of products. Money flows are controlled and they determine workers rights and movement of people. Econ integration leads to political integration.

Question 7

Protectionism

Answer 7

tariffs on imports to allow own country’s industries to grow without competition

Question 8

Tariffs

Answer 8

additional taxes on an import

Question 9

Supranational

Answer 9

power that goes beyond national boundaries (e.g. decision making in the EU)

Question 10

Foreign Direct Investment (FDI)

Answer 10

controlling ownership of a business or properties by a foreign organisation

Question 11

Free market liberalisation

Answer 11

removal of barriers between countries to encourage free trade (free trade policies)

Question 12

Special Economic Zone (SEZ)

Answer 12

area of land set aside to encourage FDI and economic growth with tax free policies. Encourage TNC investment and business start ups.

Question 13

Subsidise

Answer 13

support financially e.g. provide money/loans/tax breaks for potentially unprofitable businesses (gives econ boost to certain sectors)

Question 14

Indicators

Answer 14

Categories that can make up an index e.g. tourism, trade, FDI

Question 15

Indices

Answer 15

Way to measure something using a set criteria e.g. KOF, HDI

Question 16

Glocalisation

Answer 16

when a product/service is developed and distributed globally, but adjusted for local markets. Adhere to local regulations.

Question 17

Outsource

Answer 17

to get another company to provide part of the supply chain; no need to pay for/repeat something that another company is already doing

Question 18

Offshore

Answer 18

move operations to another country (e.g. to China for cheap labour)

Question 19

Horizontal integration

Answer 19

business grows by acquiring a similar company at the same point in the supply chain (increases production of goods/services)

Question 20

Vertical integration

Answer 20

acquiring a similar company in the industry before or after them in the supply chain

Question 21

Switched off

Answer 21

Shallow/extremely low level of globalisation that is unlikely to increase.
Lack strong flows of trade and FDI, not integrated into global economy

Question 22

Global economic centre of gravity

Answer 22

Main region where large sections of supply chains are based and most manufacturing happens

Question 23

Deindustrialisation

Answer 23

Decline in manufacturing because of global shift

Question 24

RUM

Answer 24

Movement due to economic and social conditions

Push/pull factors e.g. jobs, healthcare, education, income, safety

Question 25

Megacity

Answer 25

City with a population of more than 10 million people

Question 26

Interdependence

Answer 26

Two countries/places rely on each other

Question 27

Mass low-wage economic migration

Answer 27

Relied on by emerging countries as they globalise | Migrate to emerging countries to receive wage and some sent back home as remittance

Question 28

Culture

Answer 28

System of meanings shared by a group of people leading to a common influence

Question 29

Global culture

Answer 29

Very similar culture around the world based on Western countries, overwhelming local/original cultures (can lead to cultural erosion)

Question 30

Cultural diffusion

Answer 30

One culture spreading into another, slowly replacing it (often through globalisation) Can be achieved through legal/military coercion

Question 31

Cultural dilution

Answer 31

Disappearance of local traditions/languages/services | Pushing out local industries

Question 32

HDI

Answer 32

GDP, life expectancy, literacy, years of schooling

Question 33

Soft power

Answer 33

powerful wealthy states shaping global culture through disproportionate large influence over global media/entertainment

Question 35

Lorenz Curve

Answer 35

Wealth distribution through the population | The closer it is the the equality line, the fairer the country is

Question 36

Diasporas

Answer 36

Communities of migrants that arrive in new countries all over the world

Question 37

Extremism

Answer 37

A viewpoint that doesn't acknowledge alternatives, possibly resulting in aggressive behaviour e.g. anti-immigrant groups in Germany

Question 38

Trade protectionism

Answer 38

Trade barriers promote buying from domestic companies | Believe it protects economy, standards of living and main culture

Question 39

Impacts of a consumer society

Answer 39

Fast fashion and carbon emissions when transporting products

Question 40

Transition towns

Answer 40

When a town transitions away from globalisation and tries to become more ethical and sustainable Localised but rely on global knowledge scheme, and ideas come from different towns and countries

Question 41

Gini Coefficient

Answer 41

Ratio between the two areas of a Lorenz Curve | The closer it is to 0 the more equal it is

Question 42

Externality

Answer 42

something that is produced externally to the process (and the consequence of actions that are not paid for e.g. buy products from China, but don’t pay for poor health from pollution)

Question 42

Organic products

Answer 42

Higher price for no pesticides | But farmers aren't paid more, as it covers cost of being environmentally friendly

Question 43

Recycling

Answer 43

Reusing and reprocessing manufactured goods

Question 44

Circular economy

Answer 44

Shifting production cost/waste onto manufacturers e.g. leasing