human globalisation Flashcards
(101 cards)
what is globalisation
the process by which people, their cultures, money, goods and information can be transferred between countries with few or no barriers
what are the historical connections (3)
Trade
colonialism
co-operation
what are the types of globalisation (4)
political
economical
cultural
social
what are the effects of globalisation (3)
it increases global awareness
increasing global responsibility
increasing global village
what is containerisation
is the use of countries using containers of the same size for trade and less chance of theft
what is the effects of improving transport technology (2)
enables the physical movement of goods and people to travel further and more cheaply
container ships have become so large it is now cheap to ship goods around the globe
what’s a player
anyone with a vested interest or involvement with a particular process or event
what is IMF and what do they do
- International monetary fund
- they issue short term loans and recommend policies for sustainable growth
what do the world bank do
reduce poverty by lending money to governments of its poorer members to improve their economies and to improve the standard of living of their people
what is WTO and what do they do
- world trade organisation
- improve the welfare of people around the world by ensuring that trade flows smoothly
what is a trading bloc
countries which group together to improve their economic interests and trading patterns (by reducing barriers)
advantages of trading blocs (2)
- producers focus on making what they are good at
- smaller nations have opportunity to merge to form TNCs
disadvantages of trade blocs (2)
- loss of sovereignty
- interdependence: disruption of trade within a trading bloc. become dependent on each other
what does ASEAN stand for and what’s in it
- association of south-east asian nations
- 10 countries
- seventh largest economy in the world
What is the EU and its policies/contents
- European Union
- 27 countries
- is a free trade zone
- free migration across borders
What is FDI
Foreign direct investment- financial injection made by a TNC into a nation’s economy, either to build new facilities (factories or shops) or to acquire, or merge with, an existing firm already based there.
what are the types of FDI
- foreign mergers
- transfer pricing
- offshoring
- foreign acquisitions
what is foreign mergers
two firms in different countries join forces to create a single entity
what is transfer pricing
the setting of a price for the transfer of products or services between controlled (or related) sections of a TNC
what is foreign acquisitions
A TNC launches a takeover of a company in another country
how do the government promote FDI
- free-market liberalisation
- privatisation
- encourage business start-ups
what’s free-market liberalisation
restrictions being lifted on the way companies and banks operate
what is privatisation
transferring ownership of a business, agency, service or property from the public (government- controlled) sector to the private sector
what’s encouraging business start-ups
methods range from lower business taxes to changes in the law allowing both local and foreign-owned businesses to make profit