Key Terms

Question 1

Capital flows

Answer 1

The movement of money for the purpose of investment, trade of produce goods/services

Question 2

Globalisation

Answer 2

A process by which national economies, societies and cultures have become increasingly integrated through the global network of trade, communication, transportation and immigration

Question 3

BRIC

Answer 3

A group of 4 countries
Brazil, Russia, Inda and China
All their economies have advanced rapidly since the 1990s

Question 4

Diaspora

Answer 4

A large group of people with a similar culture or heritage that have moved and settled in places all over the world

Question 5

MINT

Answer 5

Refers to the more recently emerging economies

Mexico, Indonesia, Nigeria and Turkey

Question 6

Containerisation

Answer 6

A system of standardised transport that uses large steel containers to transport goods

Question 7

Protectionism

Answer 7

A deliberate policy by government to impose restrictions in trade in goods and services with other countries
Usually done with the intention of protecting home-based industries from foreign competition

Question 8

Tariffs

Answer 8

A tax placed on imported goods with the intention of making them more expensive to consumers so that they don’t sell at a lower price compared to home-based products

Question 9

Conglomerates

Answer 9

A collection of related companies that all report to one parent company
Most TNCs are conglomerates

Question 10

Bottom up

Answer 10

When local people are consulted and supported in making decisions to undertake projects or developments that meet one or more of their specific needs

Question 11

Top down

Answer 11

When a decision to undertake a development is made by a central authority such as a government with little or no consultation with the local people whom it will affect

Question 12

Bilateral agreement

Answer 12

An agreement on trade that is negotiated between two countries or two groups of countries

Question 13

Common markets

Answer 13

A group formed by countries in close geographical proximity in which trade barriers for goods and services are eliminated

Question 14

Customs unions

Answer 14

A trade bloc which allows free trade with no barriers between its member states but imposes a common external tariff to trading countries outside the bloc

Question 15

Agglomeration

Answer 15

Companies in similar industries locate near to each other because of the benefits gained by sharing ideas and resources

Question 16

Multiplier effect

Answer 16

A situation where an injection of investment or capital into an economy in turn it creates additional income

Question 17

Glocalisation

Answer 17

Products or services that are distributed globally but which are fashioned to appeal to the consumers in a local market