Flashcards in ✅22.214.171.124 - Globalisation Deck (36)
What is globalisation?
A process by which national economies, societies and cultures have become increasing integrated through the global network of trade, communications, transport and immigration.
What is an economy of scale?
Cost advantage of large scale output of a product as savings are made by spreading out the cost over more units
What are international flows of capital?
All financial transfer between companies for investment, trade or production
What are remittances?
Transfers of money from migrants to relatives back home
What is migration?
Generally now the outmigration of labour from poorer to richer nations
What is FDI?
Foreign Direct Investments. Money or assets invested by TNCs in overseas enterprises. Either by merging with another company, setting up subsidiary companies or through shares.
What are BRIC countries?
Brazil, Russia, India and China. Rapid economic advances during 1990s
What are MINT countries?
Mexico, Indonesia, Nigeria, Turkey. Recently emerging economies after the year 2000.
What is repatriation of profits?
Sometimes known as economic leakage. TNCs will extract profits from abroad and bring back to their HQ
What is aid?
Either from NGOs, as bilateral agreements between 2 governments or via multinational organisations such as the UN which puts aid from many nations together
What is the IMF?
International Monetary Fund which aims to allow economic stability and foster international trade.
What are the impacts of flows of labour?
- Most migrants have some level of education
- Can afford to move, therefore not very poorest in giving nation
- Long term issue as people stop sending remittances after 2/3 generations
- Inter-continental as well as long distance
What are flows of services?
An economic activity which is traded without the production of material goods
What are high level services?
Services to business, such as finance, advertising
What are low level services?
Services to consumers, such as banking, travel, communication
What are the impacts of flows of services?
- Easily traded in a globalised world, no locational grounding, offices and call centres can be located anywhere
- Low level services may be outsourced to developing nations, eg call centres in India
What are the impacts of flows of products?
- Gloablisation means more products need to be transported from pace of manufacture to chosen market
- Containerisation makes shipments quick, easy, cheap
- Removal of taxes and encouragement of global trade groups allow for greater levels of trade
-Some objections caused by protectionism
What are flows of information?
Both migrants and technology allow flows of information, recent and historic migrants allow for multiculturalism and information sharing
What are factors in globalisation?
- Communication development
- Transport development
- Financial development
- Information Systems
- Security development
- Trade agreements
- Management systems
What are financial factors in globalisation?
Linked to technological developments as well as relaxed trade barriers allowed by governments, the movement of finances around the world has grown hugely.
What is protectionism?
Putting barriers in place to prevent and reduce trade in order to maintain internal markets and own manufacturing industries
What is trade and finance liberalisation?
Groups such as the WTO encouraging governments to remove tariffs and barriers to trade, to encourage free movement of goods
What is the world customs organisation?
An intergovernmental organisation noted for its work in areas covering the development of international conventions, instruments and tools on topics such as commodity classification, valuation, rules of origin etc.
What is the EU secure operator initiative?
Set up and run by the EU in order to ensure a secure and reliable end to end supply chain for all goods and services.
How is air freight a factor in globalisation?
Faster, more places reached, fresh goods transported in large quantities, anywhere in the world, cheap, ease of ordering goods
How are cargo ships a factor in globalisation?
Shipping containers are standardised so can be transported universally, large quantities of goods can be transported easily, takes a long time but cheap and easy form of transport.
How are warehouses and robotics a factor in globalisation?
Anything can be ordered from anywhere in the world and arrive potentially next day due to ease of robotics, less likely to make mistakes and very quick. Robots run 24/7
How are budget airlines a factor in globalisation?
Makes more places accessible for normal people, travel on a budget, competition between airlines increases the number of destinations around the world, encourages travel.
What are trade blocs?
A type of intergovernmental agreement where regional barriers to trade (tariff + non-tariff) are reduced or eliminated among countries