Global Systems and Global Governance

Capital flows

The movement of money for the purpose of investment, trade or to produce goods/provide services. Usually regarded as investment into a production operation

Globalisation

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

International trade

The exchange of capital, goods and services across international borders. Inbound trade is defined as imports and outbound trade as exports

Labour

Factor of production defined as the aggregate of all human physical and mental effort used to create goods or provide services

BRIC

An acronym used to identify a group of four countries - Brazil, Russia, India and China - whose economies have advanced rapidly since the 1990s

Diaspora

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

Leakages (economic)

Refers to a loss of income from an economic system. It most usually refers to the profits sent back to their base country by transnational corporations - also known as profit repatriation

MINT

An acronym referring to the more recently emerging economies of Mexico, Indonesia, Nigeria and Turkey

Containerisation

A system of standardised transport that uses large standard-size steel containers to transport goods. The containers can be transferred between ships, trains and lorries, enabling cheaper, efficient transport

Protectionism

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

Tariffs

A tax or duty placed on imported goods with the intention of making them more expensive to consumers so that they do not sell at a lower price than home-based goods - a strategy of protectionism

Conglomerates

A collection of different companies or organisations which may be involved in different business activities but all report to one parent company - most TNCs are conglomerates

Economies of Scale

The cost advantages that result from the larger size, output or scale of an operation as savings are made by spreading the costs or by rationalising operations

Maquiladora

A manufacturing operation (plant or factory) located in free trade zones in Mexico. They import materials for assembly then export the final product without any trade barriers

Bottom up

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

Top down

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

Bilateral agreement

An agreement on trade (or aid) that is negotiated between 2 countries or 2 groups of countries

Common Markets

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

Customs unions

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. e.g. EU

Multilateral agreement

An agreement negotiated between more than 2 countries or groups of countries at the same time

Outsourcing

A cost saving strategy used by companies who arrange for goods or services to be produced or provided by other companies, usually at a location where costs are lower

Agglomeration

When companies in similar industries locate near to each other because of the benefits gained by sharing ideas and resources - called 'agglomeration economies'

Multiplier (effect)

Situation where an initial injection of investment or capital into an economy (at any scale) in turn creates additional income by, for example, increasingly employment, wages, spending and tax revenues

Glocalisation

A term used to describe products or services that are distributed globally but which are fashioned to appeal to the consumers in a local market

Environmental sustainability

A state in which the demands placed on the environment can be met without reducing the quality of the environment for the future

Global commons

Resource domains or areas that lie outside the political reach of any one nation state

Global governance

A movement of political integration aimed at negotiating responses to problems that affect more than one state or region

Non-governmental organisations (NGOs)

Any non-profit, voluntary citizens' group with a common interest, which is organised on a local, national, or international level. Sometimes referred to as a 'civil society organisation' CSO

United Nations

An international organisation founded in 1945 made up of 193 member states whose aim is to promote international peace and co-operation

Sustainable development

Development which recognises that the needs of the present have to be met but doing this without affecting the needs of future generations

Antarctic Convergence

A curve continuously encircling Antarctica where cold northward flowing Antarctic waters meet the relatively warmer waters of the sub-Antarctic

Adaptation

Any alternation or adjustment in the structure or function of an organism or system which enables it to survive better in changing environmental conditions

Mitigation

Includes any actions, strategies, measures or projects undertaken (by mankind) to offset the known detrimental impacts of a process

Resilience (ecological)

The amount of disturbance that an ecosystem can withstand without changing existing structures and processes

Offshoring

The manufacture or assembly of a product in a developing country using components produced in a developed country

Demographic Dividend

Occurs when there are fewer dependent children and elderly, with relatively more productive adults in a population

Remittance

Money sent or taken home by foreign workers to their families, by mail or increasingly by internet/wire transfer