Key Concepts in Globalisation and Economic Systems

Globalisation

The process of the world's economies, political systems and cultures becoming interconnected with one another.

Glocalisation

The adaptation of a product to meet the needs of the local market.

Trade blocs

Groups of countries that come together to promote trade and economic cooperation among themselves by reducing or eliminating trade barriers such as tariffs.

Time-space compression

Processes that accelerate the experience of time and space due to technological advancements and globalisation. It makes the world feel smaller and more interconnected.

Economies of scale

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

Remittance payments

They are financial transfers sent by migrants to their home countries.

Protectionism

A deliberate policy by the government to restrict national trade to help domestic industries.

Containerism

A system of standardised transport that uses large standard-sized steel containers to transport goods.

Tariffs

A tax or duty placed on imported goods with the intention to make them more expensive for consumers.

FDI

(foreign direct investment) When an investor in one economy would show interest and invest into an enterprise in another economy.

IMF

The International Monetary Fund is an international organisation that aims to promote global economic stability and growth. Established in 1944. 190 member countries.

NATO

North Atlantic Treaty Organization is a military alliance formed in 1949. Its primary purpose is to ensure collective defence among its member countries, primarily in North America and Europe. 31 member countries.

G7

It is an intergovernmental organisation composed of seven of the world's largest advanced economies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. 1975 established, 7 member countries.

G20

It is an international forum that brings together the world's major economies to discuss and promote international financial stability and sustainable development. It was established in 1999, 19 countries plus the EU.

World Bank

The World Bank is an international financial institution that provides loans and grants to the governments of low and middle-income countries for development projects aimed at reducing poverty and promoting economic growth. Established in 1944, 189 member countries.

WTO

The World Trade Organization is an international organization established to regulate and facilitate international trade.

UN

The United Nations (UN) is an international organization which is aimed at promoting peace, security, and cooperation among countries. Founded at 1945, 193 member countries.

BRIC MINT

Brazil, Russia, India, China, Mexico, Indonesia, Nigeria, Turkey - These countries are recognized for their potential for economic growth due to their young populations, natural resources, and strategic geographic locations. They also highlight shifting dynamics of global economic power and the rise of emerging markets in the 21st century.

USMCA

The United States-Mexico-Canada Agreement (USMCA) is a trade deal between the United States, Mexico, and Canada, which replaced the North American Free Trade Agreement (NAFTA). It came into effect on July 1, 2020.

Global systems

Global systems refer to the interconnected structures and processes that shape the interactions between countries, economies, societies, and environments on a worldwide scale.

Homogenisation

Homogenisation is the process of making something uniform or consistent by eliminating variations or differences.

Flows

Flows refer to the movement of resources, people, information, and capital across borders and within systems. Essentially, they are the factors that drive globalisation.

Interdependence

Interdependence refers to a mutual reliance between countries, where the actions or well-being of one affect and are affected by the actions or well-being of another.

Connectivity

Connectivity refers to the degree to which different countries, such as people, places, networks, or systems, are linked or able to communicate with each other.

Inequality

Inequality refers to the uneven distribution of resources, opportunities, and privileges within countries.

GDP per capita

The sum of gross value added by all resident producers in the economy plus any product taxes (less subsidies) not included in the valuation of output, divided by mid-year population.

Development continuum

The development process, with countries at various stages of development.

Spearman's rank correlation coefficient

It measures the strength and direction of association between two ranked variables.

Economic leakage

The loss of revenue from a local economy when money flows out instead of being reinvested within the community.

Brain drain

Skilled workers emigrating to higher developed economy in search of high quality of life.

Neocolonialism

Differs from standard globalisation and development aid in that it typically results in a relationship of dependence, subservience, or financial obligation towards the neocolonialist nation.

High level services

Services to businesses such as finance, investment and advertising.

Low level services

Services to consumers such as banking, travel and tourism customer call centres of communication services.

Gini index

The Gini Index is a measure of income inequality within a country or population. It quantifies the distribution of income or wealth and indicates how evenly or unevenly it is distributed among a population. The higher the number the higher the inequality.

Fair trade

It is a trading partnership based on dialogue, transparency, and respect, which seeks to ensure fair prices, decent working conditions, and sustainable practices for farmers and workers, particularly in developing countries.

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.

Norms

The shared values, traditions and customs that govern individual and group behaviour in a society. They are the perception of what is acceptable or unacceptable in societies at all scales.

Reproduction

The way that existing global systems remain largely unchanged and are even extended and reinforced by regulation.

Conglomerates

A collection of different companies or organisations which all report to one parent company - most transnational corporations are conglomerates.