Globalisation

globalisation

the process of integration in the realms of trade, economic relations and finance

containerisation

a system of transporting goods in strong, standard-sized steel containers

time-space compression

time feels much shorter, space shrinks

digital divide

develops whenever there is unequal access to ICT

factors affecting digital participation (3)

governance, physical geography, demographic

world trade organisation (WTO)

a large IGO, where members aim to make trade easier

international monetary fund (IMF)

an IGO with the primary aim of maintaining stability in the world's economy

IGOs

Intergovernmental Organisations - made up of member countries

capital

another term for money

emerging economies

countries that are not fully 'developed' but are also not 'developing', tend to be experiencing rapid economic growth

secondary industry

a sector of the economy that involves manufacturing

transnational corporation (TNC)

a business or company that operates in two or more countries

outsourcing

when a company uses other businesses or companies to complete some of their operations

remittances

a flow of money from migrants living abroad to their families

offshoring

when a company moves parts of its operations abroad

commodity

something of value which can be sold or traded

foreign direct investment (FDI)

the inputting of money by a company or country into a business or part of another nation's economy

spatial division of labour

the practice of businesses to produce goods offshore

trade bloc

a group of countries that work together to promote free trade within the group

tariffs

taxes paid by a country or company when importing or exporting goods

neo-liberalism

the process of aiming to limit government interference in how businesses run

trickle-down

the idea that economic growth in the 'core' of a country should also benefit the 'periphery'

quotas

limits set on the amount or value of certain products that can be traded by a certain country during a certain year

privatisation

the process by which public services are sold to independent businesses

tertiary industry

the services sector of the economy

gross domestic product (GDP)

a measure of the value of all the goods and services that are produced by a country within a year

commercial

any activity intended to make money

sovereign wealth fund

a fund owned by a country's government that might be invested abroad

start-up

a newly-established business

foreign merger

two firms in different countries join forces to create one entity

foreign acquisition

when a TNC launches a takeover of a foreign company

transfer pricing

when TNCs channel profits through a subsidiary company in a low-tax country

special economic zone

an area within a country which operates by different laws in terms of international trade

free trade zone

a type of SEZ, focused on trading regulations

glocalisation

adapting goods, services or businesses to suit the local market that they are operating in

the global shift

the shifting of economic activity from MEDCs to LEDCs

Lorenz Curve

a way of measuring inequality within a population of people

Gini Coefficient

gives a statistical estimation of inequality based on the Lorenz Curve

cultural diffusion

the spread of beliefs, customs and social activities from one group of people to another

cultural erosion

an impact of cultural diffusion and globalisation, involving elements of a place's culture being lost