Globalisation, De-globalisation

T4 CC2 (keywords)

Globalisation

the ever-increasing integration of the world's local, regional and national economies into a single international market.

De-globalisation

This involves countries adopting protectionist policies in order to protect domestic employment. This leads to a decline in specialisation and world trade, lower foreign direct investment and lower levels of short-run money flows between countries.

Multinational Company (MNC)/ Transnational Corporation (TNC)

A company with significant product operations in at least two countries e.g. BP, Sony.

Transfer Pricing

An accounting technique used by transnational corporations for reducing taxes on profits by selling goods at a low price internally from a high-tax country to another part of the company in a low-tax country.

De-industrialisation

A fall in the contribution made by the manufacturing sector to national output, employment and income.

Outsourcing

the contracting out of a business process to another party

Inward Investment

Where foreign companies invest in the domestic economy.

Outward Investment

Were domestic firms invest abroad.

Offshoring

the work is done overseas.

Containerisation

a system of freight transport for use in sea shipping that has reduced the transport costs of moving thousands of different goods across the globe. It involves containers of standardised dimensions.

FDI

Investment undertaken in one country by companies based in other countries, e.g. Coca Cola setting up a plant in Nigeria to manufacture soft drinks.