Geography - Global Systems and Governance definitions

Bilateral Agreement

Agreement on trade that is negotiated between two countries.

Bottom Up

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

BRIC

Brazil, Russia, India, China - economies have advanced rapidly since the 1990s.

Common Markets

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

Comparative Advantage

When a country can produce a good or service at a lower opportunity cost than another.

Conglomerates

A group of different companies who may be involved in different business activities but report back one larger company.

Customs Union

A trade bloc that removes all tariffs and trade barriers between its membering countries but applies a common external tariff on trade from outside the union.

De-skilling

Traditional skills and crafts may be lost when production technology replaces manpower.

Diaspora

A large group of people with a similar heritage who have moved across the world.

Domestic monopoly.

When a single comapny controls a large part of the domestic market - domestic prices are kept high due to less competition.

Economic leakage

The loss of income from an economic system - usually refers to when profits are sent back to their base country

Economies of scale

Reducing the costs proportionally by increasing the scale of prodcution.

FairTrade

An organisation that aims to tackle injustices of the globalised economy.

Financial Capital

Any asset used to fund a business.

Flexibility of production

A method of production that is sufficiently flexible to be able to respond to planned and unplanned changes.

Foreign Direct Investment

An investment made by a company based in one country into a company based in another country

Global Commons

parts of the planet that fall outside of national juristictions and to which all nations have access.

Global Governance

The management of global issues through a complex network of rules, institutions and processes.

Global Product

A product that is marketed and branded around the world.

Glocalisation

A rpoduct that is distributed globally but adapted to meet the local markets, tastes or needs.

Horizontal integration

Companies in the same industry and at the same stage of production are merged or acquired to making cost savings.

International Monetary Fund

An organisationt that tries to improve financial sustainability in all 191 of its countries.

Juristictional Gap

The gap between the increasing need for global governance in many areas.

KOF Index

Calculates the overall index of Globalisation

Loss Leaders

Products that are sold so cheaply that no profit is made. they ar eused to lure customers into shops.

Marketing

The action of promoting or selling a product or service.

MINT

Mexico, idonesia, Nigeria, Turkey - recently emerging economies

Monopoly

When a single company owns nearly all the market for a given product or service.

Multilateral Agreement

An agreement between multiplec countries.

Outsourcing

Goods or services are provided by other companies to save cost.

Over-specialisation

The focus of production is only one or two products - lack of flexibility

Participation Gap

International cooperation primarily controlled by the government, leaving societal groups with less political influence.

Primary Products

Goods made up of natural raw materials and have not been through any manufacturing processes.

Product Dumping

When products are exported in he foreign market at a lower price than they are sold domestically.

Protectionism

A deliberate policy by the government to restrict international trade to shield domestic businesses from foreign competitors

Purchasing Power

The amount consumers can buy for their money - inflation.

Single Product Economy

A country that relies on only one, or a small amount, product for its export earnings.

Sovereignty

The power or authority countries have to govern themselves.

Tariff

A tax placed on imported goods with the intention of making them more expensive to consumers so that they do not sell at a lower price that home base goods.

Terms of Trade

The value of a countries relative import and export prices.

Vertical Integration

One companies owns or controls multiple stages of production.

World Trade Organisation

A global organisation that deals with the rules of trade between nations.