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Global shift
The movement of manufacturing and the outsourcing of services from the West to the East (It can be considered the movement of the global economic centre of gravity).
Globalisation
The growing interdependence of countries worldwide
Or the increasing connectivity of people and places
Production
The networks and organisational routes through which goods are transported or delivered to their markets (Where and how a product is made)
Distribution
The networks and organisational routes through which goods are transported or delivered to their markets. (How products move around the world)
Flows
Movements around the world
Flows of capital
The movement of money around the world
The repatriation of profits
Where TNCs invest in an area but the profits come back to the TNCs in the source country
Trade agreements
Countries grouping together to govern the flow of products and global flows like labour
Outsourcing
Employing another company to carry out a section of work e.g. BT call centres in Bangalore
Global marketing
The promotion and selling of products or services on a global scale
Glocalisation
Where products are adapted to suit a location e.g. McDonald’s McArabia in Saudi Arabia
Antarctic Convergence
A curve of continuously encircling waters around Antarctica where cold waters coming from the south (which are flowing northwards) meet relatively warmer subantarctic waters
Trade blocs (1)
(1) Groups of countries that work together to boost trade and economic growth
Economic well-being
A person or family's standard of living based on how well they are doing financially.
Social well-being
The access to items which improve a person or family's quality of life
Benefits
The advantages/positive impacts of something (social, economic and environmental)
Geopolitics
How relationships between geographical, economic and political factors impact on political decisions and international relations and therefore affect the use and control of territory and resources
Global Commons
A region, resource or natural property of the Earth beyond the exclusive control of individual nation states and requiring common governance and management by the international community
Global governance
The system and institutions that coordinate the behaviour of international agencies, facilitate cooperation, resolve disputes and improve global decision-making
Globalisation (2)
The process by which individual national economies, societies and cultures are increasingly integrated through advances in communication and transport technology, international trade and movement of peoples
International trade
The exchange of capital, goods and services across international borders.
Labour
A factor of production incorporating human effort and ingenuity into the production, trade and consumption of goods and services
Latin America
A common term to describe countries in the Americas found to the south of the continental United States, including Central America South America and the islands of the Caribbean where the dominant languages derived from Latin (mainly Spanish and Portuguese) (some may see the term as problematic as it homogenises the region and characterises it using language that originates from colonisation)
NGO (Non-governmental organisation)
A non-profit, voluntary citizens group with a common interest in pursuing political goals organised on a local, national or international scale
Norms
The shared values, traditions and customs that govern individual and group behaviour in a society
Sub Saharan Africa
A term collectively describing countries in Africa located mainly south of the Sahara desert. (This dividing line has origins in colonial ideas of race, separating the predominantly Arab states of North Africa, which colonists considered to be more developed from the rest of Africa, this term replaces phrases such as ‘Black Africa‘ that were used up till the 1950s)
TNCs (Transnational corporations)
Large businesses that operate in several different countries and commonly allocate different production functions to different types of country (e.g. assembly, research and development and decision taking)
The United Nations (UN)
An international organisation founded in 1945 consisting of 193 member states with the aim of maintaining international peace, security and corporation. It self-defines as “one place where the world nations can gather together, discuss common problems and find shared solutions”.
United Nations Environmental Program (UNEP)
A global authority for the environment with programs focusing on climate, nature, pollution and sustainable development. (it has the mission “to inspire, inform and enable nations and people to improve their quality of life without compromising that of future generations.
Trade barriers
Government-imposed restraint on the flow of international goods or services
Tariff
Tax on import (most common trade barrier)
Protectionism
Strategy used by governments to protect their established or emerging industries
Import license
A licence issued by national government, that authorises the importing of goods from a specific source
Import quotas
Quotas that set a physical limit on the quantity of goods that can be imported into a country
Subsidies
Grants or allowances awarded to domestic producers to reduce their costs and make them more competitive against imported goods
Export subsidies
Subsidies that encourage domestic producers to sell goods abroad
Voluntary export restraint
A diplomatic strategy offered by exporting countries to appease the importing country and deter it from imposing trade barriers (essentially gift from exporter to importer)
Embargoes
Partial or complete prohibition of commerce and trade with a particular country, usually for political reasons
Time-space compression
The phenomenon that allows distances between places to feel much smaller
KOF index
An economic indicator that measures a country's degree of globalisation
Some dimensions of the KOF Index
economic - the degree of trade and investment
social- the flow of information and people across borders
political - the degree of political cooperation and participation in international organizations.
Trade
The exchange of goods and services between countries
EME
Emerging Market Economy
HDE
Highly Developed Economy
LDE
Less Developed Economy
Trade blocs (2)
(2) Agreements between two or more countries to reduce or eliminate trade barriers between them
Global governance (2)
(2) The system of rules, institutions, and processes that are designed to manage and regulate global issues and challenges that cross national boundaries
Atmosphere
The layer of gases that surround the Earth (threatened by air pollution, greenhouse gas emissions and climate change and ozone depletion)
Outer Space
The region beyond the Earth’s atmosphere. (threatened by commercial exploitation like mining, militarisation and space debris).
Antarctica
The Earth’s southernmost continent and surrounding waters (threatened by climate change, overfishing, mining and tourism)
The High Seas
International waters that do not belong to a country (threatened by pollution, overfishing and climate change)
Economic connections
The exchange of goods and services across borders and the creation of global supply chains
Global supply chains
When companies locate different parts of the production process in different countries to take advantage of lower labour costs, availability of resources and local expertise
Political connections
Countries working together in international organisations e.g. the UN or the EU
Global village (McLuhan)
Describing the breakdown of differences between nations
Access to markets
A nation or company's ability to trade within the international market
Linkages
TNCs create links between countries and with other companies
Quotas
Limits on the number (or quantity) of goods and services that can be exported
Privatisation
Where state-owned businesses or infrastructure are sold to private TNCs
Free-market liberalisation/Neoliberalism.
Where the influence of the state in the economy is removed and the markets are allowed to act more freely.
Foreign Direct Investment (FDI)
When a person or company from one country invests in a company or project located in another country (e.g. a Japanese company, Nissan investing in a UK in Sunderland)
Marketing
The promotion and sale of goods and services
Economies of scale
When companies are able to reduce costs by expanding production
Glocalisation (2)
(2) When a global company produces goods which are aimed at the local market
Financial deregulation
The reduction or removal of Government rules that control how banks and financial companies operate
Frictional effect of distance
Any movement incurs costs, energy and time which are proportional to distance travelled
Containerisation
A global shipping method which allows large volumes of goods to be transported quickly and easily via standardised containers around the world
Sovereignty
The authority that an individual nation has to self-govern, make its own laws and manage its borders.
Brain drain
When highly skilled workers leave a country or area
Cycle of poverty
A set of factors which keeps someone in poverty, without hope of an escape
Remittances
When migrants send money back to the home country
Consumption
The act of purchasing goods for final/end use
Biological productivity
The rate at which plants produce organic matter via photosynthesis
Marine Protected Areas (MPAs)
Parts of the ocean or sea where human activities are restricted or prohibited to protect marine ecosystems
Critique
A detailed assessment of something which examines its strengths and weaknesses before reaching a reasoned judgement
International trade
The exchange of money, goods and services between countries
Supranational
Having power or influence that transcends national boundaries or governments
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