Globalisation EQ1

Globalisation

the process of increasing connections between people and places across the world

Economic Globalisation

The growth of TNCs, ICT and online purchasing

Social globalisation

The increase of international immigration, improvements in education and health and social interconnectivity

Political globalisation

The growth of trading blocs, global concerns (free trade) and the world bank, IMF and WTO

Cultural globalisation

The growth of Americanisation, glocalisation

Glocalisation

the practice of conducting business according to both local and global considerations.

Transnational corporations

Business whose operations are spread across the word, operating in may nations as both makers and sellers of goods and services

Gross domestic product

A measure of the financial value of goods and services produced within a territory.

Emerging economies

Countries that have begun to experience high rates of economic growth, usually due to industrialisation

Remittances

Money that migrants send home to their families via formal or informal channels

Interdependency

If two places become over-reliant on financial and/or political connections with one another.

Spatial division of labour

The practice among TNCs of moving low-skilled work abroad to places where labour costs are low

Intermodal containers

Large-capacity storage units which can be transported long distances using multiple types of transport, such as shipping and rail, without the freight being taken out of the container

Shrinking world

Thanks to technology , distant places start to feel closer and take less time to reach

Foreign direct investment

A financial injection made by a TNC into a nations economy, either to build new facilities or to merge with an existing firm based there.

Offshoring

the practice of basing some of a company's processes or services overseas, so as to take advantage of lower costs.

foreign mergers

Two firms in different countries join forces to create a single entity

Foreign acquisitions

When TNC launches a takeover of a company in another country

Transfer pricing

Some TNCs channelled profits through a subsidiary company in a low-tax country.

Trickle-down

The positive impacts on peripheral regions caused by the creation of wealth in core regions

Sovereign wealth funds

Government owned investment funds and banks.

Trade blocs

Voluntary international organisations that exist for trading purposes, bringing greater economic strength and security to the nations that join.

Tariffs

The taxes that are paid when importing or exporting goods and services between countries.

Special economic Zone

An industrial area where favourable conditions are created to attract foreign TNCs.

Global production network

A chain of connected suppliers of parts and materials that contribute to the manufacturing or assembly of the consumer goods