Globalisation Key Terms

Key terms

Global shift

The shift in manufacturing from industrialised MEDCs to newly industrialised countries

Westernisation

The increasing spread and dominance of European/ North American culture

Accessibility

How easy it is to to travel to or communicate with a place

connectedness

A measure of how linked different people are by transport and communication links

core regions

Regions with globally significant amounts of economic activity compared to other regions

cultural diversity

The number and range of different races, religions, lifestyles and cultures living in one place

Deindustrialisation

Mass closure of industry in traditional manufacturing areas, often due to the shift in production to developing countries as well as increased mechanisation

economic sectors

Different groupings of job type such as: primary, secondary, tertiary and quaternary

cultural diffusion

The spread of cultural ideas from their place of origin to other regions, groups or nations. In an increasingly globalised world

glocalisation

Adapting global goods to meets the needs or preferences of local people e.g. vegetarian McDonalds burgers in mainly Hindu India

economy

The system of production and distribution of goods and services

Foreign direct investment

When an overseas company spends money on setting up operations in another country e.g. a Toyota factory in the UK or Rio Tinto setting up a copper mine in Indonesia

inequality

Differneces in income and wealth between members of a community or society

internal migration

Movement of permanent residence within the same country

migration

Movement of permanent residence

multi cultural

The existence, acceptance or promotion of multiple cultural traditions in a single are e.g. a country or city

elite migrants

Migrants who are able to move easily due to the valuable skills and or wealth

ethical consumption

Purchase of goods based on ethical criteria e.g. ecologically friendly or fair trade products

export processing zones

An area where goods can be handled manufactured and reexported without the payment of customs or tax duties

global hub

a location that is well connected within many networks to other key places in the world e.g. London or New York

globalisation

Increasing economic interdependence and increasing international flows of goods, services and more rapid transfer of information and diffusion of technology

industrialisation

Rapid growth of secondary industries such as factories and increasing secondary sector (manufacturing employment)

offshoring

Relocation of a business or economic activity to another country

outsourcing

Contracting out of business to another company e.g. Apple using Fox Con to assemble iphones

tarrifs

Taxes applied to goods traded across bodres

urbanisation

Increase of the proportion of people living in urban areas and the growth of urban areas

containerisation

System of transporting goods in standardised containers that can be easily transferred from ships to lorries and trains

World bank

Finances economic development. It uses bank deposits placed by the world’s wealthiest countries to provide loans for development in countries that agree to certain conditions concerning repayment and economic growth

International monetary fund

Lends money for developmet purposes, however it’s primary role is to maintain international financial stability. In return for loans it tried to froce countires to privatise goverment assets.

special economic zones

Set up by national goverments to offer financial or tax incentives to attracts FDI

trading blocs

countires grouping together to promote free trade between them, creating barriers for non member states by placing tariffs on imports, increasing price of imports and in turn helping to protect own intustries.

subsidies

grants given by goverments to increase the profitability of key intustries

horizontal integration

a company expands at one level in the production process e.g. apple accuired E magic and Logic Pro to help expand it’s services

vertical integration

a company controls and owns every stage of production from exportation to sales e.g. the Us Oil Giant owns and controls oil wells, tankers, refineries and petrol stations

KOF index

measure of globalisation using a score out of 100, using economic, social and political measures

AT Kearney

measure of globalisation using a scale of 0 to 1, using political engagement, technological connectivity, personal contact and economic integration as measures

post industrial economy

where GDP is earned more through expertise and creativity in services such as finance and media than manufacturing of goods

rust belt

part of a country characterised by declining industry and a falling population, especially in the american mid-west.

diaspora

populations which have moved to settle abroad, but continue to indentify deeply with their country of origin

free enterprise

a type of economy where products, prices and services are determined by the market, not the goverment

market economy

an economic system where supply and demand direct the production of goods and sevices, based on voluntary exchange

capitalism

an economic system based on private ownership of investment capital and wealth production, whereby goods and services are sold for profit.

communism

a socio-economic system or organisation, where the land and all property is owned by the community or the state, so that every person contributes and recieves according to their abilities and needs

cultural homogenity

an aspect of national identity, a sense of pride in ones culture, nationality and background

ethnic enclaves

a geographical area where a particular ethnic group is spatially clustered and socially and econommically distinct from the majority group

assimilation

host society expects foreigners to fully adopt its ways, merging into existing society