IB GEOGRAPHY UNIT 4 - POWER, PLACES, NETWORKS

GLOBALISATION

The growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services, and of international capital flows, and through technology.

GLOBAL INTERACTIONS

Multidimensional, complex set of processes in which communities (as well as societies) and places (as well as entire countries) may adopt, adapt or resist goods, services, and cultural traits from other communities and places.

KOF GLOBALISATION INDEX

Measures economic, social and political dimensions on globalisation

FOREIGN DIRECT INVESTMENT (FDI)

Investment made by a foreign company in the economy of another country.

GLOBAL VILLAGE

the world considered as a single community linked by telecommunications.

Distances and isolation have been dramatically reduced by electronic media

OFF-SHORING

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

E.g. shifting manufacturing to a foreign country where labour and production costs are cheaper

OFF SHORING - CASE STUDY

OUT-SOURCING

obtain (goods or a service) from an outside or foreign supplier, especially from place where it is cheaper

SUPERPOWER

A large country with large population, strong economy, powerful military and great political and cultural influence

E.g. US, China, former USSR

HEGEMONY

the domination of one state or group over its allies

IMPERIALISM

A policy in which a strong nation seeks to dominate other countries poitically, socially, and economically.

DEFENCE SPENDING

Money spent by a nation on its armed forces

INFLUENCE

The ability to change someone's mind or convince them of your opinion

INSTITUTION

An ongoing organization that performs certain functions for society.

E.g. schools, hospitals, government bodies

GLOBAL NETWORKS

worldwide interconnected groups

E.g. internet, supply chains

GLOBAL FLOWS

new channels of money and goods that link individuals and communities in new relationships

TRANS-NATIONAL CORPORATION (TNC)

Large companies which have branch plants throughout the world

their headquarters are often found in MEDCs

E.g. Nestle, Coca-Cola

Also known as MMCs and Multinational Corporations

INTERNATIONAL AID

The giving of resources (money, food, goods, technology etc.) by one country or organization to another poorer country.

The objective is to improve the economy and quality of life in the poorer country.

DEBT RELIEF

the reduction or cancellation of debt that LEDCs owe to either the World Bank or developed nations

REMITTANCES

Money migrants send back to family and friends in their home countries, often in cash

Is an important part of the economy in many poorer countries

E.g. Mexicans working in US send money back home

FREE TRADE ZONE

an area of a country in which trade restrictions do not apply

FREE TRADE ZONE - CASE STUDY

MULTI-GOVERNMENTAL ORGANISATION (MGO)

Organisations that involve many countries

E.g. The UN, African Union

INFRASTRUCTURE

the basic physical and organizational structures and facilities (e.g., buildings, roads, and power supplies) needed for the operation of a society or enterprise.

GLOCALISATION

Adapting global products and ideas to suit local conditions.

E.g. McDonalds has more vegan-based food in Asia

HOMOGENISATION

The process of people, products and places becoming the same.

E.g. everyone eats at McDonalds or drinks Coke

CULTURAL IMPERIALISM

Domination of one culture over another by a deliberate policy

E.g. saturating another nation with your produces, TV programmes, etc.

SOFT POWER

The reliance on diplomacy and negotiation to solve international problems.

SOFT POWER - CASE STUDY

HARD POWER

The reliance on economic and military strength to solve international problems.

EMERGING ECONOMY

Nations with social or business activity in the process of rapid growth and industrialization

A developing nation such as India or Malaysia

CULTURAL DIFFUSION

The spread of ideas, customs, and technologies from one people to another

TRADING BLOC

A group of neighbouring countries that promote trade with each other and erect barriers to limit trade with other blocs

E.g. EU

DEVELOPMENT GAP

the widening difference between development levels in MDCs and LDCs

INDIGENOUS PEOPLE

natives of an area who have been conquered or dominated by others who came later

INDIGENOUS PEOPLE - CASE STUDY

PROTECTIONISM

Economic policy of shielding an economy from imports.

DEPENDENCE THEORY

suggests that more developed countries exploit less developed countries to remain at the top of international trade

ROSTOW'S MODEL

five stages a country goes through in developing their economy through international trade

CONTAINERISATION

A system of standardised transport that uses large standard-size steel containers to transport goods

The containers can be transferred between ships, trains and lorries, enabling cheaper, efficient transport.

DIGITAL ACCESS INDEX (DAI)

measures the overall ability of individuals in a country to access and use ICT

GLOBAL CONNECTIVITY INDEX (GCI)

more accurate replacement to DAI

CORE AND PERIPHERY MODEL

A model of the spatial structure of development

It defines underdeveloped countries by their dependence on a developed core region.

E.g. Many parts of Egypt are dependent on economic activities of Cairo and Nile Delta area

FOOD MILES

the distance a food travels from its site of production to the consumer

CIVIL SOCIETY

Organizations outside of the state that help people define and advance their own interests

E.g. voluntary organisations, self-help groups, pressure groups, NGOs

SUPPLY CHAIN

the group of firms that make and deliver a given set of goods and services

E.g. manufacturer, producer, transporter, seller

SUPPLY CHAIN - CASE STUDY

IMF

International Monetary Fund//a United Nations agency to promote trade by increasing the exchange stability of the major currencies

STRUCTURAL ADJUSTMENT PROGRAM

Economic policies imposed on less developed countries by international agencies to create conditions encouraging international trade, such as raising taxes, reducing government spending, controlling inflation, selling publicly owned utilities to private corporations, and charging citizens more for services.

WORLD BANK

A specialized agency of the United Nations that makes loans to countries for economic development, trade promotion, and debt consolidation. Its formal name is the International Bank for Reconstruction and Development.

OECD

Organization for Economic Cooperation and Development

International organisation that works to build better policies for better lives.

Aims to shape policies that foster prosperity, equality, opportunity and well-being for all.

AID FOR TRADE INITIATIVE

attempts to help poor countries use trade as a means of achieving economic growth and reducing poverty; increasing market access

NEW DEVELOPMENT BANK

A multilateral development bank operated by the BRICS states, created as an alternative to the existing American and European-dominated World Bank and International Monetary Fund. The idea for setting up the bank was proposed by India. Its aim is to utilize resources to support infrastructure and sustainable development projects in emerging market economies through loans, guarantees, equity participation and other financial instruments The bank also cooperates with other international organizations and provide technical assistance for the preparation and implementation of infrastructure

G20

group of 20 largest economies in the world

G8

The following group of eight industrialized nations: Britain, Canada, France, Germany, Italy, Japan, Russia, and the United States.

TIME-SPACE CONVERGENCE

The idea that distance between some places is actually shrinking as technology enables more rapid communication and increased interaction among those places

CUSTOMS UNION

A group of countries committed to (1) removing all barriers to the free flow of goods and services between each other and (2) the pursuit of a common external trade policy.

FRICTIONAL EFFECT OF DISTANCE

theory that areas which are closer together are more likely to interact, whereas those that are further apart are less likely to do so

ECONOMIC UNION

A group of countries committed to (1) removing all barriers to the free flow of goods, services, and factors of production between each other, (2) the adoption of a common currency, (3) the harmonization of tax rates, and (4) the pursuit of a common external trade policy.

MAASTRICHT INDEX

Measures the political, social, economic, and environmental domains of globalisation

NEO COLONALISM

The indirect actions by which developed countries exercise a degree of control over the development of their former colonies.

UN

A global organization founded in 1945 to promote international cooperation and maintain peace among nations.