4.1 : Globalisation

A set of 25 vocabulary flashcards covering the key concepts of globalisation, economic growth indicators, and international trade mechanisms based on the lecture notes.

GDP (Gross Domestic Product)

The annual change in a country's total output, used to measure its economic growth rate.

Emerging economies

Countries with increasing growth rates but relatively low income per head ($per capita$), such as India, China, and Brazil.

Globalisation

The economic integration of different countries through increasing freedoms in the cross-border movement of people, goods/services, technology, and finance.

BRICS

An acronym representing the emerging economic powers of Brazil, Russia, India, China, and South Africa.

MINT

An acronym representing the emerging economic powers of Mexico, Indonesia, Nigeria, and Turkey.

GDP per capita

A growth indicator calculated by taking the total output (GDP) of a country and dividing it by the population of that country.

Literacy

The percentage of adults within an economy who can read and write, used by businesses to determine the quality of the workforce.

Human Development Index (HDI)

A measure created by the United Nations ranging between $0$ and $1$ that combines life expectancy, education, and gross national income ($GNI$) per capita.

Imports

Goods and services bought by people and businesses in one country from another country.

Exports

Goods and services sold by domestic businesses to people or businesses in other countries.

Specialisation

Occurs when a country or business decides to focus on producing a particular range of goods or services to increase output quantity and quality.

Competitive advantage

The edge a business gains over competitors, such as possessing unique access to markets, resources, and materials.

Foreign direct investment (FDI)

Investment by foreign firms that results in more than a $10\%$ share of ownership in domestic firms.

Inward FDI

When a foreign business invests in the local economy, such as the Kenya Standard Gauge Railway line built by Chinese investors in $2017$.

Outward FDI

When a domestic business expands its operations to a foreign country, such as Dyson moving manufacturing to Malaysia, China, and the Philippines.

Trade liberalisation

The removal or reduction of barriers to trade, such as tariffs and quotas, between different countries.

Dumping

A practice where businesses abroad sell excess products at unfairly low prices in a foreign market.

Transnational company

A business that operates in more than one country, typically with headquarters in one nation and branches in other countries.

Migration

The movement of people from one location to another, which increases globalisation through improved labour flexibility.

Structural change

When a country, industry, or market changes which sector it operates in, such as the UK shifting from manufacturing to the tertiary sector.

Offshoring

A common practice that speeds up globalisation by moving business operations or manufacturing to countries with lower costs.

Protectionism

Government actions aimed at protecting domestic industries from foreign competition through trade barriers.

Tariff

A tax placed on imported goods designed to increase their price and shift demand toward domestic products.

Import quota

A government-imposed physical limit on the physical amount of a particular product allowed into a country.

Trading bloc

A group of countries that form an agreement to reduce or eliminate protectionist measures between each other, such as the EU, ASEAN, or USMCA.