Globalisation

globalisation

the process whereby the world has become more economically, politically, and socially interconnected

global village

the breakdown of differences between nations, where almost all nations and peoples are influenced and affected by other nations

What are the three main aspects measured by the KOF Index?

• social

• economic

• political

What does the KOF index score out of?

100

What does EME stand for?

Emerging Market Economy

global shift

the process where Transnational Corporations (TNCs) move production to Emerging Market Economy (EME) countries to take advantage of cheaper costs of land and labour

What type of economy are the largest markets for manufactured goods in?

Highly Developed Economies (HDE)

What are the five main types of flows in globalisation?

• labour

• information

• capital

• products

• services

economies of scale

when companies are able to reduce costs by expanding production

financial deregulation

the reduction of barriers to capital flows, which facilitates quicker and easier flows of money, goods, and services between countries

What was the main cause of the Global Financial Crisis of 2008?

a fall in the US housing market

How has containerisation has impacted the rate of globalisation?

containerisation has significantly increased the rate of globalisation by allowing larger volumes of goods to be transported more quickly and easily

What is the North Atlantic Treaty Organisation (NATO)?

a political and military alliance founded after World War 2 to promote peace and cooperation in Europe

What is the primary aim of the Organisation for Economic Cooperation and Development (OECD)?

improve economic and social well-being

trade bloc

a group of countries that work together to increase trade and boost economic growth by removing or reducing barriers to trade between them

Do trade agreements increase or decrease trade with countries outside the trade bloc?

trade agreements often create external barriers or restrictions which may reduce trade with countries that are not part of the trade bloc

What are tariffs and quotas in the context of trade?

barriers to trade that trade blocs aim to remove or reduce between member nations to facilitate free trade