1a. Globalisation

What is meant by: Globalisation?

Increased integration of different economies around the world.

What is meant by: Foreign Direct Investment?

An investment made by a firm in one country into a firm in another country, to gain control over the foreign firm.

What is meant by: Transnational Corporation?

A transnational corporation is a company that operates in two or more countries.

What is meant by: Characteristics of Globalisation?

1. An increase in international movement of labour

2. An increase in international movement of financial capital

3. An increase in specialisation

4. An increase in international trade

5. An increase in trade-to-GDP ratios.

What is meant by: Containerisation?

An efficient and relatively low cost system of transport that uses a common size of steel container to transport goods.

What is meant by: Trade Liberalisation?

The reduction and removal of trade barriers.

What is meant by: Tariff?

What is meant by: Causes of Globalisation?

1. Improvements in transport

2. Improvements in IT

3. Containerisation

4. Trade liberalisation

What is meant by: Transfer pricing?

A method of pricing goods and services transferred within TNCs in order to reduce the amount of corporation tax paid.

What is meant by: Impact of Globalisation on Individual Countries?

Globalisation has led to an increase in living standards but also an increase in overdependence.

What is meant by: Impact of Globalisation on Governments?

Globalisation has led to an increase in tax revenue but also an increase in transfer pricing.

What is meant by: Impact of Globalisation on Producers?

Globalisation has reduced costs through relocation but it has also increased barriers to entry.

What is meant by: Impact of Globalisation on Consumers?

Globalisation has led to an increase consumer choice and lower prices but it has arguably reduced happiness.

What is meant by: Impact of Globalisation on Workers?

Globalisation has led to an increase in international job opportunities but increased structural unemployment.

What is meant by: Impact of Globalisation on the Environment?

Globalisation has increased international cooperation to fight climate change but it has increased global warming.