Global Systems and Globalisation Vocabulary

Vocabulary flashcards covering the concepts of global systems, unequal flows, international trade factors, and the role of global institutions.

Globalisation

The process of countries becoming more connected through world economies, political systems, and cultures.

Remittances

Financial flows consisting of money sent by migrants back to their home countries.

Brain drain

The loss of skilled or educated individuals from a country due to migration, reinforcing existing inequalities.

Foreign Aid

A flow of money often directed from developed to less developed countries to assist with economic or social needs.

FDI

Foreign Direct Investment; investment made by a firm or individual in one country into business interests located in another country.

Neoliberalism

The belief that the economy works better without state intervention, leading to maximum economic growth.

Information

Includes financial data, news, and culture enabled through technological development for easy communication and collaboration.

Capital

Money that is invested to produce an income or increased profit.

Services

Economic activities not based around producing physical products, such as banking and technology.

Labour

Movement of people who participate in the workforce from one country to another.

Marketing

The act of promoting and selling products or services, which has become global to treat the world as a single market.

Economies of scale

The cost advantages gained by companies when production becomes efficient, often achieved by global marketing strategies.

Global institutions

Organizations such as the WTO, IMF, and World Bank that have power over conditions for loan eligibility and trade rules.

IMF

International Monetary Fund; a global institution providing loans that are expected to be paid back.

WTO

World Trade Organization; an organization set up to increase trade, settle disputes, and promote free trade by reducing protectionism.

Trade Blocs

Associations between different governments that promote and manage trade by removing barriers for members.

SEZs (Special Economic Zones)

Areas designed to encourage Foreign Direct Investment (FDI) through incentives like reduced tax.

SDT agreements

Special and Differential Treatment provisions within WTO agreements that give less developed countries greater market access.