Unit 4: Globalisation

Globalisation

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 the more rapid and widespread diffusion of technology

Soft Power

Power of persuasion - through culture, education (appeal of good universities), enterprise, art, music, cinema. View favourable by people in other countries

Hard Power

Getting a nation’s own way by using force, invasions, war and conflict. Economic power can be a form of hard power; by creating sanctions and trade barriers can cause harm to other states

(Global) Superpower

Nation or group of nations that has leading position in international politics

TNC (Transnational corporations)

Businesses whose operations are spread across the world, operating in many nations as both makers and sellers of goods and services. many of the largest are instantly recognizable ‘global brands’ that bring cultural change to the places where products are consumed.

Neo-colonial

The indirect access which developed countries exercise a degree of control over the development of their former colonies. This can be achieved through varied means including conditions attached to aids and loans, cultural influence and military or economic support for particular political groups or movements within a developing country.

Global interactions

The interconnectedness and exchanges between countries through trade, migration, culture, communication, technologies, and politics, and it involdes the movement of goods, serives, people, capital and ideas

Economic globalisation

The increasing interconnection of national economies through trade, investment, transnational corporations, and global supply chains, leading to greater economic integration and interdependence.

Political globalisation

The increasing integration of governments and states through international organisations, treaties, and global governance, which influences national decision-making and sovereignty

Cultural globalisation

the spread of ideas, values, lifestyles, language, and media across the world, leading to greater cultural exchange, but also cultural homogenisation or resistance.

Intergovernmental Organisations (IGOs)

formal institutions made up of member states that work together to manage global issues, create rules and cooperation, and coordinate international action.

G7/G8

a group of major high-income countries that meet to coordinate economic and political policy; the G8 included Russia until its suspension, while the G7 focuses on global economic stability and governance.

G20

a forum of major developed and emerging economies that works to stabilise the global economy, coordinate financial policy, and respond to economic crises.

OECD (Organisation for Economic Co-operation and Development)

An organisation of mostly high-income countries that promotes economic growth, development, trade, and policy coordination through research and standards.

United States, United Kingdom, Germany, France, Japan, Canada, Australia, South Korea

OPEC (Organization of the Petroleum Exporting Countries)

a group of oil-producing countries that coordinate oil production levels to control supply, influence global oil prices, and protect member interests.

Saudi Arabia, Iran, Iraq, United Arab Emirates, Kuwait, Venezuela, Nigeria

IMF (International Monetary Fund)

an organisation that provides financial assistance, loans, and economic advice to countries facing balance of payments crises, often with policy conditions.

United States, China, Japan, Germany, United Kingdom, France, India, Brazil (near-global membership)

World Bank

an international institution that provides long-term loans and grants to low- and middle-income countries to support development, poverty reduction, and infrastructure projects.

United States, China, India, Nigeria, Brazil, Indonesia (near-global membership)

NDB (New Development Bank) (BRICS)

a development bank created by BRICS countries that funds infrastructure and sustainable development projects, offering an alternative to Western-led financial institutions.

Brazil, Russia, India, China, South Africa

EU (European Union)

a regional political and economic union of European countries that promotes free movement, economic cooperation, shared laws, and collective decision-making.

Global flows

the movement of goods, services, capital, people, information, and ideas across the world, linking countries through globalisation.

Three-sector Economy

an economic model that divides activities into primary (raw material extraction), secondary (manufacturing), and tertiary (services) sectors.

Raw Materials

natural resources taken directly from the environment, such as minerals, timber, oil, or agricultural products, used as inputs for production.

Manufactured goods

finished or semi-finished products made by processing raw materials in factories, adding value through industrial production.

Services

intangible economic activities such as banking, transport, education, healthcare, and tourism that support individuals and businesses.

Remittances

money sent by migrants back to their home country, providing income support for families and contributing to national economies.

Foreign Debt

money owed by a country to external lenders such as foreign governments, banks, or international organisations.

Debt Relief

the reduction, rescheduling, or cancellation of foreign debt to help countries recover economically and fund development.

Internatinal aid

financial, technical, or humanitarian assistance given by governments or organisations to support development, disaster response, or poverty reduction.

Nacrotics

illegal drugs that are produced, traded, and consumed across borders, creating social, economic, and security risks.

Counterfeit goods

Fake or illegally copied products sold as legitimate brands, undermining business profits, consumer safety, and trust in markets.

Transnational corporations (TNCs)

large companies that operate in multiple countries, with production or offices overseas, influencing global trade and investment

Foreign Direct Investment (FDI)

investment by a company or country in business operations or assets located in another country, such as factories or infrastructure.

Outsourcing

the practice of relocating business activities or production processes to external companies or other countries to reduce costs or increase efficiency

Offshoring

the relocation of business activities or production to a foreign country, often to benefit from lower labour costs or weaker regulations.

Reshoring

the process of bringing production back to the home country after offshoring, to improve supply chain security, reduce risk, or support domestic employment.

Sovereignty

the authority and power of a state to govern itself, make independent decisions, and control its territory, laws, and policies without external interference.

Neoliberalism

an economic ideology that promotes free markets, privatisation, deregulation, and reduced government intervention, aiming to increase efficiency, competition, and economic growth.

Immigration law

the set of government rules and policies that control who can enter, live, work, or settle in a country, shaping population movement and border control.

Trading blocs

groups of countries that form agreements to reduce trade barriers between members, increasing trade, economic cooperation, and regional integration.

Free trade zone / free trade area

a designated region or agreement where trade barriers such as tariffs and quotas are reduced or removed between participating countries, encouraging increased trade and economic integration.

Customs Union

a trading bloc where member countries remove tariffs between themselves and adopt a common external tariff on imports from non-member countries.

Common market

a form of economic integration where countries allow free movement of goods, services, labour, and capital, in addition to removing trade barriers between member states.

Economic union

the highest level of economic integration, where countries share a common market, coordinate taxation and government spending (fiscal policy), align economic rules, and may adopt a common currency.

Distance decay

The principle that interaction between places decreases as distance increases, due to higher cost, time, and effort involved.

Time space convergence

the process by which improvements in transport and communication make distant places feel closer by reducing travel time and communication costs.

Flows of people

the movement of individuals across borders for work, education, tourism, or migration.

Flows of goods

the international trade of physical products, including raw materials and manufactured goods.

Flows of services

the cross-border exchange of intangible activities such as finance, tourism, education, and transport.

Flows of capital

the movement of money and investment between countries, including FDI, loans, and financial markets.

Flows of data and information

the global transfer of digital content, knowledge, and communication through internet and communication technologies.

Top-down corporate strategies

A top-down corporate strategy is a centralized approach to strategic planning in which corporate-level leadership defines vision, objectives, and strategic priorities, and lower levels of the organization execute those decisions with limited autonomy.

Bottom-up corporate strategies

A bottom-up corporate strategy is a decentralized approach to strategic planning in which insights, initiatives, and proposals from employees and business units shape corporate-level strategy. Top management acts primarily as a reviewer, integrator, and final decision-maker.