Global Systems and Governance: additional key terms

Asian 'tiger' economies

The rapidly industrialized and urbanized economies of South Korea, Taiwan, Hong Kong, and Singapore that achieved phenomenal growth from the 1960s to 1990s through export-oriented manufacturing and served as a model for subsequent emerging economies.

BRIC

An acronym referring to the major emerging national economies of Brazil, Russia, India, and China, characterized by rapid economic growth, large internal markets, and increasing geopolitical influence that is reshaping the global economic hierarchy.

MINT

A newer acronym for the emerging economies of Mexico, Indonesia, Nigeria, and Turkey, viewed as having high potential for future growth due to favourable demographics, natural resources, and strategic geographical location.

Newly industrialised countries (NICs)

Countries, often developing nations, that have undergone rapid and sustained economic growth, industrialization, and urban expansion, primarily fueled by Foreign Direct Investment (FDI) and a shift toward manufacturing.

Comparative advantage

The economic principle that suggests countries should specialize in producing goods or services they can produce most efficiently (at the lowest relative cost) compared to others, leading to a geographical basis for increased international trade.

Economies of scale

The reduction in the cost per unit of output as the overall scale of production increases, which encourages Transnational Corporations (TNCs) to centralize manufacturing in large, globally strategic locations.

Footloose services

Service industries (e.g., call centres, data processing) that are not geographically constrained by raw materials or physical infrastructure and can be easily relocated globally, driven by access to telecommunications and cheap, skilled labour.

Knowledge intensive goods and services

Products and services that rely heavily on specialized knowledge, high technology, and research and development (R&D) rather than raw materials, typically concentrating in developed economies and global cities.

Global shift

The long-term trend of manufacturing production migrating from the established economies of Europe and North America to lower-wage economies (predominantly in Asia) since the 1970s, causing widespread deindustrialisation in the former.

Deindustrialisation

The relative or absolute decline in the importance of manufacturing within the economy of a region or country, often leading to structural unemployment and the decline of industrial landscapes.

De-multiplier effect

The negative consequence where the closure of a major industry triggers a downward spiral of economic decline in the local area, as job losses lead to reduced spending, causing other local businesses to close.

Structural unemployment

Joblessness that results from a mismatch between the skills workers possess and the skills demanded by employers, often a geographical consequence of technological change (automation) or spatial shifts in industry (deindustrialisation).

Outsourcing

A practice where a company contracts out a specific business function (e.g., manufacturing, customer service) to a separate, external company. When conducted internationally, it is referred to as offshoring.

Foreign direct investment (FDI)

An investment made by a TNC or company based in one country into business interests located in another country, usually by establishing new operations or acquiring assets, and is the primary mechanism for the spread of economic globalisation.

Containerisation

The system of standardized steel shipping containers and specialized port infrastructure, which dramatically reduced transport costs, handling time, and friction of distance, enabling mass global trade.

Free market

An economic system in which prices and production are determined by unrestricted competition between privately owned businesses, with minimal government regulation.

Free trade

An international trade policy where governments do not restrict imports or exports through barriers like tariffs or quotas, aiming to allow goods to flow freely across borders.

Protectionism

A government policy of restricting international trade through methods like tariffs, import quotas, and subsidies to foreign firms, with the goal of protecting domestic industries from foreign competition.

Tariff

A tax or duty imposed by a government on imported goods or services, designed to increase their cost relative to domestic products, acting as a protectionist barrier.

Import quota

A quantitative limit set by a government on the physical amount (volume or value) of a particular foreign commodity that can be legally imported within a specific timeframe.

Import licence

An authorization granted by a national government required for the importation of certain goods into the country, used as a control mechanism to monitor and regulate trade flows.

Embargoes

Official bans on trade or other commercial activities with a specific country, often imposed as a geopolitical tool to exert economic or political pressure.

Subsidies

Financial aid or support extended by a government to a specific domestic economic sector (e.g., agriculture, solar panel manufacturing) to make that industry's products more competitive domestically and internationally.

Repatriation of profits

The act of a Transnational Corporation (TNC) transferring profits earned by its subsidiary in a host country back to its home country or base of operations.

Leakages (economic)

The withdrawal of money from a local circular flow of income, which, in the context of TNC operations, often refers to profits repatriated overseas, thereby diminishing the local economic benefit.

Remittance payments

Money sent by a migrant worker back to individuals (usually family members) in their home country. These form a major component of the GDP and income for many developing nations and represent a major financial flow of globalisation.

Trade bloc

A type of intergovernmental agreement (usually a Regional Trade Agreement - RTA) where trade barriers are significantly reduced or eliminated among participating states (e.g., EU, ASEAN), resulting in a unified regional trading area.

Bilateral agreement

A formal contract or treaty involving two sovereign countries or trading blocs, often concerning specific trade concessions, investment protection, or development aid.

Multilateral agreement

A formal contract or treaty involving three or more sovereign countries or trading blocs, aimed at establishing broad, shared rules for cooperation (e.g., the Paris Agreement on climate change).

Regional trade agreements (RTAs)

Formal trade pacts negotiated between a specific, geographically grouped set of countries to reduce or eliminate barriers to trade (tariffs and quotas) within that group.

Special and differential treatment (SDT)

Provisions in major trade agreements, particularly within the WTO, that grant developing countries more favourable treatment (e.g., longer implementation periods, technical assistance) in recognition of their developmental needs.

Fair trade

A social movement and certification system aimed at helping producers in developing countries achieve better trading conditions by ensuring higher minimum prices and ethical labour and environmental standards.

Ethical investment

The practice of investing capital in companies or funds that meet certain ethical, social, and environmental (ESG) standards, actively avoiding companies involved in harmful activities.

Official Development Assistance (ODA)

Financial aid provided by donor governments (often OECD members) to promote the economic development and welfare of developing countries, including grants and technical assistance.

G7

A group consisting of seven of the world's most industrialized and advanced economies (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) that meets annually to coordinate on major global economic and political issues.

G20

An international forum composed of the governments and central bank governors from 19 major economies and the European Union, representing approximately 80% of global GDP and focused on global economic cooperation.

Group of 77 and China

A coalition of developing nations in the United Nations designed to promote their collective economic interests and enhance their negotiating capacity on all major international economic issues within the UN system.

World Bank (International Bank for Reconstruction and Development)

A global financial institution established to reduce poverty and support long-term economic development in developing countries by providing loans, grants, and technical assistance for capital projects.

IMF (International Monetary Fund)

An international financial institution that aims to promote global monetary cooperation, secure financial stability, and facilitate international trade by providing loans to countries facing balance of payments problems.

WTO (World Trade Organization)

An intergovernmental organisation that regulates international trade and acts as a forum for trade negotiations and resolving trade disputes between member countries.

OECD (Organisation for Economic Co-operation and Development)

An intergovernmental economic organisation primarily composed of wealthy, democratic nations that works to stimulate economic progress and world trade by sharing data and coordinating policy.

IPCC (Intergovernmental Panel on Climate Change)

A scientific body under the UN that is dedicated to providing policymakers with regular scientific assessments concerning climate change, its implications, and future risks, shaping global environmental policy.

Top down

A large-scale development strategy where planning and decision-making are undertaken by central authorities (e.g., national government, World Bank, TNCs) with minimal consultation with the local community, often leading to large, capital-intensive projects.

Bottom up

A small-scale development strategy where planning and decision-making are based on the needs and participation of local communities, often run by NGOs and focusing on local skills and appropriate technology.

Multiscalar power

The concept that power and influence are exercised and contested across multiple spatial scales, from the local community level (e.g., grassroots resistance) to the national and the global (e.g., IGOs).

Technology transfer

The process of sharing knowledge, skills, equipment, and manufacturing methods among governments, universities, and other institutions to ensure that scientific and technological developments are accessible to a wider range of users, often from developed to developing nations.

Migration

The movement of people from one place to another with the intention of settling permanently or semi-permanently, encompassing both international (between countries) and internal (within a country) movements, fundamentally altering population geography.

Diaspora

The dispersal of an ethnic or national group from their original homeland to a new location. These transnational networks often maintain significant cultural, social, and economic ties to their place of origin.