What is political globalisation?
the increasing interconnectivity and interdependence of political structures and systems around the world
What is cultural globalisation?
the interconnectivity of cultures world wide
What is social globalisation?
the increasing interconnectivity of societies
What is economic globalisation?
increasing interconnectivity of national economies
What does globalisation mean?
globalisation is used to describe a variety of ways in which places and people are now more connected than they used to be
How was global connection achieved in the past?
3 things
1) trade
2) colonialism
3) co- operation
What is a TNC?
businesses whose operations are spread across the world
What is capital another word for?
money
What is gross domestic product?
a measure of the financial value of goods and services produced within a country during the couse of a year.
What are remittances?
money that migrants send one to their families via formal or informal channels
What does interdependency mean in terms of countries?
if 2 places become over reliant on each other then they may have become interdependent
State 2 important innovations for transport and when they were invented.
1) railways - 1800s
2) jet aircraft ( Boeing 747 in 1960)
What is spatial division of labour?
The common practice among TNCs of moving low-skilled work abroad to places where labour costs are low. Important skilled management jobs are retained at the TNCs headquarters in its country of origin.
What are intermodal containers?
large capacity storage containers which can be transported long distances using multiple types of transport.
What does the concept of a shrinking world mean?
thanks to technology, distant places start to feel closer and take us less time to reach.
What is slowbalisation?
the slowing down of globalisation
What is foreign direct investment?
money being invested in another countrys economy.
Name 3 things that could make a county attractive to investors?
What is transfer pricing?
some TNCs have channeled profits through a subsidiary company in a low tax country
Give an example of a company that has utilised transfer pricing.
Starbucks have channeled profits through Ireland ( a low tax country)
What is meant by foreign mergers?
two firms in different countries join forces to create a single entity.
What is offshoring?
some TNCs build their own new production facilities in offshore low-wage economies.
What is an example of a company that has utilised offshoring?
US guitar company Fender opened its Mexican plant in Ensenada in 1987
What are foreign acquisitions?
when a TNC launches a takeover of a company in other country.