Glossary

• Globalisation


  The process in which the world is becoming more connected
• TNCs


  Companies that operate in at least two other countries
• Remittances


  Money or goods sent by migrants to their origin countries
• Cultural imperialism


  Forced promotion of a culture by one nation
• Soft power


  Spread/promotion of culture through media and entertainment
• Trade bloc


  A voluntary group of countries that sign an agreement to provide economic strength and security to all members
• KOF index


  Economic Swiss Institute is an index of globalisation that considers political, social, and economic factors
• Free trade/ Trade liberalisation

  free exports (without taxes and tariff)
• Privatisation 


  A private company is encouraged (profit driven) into public services
• FDI (Foreign direct investment )


  A financial “injection” by a TNC into another country
• China’s open door policy 1978

  Special economic zones were set up to encourage FDIs in manufacturing with relaxed rules (low tax and free exports) e.g Shanghai Economic Zone
• Global shift


  Physical movement of economic activity from developed countries originally to NICs but later to RICs and developing countries
• De-industrialisation 


  The long-term absolute decline of the manufacturing sector
• Footloose industry 


  When an industry can operate in any location e.g call centres
• Least Cost Location


  When a TNC moves to the cheapest location to maximise profits and minimise costs
• Economic Migrant 


  A migrant who moves country for employment
• Cultural Diffusion 


  The spread of global culture
• Megacity 


  A city with a population of over 10 million
• Free market liberalism


  Little/no restrictions on imports or exports between countries (taxes and tariffs) - pushed by Uk/USA in 1980s
• Economic Globalisation 


  Increased flows and exchanges of commodities, capital, information, migrants and tourists.

  Growth of global companies, markets and finance. E.g Remittances now contribute more than 3x the amount of aid received globally
• Political globalisation 


  Growth of political links between countries (e.g some countries produce goods for others to consume)

  growth of political powers

  e.g WTO and trade blocs
• Cultural globalisation 


  Global dispersal of products and cultural ideas e.g Americanisation/ Westernisation
• Environmental globalisation


  Growth in global environmental problems (e.g climate change) and widespread industrial pollution

  Development of global environmental campaign, police’s and solutions
• Global Interdependence


  When two countries have become completely dependent on each other, either through financial or political connections
• Spatial Division of Labour

  Having production in multiple countries
• Shrinking world


  Globalisation has led to geographical distance being less significant (countries feel closer together and interconnecte)
• The AT Kearney Index

  Measure of globalisation through political , technological connections, personal contact and economic factors
• NIC

  Newly industrialised country
• RIC

  Recently Industrialised country
• Tertiary Sector

  Industry comprised of companies that provide products and services
• Immigration 


  The movement of people into a different country
• Emigration


  Movement of people from a country
• Hyper-urbanisation


  When a city is growing too fast through an influx of economic migrants- slums
• Global Hub City

  Highly connected cities
• Development 


  Progress made by a country over time
• Development Gap


  Gap between the “haves” and the “have nots” - can be between countries or in a country
• GDP

  Gross Domestic Products
• Economic Sector Balance 


  Proportion of people employed in each sector
• HDI

  Human Development Index
• GII


  Gender Inequality Index