global systems and global governance

• Capital flows

  The movement of money or the purpose of investment, trade or to produce goods and providable services
• Globalisation

  A process by which national economies, societies and cultures have become increasingly integrated through global trade network. Communication/ immigration/ transportation
• International trade

  The exchange of capital, goods and services across international borders. Imports and exports
• Labour

  Factor of production - human effort in creating goods or providing services
• BRIC Economies

  Brazil, Russia, India and China - economies have advanced rapidly since the 1990s
• MINT Countries

  More recently emerging economies of Mexico, Indonesia, Nigeria and Turkey
• Diaspora

  A large group of people with a similar heritage or homeland who have moved and settled in places all over the world
• Leakages (economic)

  Refers to a loss of income from an economic system. It most usually refers to the profits sent back to their base country by TNCs - also known as profit repatriation
• NGOs

  Non-governmental organisations
• TNCs


  Transnational organisations
• FDI


  Foreign direct investment - an investment made by a government or large company into the physical capital or assets of foreign enterprises
• Containerisation


  A system of standardised transport that uses large standard-size steel containers to transport goods. The containers ca be transferred between ships, trains, lorries, enabling cheaper, efficient transport.
• Protectionism


  A deliberate policy by government to impose restrictions on trade in goods and services with other countries - usually done with the intention of protecting home-based industries from foreign competition
• Tariffs


  A tax or duty placed on imported goods with the intention of making them more expensive to consumers so that they do not sell at a lower price than home-based goods - a strategy of protectionism
• Conglomerates


  A collection of different companies or organisation which may be involved in different business activities but all report to one parent company - most TNCs
• Economies of Scale


  The cost advantages the result from the larger size, output or scape of an operation as savings are made by spreading the costs or be rationalising operations
• NICs


  Newly industrialised countries
• LICs


  Low income countries
• HICs


  High income countries
• Asian 'tiger' economies


  Highly developed economies of Hong Kong, Singapore, South Korea, Taiwan
• OPEC


  Organisation of Petroleum Exporting Countries
• WTO


  World trade organisation
• Bottom up


  When local people are consulted and supported in making decisions to undertake projects or developments that meet one or more of their specific needs
• Top down


  When the decision to undertake projects or developments is made by a central authority such as government with little or no consultation with the local people whom it will affect
• Bilateral agreement


  An agreement on trade (or aid) that is negotiated between two countries or two groups of countries
• Common markets


  A group formed by countries in geographical proximity in which trade barriers for goods and services are eliminated. (this may eventually apply to removing any labour market restrictions, as in the EU.)
• Customs unions


  A trade bloc which allows free trade with no barriers between its member states which imposes a common external tariff to trading countries outside the bloc (e.g. The EU)
• Multilateral agreement


  An agreement negotiated between more than two countries or groups of countries at the same time
• Outsourcing


  A cost saving strategy used by companies who arrange for goods or services to be produces or provided by other companies, usually at a location where costs are lower
• G7 Countries


  An informal bloc of industrialized democracies (United States, Canada, France, Germany, Italy, Japan, & United Kingdom) that meets annually to discuss issues such as global economic governance, international security, and energy policy.
• RTAs


  Regional trade agreements
• TPP


  Trans-Pacific Partnership
• TTIP


  Transatlantic Trade and Investment Partnership
• OECD


  Organisation for economic co-operation and development
• GATT


  General agreements on tariffs and trade
• LDCs


  Low developed countries
• HDCs


  High developed countries
• Agglomeration


  When companies in similar industries locate near to each other because of the benefits gained by sharing ideas and resources
• Multiplier (effect)


  A situation where an initial injection of investment or capital into an economy (at any scale) in turn created additional income by, for example, increasing employment, wages, spending and tax revenues
• Glocalisation


  Used to describe products or services that are distributed globally but which are fashioned to appeal to the consumers in a local market