Dimensions of Globalisation

Labour

A factor of production defined as an aggregate of all human physical and mental effort used to create goods or services

Protectionism

A policy by government to impose restrictions on trade in goods and services with other countries.

Nation States

A sovereign state of which most of the citizens or subjects are united also by factors which define a nation, such as language or common descent.

Deregulation of World financial markets

Happened in the late 20th century where the activities of financial institutions such as banks were no longer controlled and confined by their governments and national boundaries

Footloose

Industries that are unrestricted in their location or field of operations and able to respond to fluctuations in the market.

Foreign Direct Investment

Investment made mainly by TNCs based in one country, into the physical capital or assets of foreign enterprises.

Periphery regions

Less developed than the semi-periphery and core countries. These countries usually receive a disproportionately small share of global wealth. They have weak state institutions & are usually behind because of obstacles such as lack of technology, unstable government, and poor education and health systems.

Core

Periphery model-by Frank and Wallenstein, that describes how economic, political, and/or cultural power is spatially distributed between dominant core regions, and more marginal or dependent semi-peripheral and peripheral regions. core region. The centers of economic, political, and/or cultural power within a given territorial entity.

Containerisation

A system of standardised transport that uses large standard-sized steel containers to transport goods.

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 industries from foreign competitors.

Local economy

An area of the production, distribution, or trade, and consumption of goods and services by different agents at city or regional level

National Economy

An area of the production, distribution, or trade, and consumption of goods and services by different agents at nation state level.

Factors of production

An economic term that describes the inputs that are used in the production of goods or services in order to make an economic profit. The factors of production include land, labor, capital and entrepreneurship/enterprise.

Political Globalisation

Caused by growth of Western democracy, global systems, global institutions like the IMF and WTO

Economic globalisation

Caused by increase in free trade, faster cheaper transport, growth of TNCs and marketing

Social Globalisation

Caused chiefly by migration, global communication networks, impact of media

Global village

Concept predicted by Canadian Marshall McLuhan in 1960s where economic factors and information would flow freely across the globe

Flows of services

Economic activities that are traded without the production of material goods.

Aid

Financial support for poorer countries that can be provided through the UN (multilateral) from contributions made by richer countries, or provided bilaterally from one government to another.

Flows of Capital

Money that moves between countries and which is used for investment, trade and production.

Flows of Information

Movement of cultural ideas, language, industrial technology, design and business management support. Facilitated now via the World Wide Web

Flows of labour

Movement of migrants mainly seeking better employment opportunities. E.g. movement from developing countries in South Asia, Africa and Latin America to the richer areas of North America and Europe.

Kofi Annan

Said "It has been said that arguing against globalization is like arguing against the laws of gravity"

High Level services

Services to businesses such as finance, investment and advertising

Low Level services

Services to consumers such as banking, travel and tourism

Repatriation of Profits

TNCs investing in overseas production will normally take any profit made from that headquarters. The majority of these flows return to companies based in richer countries.

Global economy

The economies of the world's individual countries considered together as a single economic system.

Core Countries

The industrialised capitalist countries. Core countries control and benefit from the global market. Wealthy nations with a wide variety of resources and are in a favorable location compared to other states. They have strong state institutions, a powerful military and powerful global political alliances.

Flows of products

The international movement of products which is facilitated by the reduction in costs of trade.

Globalisation

The process by which the world's local and regional economies, societies, and cultures have become integrated together through a global network of communication, transportation and trade. Includes societal integration through migration.

Remittance payments

Transfers of money made by foreign workers to family in their home country.

Migration

Usually takes place from poorer countries to richer countries and involves skilled workers from poorer countries moving to richer countries.