6.2 Globalisation | IGCSE Economics

Globalisation

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Key definitions

Globalisation: the increasing integration and interdependence of countries through growing trade in goods and services, flows of capital, movement of people, and the spread of technology and ideas.
Multinational company (MNC): a firm that has its headquarters in one country and operates production or sales in at least one other country.
Trade liberalisation: the reduction or removal of trade barriers such as tariffs and quotas, so that trade between countries becomes freer.
Free trade: trade between countries without tariffs, quotas or other restrictions.
Specialisation (by country): when a country concentrates on producing the goods and services it can make most efficiently, and trades them for other goods and services.
Offshoring: moving part of a firm’s production or services, such as call centres or IT support, to another country to cut costs.
Foreign direct investment (FDI): money invested by a firm from one country to set up or buy productive assets, such as factories, in another country.

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Also in the full notes: What is globalisation? · Causes of globalisation · Consequences of globalisation · Multinational companies and host countries · Evaluating globalisation

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