Unit 4: Power Place and Networks

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Foreign Direct Investment
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Terms in this set (26)
Foreign Direct Investment
The investment by a company into the structures, equipment or organizations of a foreign country. It does not include investment in shares of companies of other countries.
Globalization
"The growing interdependence of countries worldwide through the increasing volume and variety of cross-border transactions in goods and services and of international capital flows, and through the more rapid and widespread diffusion of technology" (International Monetary Fund).
Global village
The idea that the world (globe) has been transformed into a "village" by the almost instantaneous transmission of information, facilitated by improvements in ICT.
Offshoring
The process by which firms move production overseas.
Outsourcing
When a firm obtains inputs such as skills and services from separately owned suppliers instead of sourcing them internally.
Superpower
A nation or group of nations with a leading position in international politics.
Glocalization
A term that was invented in order to emphasize that the globalization of a product is more likely to succeed when the product or service is adapted specifically to each locality or culture it is marketed in. The increasing presence of McDonald's restaurants worldwide is an example of globalization, while the restaurant chain's menu changes in an attempt to appeal to local tastes are an example of glocalization.
globalization index
The A T Kearney index is one of several measures of globalization. It tracks changes in four key components of global integration: trade and investment flows; movement of people across borders; volumes of international telephone traffic and internet usage; participation in international organizations. (source: A T Kearney; Foreign Policy)
Forms of Globalization
Economic, Social, and Political
World Bank
A source of financial aid and technical assistance to developing countries around the world.
International Monetary Fund (IMF)
An organization formed with a stated objective of stabilizing international exchange rates and facilitating development.
The Organization of Petroleum Exporting Countries (OPEC)
Established to counter oil price cuts by American and European oil companies.
Geographic Isolation
when a country is landlocked or isolated from a global market due to a physical barrier. it is a major limiting factor that can make a country dependent on a neighboring country's market access
Development aid
Foreign aid intended to help economically less developed countries; may involve project aid, program aid, technical assistance, or debt relief.
Time-space convergence
The idea that distance between some places is actually shrinking as technology enables more rapid communication and increased interaction among those places. this development is a result of the commercial jet aircraft, the development of large ocean-going vessels (superfreighters) and containerization