Economic Globalization Study Cards

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Economic Globalization

The process of increasing economic integration and interdependence among countries through the exchange of goods, services, capital, and technology.

Neoliberalism

An economic ideology that advocates for free markets, deregulation, and limited government intervention, often associated with the promotion of economic globalization.

Trade Liberalization

The removal or reduction of barriers to trade, such as tariffs and quotas, to promote the free flow of goods and services between countries.

Foreign Direct Investment (FDI)

The investment of capital by a company from one country into another country, typically through the establishment of subsidiaries or the acquisition of existing companies.

Outsourcing

The practice of contracting a business process or service to an external third-party provider, often located in a different country, to reduce costs or access specialized expertise.

Offshoring

The relocation of business operations or production to a foreign country, typically to take advantage of lower labor costs or favorable economic conditions.

Global Value Chains

The international division of labor in which different stages of production are dispersed across multiple countries, allowing for specialization and efficiency gains.

Trade Deficit

A situation in which a country's imports exceed its exports, resulting in a negative balance of trade.

Trade Surplus

A situation in which a country's exports exceed its imports, resulting in a positive balance of trade.

Foreign Aid

Financial assistance, typically provided by governments or international organizations, to support the economic development and welfare of recipient countries.

Remittances

Money sent by individuals working abroad to their home countries, often to support their families or contribute to the local economy.

Sweatshops

Factories or workplaces characterized by poor working conditions, low wages, and long hours, often found in developing countries where labor regulations are weakly enforced.

Income Inequality

The unequal distribution of income among individuals or households within a society, often exacerbated by economic globalization.

Cultural Homogenization

The process by which local cultures and traditions are eroded or replaced by a globalized consumer culture, often associated with the spread of Western values and products.

Digital Divide

The gap between individuals or communities that have access to digital technologies and those that do not, often resulting in unequal opportunities and information access.

Global Financial Crisis

A severe worldwide economic downturn that began in 2008, characterized by the collapse of major financial institutions, stock market declines, and high unemployment rates.

Protectionism

The policy of imposing restrictions on imports through measures such as tariffs, quotas, or subsidies, to protect domestic industries from foreign competition.

Trade Agreements

Bilateral or multilateral agreements between countries that establish rules and regulations for international trade, often aimed at reducing barriers and promoting economic cooperation.

World Trade Organization (WTO)

An international organization that deals with the global rules of trade between nations, ensuring that trade flows as smoothly, predictably, and freely as possible.

International Monetary Fund (IMF)

An international financial institution that provides loans, technical assistance, and policy advice to member countries to promote economic stability and growth.

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects and reducing poverty.

Foreign Exchange Market

The market in which currencies are bought and sold, facilitating international trade and investment by enabling the conversion of one currency into another.

Global Commons

Shared resources, such as the atmosphere, oceans, and outer space, that are not subject to national sovereignty and require international cooperation for sustainable management.

Corporate Social Responsibility (CSR)

The concept that businesses have a responsibility to operate in a way that benefits society, beyond maximizing profits, often including environmental and social considerations.

Environmental Degradation

The deterioration of the environment through the depletion of natural resources, pollution, and the destruction of ecosystems, often associated with unsustainable economic practices.

Brain Drain

The emigration of highly skilled or educated individuals from one country to another, often resulting in a loss of human capital for the sending country.

Global Health

The study and practice of improving health and achieving equity in health outcomes for all people worldwide, often addressing global health challenges and disparities.

Global Governance

The collective management of global affairs and the regulation of global issues, often involving international organizations, treaties, and agreements.

Political Economy

The study of the interaction between politics and economics, examining how political institutions and economic systems shape each other and influence societal outcomes.

Trade Blocs

Groups of countries that form regional trade agreements to promote economic integration and cooperation, often reducing barriers to trade within the bloc.

Foreign Exchange Reserves

Stocks of foreign currencies held by a country's central bank, often used to stabilize exchange rates and support the domestic currency in times of economic volatility.

Global Imbalances

Unequal distribution of economic power and resources among countries, often manifested in trade deficits, currency fluctuations, and financial vulnerabilities.

Trade Wars

Economic conflicts between countries characterized by the imposition of tariffs, trade barriers, or other retaliatory measures, often resulting in reduced global trade and economic uncertainty.

Global Citizenship

The concept of recognizing oneself as a member of a global community and having a sense of responsibility towards addressing global challenges and promoting global cooperation.

Sustainable Development

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, often integrating economic, social, and environmental considerations.

Inflation

A sustained increase in the general price level of goods and services in an economy over time, often eroding purchasing power and reducing the value of money.

Monetary Policy

The use of interest rates, money supply, and other tools by a central bank to control inflation, stabilize the economy, and promote economic growth.

Fiscal Policy

The use of government spending and taxation to influence the economy, often aimed at promoting economic growth, reducing unemployment, and controlling inflation.

Income Tax

A tax imposed on individuals or entities based on their income or profits, often used by governments to fund public services and redistribute wealth.

Wealth Inequality

The unequal distribution of assets, property, and wealth among individuals or households within a society, often resulting in social and economic disparities.

Global Economic Governance

The system of international institutions, rules, and norms that govern global economic interactions and cooperation, often addressing issues such as trade, finance, and development.

Economic Integration

The process of combining economic policies and systems between countries, often involving the removal of trade barriers and the coordination of economic activities.

Trade Facilitation

Measures and policies aimed at simplifying and streamlining international trade procedures, such as customs clearance, documentation, and logistics, to reduce costs and enhance efficiency.

Global Economic Interdependence

The mutual reliance and interconnectedness of countries in the global economy, often resulting in shared risks, opportunities, and challenges.

Global Financial Architecture

The framework of international financial institutions, regulations, and practices that govern global financial flows and transactions, often aimed at promoting stability and preventing crises.