Chapter 10 Flashcards
What is globalization?
Increasing international interconnectedness
Globalization refers to the growing integration and interdependence of national economies and cultures.
Define Foreign Direct Investment (FDI).
Investment from abroad in economic activity
FDI involves a company or individual investing in business operations in another country.
What does International Capital Flow refer to?
The movement of money across national borders
This can include investments, loans, and remittances.
What are Multinational Corporations (MNCs)?
A company with facilities or assets in another country
MNCs operate on a global scale and can influence economic policies.
What is a Rentier State?
A state that relies on natural resources for government revenue
Such states often depend on oil, gas, or minerals for income.
Define International Organization.
A body established by a treaty or agreement among countries
Examples include the IMF and World Bank.
What are Supranational Organizations?
A body in which member countries have some say in governing and give up some sovereignty
An example is the economic community of West Africa.
What is Import Substitute Industrialization (ISI)?
Enforcing tariffs on imports so a state has to use its own products
ISI aims to promote domestic industries.
What are Economic Liberalization Policies?
Policies to liberalize the economy and lower tariffs
These policies encourage free trade and investment.
What are NGOs?
Non-profit organizations not involved with the government
Examples include Action Aid, NJ LEEP, and The Red Cross.
