Economic Globalization Flashcards
whats corporate welfare
financial assistance given by the government to corporations
whats Walmarts controversy
they hire lots of part-time employees instead of having fewer full-time employees so that they never have to pay overtime and don’t have to cover benefits for their employees
whats opening price point
an advertising method that shows the absolute lowest price of a product which draws people in because they think all products are prised like that
how does the ocean make up for rising temperatures
it absorbs most of the access heat
what are the 5 solutions to restoring biodiversity and saving the planet
raise standard of living so that population growth plates, switch to renewable energy, restore the health of oceans/marine life, reduce area needed to farm and change diet to restore wildlife, halt deforestation and begin to plant native trees
whats the basis of the economy
transactions
what are transactions
chain reactions during the buying/selling of one thing that occur between people with goods/services within a market
whats capitalism good for
the creation of prosperity
what are the 5 stages in a materials economy
extraction, production, distribution, consumption and disposal
what type of system is a materials economy
linear system
what is extraction
the use of resources from the natural world through natural resource exploitation
whats production
use of energy to mixe toxic chemicals in with the resources to make toxic contaminated products
what do toxins do to the food chain
they build it up
whats distribution
process of selling everything as quickly as possible with the goal to keep prices down and ensure sales are continuous
whats planned obsolescence
making stuff to become unusable as fast as possible without causing a consumer to lose faith in the product in order to get you to consume more
whats perceived obsolescence
changes the way you look at things, convincing consumers to throw away things that are still perfectly usable
who and why was consumption designed
designed by politicians to ramp up the economy after WWII
what does disposal do to the world
pollutes air, land, water, wrecks the climate, and makes more super toxins through incineration of garbage
what are the 4 steps in writing a source analysis
what is the source, what do you know about the source, what is the source trying to convey, an example of what it’s trying to convey
whats IMF stand for
international monetary fund
what does the international monetary fund do
gives low-interest funds to less-developed nations to help their economy
whats wb stand for
world bank
what does the world bank do
provides loans and grants to the governments of nations to help them pursue capital projects
whats WTO stand for
world trade organization
what does the world trade organization do
increase international trade through the lowering of trade barriers in order to make trade more predictable as well as reduces big wars and large amounts of deaths
whats NAFTA stand for
North American free trade agreement
whats the North American free trade agreement od
removes over half of the trade barriers between North American countries to encourage trade, as well as unites NA through reduction of tariffs
whats a tariff
tax on goods that come into your country
whats EU stand for
European union
whats the European union
agreement between European nations that liberalizes a trading area to make access to goods services and money much easier and to increase the ability for people to move throughout the continent
whats OPEC stand for
organization of the petroleum exporting countries
what does the petroleum exportation organization do
coordinates and consolidates the policies about petroleum production and output in order to stabilize the oil markets and make more money
whats GATT
general agreement on tariffs and trade
whats the general agreement on tariffs and trade
agreement minimizing barriers to international trade through the elimination or reduction of tariff quotas and subsidies while maintaining significant regulations
whats G8
group of 8
whats group of eight
annual meeting between the leaders of the most powerful countries in the world
whats UN stand for
united nations
what is the united nations
peacekeeping organization aiming to maintain international peace and security, develop friendly relations, achieve international cooperation and get the centre for harmonizing the actions of nations
whats UNICEF stand for
united nations children emergency fund
what is the united nations children emergency fund
international organization addressing the long term needs and rights of children/women in developing countries
whats adam smiths theory on economics
government needs to reduce level of control over the economy and simplify free trade policies
whats john m keynes econmic theory
wants higher government involvement and believes that the government should be setting up programs to hire the unemployed
whats Friedrich Hayek’s theory on economics
government should stay out of the way and have no control over the economy
whats mercantilism
policy of strictly controlling trade
whats capitalism
economic system that advocates for free trade, competition and choice as a means of achieving prosperity
whats Milton Friedman’s economic theory
as little government control as possible bc the government shouldn’t be supporting people through tough times, they need to be learning how to adapt
Margaret thatcher’s economic theory
little government control so that individuals are freer to make their own decisions and that resources are the private property of companies/individuals
whats outsourcing
when a business obtains services or products used in manufacturing from an outside supplier/manufacturer to cut costs
whats an offshore company
company that conducts most of their business outside of the country in which they are incorporated
whats push production
when manufacturers of products decide what to produce, how much to produce, and the price of the product
whats pull production
when retailers determine what the manufacturer will produce, how much to produce and the price of the product
what does it mean to be sustainable
a system that utilizes renewable resources for growth and maintenance
whats prosperity
state of being prosperous and having successful progress
whats sustainable prosperity
state of economic development where people have high standard of living and quality of life while respecting the natural environment and balancing economic competition
what are the factors that affect global economy
hand of God, and market fluctuations
who influenced the economic thought after world war 2
Keynes and Hayek
whats the Bretton woods agreement
an agreement that established a system of rules and a new international monetary system in order to allow countries to view themselves as partners instead of competitors after the war
what is the intent of the UN
to encourage peaceful relations and help the global economy by opening up trade between countries
who was Ronald Reagan and what were his goals
- former us president
- reduce growth of government spending
- reduce marginal tax rates on income
- reduce regulation
- control the money supply to reduce inflation
what are the beliefs of supply-side economics
smaller government, deregulation, cutting subsidies, privatization, and trickle-down economics
whats deregulation
process where governments remove, reduce or simplify restrictions on businesses and individuals with the intent of encouraging efficient market operation
whats subsidies
financial assistance from government in order to encourage the production/ purchase of a good/service or to insent certain behaviour
whats privatization
transfer of ownership from the public sector to the private sector
whats trickle-down economics
reduction of taxes on large companies and the rich in order to stimulate economic growth
what is supply-side economics
Theory that focuses on influencing the supply of labour and goods, using tax cuts and benefit cuts as incentives to work and produce goods
what is demand-side economics
belief that demand for goods and services drives the economy
what are the major concerns of demand-side economics
inflation and too much government spending
benefits of demand-side economics
triggers employment and government will not feel bad when it decides to collect more taxes once the economy is running again
whats classic economics
ideas are at the forefront of the movement towards a society based on freedom and away from the control of society via the government
what political side does classic economics fall into
liberalism
whats liberalism
related ideas and theories of government that consider individual liberty to be the most important political goal
whats top injection of money
when there is extra money present at the top executive level due to government incentives
what are the major concerns of supply-side economics
social programs can be cut and it can concentrate wealth in the hands of a small part of the population
how does top injection of money work
company reinvests in itself and can stimulate demand through the hiring of new people to implement new policies that lead to profit for the company and money into the economy
what is the theory behind supply-side economics
the government should just lower taxes so that people will have more money to spend
why does supply-side economics want to have taxes particularly low for large businesses and rich people
they will buy lots of stuff because they have the money, feeding money back into the economy and allowing them to make new businesses to hire more people or invest in stuff
how does supply and demand control the free market economy
through fluctuation
whats supply and demand
relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy
