Globalization Flashcards
Define globalization and explain its main components
Globalization is the process by which businesses, cultures, and societies become integrated and interconnected on a global scale. Its main components include the movement of goods and services (trade), capital (investment), people (migration), and ideas (cultural exchange).
What are trade barriers and how do they affect global trade? Provide examples
Trade barriers are restrictions imposed by governments to control the flow of goods and services across borders, such as tariffs, quotas, and import bans. For example, high tariffs on imported steel can make it more expensive and less competitive, thereby reducing trade volume and limiting globalization.
Trading blocs
How does international trade contribute to globalization? Provide examples
International trade contributes to globalization by enabling countries to exchange goods and services across borders, fostering economic interdependence. For example, the export of technology from the United States to Europe and the import of manufactured goods from China to Africa exemplify how trade links economies globally.
What are trading blocs and how do they promote regional economic integration? Provide examples.
Trading blocs are groups of countries that form agreements to reduce or eliminate trade barriers among themselves, promoting regional economic integration. Examples include the European Union (EU), which allows free trade among member countries, and the North American Free Trade Agreement (NAFTA), which facilitates trade between the U.S., Canada, and Mexico.
What role do trading organizations play in global trade? Provide examples
Trading organizations facilitate and regulate international trade, aiming to promote fair and open markets. For instance, the World Trade Organization (WTO) helps negotiate trade agreements and resolve disputes, while the International Monetary Fund (IMF) provides financial assistance to stabilize economies and promote global trade.
What is free trade and how does it benefit countries involved? Provide examples
Free trade is the exchange of goods and services between countries without restrictive trade barriers. It benefits countries by allowing them to specialize in producing goods where they have a comparative advantage, leading to increased efficiency and lower prices. For example, Japan specializes in electronics while Brazil focuses on agriculture, both benefiting from mutual trade.
What is fair trade and why is it important for sustainable development? Provide examples.
Fair trade is a movement aimed at ensuring better prices, decent working conditions, and fair terms for farmers and workers in developing countries. It is important for sustainable development because it promotes ethical practices and helps reduce poverty. For example, fair trade coffee ensures that coffee farmers receive a fair price, improving their living standards and investing in their communities.
What is an MEDc
More Economically Developed Countries)
MEDCs are countries that have a high standard of living, strong industrial bases, advanced technological infrastructure, and higher per capita income levels. They typically have well-developed healthcare and education systems, and their economies are diversified and strong.
These countries are?
United States
Canada
United Kingdom
Germany
Japan
Australia
What are LEDCS?
Less Economically Developed Countries)
LEDCs are countries that have lower levels of industrialization, less developed infrastructure, and lower standards of living. These countries often have lower per capita income levels, limited access to healthcare and education, and economies that are less diversified and more dependent on agriculture or raw material exports.
These countries are?
Afghanistan
Ethiopia
Haiti
Nepal
Mozambique
What are NICS?
Newly Industrialized Countries)
NICs are countries that are in the process of transitioning from LEDC status to MEDC status. These countries are experiencing rapid economic growth and industrialization, and their standards of living are improving. NICs typically have increasing levels of investment in infrastructure, education, and technology.
What is a MNC
Multinational Company : A company that operates in multiple countries, producing and selling products or services internationally.
What are Global Interactions?
The way different countries and cultures connect and influence each other through trade, communication, travel, and technology.
Define fair trade.
A system of trading that ensures producers in developing countries get a fair price for their products and have better working conditions.
What is a TNC?
Transnational Company : Similar to an MNC, a TNC operates in multiple countries but is more integrated globally, with no clear home country.
Define free trade.
Trade between countries without restrictions or tariffs, allowing goods and services to move freely.
Define primary goods.
Raw materials or natural products that haven’t been processed, like oil, coal, or wheat.
Define the term services.
Services: Activities done for others, like teaching, healthcare, banking, and tourism.
Define secondary goods.
Products made by processing primary goods, such as cars, electronics, and clothing.
What is a co-operative?
A business or organization owned and run by a group of people who share the profits or benefits.
