Unit 3 Flashcards
Globalization
communism
an economic system in which all goods are owned jointly
globalization
increasing interdependence between people and economies around the world
geography
the study or people, their environments, and their resources (natural, human labor, and climate)
drought
lack of rainfall for a prolonged period of time
desertification
the process of becoming a desert due to drought, overfarming, and overgrazing
free trade
no restrictions on who, when, and what relating to a country’s trading
inflation
when the value of a currency decreases
tariff
a tax on imports
interdependent
rely mutually on each other
world bank
a group formed to help poor countries develop and provide financial assistance for countries to reconstruct after WWII
IMF
International Monetary Fund
an organization created at the end of WWII to help countries whose economies are in trouble
balance of trade
calculation of a countries exports minus its imports
import
resources and goods that enter a country
export
resources and goods that leave a country
black market
a type of economic activity that takes place outside of government-sanctioned channels
imperialism
takeover and domination by empire; extending rule or influence of one country over other countries/colonies
MNC
Multinational Corporation
a corporation that has its facilities and other assets in at least one country other than its home country
comparative advantage
what each country is least bad at producing; what they specialize in
privatization
process of becoming privatized; encourages competition and is not run by the government
modernization
process of becoming modernized by improving technology
planned/command economy
an economic system where all of the major decisions related to production, distribution, commodity, and service prices are all made by the government
market economy
an economic system where supply and demand market forces define what is produces, in what quantity, and at what price
mixed economy
an economic system that combines a free market with some government intervention in the hopes of avoiding sustained downturns
G-7/G-8
Improving economic state, human rights, nuclear power use, and terrorism
G-20
In order to further economies, they supply funds to IMF to increase interdependence between counties when trading
GATT
General Agreement on Tariffs and Trade
- Treat countries equally in trade
- limiting tariffs
WTO
World Trade Organization
- tries to open trade and economies
- encourages development, levels playing field, promotes for competition, and opens access to markets
EU
European Union
-12 countries trade freely in EU with no tax
OPEC
Organization of Petroleum Exporting Countries
- group of countries that control the price of oil
- not consistent
- expand production, regulate global supply, and raise oil proces
NAFTA
North American Free Trade Agreement
- Canada, US, and Mexico can trade without tariffs
- moving jobs to Mexico
- increased imports/exports
- political stability
