unit 3 - expanding economic globalization Flashcards
Tariff
a tax on imported goods or services, it is meant to reduce competition with domestic goods or services
subsidy
direct financial help, such as loans or lower taxes that the government provides to an industry
trade liberalization
reducing barriers, such as tariffs, to trade. It encourages more trade.
Free Trade
trade between countries with relatively few restrictions
trading blocs
groups of countries working together to give one another better trade agreements
Factors that have led to increased economic globalization
- development of communications technologies
- transportation
- the media
- trade liberalization
Factors that have led to increased economic globalization - communication technologies
- innovations in communication technologies have changed the world
- technological convergence is also increasing the rate of globalization
- convergence also brings together media companies
Factors that have led to increased economic globalization - changes in transportation
- the key to shipping goods more cheaply and effectively has been containerization
- the ‘just-in-time’ delivery and inventory system used today by many manufacturers mean that parts are orders and scheduled to arrive at the factory at the moment they are needed.
Factors that have led to increased economic globalization - the media
- though the media and communication technologies are closely connected, the media play a distinct role in expanding globalization
- celebrity endorsement can effect the media and consumption
- a desire for these products and services also encourages consumers to support government efforts to make it easier for foreign products and services to enter a country
Factors that have led to increased economic globalization - Trade
- this expansion of trade has occurred because countries have opened their economies to outside influences anywhere in the world
- globalization has been reshaping international trade
- todays goods and services are flowing more frequently between developing countries
NAFTA
North American Free Trade Agreement between Canada, USA, and Mexico
NAFTA out and USMCA in
changes implemented:
- Canada opens markets to diary esp.
- cars and trucks must have 75% of parts made in North America to qualify for 0 tariffs
- Auto factory workers must make $16/hr
European Union (EU)
- 1991, European countries created this liberalized trading area
- “euro” currency replaces many member nations’ currency
World bank
The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects.
IMF - internation monetary fund
The International Monetary Fund aims to reducing global poverty, encouraging international trade, and promoting financial stability and economic growth.
