unit 4b Flashcards
Globalization
The process of increasing interconnectedness between nations and includes the economic, social, cultural, political, and technological connections between individuals and groups around the world
Economic Globalization
The increasing integration of world economies that results from the increase of free trade of products and services
Free market capitalism
A market system in which producers are free to enter into a line of business and sell their products at any price as long as consumers are willing to pay the price
New International Division of Labor Theory
Commodity production can be divided and assigned to areas of the world that provide the most profitable combination of capital and labour, creating a global industrial shift of division of labour to developing countries
World System Theory
Core nations: Developed and economically advanced country with a variety of resources and influential global political alliances
Peripheral nations: Poorest, least developed nations with little or no industrialisation
Semi-peripheral nations: More developed than core, but less developed than periphery, posesses natural resources from periphery nations and manufactures them for core markets
Dependency Theory
Wealth flows from poor and underdeveloped countries into wealthier countries, activity in developed countries lead to economic problems in underdeveloped countries, underdeveloped countries lack the resources to process natural resources
Modernization Theory
Identifies how past and present societies are modernized, or transformed into western societies,
Trade-liberalization agreements
An agreement between countries that removes or reduces restrictions on free exchange of goods between nations
Global commodity chains
A complex pattern of international labor and production processes that result in a finished commodity, ready for sale in the marketplace
Transnational corporation
Any corporation that has operations in 2 or more countries
Multilateralism
When multiple countries work together on an issue
Multilateral trade agreements
A trade agreement that allows for the free trade of goods and services between countries
Nation-state
A sovereign territory that has clearly defined borders with people that share a common cultural identity
Political Globalization
The process in which world politics is becoming increasingly integrated, resulting in the creation of organizations that collaborate on world issues
International Monetary Fund
Meant to foster global monetary cooperation, where becoming a member means you agree to have your currency exchange rate monitored by the organization in hopes of keeping it stable, alerting member countries when problems arise, and provides advice to member countries that experience economic difficulty
