Unit Three Flashcards
What is economic globalization?
The increasing interconnectedness and interdependence of economies around the world 
What is sustainable prosperity
achieving economic, well-being, and development which ensures the long-term health of the environment society and economy
What is interdependence? 
The reliance and interconnectedness among people, communities regions and nations 
What is an economy of scale? 
When scale of production increases, average cost per unit decreases 
What is a knowledge economy?

A system, where the creation and application of knowledge play a large role in increasing economic growth and development 
What is privatization? 
When a government owned business/ corporation is sold to a private group. Less taxes
What is a transnational corporation?
A corporation that spreads across the world (example Walmart)
What is outsourcing? 
When a company invests in a foreign country for labour for a very low cost 
What is trade liberalization? 
Reducing or eliminating restrictions on international trade 
Characteristics of capitalism

Competition
Profit motive
Income inequality
 Who is Adam Smith?
Scottish economist and philosopher
Pioneer of the political economy
What is mercantilism? 
Main maintained a positive balance of trade
Country sends out more goods than it receives 
What is the economic spectrum
The range of economic systems that exist 
What is the GATT
International treatie that promoted free trade by reducing barriers
What is the world trade organization
International organization that facilitates global trade, and makes rules for easy, flowing international commerce 
What is NAFTA
Very significant trade agreement that shaped economic relationships between Canada, United States, and Mexico 
What is the E.U
A union of European countries that have chosen to integrate their policies and governance in different areas 
What is the IMF?
International organization that promotes global monetary cooperation, financial stability and economic development
What is the Kyoto protocol
Aimed at addressing global climate change by setting targets to reduce greenhouse gases
Who is Milton Friedman( him and fayek are similar)
Influential economist
Liberal and free market economic theories
Advocates for free market principles
Who is FA Hayek
