Globalization & Protectionism Flashcards
1
Q
Globalization
A
- increase flow of trade, people, investment, tech, ideas, and culture among countries
- opening international borders results in global markets instead of local or national
2
Q
What Led to Increase Globalization?
A
- trade barriers gradually reduced around the world
- reduce restrictions on free flow of investment capital between countries
- tech sharing/growth
- methods of transportation and communication improved
3
Q
Influence of Globalization
A
- industrial - worldwide production markets abd broader access to range of goods for consumers
- financial - worldwide financial markets and better access to external financing for corperate national borrowers
- economic - realization of a global common market, based on freedom of exchange
4
Q
Positive Effects of Globalization
A
- when international borders open, people are able to travel and immigrate, trade, invest
- provides consumers with wide variety of goods
- international competition results in higher quality
5
Q
Negative Effects
A
• service and white collar jobs are increasingly vulnerable to operations moving offshore
6
Q
Protectionism
A
- theory or practice of shielding a country from foreign imports by taxing imports
- defensive measure politically - motivated
- destructive in long-term
- makes countries and industries less competitive
7
Q
Protectionism Advantages
A
- if country is trying to grow strong in a new industry, tariffs will protect it from foreign competitors
- gives companies in new industry tome to learn how to produce efficiently
8
Q
Protectionism Disadvantages
A
• Long Term
- weakens industry
- without competition, companies in industry wont improve/innovate
• slows economic growth
9
Q
Anti-Globalization
A
Human Rights
- sweatshops in developing countries harsh working conditions
• Social
- unequal wealth distribution worldwide
- gap between poor and rich
• Women and Children
- 90% of workers at sweatshops are women
- child labour hired by global companies
