Globalization Flashcards
(27 cards)
Political economy
The relationship between political activity and economic performance
Gross domestic product (GDP)
The total value of all goods and services produced in one year in a certain country (measured in dollars)
Purchasing power parity (PPP)
Based on comparing the value of production using the purchasing power of each national currency
Gini coefficient
Measure of income inequality used to show the distribution of wealth in a given population (social inequality)
Free-market systems
Less government control over economy and less public ownership of industries and services (ex. the US)
Centrally planned systems
More government regulation and ownership of the economy (ex. China)
Economic freedom index
Key ingredients of economic freedom (personal choice, voluntary exchange, freedom to compete, protection of individuals and property)
Human Development Index (HDI)
Rating of human development based on life expectancy, adult literacy, educational enrolment, GDP per capita
Tariffs
Increased price of imported goods, making them more expensive to the customer
Quotas
A limited amount of something that is officially allowed
Bans
A ban of certain products that is imported to a certain country
Capitalism
Economic system in which businesses are privately owned
Communism
The belief in a society without different social classes in which the methods of production are owned and controlled by all its members and everyone works as much as they can and receives what they need
Outsourcing
To purchase or subcontract goods from a foreign supplier
Offshoring
The practice of moving employees to other countries in order to lower cost
Boycott
Withdraw from commercial or social relations with any organization as a punishment or protest
Sanctions
Punishment for disobeying the law
Trade war
Using the economic power to influence the international trade
McDonald’s theory of international relations
A theory that no two countries with McDonald’s in them will ever go to war
Globalization
The process in which a company develops international influence or starts operating on an international scale and the development of closer political, economical and cultural relations among all countries of the world as a result of travel and communication becoming easy
Perestroika
A reform to improve economy and the trade in free markets
Multinational corporations
Corporation that operates in multiple nations with a home office that coordinates global management
Official Governmental bodies
Joined governmental organizations that control public policy and change different aspects of life (ex. UN)
Non Governmental Organization (NGO)
An organization that is not a part of the government and set up by ordinary citizens. Deliver resources and serve social and political purpose (ex. Amnesty International, Greenpeace)
