Midterm Concepts

Question 1

globalization/Globalization

Answer 1

globalization - is the process of international integration from world views, products, ideas, and other aspects of cultures. Is the extension, acceleration, and intensification of consequential worldwide interconnections.
Globalization - an instrumental term put to work in shaping as well as representing the growth of global interdependency.

Question 2

Place/Region

Answer 2

The geographical perspective on economic aspects of globalization. Spatialities: Place/region/territory; Distance/connectivity; scale
Nature/society
Economy/politics/culture (identity)/society

Question 3

Commodity

Answer 3

Commodities are things that are bought and sold for money.

Question 4

Proto-globalization

Answer 4

Era of globalization from 1600-1800. It was the basis of capitalistic expansionism.
East India Company and shift of hegemony to Western Europe
Led to rise of slave trade.

Question 5

Orientalism

Answer 5

Justification of globalization, white men taking over, and capitalization.
Western discourse for dominating, restructuring, and having authority over the Orient.. Reflects the power of the West.

Question 6

Spatial Division of Labor

Answer 6

Production shifts to developing countries in Asia because there is cheaper labor and manufacturing costs.

Question 7

Fordism/Keynesianism

Answer 7

Fordism is the economic and social system based on mass production. It was an era of mass consumption and changes in workers conditions. Products were standardized (machines). Workers were paid higher wages so they could afford the products that were created.

Question 8

State Led Development/State Centric Globalization

Answer 8

The government of nations plays an important role in economic regulation.

Question 9

Deregulation

Answer 9

Deregulation is the act of removing state economic regulations in order to create a free-er market.

Question 10

Global Triad

Answer 10

Trade between developing Asia, Europe, and North America. Trade between regions are larger than any bilateral trade between other regions. Trader within each triad region dwarfs other kinds of global trade. America’s shift to consumer nation led to Europe and Asia becoming big exporters.

Question 11

Foreign Direct Investment

Answer 11

Foreign direct is a direct investment into production or business in a country by a company in another country, either by buying a company in the target country or by expanding operations of an existing business in that country which is a passive investment in the securities of another country such as stocks and bonds.

Question 12

Connectivity

Answer 12

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Question 13

Capitalism

Answer 13

Capitalism is an economic system based on the private ownership of capital goods and the means of production, with the creation of goods and services for profit.

Question 14

Commodity Chain

Answer 14

The typical capitalist commodity chain comprises three main parts: (1) production, (2) distribution, and (3) consumption. Raw materials, Processed Materials, Components, Assmebly, Product Design/Marketing, Retail Sales, Consumption, Recycling/Disposal, Pollution

Question 15

Colonialism/imperialism

Answer 15

Colonialism is the establishment, exploitation, maintenance, acquisition and expansion of colonies in one territory by people from another territory. It is a process whereby the metropole claims sovereignty over the colony, and the social structure, government, and economics of the colony are changed by colonizers from the metropole. Colonialism is a set of unequal relationships between the metropole and the colony and between the colonists and the indigenous population.
Imperialsim is the creation and/or maintenance of an unequal economic, cultural, and territorial relationship, usually between states and often in the form of an empire, based on domination and subordination.

Question 16

Place-based Explanation

Answer 16

Europe was much closer America and North Africa, thus easier to exploit its resources for profit.

Question 17

Technological Cluster

Answer 17

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Question 18

Bretton Woods

Answer 18

It established the rules for commercial and financial relations among the world’s major industrial states in the mid-20th century. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent nation-states.

Question 19

Import – Substituting Industrialization

Answer 19

Is a trade and economic policy that advocates replacing foreign imports with domestic production.[1] ISI is based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialized products. The term primarily refers to 20th century development economics policies

Question 20

Privatization

Answer 20

It is the process of transferring ownership of a business, enterprise, agency, public service or public property from the public sector (a government) to the private sector, either to a business that operate for a profit or to a non-profit organization.

Question 21

World Trade Organization

Answer 21

An organization that intends to supervise and liberalize international trade.

Question 22

Outsourcing/Offshoring

Answer 22

Outsourcing is the contracting out of an internal business process to a third party organization.
Offshoring describes the relocation by a company of a business process from one country to another—typically an operational process, such as manufacturing, or supporting processes, such as accounting.

Question 23

Scale

Answer 23

Global Scale, Macro Scale, Micro Scale

Question 24

Redistribution/reciprocity

Answer 24

Reciprocity is an agreement entered into in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the signatories
Redistribution is the redistribution of economic wealth through taxation, monetary policies, welfare, charity, divorce or tort law.

Question 25

Commodity Fetishism

Answer 25

Commodity fetishism is the transformation of human relations, derived from the trading of commodities in the market, whereby the social relationships among people are expressed with objectified economic relationships, among the money and commodities, and the buyers and sellers. As such, commodity fetishism transforms the subjective, abstract aspects of economic value into objective, real things that people believe have intrinsic value.

Question 26

The Great Divergence

Answer 26

The process by which Europe overcame pre-modern growth constraints and emerged irrefutably during the 19th century as the most powerful and wealthy world civilization of the time. The process was accompanied and reinforced by the Age of Discovery and the subsequent rise of the colonial empires, the Age of Enlightenment, the Commercial Revolution, the Scientific Revolution and finally the Industrial Revolution. Scholars have proposed a wide variety of theories to explain why the Great Divergence happened, including lack of government intervention, geography, colonialism, and customary traditions.

Question 27

Connectivity- Based Explanation

Answer 27

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Question 28

Industrial agglomeration

Answer 28

As more firms in related industries cluster together, costs of production may decline significantly (firms have competing multiple suppliers, greater specialization and division of labor result). Even when multiple firms in the same sector (competitors) cluster, there may be advantages because that cluster attracts more suppliers and customers than a single firm could alone. Cities form and grow to exploit economies of agglomeration.

Question 29

Neoliberalism

Answer 29

Is a political philosophy whose advocates support economic liberalization, free trade and open markets, privatization, deregulation, decreasing the size of the public sector and increasing the role of the private sector in modern society.

Question 30

Free Markets

Answer 30

A free market is a market structure in which the distribution and costs of goods and services, wage rates, interest rates — along with the structure and hierarchy between capital and consumer goods — are coordinated by supply and demand unhindered by external regulation or control by government or monopolies

Question 31

Free Trade Doctrine

Answer 31

The set of beliefs held by those favoring free trade.

Question 32

Transnational Corporation

Answer 32

Multinational corporations are important factors in the processes of globalization. National and local governments often compete against one another to attract MNC facilities, with the expectation of increased tax revenue, employment, and economic activity. To compete, political powers push towards greater autonomy for corporations, or both. MNCs play an important role in developing the economies of developing countries like investing in these countries provide market to the MNC but provide employment, choice of multi goods etc.

Question 33

Race to the Bottom

Answer 33

Is a socio-economic concept that is argued to occur between countries, states, provinces or territories as an outcome of globalization, free trade, neoliberalism or economic deregulation. When competition becomes fierce between geographic areas over a particular sector of trade and production, governments are given increased incentive to cut business regulations, labor standards, environmental laws and business taxes.