Unit 3 | Economic Globalization Flashcards
Definition of:
Tariff
A tax put on imported goods/services
What is the purpose of tariffs?
- Reduce competition with domestic goods/services
- Lower the rate of illegal imports
Definition of:
Economic Globalization
The increasing spread of trade, transportation, and the buying/selling of goods/services
What is the USMCA?
A trade agreement between the US, Canada, and Mexico. It aims to reduce tariffs and quotas between nations
What was John Maynard Keynes belief (about economy)?
The government should intervene during economic instabilities
What was Friedrich Hayeks and Milton Friedmans belief (about economy)?
The government should not intervene with the economy at all (full belief in free markets)
Definition of:
Free market
A market controlled by private companies
Who was Joseph Stalin
Communist dictator of the Soviet Union
What is the International Monetary Fund (IMF)?
- Provide emergency short-term loans to countries
- Keep currencies stable
- Attempt to reform corrupt government
What is the World Bank
An organizations established to increase growth and reduce poverty in developing nations
Definition of:
Trade Liberalization
Reduce trade barriers, such as tariffs and quotas
Definition of:
Subsidy
Direct financial help to suffering nations, such as loans and lower taxes
What is a trading bloc?
A group of countries working together to give each other better trade (through trade liberalization)
How are some ways the media affect economic globalization?
- Celebrity endorsement
- Product placement
- advertisement
What is the General Agreement of Tariffs and Trades (GATT)?
A movement to get rid of tariffs and other trade barriers
What is the World Trade Organization (WTO)?
An organization established to:
- Manage the GATT
- Regulate global trade
- Settle trade disputes
What is the North American Free Trade Agreement (NAFTA)?
An agreement between Canada, the USA, and Mexico, with the goal of lowering trade barriers
Definition of:
Containerization
The transporting of goods in standard-sized shipping containers
What is a sanction?
A “penalty” to encourage certain governments to abide by certain rules/regulations (such as trade boycotts)
What is sustainability?
The degree by which earth can provide the resources to meet peoples needs
What is Sustainable Prosperity
The practice of protecting the environment so future generations can achieve prosperity
What is Environmental Stewardship?
Accepting responsibility for ensuring that the earth’s resources remain sustainable.
What is “Standard of Living?”
A measure of the basic necessities a person needs (i.e level of income, access to healthcare, etc)
What is “Quality of Life?”
A person’s perception of their well-being, including physical/mental health, happiness, etc.
