Unit 3: Economic Globalization Flashcards Preview

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Flashcards in Unit 3: Economic Globalization Deck (49):
1

economic globalization

the interconnections of the worlds economies

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foundations of economic globalization

the establishment of a new international monetary system, the creation of the World Bank and the International Monetary Fund, the expansion of the free market economy into former Soviet-bloc countries at the end of the Cold War, ,and the impact of new technologies on the movement of money around the world.

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an agreement forged after the Second World War in Bretton Woods, New Hampshire, by 44 countries to establish a system of rules, institutions, and procedures for the postwar global economy

Bretton Woods Agreement

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a global network of institutions established by the Bretton Woods Agreement to promote international trade and the regulation of currency among western countries

international monetary system

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international agency that works with the World Bank to bring stability to international monetary affairs and to help expand world trade

International Monetary Fund

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the price at which one national currency can be purchased for another

exchange rate

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the value of a country's currency as set by its government

fixed exchange rate

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currency rates that are not fixed by the government but instead find their own value on the foreign exchange market

floating exchange rate

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a provision of the Bretton Woods Agreement that all printed money, such as paper dollar, would be convertible to gold and could be cashed in at any time for gold

gold standard

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a situation in which the amount of currency in circulation increases yet each unit of currency buys less

inflation

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an agency of the United Nations that in practice is independent and controlled by its member countries, which provides loans to less developed countries that are in financial difficulty

World Bank

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the global economic and political competition from 1946-1989 that divided the communist countries, led by the Soviet Union, against the Western Capitalist countries, led by the US

Cold War

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a system under which government planners decide what goods to produce, and how many

centrally planned economy

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a system in which government does not intervene in the production and control of goods and services

free market economy

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markets in which money that is loaned for a short time to businesses or governments are bought and sold

international money markets

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a company that combines its clients money and invests in a collection of stocks, bonds, and other securities

mutual funds

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John Maynard Keynes

a British economist that developed theories for a large role for government in the economy

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a period of reduced economic activity lasting longer than 6 months

recession

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Friedrich Hayek

believed that government role but be limited in economy

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GATT

general agreement on tariffs and trade; later became known as WTO

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what are the four principles of GATT

conducting trade in a non-discriminatory manner, treating imported goods from a member country in the same manner as domestic goods, protecting domestic industries through tariffs and not through measures such as import quotas or fees, and requiring any country to present a list of tariffs and trade restrictions imposed on member countries

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WTO

World Trade Organization: focus on protecting trade; focus on free trade

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FTA

Free Trade Agreement between the US and Canada

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NAFTA

North American Free Trade Agreement: included Mexico

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a tax imposed on imports to increase their price and thus reduce competition with domestic products

tariff

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GDP

Gross Domestic Product: a measure of a country's gross domestic product per capita

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G8

group of 8: 8 major industrial democracies that meet at annual summits to discuss economic and foreign policies

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CIDA

Canadian International Development Agency: a government agency responsible for administering foreign aid programs to less developed countries

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a system in which several types of transportation are used to move freight, especially when the starting point and destination are far apart

intermodal transportation

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an agreement between or among countries that includes the free trade of goods and services and the free movement of capital and labour within the trading bloc

common market

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the worlds largest most powerful common market, which works to develop common foreign and security policies and to address other issues such as citizens rights, job creation, regional development, and environmental protection

European Union (EU)

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the process of reducing barriers to trade

trade liberalization

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government owned companies in Canada

crown corporations

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opening an industry to more competition by removing government regulations

deregulation

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the sale of government owned industries and services to private businesses

privatization

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concern about the impact of foreign investment on a country's economic independence and identity

economic nationalism

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when one company hires another company to fulfill a certain task in production

outsourcing

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the use of knowledge to produce economic benefits

knowledge economy

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a country's ability to produce a product or service with comparatively fewer resources than another country

comparative advantage

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destruction of forests

deforestation

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growth of towns and cities

urbanization

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Kyoto Protocol

agreement of industrialized nations to reduce greenhouse gases by 2020

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the obligation to maintain resources in a sustainable manner

stewardship

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consideration of matters beyond purely material

spirituality

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strategies to preserve and protect resources

conservation plan

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tax money collected from all provinces by the federal government and then dispensed to distribute wealth more equally throughout Canada

equalization payments

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NEP

National Energy Policy: 1980 federal policy under which the government made oil companies in Alberta lower oil prices throughout Canada to protect Canadians from paying global market prices for oil and gas

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large scale agricultural businesses

agribusinesses

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OECD

organization for economic cooperation and development: international organization that works to meet the challenges of globalization, helping governments achieve sustainable economic growth while maintaining financial stability