Globalization

Globalization

the increased interconnectedness of people, states, and economies. 

Foreign direct investment

an investment from abroad in economic activity in another country

Trade

the import and export of goods and services.

 International capital flow

the movement of money across national borders. 

Multinational corporations

companies that have facilities or assets in more than one country. MNC’s increase capital growth and provide many jobs. They often spend money to improve infrastructure helping communities and help diversify economies, especially in rentier states.  

An international organization

a body established by a treaty or other agreement among countries. 

A supranational organization

a body in which member countries have some say in governing and give some sovereignty over issues affecting the organization as a whole. 

Import substitution industrialization

enacting high tariffs and providing incentives to encourage the growth of domestic manufacturing.

Economic liberalization policy

a policy that reduces the role of government in the economy, supports the free market and reduces trade barriers. 

Structural adjustment programs

requirements for receiving assistance from international lenders, including the privatization of state-owned companies, the reduction of tariffs, and the reduction of subsidies for domestic industries.