Globalization, Trade, and Economic Systems: Key Concepts and Historical Perspectives

Globalization

The increasing or expedited flows of people, goods, and ideas across borders.

6 Paradigms of Globalization

Economic, political, technological, multinational corporations, cultural, and environmental.

Dominant Paradigm

Economic globalization dominates scholarship and media discussions.

"Is Globalization Good or Bad?"

A flawed question because globalization has both positive and negative effects depending on context.

Two Ends of Globalization (Negative)

Rapid corrosive effect — negative social change.

Two Ends of Globalization (Positive)

Potential for social, political, and economic improvement — positive social change.

Commodity

Anything that has value and can be exchanged in global markets.

Fungibility

Interchangeability of commodities; one unit is equal in value to another.

T-and-O Maps

Medieval Muslim maps showing trade routes with Mecca or Jerusalem at the center.

Trans-Saharan Trade

Linked North and West Africa through gold and salt exchange from ~800-1600 CE.

End of Trans-Saharan Trade

Ended due to rise of maritime trade and changing political power.

Silk Road

Network connecting East Asia to Europe through land routes from ~200 BCE-1500 CE.

End of Silk Road

Chinese isolationism and the rise of sea trade routes.

Cod Story

Shows global-local connections through fishing, trade, and technology over time.

Groups in Cod Trade

Vikings, Basques, English, Hanseatic League, and Americans.

How Cod Exemplifies Globalization

Shared knowledge, trade, and resources across regions and centuries.

Scramble for Africa

Competition among European nations to colonize Africa (1884-1885).

Berlin Conference

1884-1885 meeting dividing Africa among European powers.

Direct Rule

Colonial system with foreign officials governing at all levels (France).

Indirect Rule

System using local leaders under colonial authority (Britain).

Colonial Project

European process of resource extraction and control justified as a "civilizing mission."

Social Evolution

Victorian idea ranking societies as savage, barbaric, or civilized.

Cultural Relativism

View that cultures must be understood in their own context, opposing ethnocentrism.

Imagined Communities

Nations formed by shared identity and communication, not physical proximity.

Capitalism

Economic system based on private ownership of production for profit.

Socialism

State ownership of production and distribution.

Communism

Collective ownership aiming for classless society.

Adam Smith

Founder of modern economics; "invisible hand" of markets guides rational outcomes.

Free Market

Economy with little to no government interference.

Protectionism

Economic policy using tariffs to protect local industries.

Industrial Revolution

Shift to industrial manufacturing, starting in Britain (late 1700s-1800s).

200-Mile Limit

US/Canada law restricting foreign fishing access.

Predatory Capitalism

Exploitation through unregulated, profit-driven global markets.

World Systems Theory

Wallerstein's model: core, semi-periphery, and periphery nations in global trade.

Commodity Chain

Path of a product from raw material to final consumer.

Fair Trade

Trade ensuring fair wages, ethical sourcing, and environmental protection.

McDonaldization

Efficiency, calculability, predictability, and control in global business.

Starbuckization

Cultural and spatial expansion of standardized consumer experiences.

Infill

Locating stores close together to dominate urban spaces.

Big Mac Index

Measures purchasing power using the cost of a Big Mac.

Tall Latte Index

Measures cultural and economic value through Starbucks coffee prices.

Neoliberalism

Global spread of free-market capitalism, privatization, and deregulation.

Bretton Woods (1944)

Created IMF and World Bank for global financial stability.

Structural Adjustment Programs (SAPs)

Policies requiring privatization, deregulation, and currency devaluation.

Poverty Trap / Debt Spiral

Cycle of borrowing leading to increased dependency on international loans.

Race to the Bottom

Countries lowering standards to attract foreign investment.

Nationalization

State control of industries and resources.

Privatization

Transfer of public assets to private ownership.

Zambia Case

Showed effects of debt, IMF loans, and privatization on developing economies.