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Globalization

interaction, interconnection, and interdependence of cultures, politics, and economic affairs. it spreads the benefits and drawbacks, cause and effects around the world

Economic borders

borders that delineate the markets that promote the exchange of goods and services around the world. Global marketplaces is driven by global corporations and individuals (consumers)

Political borders

borders that delineate the governing entities of the world and that are distinguished on the basis of territory. population, governments, and recognition by others. Governments are in control within the boundaries.

Cultural borders

borders that delineate the nations of the world that form identities in terms of language, religion, ethnicity, or a common historical experience. Provides the most important insights into the world's people

Golden Straightjacket

by Thomas Friedman to describe what states must do to participate competitively in the global market. Balance budget, cut state bureaucracy, promote the private sector, and encourage free trade to compete effectively in the global market. Economy grows, politics shrink

Global Connections

bring cultures together and tackle issues around the world

Is globalization a new phenomenon?

Globalization is a phenomenon that exists where billions of people are affected. The benefits that technology brings allows for advancement and development of countries and individuals. However, the drawbacks consist of corporations taking advantage of cheap labor from poverty which leads to having young women and men to leave school and help out their families

Silk Road

ancient trade routes that connected the most Eastern China (Silk) to Rome (Wools, gold, silver) and India (Nestorian Christianity and Buddhism)

Nation states

same as political borders. Responsible for the rise and definition of social entities that are currently called ethnic groups

Industrial Revolution

18th Century transformation from a human and animal based on machines. The invention of steam engine by Thomas Savery in 1698 allowed trains (weather-proof) to travel products much faster. Also the invention of spinning machines that turned wool and cotton into yarns

Nationalism

a commitment to and support of the nation's interests. Rooted from rivalry and resentment. Tries to find justification for mistakes made in the past. Believes in perfection of state, never questions the state

Patriotism

national pride is the ideology of love and devotion to a homeland, and a sense of alliance with other citizens who share the same values. National loyalty. Rooted from affection. Enables people to understand both the shortcomings and improvements made

Protectionism

government policies that restrict imports in an effort to shield local businesses from global competition

Bretton Woods Conference

Also known as United Nations Monetary and Financial Conference, delegates from 44 nations met on July 1-22, 1944 in New Hampshire. Create International Monetary Fund (IMF) and the Bank of Reconstruction and Development (IBRD) AKA World Bank

Colonialism

conquering a nation and acquiring full or partial political control, occupying with settlers and develops or exploits the economy

Cold War

fought by the superpowers US and Soviet Union after WWII in 1947-1991. Capitalism vs. Communism. Both sought alliances around the world. Soviet Union lost.

Client States

a state that is economically, politically, or militarily subordinate to another more powerful state in international affairs

Proxy Wars

conflict between two states or non-state actors which act on the instigation or on behalf of other parties that are not directly involved in the hostilities. Occurs when a major power instigates or plays a major role in supporting and directing a party to a conflict but does only a small portion of the actual fighting itself.

NATO - North Atlantic Treaty Organization

29 members, guarantees freedom and security of its members through political and military means. You attack one member, you attack all. US, Britain, France, etc. Founded in April 4, 1949

Warsaw Pact

Treaty of Friendship, Mirrors NATO, Soviet Union and several Eastern European countries. Founded in May 14, 1955. Creates tension with NATO, just like before

UN - United Nations

established after WWII to avoid more wars; solves international conflicts peacefully. 5 permanent members are US, Britain, France, China, Russia; 10 rotating members

Security Council

The policy body of UN. If a UN member attacks another, the council decides what to do, example is to cut off trade or other more severe punishment

General Assembly

Representatives body of UN, debates and vote on decisions (1 vote per country). All states that have ratified the UN Convention are members of this body. Supervises UN activities, decides financial matters, elects non permanent members of Security Council. Cannot make policies

World Trade Organization - WTO

regulates international trade, trade agreements. Has over 160 country members. Not an UN agency but works closely together for maintaining international affairs

GATT/WTO - General Agreement in Tariffs and Trade

sets of rules to create more free trade. WTO settles disputes and sets rules. Lower tariffs. Council for Trade in Goods (responsible for GATT) are made up of WTO members

International Monetary Fund - IMF

promote cooperation on monetary policy and to stabilize currency exchange rates. Gives loans to developing countries to balance their accounts and meet other loans

World Bank

created after WWII, provides loans to developing countries to build infrastructures and build damages

NAFTA - North American Free Trade Agreement

Canada, US, and Mexico. Creates a trilateral trade in North America

NGO - Non-Governmental Organization

international organizations, example is Red Cross. Activities include, but are not limited to, environmental, social, advocacy and human rights work. They can work to promote social or political change on a broad scale or very locally. NGOs play a critical part in developing society, improving communities, and promoting citizen participation

IGO - Intergovernmental Organization

legalizes sign of Treaties between nations, acts as international charter group. Examples are UN, World Bank, European Union

TNC/MNC - Transnational Corporations

a type of Multinational Corporations. TNC takes care of adapting products and service into local markets, does not have subsidiaries, able to gain more interests since they maintain their own system. MNC gives decisions, has a home country that has offshores, centralized management

Neoliberalism

promotes free market capitalism and reflect ideals of contemporary globalization, wealth creation

Free Trade

does not restrict imports or exports, no tariffs or restrictions on international trade

Free Market

prices are determined on competition between private owned businesses

Developing nation

where average income is lower than in industrial nations, economy relies on a few export crops, agriculture is done with primitive methods, increasing population rate while threatening the food supply

Structural Adjustment Programmes

consists of loans provided by IMF and World Bank to help countries who are going through crisis

Dual Economy

existence of two distinct types of economic segments within an economy. One is Agricultural sector - low profitability, labour intensive, low income, low growth opportunities. Manufacturing sector - higher productivity and profits, higher income, opportunities for trade

Dependency model

Argues that Neoliberalism (capitalism) ignores developing countries' issues especially with agriculture. Titled to favor the wealthy. Theory where poor needs industrialization from wealthy country, and wealthy needs cheap labor and raw materials from poor country. Doesn't allow poor to develop, makes poverty worse

Neocolonialism

using capitalism, globalization and cultural imperialism to influence a developing country in lieu of direct military control or indirect political control. It proposes that the global economic system comprises wealthy countries at the center, and poor countries at the periphery (Dependency theory)

Subsidies

Good: cuts taxes or increase government efforts into building public services and industries. Bad: comes from taxes from incomes

Free market capitalism is characterized by:

A. Tight controls over capital movement.

B. Nationalized industries.

C. Reduction in government regulations over business.

D. Centralized economic planning

C. Reduction in government regulations over business

Opponents of globalization see each of the following as agents of evil and destruction except:

A. WTO

B. WHO

C. IMF

D. World Bank

B. WHO

Burlington Industries closed its mills in North Carolina because:

A. They moved to Mexico for cheaper labor.

B. The company was absorbed by a large TNC.

C. The company couldn't compete with cheap Chinese textiles.

D. The company got caught hiring illegal immigrants for extremely low pay.

A. They moved to Mexico for cheaper labor.