The Structures of Globalization

This set of flashcards covers key concepts related to globalization, trade policies, economic structures, and the functions of global organizations.

Economic Globalization

The increasing interdependence of world economies due to the growth of cross-border trade, flow of international capital, and spread of technologies.

Marketization

A restructuring process that allows state enterprises to operate as market-oriented firms through organizational changes like corporatization and privatization.

International Monetary System

A system that provides rules and standards for international trade, facilitating capital allocation and determining exchange rates between currencies.

International Trade

The exchange of goods, services, and capital across national borders, contributing significantly to many countries' GDP.

Trade Policies

Regulations and agreements governing trade relations between countries, defining standards, goals, rules, and regulations.

World Trade Organization (WTO)

The only global international organization dealing with trade rules between nations, aimed at ensuring smooth and predictable trade flows.

Outsourcing

An activity that involves seeking partners and making relationship-specific investments, governed by incomplete contracts.

Market Integration

Occurs when prices among different locations or related goods follow similar patterns over a long period, indicating how related different markets are.

Global Corporation

A multinational corporation (MNC) that operates in multiple countries, leveraging global opportunities for revenue generation.

Foreign Direct Investment (FDI)

An investment in a business in one country by an entity based in another country, implying direct control rather than portfolio investment.

Neoliberalism

Market-oriented reform policies that advocate for deregulation, reduction of trade barriers, and state influence in the economy.

Economic Sovereignty

The power of national governments to make independent decisions without external influence.

Economic Interdependence

The mutual reliance between economies that can influence a state's economic policies and decisions.

Four Concepts of Sovereignty

Includes international legal sovereignty, Westphalian sovereignty, interdependence sovereignty, and domestic sovereignty.

Economic Integration

The process by which countries reduce trade barriers and increase economic cooperation; can take various forms from free trade areas to complete economic unions.