Economic Globalization Practice Flashcards

Vocabulary-style flashcards covering the definitions, drivers, examples, and impacts of economic globalization based on the lecture notes.

Economic Globalization

The increasing integration of economies worldwide through trade, investment, finance, and technology, allowing goods, services, capital, and labor to move freely across borders.

Shanquan (2000)

Described economic globalization as an unstoppable trend reflecting market expansion and the integration of economies on a global scale.

Trade Liberalization

The removal or reduction of trade barriers, such as tariffs and quotas, to encourage the free exchange of goods between nations.

Tariffs

Taxes placed on imported products.

Quotas

Limits placed on the quantity of imports allowed into a country.

ASEAN Free Trade Agreements

Regional agreements that reduce tariffs on imported products from neighboring countries for members like the Philippines.

Financial Integration

The increasing connection between financial systems of different countries, allowing money and capital to flow more easily across borders.

Foreign Direct Investment (FDI)

An investment made by a company from one country into a business located in another country.

2008 Global Financial Crisis

A significant economic crisis that started in the U.S. and impacted global economies, demonstrating the downside of financial integration.

Multinational Corporation (MNC)

A company that has business operations in at least one country other than its home country, such as Toyota, Apple, or Coca-Cola.

Global Supply Chains

A production system spread across different countries where a single product may have components manufactured in various locations globally.

Market Integration

Occurs when the prices of goods in different countries follow similar trends due to trade and connectivity, such as oil or gold prices.

International Financial Institutions (IFIs)

Organizations that provide financial support to countries, often through loans or crisis assistance.

World Bank

An international financial institution that provides loans specifically for infrastructure projects.

International Monetary Fund (IMF)

An organization that assists countries during economic crises to help stabilize their economies.