Crossing Borders - 2

Capitalism

A system of economic organization based on private property and free markets

Comparative Advantage

The idea that countries should produce and export goods that they can produce at a lower cost than others and import items that others produce at lower cost

Conditionality

The requirements imposed on prospective borrowers by the IMF or other lending institutions that emphasize economic growth over welfare considerations

Current Account

the equivalent of a country’s checkbook, reflecting the combined balances on trade in goods, services, income, and net transfers

Dependency theory

the view that the development of countries in the Global South is limited by the favorable terms utilized to integrate them into the global capitalist economy, especially the kind of goods and services they are able to export

Hegemon

the dominant power that exerts influence over others, especially in politics, economy, and culture

Liberalism

the economic approach, commonly traced to the writings of Adam Smith, that emphasizes the role of the free market in promoting economic growth and prosperity

mercantilism

the economic approach that promotes the aggressive pursuit of exports and the simultaneous protection of domestic markets to acquire and expand wealth and power

Most-favored Nation (MFN)

a means to promote trade equality by guaranteeing that if one country is given better trade terms by another, all other partners must receive the same benefit

Neoliberalism

the economic principles that promote free market capitalism and reflect the ideals of contemporary globalization

nondiscrimination

the idea that countries would extend preferential trade status to all their trade partners

Outsource

The displacement of work activity; involves the transfer of certain specific functions performed within a company to an outsider provider

Offshoring

the displacement of work activity; entails the relocation of an entire business operation to another country

Petrodollars

U.S. dollars earned through the sale of petroleum

Reciprocity

the idea that countries would respond to actions taken by their trade partners to reduce trade barriers with similar reduction of their own

Doha Round

The most recent international trade negotiations conducted under the auspices of the WTO

Foreign direct investment (FDI)

the acquisition of corporate assets through the purchase of property, a plant, or equipment

Group of Twenty (G20)

The G20 Finance Ministers and Central Bank Governors, representing leading industrial and emerging market countries

Intellectual Property Rights (IPRs)

patents, copyrights, and trademarks extended to individuals and organizations to protect their ownership of products or other creative works generated through their original ideas

nominal interest rate

the stated interest rate on a loan or investment

North American Free Trade Agreement (NAFTA)

an arrangement designed to expand cross-border trade and investment signed by Canada, Mexico, and the United States in 1994

Portfolio investment

the purchase of stocks, bonds, or other financial assets that does not result in direct management or control over an enterprise

protectionism

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

race to the bottom

a phenomenon where coutnries and companies compete to cut costs by reducing regulations that protect wages, benefits, working conditions, and the environment

real interest rates

the rate of interest an investor, saver, or lender receives (or expects to receive) after allowing for inflation. Calculated as Nominal Interest Rate - Inflation Rate

securities

bond or stock certificates

securitization

the pooling of various loans (including those with considerable risk) into securities and selling them to other activities

sovereign debt

a government’s outstanding financial financial liabilities and obligations

transnational corporations (TNCs)

companies that operate on a global scale with integrated operations across regions and countries

Washington Consensus

the set of economic policy reforms imposed by the IMF and other DC based financial institutions on potential borrowers

acculturation

the changes in behaviors, values, and cultural attitudes as a result of two or more cultural groups coming into contact

anthropology

a field of study that examines the physical attributes of human beings as well as their social and cultural characteristics

assimilation

the submerging of culture differences into a broader, dominant culture

banal nationalism

the everyday representations of a nation that build a sense of shared identity

bourgeoisie

the owners of the means of production

caste system

a division of society based on birth that originally developed from the Hindu religion

communication

a field of study that looks at how people create, interpret, and convey meaning, as well as the impact of human interaction and technology on individuals, society, culture, and power dynamics

communism

a social movement that promotes the communal values of the worker class

cultural diffusion

the spreading of culture beyond a specific group to be embraces by a wider audience

cultural imperialism

when one culture is dominated by another culture to the point that the victimized culture is forces to change its cultural practices

cultural relativism

cultural understanding regarding the environment in which it exists

culture

as defined by UNESCO “the complex whole which includes knowledge, beliefs, arts, morals, laws, customs, and any other capabilities and habits acquired by [a human] as a member of society”

culture shock

a physical and psychological response to cultural differences when traveling away from home

deterritorialization

the weakening of cultural ties to specific locations

enculturation

the process by which a society learns its culture

ethnography

the observation and description of people in their environment through in-depth analysis and interaction

glocalization

the adaption of local forms of expression and identity to outside influences

hard power

the use of coercion to influence others

homogenization

the incorporation of a range of cultural forms into a uniform set of values and practices

hybridization

a blending of cultures that incorporates different aspects of each culture to create a new identity

language hegemony

the dominancy of one language or accent over others, often resulting in the marginalization of minority languages and cultures

proletariat

the industrial workers

psychology

a field of study that seeks to understand the motivations behind the decisions people make regarding their cognitive orientation

sociology

a field of study that focuses on people and their relationships to the societies in which they live

soft power

the use of appeal and attraction to influence others

sport nationalism

the phenomenon where national identity and pride are expressed through sport and competitions

sportswashing

the practice where countries, corporations, or individuals use sports to improve their tarnished reputations