Globalization, Trade, and Corruption

Flashcards covering key concepts related to globalization, trade agreements, economic policies, and corruption raised during the lecture.

Globalization

The process of increased interaction and integration among people, companies, and governments worldwide.

GDP (Gross Domestic Product)

The total value of all goods and services produced within a country in a given period.

North American Free Trade Agreement (NAFTA)

A trade agreement between the U.S., Canada, and Mexico that eliminated most tariffs and barriers to trade among the countries.

Association of Southeast Asian Nations (ASEAN)

A regional organization of Southeast Asian nations promoting political and economic cooperation.

AFTA (ASEAN Free Trade Area)

A free trade agreement aimed at reducing tariffs and trade barriers among ASEAN member states.

Mercosur

A customs union comprising Argentina, Brazil, Paraguay, and Uruguay focusing on economic integration.

Protectionism

The use of trade barriers to shield domestic industries from foreign competition.

Trade Deficit

A situation where a country’s imports exceed its exports.

Competitive Advantage

The advantage a country has over others due to certain favorable conditions for producing goods.

Law of Comparative Advantage

The principle that countries should specialize in producing goods for which they have a low opportunity cost.

Dumping

Exporting a product at a price lower than its normal selling price in the home market.

Nontariff Barrier

Any impediment to merchandise imports other than customs duties.

Buy American Laws

Legislation that requires government agencies to prioritize purchasing U.S.-made goods.

Industrial Policy

Government strategies to promote specific sectors or industries within the economy.

Corruption

Dishonest or fraudulent conduct by those in power, often involving bribery.