Globalisation and International Trade Dynamics

Flashcards based on key terminology related to globalisation and international trade, designed to enhance understanding for exam preparation.

Globalisation

Rapid increase in certain flows between territories, often influenced by transportation technology and political decisions regarding border openness.

DIPP

Division International du Processus de Production; refers to the international division of labor where production is spread across various countries.

Globalisation

Rapid increase in certain flows between territories, often influenced by transportation technology and political decisions regarding border openness.

DIPP

Division International du Processus de Production; refers to the international division of labor where production is spread across various countries.

Protectionism

Economic policy aimed at restricting imports to protect domestic industries through tariffs and other regulations.

Keynes

Famous economist who advocated for government intervention in the economy and suggested a preference for a certain degree of protectionism.

FTN

Firme Transnationale; a type of enterprise that operates across national boundaries, often involved in foreign direct investment.

Bretton Woods

The 1944 agreement that established a new international monetary system, pegging currencies to the US dollar.

Subprime mortgage crisis

A financial crisis that occurred in 2007-2008 due to high default rates on subprime mortgages, leading to a significant decline in economic activity.

Commercial liberalism

The theory suggesting that free trade and open markets lead to mutual benefits for all trading partners.

Decoupling

The process by which an economy becomes less reliant on global trade and more focused on internal markets.

Multinational corporation (MNC)

A corporation that owns or controls production or service facilities in one or more countries other than its home country.

Trade liberalisation

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

IDE (Foreign Direct Investment)

Investment made by a company or individual in one country in business interests in another country, in the form of establishing operations or acquiring assets.

Neoliberalism

A modified form of liberalism tending to favor free-market capitalism, deregulation, and reduction in government spending.

Nomadic jobs

Jobs that can be easily relocated, often affected by globalisation practices like outsourcing.

Sovereignty

The authority of a state to govern itself, often challenged by globalisation through economic interdependence.

Digital economy

An economy that is based on digital computing technologies, significantly impacting how international trade operates.