Economic Globalization and Its Effects

Flashcards covering key vocabulary and concepts related to economic globalization and its impact.

Economic Globalization

The process of expanding world trading networks and increasing economic interdependence among countries.

Sustainable Prosperity

The ability for citizens to meet their basic needs while ensuring future generations can also achieve a prosperous life.

World Trade Organization (WTO)

An intergovernmental organization that regulates international trade and ensures trade flows as smoothly, predictably, and freely as possible.

NAFTA

North American Free Trade Agreement; a trade agreement between Canada, Mexico, and the United States that eliminated most tariffs and enhanced trade among the three countries.

Tariffs

Taxes imposed by a government on imported goods, often used to protect domestic industries from foreign competition.

Cold War

A period of ideological conflict between capitalist countries (led by the USA) and communist countries (led by the Soviet Union) from 1945 to 1989.

International Monetary Fund (IMF)

An international organization that provides financial assistance and advice to member countries, helping to stabilize international exchange rates.

The World Bank

An international financial institution that provides loans to developing countries for development programs, aiming to reduce poverty.

Communism

An economic system where the government owns means of production and distribution, aiming for a classless society.

Capitalism

An economic system characterized by private ownership of production, where profits are driven by free markets and competition.