Global Economy and Economic Systems Flashcards

Vocabulary flashcards covering topics on globalization, market structures, production factors, economic systems, labor market dynamics, and global economic powers.

Economic Globalization (Globalización económica)

A process of liberalizing international exchanges of goods, services, technology, labor, and financial capital between countries, increasing economic interdependence and integration, driven primarily by transportation advances and ICTs.

Customs Union (Unión aduanera)

A commercial organization characterized by the free movement of goods among member countries and a unified, common customs policy applied against non-member countries.

Free Competition (Libre competencia)

A market condition in which any individual or company is entitled to carry out whatever economic activity they desire, provided they comply with existing legislation.

Wholesaler (Mayorista)

A merchant or enterprise that purchases and sells merchandise in large quantities, as opposed to a retailer (minorista) who buys and sells in small quantities.

Labor Market (Mercado laboral)

The framework of relations between those seeking or holding paid employment (the active population, representing labor supply) and those offering employment (employers, representing labor demand).

Monopoly (Monopolio)

A market situation where a single enterprise exclusively controls the production and distribution of a product or service, giving it the power to determine both supply and price.

Oligopoly (Oligopolio)

A market structure where product supply is concentrated among a small number of firms that control the market and agree on prices and operating conditions.

Circular Economy (Economía circular)

A production and consumption model aimed at reconciling economic growth and social welfare with environmental sustainability by optimizing natural resource use, prioritizing renewable energies, and sharing, reusing, repairing, and recycling existing materials and goods.

Agglomeration Economy (Economía de aglomeración)

The economic benefits and advantages that enterprises gain by locating geographically close to one another, particularly when their productive activities are complementary.

Emerging Economy (Economía emergente)

A country whose economy expands at a rate significantly higher than the global average, frequently outpacing the growth rates of traditional economic powers.

Tertiarized Economy (Economía terciarizada)

An economy where the service sector employs the majority of the working population and generates more than $\frac{2}{3}$ of the national Gross Domestic Product (GDP).

Capital

The aggregate of non-natural resources utilized to produce goods and services, consisting of material assets (material goods), financial resources (financial capital), and labor or workforce (human capital).

Capitalism (Capitalismo)

A free-market economic system founded on private ownership of the means of production, free competition, resource allocation governed by the law of supply and demand, and the pursuit of profit as the primary economic driver.

Communism (Comunismo)

An economic system in which the State exercises total control over all dimensions and aspects of the economy.

Production Costs (Costes de producción)

The total sum of the monetary value of all resources consumed in the manufacturing of a good or the delivery of a service.

Economic Activity (Actividad económica)

Human activity focused on satisfying needs and desires through goods and services in exchange for a profit, organized into three phases: production, distribution, and consumption.

Gross Domestic Product (Producto Interior Bruto - PIB)

The total monetary value of all final goods and services produced within a specific territory over the span of one year.

Primary Sector (Sector primario)

The sector of economic activity encompassing agriculture, livestock farming, fishing, and forestry exploitation.

Secondary Sector (Sector secundario)

The economic sector comprising industry, mining, the exploitation of energy sources, and product distribution.

Tertiary Sector (Sector terciario)

The economic sector that encompasses all activities related to providing services.

Economic Agents (Agentes económicos)

The three decision-makers in an economy: the State (establishes economic policy and generates employment), Companies (produce and distribute goods and services for profit), and Individuals (work for wages, purchase goods and services, and pay taxes).

Factors of Production (Factores de producción)

The inputs required to produce goods and services: natural resources (raw materials and energy), capital (money, workers, and physical assets), technology and knowledge (techniques to increase productivity and save costs), and human labor.

Active Population (Población activa)

The segment of the population that constitutes the labor supply, composed of individuals who are either currently employed or unemployed and actively seeking work.

Inactive Population (Población inactiva)

Individuals who are not part of the labor supply because they are not looking for paid employment, such as students and retirees.

Formal Work vs. Informal Work (Trabajo formal vs. Trabajo informal)

Formal work operates with an employment contract and adheres to labor laws and collective agreements; informal work takes place outside these legal conditions and protections.

Subsistence System (Sistema de subsistencia)

An economic system in which families produce goods solely for their own self-consumption utilizing traditional methods.

Delocalization of Production (Deslocalización de la producción)

One of the three major effects of globalization, involving the relocation of manufacturing processes from traditional economies to developing nations to reduce costs.

Traditional Economic Powers (Potencias económicas tradicionales)

Nations that historically dominated world production, finance, and technology (the United States, the European Union, and Japan through the late 20th century), currently experiencing slower growth due to delocalization, population aging, high debt, and developing-world competition.

New 21st-Century Powers (Nuevas potencias del S. XXI)

China (leading global exporter of goods, leader in technology) and India (fastest-growing global economy, leader in industry, services, IT, and ICT), both characterized by rapid economic growth and abundant, competitive, qualified workforces.

Regional Economic Powers (Potencias económicas regionales)

Countries that possess greater economic weight than surrounding neighbors and exert regional influence, notably Russia, Indonesia, Mexico, and Saudi Arabia.

G20 (Group of Twenty)

The premier international forum for economic and financial cooperation, comprised of $19$ individual countries and the European Union (spanning G7 members plus China, India, Brazil, Mexico, Argentina, Russia, South Korea, Saudi Arabia, South Africa, Australia, Indonesia, and Turkey), with Spain holding permanent guest status.

BRICS

An association of major emerging national economies comprising Brazil, Russia, India, China, and South Africa.