Week 4 - The Global Economy Lecture Notes

These flashcards contain key vocabulary terms from the lecture notes about the global economy, their definitions, and relevant concepts for exam preparation.

Global Economy

An interdependent constellation of human relationships regarding the production, exchange, and consumption of goods and services.

Inflation

A rise in the general level of prices, which can impact purchasing power.

Gross Domestic Product (GDP)

The sum of all goods and services produced in a country’s economy; a measure of economic activity.

Human Development Index (HDI)

A summary measure of average achievement in key dimensions of human development: a long and healthy life, knowledge, and a decent standard of living.

Free Trade

An economic policy that allows trade to occur with minimal government intervention, typically involving reductions in tariffs and subsidies.

Fair Trade

A trading partnership based on dialogue, transparency, and respect, which seeks greater equity in international trade.

Foreign Direct Investment (FDI)

Investment made by a company or individual in one country in business interests in another country.

Tariffs

Taxes imposed on imported goods and services to protect domestic industries from foreign competition.

Economic Exploitation

The act of using someone or something unfairly for one's own benefit, especially in an economic context.

Inequality

The state of not being equal, especially in status, rights, and opportunities, often manifesting in economic disparities.