Unit 3 - Economic Globalization

Inflation

Sources of money is worth more than actual value

Bretton Woods Agreement

Signed by the Allied countries in 1944 that established a number of financial institutions and a system of rules and regulations to promote international trade in the global economy 

What did the Bretton Woods Agreement set up?

a system of rules for the global economy and international organizations to look after the global economy

The World Bank

Gives money to those countries that follow certain guidelines. politically (democracy) economically (capitalism)

International Monetary Fund

Global financial organization funded by member countries through wealth-based quotas. It works with the World Bank to stabilize global exchange rates and provide short-term loans to countries facing economic crises.

Floating Exchange Rate

About supply and demand, when countries in the world want your currency and it becomes worth more.

John Maynard Keynes

A medium capitalist who believed the government intervention was needed in the economy.

Outsourcing

One company hires another company to fulfil certain tasks in production

Offshoring

A company sends some of their work to another country

Sweatshop

A factory with low wages and poor working conditions that is often found in less developed countries and often works with transnational companies.

Pros of Outsourcing And Sweatshops

Job creations in developing countries

Increased GDP

More products available

More money for CEOs of transnationals

Cons of Outsourcing And Sweatshops

Poor working conditions (QoL)

Low pay in developing countries

Factories create pollution

Lower quality of goods

Child labour

Censorship

The suppression, prohibition, or editing of speech, public communication, or other information deemed harmful to an authority. It is now harder to accomplish because of cell phones and internet.

Knowledge Economy

An economic system where production of goods and services are driven by human knowledge and intellectual property.

How have technological advancements changed the job market?

They have shifted the most in-demand jobs from being physically based to knowledge-based.

Containerization

A shipping method in which large amounts of goods are packaged into large containers

Tariffs

a tax on imports (buying) or exports (selling)

Protectionism

when a government makes rules, (taxes on imports) to help protect local businesses from competition from other countries. Often limits or makes foreign products more expensive.

Free Trade

The result of trade liberalization; happens when there are very few restrictions on international trade.

Trade Liberalization

Reducing barriers to international trade (most commonly accomplished through removing tariffs).

Trading Bloc

A group of countries working together to give one another better trading terms

General Agreement on Tariffs and Trade (GATT)

UN agency (1947), all traders are to be equal. Once in the GATT, a country is to try and lower its taxes on goods that are traded.

The Free Trade Agreement (FTA)

Opened borders between the US and Canada.

North American Free Trade Agreement (NAFTA)

The FTA but added Mexico to the mix and there was an increase in trade between Canada, the US and Mexico.

United States Mexico Canada Agreement (USMCA)

Replaced NAFTA July 1st 2020. NA vehicle production was increased slightly made in NA and Canada has moe access to US dairy markets.

World Trade Organization (WTO)

Goal is to improve international trade relations. Encouraged countries to remove tariffs and other trade barriers. Members must follow certain rules to be included. Being excluded makes trade very difficult.

The Group of 7 (G7)

Discusses economics and foreign policy

Deregulation

The process of removing laws that apply to businesses

Crown Corporation

Government owned businesses created to offer essential services that would usually cost more money than it made.

Privatization

The sale of government owned industries and services to private businesses

Foreign Investment

The control of a business in one country by a person/ company in a different country.

Economic Nationalism

The belief that a country’s economy should belong to the people of the country and not be controlled by foreign companies.

Manufacturing economies

an economic system where the primary driver is the production of tangible goods from raw materials through industrial processes

The Digital divide

The gap between those who have access to and can effectively use modern information and communication technologies and those who cannot. 

Sustainability

Meeting the needs of current generations while not compromising the needs of those to come after us; it has to do with the economy, the environment, and people

National Energy Policy (NEP)

A federal government policy to help lower prices for oil and gas in Canada. Canadian bussinesses did not buy into the idea and went elsewhere, hurting the economy.

Stewardship

Careful and responsible management of natural resources to ensure sustainability.

The Mackensize River Pipeline

Oil was discovered Far North. It was proposed that a pipeline be built along the river - suggested contruction be frozen for 10 years while F.N land claims were settled. Gas companies negoitated a resource development with Indigenous Groups.

Institution

Organization made to help countries work together on important issues like money, trade or development.

UN Agreement on Straddling and Highly Migratory Fish Stocks

Focused on creating a sustainable industry by introducing fishing quotas on international waters. Created a process for settling disputes