Unit 5: Political and Economic Changes and Development

Globalization

Globalization

Refers to the integration of economies, societies, and cultures across the world through the exchange of goods, services, ideas, and people. It is driven by advancements in technology, transportation, and communication.

Economic liberalization

Refers to the process of removing government regulations and restrictions on economic activities, such as trade, investment, and production. It is aimed at promoting free market principles and increasing economic efficiency.

Global market forces

This refer to the economic and financial factors that affect the world economy.

Protectionism

This involves the use of trade barriers such as tariffs, quotas, and subsidies to protect domestic industries from foreign competition.

Deregulation

This involves the removal of government regulations and restrictions on businesses to promote competition and efficiency.

Fiscal Policy

This involves the use of government spending and taxation to influence the economy.

Monetary Policy

This involves the use of interest rates and money supply to influence the economy.

International Cooperation

This involves the collaboration between governments to manage the impact of global market forces on their economies.

Fiscal policy - the use of government spending and taxation to influence the economy. For example, during a recession, the government may increase spending to stimulate demand and boost economic growth.

Monetary policy - the use of interest rates and money supply to influence the economy. For example, the central bank may lower interest rates to encourage borrowing and investment.

Deregulation

The removal of government regulations and restrictions on economic activities.

Privatization

The transfer of ownership and control of state-owned enterprises to private individuals or companies.

Trade liberalization

The removal of trade barriers such as tariffs, quotas, and other restrictions on imports and exports.

Fiscal discipline

The reduction of government spending and the implementation of sound fiscal policies to control inflation and stabilize the economy.

Financial liberalization

The removal of restrictions on the flow of capital and the liberalization of financial markets.

International organizations

These are created by multiple countries to promote cooperation and address global issues.

United Nations (UN)

An intergovernmental organization that was established in 1945 to promote international cooperation and prevent conflicts between countries. It has 193 member states and is headquartered in New York City.

World Trade Organization (WTO)

An international organization that was established in 1995 to promote free trade and reduce barriers to international commerce. It has 164 member countries and is headquartered in Geneva, Switzerland.

International Monetary Fund (IMF)

An international organization that was established in 1944 to promote international monetary cooperation and facilitate international trade. It has 190 member countries and is headquartered in Washington, D.C.

Supranational organizations

These are created by multiple countries to delegate some of their sovereignty to a higher authority. These organizations have the power to make decisions that are binding on their member states.

European Union (EU)

A political and economic union of 27 member states located primarily in Europe. It was established in 1993 and has its own institutions and decision-making processes.

African Union (AU)

A continental union of 55 member states located in Africa. It was established in 2002 and has its own institutions and decision-making processes.

North Atlantic Treaty Organization (NATO)

A military alliance of 30 member countries located primarily in North America and Europe. It was established in 1949 to provide collective defense against potential security threats.

Demographic change

This refers to the changes in the size, structure, and distribution of a population over time.

Natural resources

These are the materials and substances that occur naturally in the environment and are used for economic gain.