GNED 7 Reviewer: Global Economy and Integration

Vocabulary flashcards covering key definitions, theories, international financial institutions, economic theories, and regional integration models from GNED 7 reviewer.

Globalization

Increasing worldwide connection and interdependence.

Silk Road

An early example of long-distance exchange showing that globalization has no exact starting date.

World-Systems Theory

A theory that examines unequal economic positions among nations: core, semi-periphery, and periphery.

World Polity Theory

A theory that looks at shared global rules, norms, and institutions.

World Culture Theory

A theory that focuses on cultural exchange, shared practices, relativization, and the spread of cultural ideas, symbols, values, and practices across countries.

Relativization

Becoming aware that one's own beliefs, customs, and way of life are not the only possible ways of living, leading people to compare perspectives and question assumptions.

Global Economy

The connection between the economies of different countries, including trade, production, investment, employment, consumption, and distribution of goods and services across national borders.

Economic Globalization

The process through which countries' economies become more connected and integrated through international trade, investment, business, technology, and movement of capital and workers.

Mercantilism

An economic system and policy popular in Europe from the 16th to the 18th centuries aimed at strengthening a country's wealth and power by maintaining a favorable trade balance and accumulating gold and silver.

Import

A good or service brought into a country from another country.

Export

A good or service sold to another country.

Tariff

A tax placed on imported goods.

Protectionism

Government policies used to protect domestic industries from foreign competition, utilizing tariffs, import restrictions, and government support.

Import Restrictions

Limits placed on the quantity of goods allowed into a country.

Government Support

Assistance or incentives provided by a government to local producers.

Economic Liberalism

An economic perspective supporting giving individuals and businesses freedom to make economic decisions, with a limited role for government.

Marxism

An economic, social, and political theory developed by Karl Marx that focuses on social classes, class inequality, resource ownership conflicts, and how wealth is shared.

Privatization

Transferring an enterprise or industry from the public sector to the private sector.

International Financial Institutions (IFIs)

Institutions that support economic and social development, especially in developing countries, by providing grants and loans.

Grant

Financial assistance that generally does not need to be repaid.

Loan

Money that must be repaid under agreed terms, often with interest.

World Bank

An international organization founded in 1944 and headquartered in Washington, D.C., that provides financing, advice, and research for long-term development and poverty reduction.

International Bank for Reconstruction and Development (IBRD)

The original World Bank institution that provides loans and advice for middle-income and creditworthy lower-income countries.

International Development Association (IDA)

A World Bank Group organization providing grants and low-cost loans for the poorest countries.

International Finance Corporation (IFC)

A World Bank Group organization that supports private-sector development.

Multilateral Investment Guarantee Agency (MIGA)

A World Bank Group organization that provides guarantees to help encourage investment in developing countries.

International Centre for Settlement of Investment Disputes (ICSID)

A World Bank Group organization that provides facilities for resolving investment disputes.

International Monetary Fund (IMF)

An organization that works to promote monetary stability, short-term economic difficulty resolution, international monetary cooperation, trade, growth, and poverty reduction.

IMF Surveillance

The IMF role of monitoring member countries' economic and financial conditions, including inflation, spending, debt, exchange rates, and growth, to identify risks and advise countries.

IMF Lending

The IMF role of providing loans to member countries facing actual or potential balance-of-payments problems.

IMF Capacity Development

The IMF role of offering training and technical assistance in areas such as taxation, budgeting, financial regulation, and economic statistics.

Market Integration

The process of linking countries' separate markets and economies by reducing trade barriers and enabling easier movement of goods, services, and production factors.

Negative Integration

Removing or reducing barriers that restrict trade, such as tariffs, quotas, and complicated regulations.

Customs Union

An integration stage featuring free trade among members plus a common external trade policy.

Common Market

An integration stage that adds freer movement of labor and capital to free trade and a common external policy.

Economic Union

An integration stage that adds coordination of economic policies to a common market.

Association of Southeast Asian Nations (ASEAN)

An organization established on August 8, 1967, in Bangkok by five founding members: Indonesia, Malaysia, the Philippines, Singapore, and Thailand.

ASEAN Economic Community (AEC)

An entity established in 2015 to strengthen regional economic cooperation and integration among ASEAN nations.

ASEAN Free Trade Area (AFTA)

An agreement aimed at reducing tariffs on trade among ASEAN members.

Four Pillars of ASEAN Economic Integration

1. Single market and production base; 2. Competitive economic region; 3. Equitable economic development; 4. Integration into the global economy.

Single Market and Production Base

An ASEAN integration pillar aiming to support the freer flow of goods, services, investment, capital, and skilled labor.

Sourcing

Finding a business partner to provide goods or services meeting a company's needs, where the partner may make relationship-specific investments.

Outsourcing

Contracting an outside provider to perform a business function instead of doing it within the company.