Economic Structure & Governance of Globalization – Midterm Review

A comprehensive set of question-and-answer flashcards covering economic globalization, global stratification, market integration, regional trade blocs, the interstate system, principles of internationalism, global governance, and key international organizations.

What is meant by “economic globalization”?

A historical process of human innovation and technological progress that integrates national economies through the movement of capital, goods, and services.

The phrase “global economy” refers to what overarching phenomenon?

The worldwide system created by interconnected national economies participating in economic globalization.

Which four broad development categories are often used to classify national economies?

Advanced economies, economies in transition, less-developed economies, and least-developed economies.

What term describes the unequal distribution of wealth, power, resources, and influence among the world’s nations?

Global stratification.

In the First (political) Typology of global stratification, how are nations grouped?

First World (Western capitalist nations), Second World (Soviet bloc), and Third World (almost all remaining nations).

Which three labels make up the Popular Typology of global stratification?

Developed, developing, and undeveloped nations.

The Replacement Typology ranks nations by GDP per capita into what three income groups?

High-income, middle-income, and low-income countries.

Who created the Brandt Line and what main historical factors did he blame for the Global North–South divide?

Willy Brandt; he cited colonialism, debt, and trade patterns as key causes of inequality.

List three common characteristics of Global North countries.

Wealthy, technologically advanced, politically stable democracies that dominate global trade and politics.

Give two typical characteristics of Global South countries.

Agrarian economies with persistent poverty and political or social turmoil.

Which theory claims rich nations prospered by adopting modern, future-oriented cultures that encourage trade and industrialization?

Modernization theory.

Which theory argues that colonial exploitation locked poorer nations into disadvantage, labelling them core, semi-peripheral, and peripheral?

World-system theory.

Which theory maintains that wealthy nations continue to deny poorer nations development by exploiting their resources?

Dependency theory.

Define “market integration.”

The interconnectivity of prices, goods, services, financial benefits, and investments across locations that together operate as one broader market.

Name two post-World War II frameworks that fostered market integration.

The General Agreement on Tariffs and Trade (GATT) and the Bretton Woods System.

What distinguishes a Multinational Company (MNC)?

It owns assets and facilities in more than one country but operates under one central headquarters.

How does a Transnational Company (TNC) differ from an MNC?

It operates in multiple countries without a single headquarters, allowing greater adaptation to local cultures.

Which regional bloc of 27 European nations seeks deep economic and political integration?

The European Union (EU).

Which organization unites 11 Southeast Asian states to boost economic growth and cooperation?

The Association of Southeast Asian Nations (ASEAN).

What is the AfCFTA’s primary objective?

To enhance intra-African trade and investment by reducing trade barriers across the continent.

What does MERCOSUR aim to create, and which five main member states participate?

A single South American market for goods and services; members include Argentina, Bolivia, Brazil, Paraguay, and Uruguay.

Which Gulf bloc (abbreviated GCC) promotes a customs union and single market among six Arabian Peninsula states?

The Gulf Cooperation Council, comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

Define a “nation” versus a “state.”

A nation is a group sharing common language, history, and culture; a state is an association of people with formal institutions exercising sovereign power over a territory.

Name the four fundamental elements of a state.

People, territory, government, and sovereignty.

What is nationalism?

A belief system that makes the nation the basis of the political order and promotes patriotic interests.

What is internationalism in general terms?

The desire for increased cooperation and solidarity between states and peoples for the global community’s well-being.

Explain liberal internationalism.

A perspective emphasizing interdependence, diplomacy, and support for international organizations to organize both state and non-state actors.

Explain social internationalism.

A viewpoint that advocates global peace and social justice to build a fair and equal society while eliminating exploitation.

Provide a concise definition of global governance.

The collection of laws, norms, policies, and institutions that guide and regulate trans-border relations among states, citizens, markets, and organizations.

What is international law?

A body of rules that defines the rights and obligations of states in their interactions.

What defines an international agreement?

A treaty signed by multiple states establishing shared rules of conduct.

List four key functions commonly performed by international organizations.

Formulating recommendations, managing knowledge, institutionalizing ideas, and developing norms.

For what does WHO stand?

World Health Organization.

For what does UNICEF stand?

United Nations Children’s Fund.

For what does WIPO stand?

World Intellectual Property Organization.

For what does IMO stand?

International Maritime Organization.

For what does ICAO stand?

International Civil Aviation Organization.