Social 10: Chapter 10 - Expanding Globalization

Outsourcing

A business strategy that involves reducing costs by using supplies or products and services in countries where labor is cheaper and government regulation may be less strict.

Containerization

The transporting of goods in standard-sized shipping containers.

Trade Liberation

A process that involves countries in reducing or removing trade barriers, such as tariffs and quotas, so goods and services can move around the world more freely.

Free Trade

The trade that occurs when two or more countries eliminate tariffs and taxes on the goods and services.

Consensus

General agreement.

Sanctions

A penalty, often an economic penalty, such as a trade boycott, taken to pressure a government to agree to carry out certain actions or follow certain rules.

Communication Technology

Innovations in communication technology that have changed the world.

Technology Convergence

The increasing rate of globalization due to the convergence of different technologies.

Integrated Supply Chains

Supply chains that have helped reshape global trade patterns.

Balance of Trade

The challenge of maintaining a balance between exports and imports between countries.

Just-in-time Delivery Systems

Parts are ordered and scheduled to arrive at the factory at the moment they are needed, saving handling and storage costs.

Media Convergence

The convergence of media companies.

World Trade Organization (WTO)

An organization established in 1995 to increase international trade by lowering trade barriers and settling trade disputes between governments.

Dispute Resolution

The process by which the WTO settles trade disputes between member countries.

Developing Countries

Countries that can join global markets and eventually raise the standard of living of the developing world.

Global Voice/Input on Trade

The ability to have a say in global trade and lay out rules for all to follow to prevent conflict.

CUSMA (formerly NAFTA)

Trade agreements between Canada, the US, and Mexico.

European Union (EU)

An organization that created a liberalized trading area in Europe and integrated member countries' economies.