Economics in the Global Age

These flashcards cover key terms and concepts related to the changes and continuities in the global economy from 1900 to the present.

Market Economy

An economic system based on supply and demand with little government control.

Globalization

The increased integration of the global economy since the 1970s, involving interaction among peoples, governments, and companies.

Economic Liberalization

The process of relaxing government restrictions, usually in areas such as trade and investment, to promote economic growth.

Free-Market Economy

An economic system where prices are determined by unrestricted competition between privately owned businesses.

Chicago Boys

Economists who studied under Milton Friedman and helped design economic reforms in Chile towards a free-market approach.

Knowledge Economy

An economy that creates, distributes, and uses knowledge and information as a key asset.

Asian Tigers

The economies of Hong Kong, Singapore, South Korea, and Taiwan, which rapidly industrialized and developed through government-business partnerships.

NAFTA

The North American Free Trade Agreement, which encouraged U.S. and Canadian industries to build factories in Mexico.

Multinational Corporation

A corporation that is legally incorporated in one country but operates in multiple countries.

General Agreement on Tariffs and Trade (GATT)

An international accord aimed at reducing trade barriers and promoting international trade.

World Trade Organization (WTO)

An organization that took over GATT’s operations and governs international trade.

Tiananmen Square

A site in Beijing known for the 1989 pro-democracy protests that were violently suppressed by the Chinese government.

Economic Shift

The transition of manufacturing jobs to countries with lower wages and fewer regulations.

Information and Communications Technology

Technologies that facilitate communication and access to information, which have transformed economies.

Protective Tariff

A tax imposed on imported goods to protect domestic industries from foreign competition.

Deng Xiaoping

The Chinese leader who initiated economic liberalization and reforms in China in the 1980s.

Ronald Reagan

The U.S. President known for advocating free market policies and economic deregulation.

Margaret Thatcher

The British Prime Minister who promoted free-market policies and privatization during her tenure.

Free Trade

Trade between countries without tariffs, quotas, or other restrictions.