Lesson 3: Introduction to Globalization and the Modern World System

Vocabulary flashcards covering key terms and concepts from the lesson on globalization and the modern world system.

Economic globalization

The process by which economies become tightly interconnected through trade, finance, and production, forming one global system for goods, services, and industries across countries.

Global economy

Countries’ economies that are connected at every stage—from obtaining raw materials to production, sale, use, and disposal.

International Economic Organizations (IEOs)

Global institutions such as the IMF, World Bank, and OECD that promote trade, provide loans, and guide economic policies to support globalization.

Multinational Companies (MNCs)

Businesses that operate in many countries, bringing jobs and products but also significant market influence.

Central Banks

National institutions that control money supply and guide macroeconomic conditions; examples include the US Federal Reserve and the Bangko Sentral ng Pilipinas.

Global Civil Society

Non-governmental groups and movements that push for fairness and alternative policies across borders (e.g., NGOs, activist networks).

International Financial Institutions (IFIs)

Global organizations that provide loans, financial aid, and expert advice to support growth in countries and private sectors.

IMF (International Monetary Fund)

A global institution of about 183 countries that stabilizes exchange rates, supports economic growth, and provides short-term loans.

Transnational Corporations (TNCs)

Companies that do business in many countries, producing, extracting, and delivering services across borders.

G8

Group of the world’s eight largest economies that discuss global issues and coordinate policy.

G20

Group of the world’s twenty largest economies that discuss global issues and propose solutions.

Economic integration

The process of economies becoming more closely connected through trade, investment, and policy coordination—regionally or globally.

European Union (EU)

A regional economic integration where member states share a single market and, in many cases, a common currency (the euro).

ASEAN Free Trade Area (AFTA)

A regional agreement among Southeast Asian countries to reduce trade barriers and promote freer trade.

World System (Wallerstein)

A theory that global interactions create a hierarchy of core, semi-periphery, and periphery, shaping development and power.

Core

Core countries are the most powerful and wealthy in the world-system, usually holding the advantage in trade and technology.

Semi-periphery

Countries occupying an intermediate position, exploiting periphery areas while engaging with core countries.

Periphery

Less powerful countries that often export raw materials and cheap labor, dependent on core and semi-periphery for investment.