Globalization and Financialization Vocabulary

Flashcards covering key vocabulary and concepts from the Industrial and Labor Relations lecture on Globalization and Financialization.

Globalization

Increased economic integration among countries. Reduces labor’s bargaining power.

International Trade

Cross-border flow of goods and services, exports and imports.

Foreign Direct Investment

Cross-border flow of multinational corporation investment, purchasing or establishing foreign subsidiaries and joint ventures.

International Investment Portfolios

Cross-border flow of investment securities, investing in foreign stocks and bonds, but no control over the foreign enterprise as in Foreign Direct Investment.

Immigration

Cross-border flow of people, migrating from one country to another.

Social Dumping

Occurs when a foreign competitor is able to unfairly sell goods or services at a lower price because of lower labor or environmental standards.

Export Processing Zones

Special areas of developing countries dedicated to attracting and supporting multinational investment and production. Typically include incentives such as duty-free importing and exporting, reduced taxes, and publicly provided infrastructure.

Free Trade

The removal of all trade barriers.

Fair Trade

The incorporation of labor, environmental, public health, and other standards into trade agreements and the ability to impose trade sanctions on countries that violate these standards.

International Labor Organization (ILO)

A specialized agency of the United Nations focused on promoting social justice and internationally recognized human and labor rights.

ILO Declaration on Fundamental Principles and Rights at Work (1998)

Establishes core labor standards: Freedom of Association and Collective Bargaining, Abolition of Forced Labor, No Discrimination in Employment and Pay, and Elimination of Child Labor.

North American Agreement on Labor Cooperation (NAALC)

A side agreement to NAFTA to promote compliance with existing domestic labor laws through cooperation and public consultation.

United States-Mexico-Canada Agreement (USMCA)

Replaced NAFTA and includes Chapter 23, requiring countries to adopt and maintain ILO core labor standards and enforce labor laws.

European Union (EU)

An integrated community of European nations with free trade, capital and labor mobility, and common monetary and fiscal policies.

European Works Council

A transnational, company-level committee of employees with consultation and information rights on issues affecting workers in more than one EU country.

International Trade Union Confederation (ITUC)

The apex of international labor organizations, facilitating consultation, communication, and cooperation among unions.

Global Unions

International associations of national trade unions representing workers in specific industries, industry groups, occupations, professions, or other sectors of employment.

Corporate Code of Conduct

A written statement of standards that a company pledges to follow in its business activities, often including labor standards.

Share Price Maximization

Cost cutting to boost financial returns rather than productive competitiveness; stock repurchases rather than reinvestment.

Profits via Financial Transactions

Pursuing profits through financial transactions rather than the production and delivery of goods and services; increasing importance of the financial sector and the financial activities of nonfinancial firms.

Private Equity

Leveraged buyouts to buy and then sell companies after cost-cutting and asset-stripping.

Public Sector Budget Austerity

National economies subjected to international financial requirements; state and local governments focused on budget reduction.

Configuration

Involves the location of various activities, such as whether production is concentrated in one country or globalized into various countries through foreign direct investment.

Coordination

Consists of the degree to which activities in different countries are harmonized or autonomous.

Financialization

Financial markets, motives, results, and institutions becoming more important than the production and delivery of goods and services.