History Test 1 Definitions

Globalization

The increasing connectedness of our world

Mercantilism

Economic theory in which countries depend on their exports and trade is one sided, goods are only exported

Comparative advantage

An economic theory by David Ricardo that states that your environment provides the ideal circumstance for production (creates specialized world)

multi-national companies

companies that span over many nations

the race to the bottom

an attempt to find the cheapest possible means of production through colonization and multi-national companies

trade balance

the difference between number of exports and imports

trade surplus

more exports than imports (good)

Trade deficits

import more than export (bad)

tariffs

taxes on foreign goods which lead to inflation

primogeniture

first born son inherits wealth

Culture

the way in which people live their lives: tradition, religion, food, language, ethnicity, etc.

The clash of civilizations

Samuel Huntington’s flawed theory that western and muslim nations can’t get along

ethnic conflict

conflict between two or more ethnic groups

Subsidy

financial aid given by the government to citizens to support a cause

quota

an amount due

Adam Smith

Laissez-Faire concept, writer of The Wealth of Nations

Laissez-Faire

Capitalism - “hands off” policy