Understanding Globalization Flashcards

Vocabulary terms and definitions based on a lecture about the history, drivers, and impacts of globalization.

Globalization

The increasing interaction of people, states, or countries through the growth of the international flow of money, ideas, and culture.

Silk Road

An ancient network of trade routes connecting the East and West.

Age of Discovery

The period from the 15th-17th Century when European exploration connected markets.

Industrial Revolution

The 19th Century period where steamships and railways accelerated global trade.

Digital Age

The period starting in the late 20th Century when the Internet created instant global communication.

Containerization

An advancement in transportation that, along with air freight, drastically reduced the cost of shipping goods.

Tariffs

Trade barriers that have been lowered by political decisions to embrace free trade agreements and open borders to commerce.

Multinational corporations

Companies that operate in many countries to optimize costs in an environment of interconnected markets.

Outsourcing & Offshoring

Business strategies used within global supply chains to optimize costs and operations.

Lingua franca

A common language, such as English in business and the internet, that facilitates cross-border communication.

Digital Backbone

Part of the "nervous system" of modern globalization that allows for the instant transmission of data, funds, and services.

Death of distance

A concept describing the ability for individuals in different global locations, like Bangalore and San Francisco, to collaborate in real-time.

Economic Growth

A benefit of globalization where access to larger markets has boosted the GDP of developing nations and lifted millions out of poverty.

Race to the bottom

A criticism of globalization referring to the exploitation of labor for cheaper standards.

Homogenization

The loss of local identity and culture due to the global spread of cultural products.