Globalization and Economic Integration

Flashcards covering key concepts of globalization and economic integration, including definitions and relationships between terms.

Globalization

The process whereby national economies and business systems are becoming deeply interlinked with each other.

Trade liberalization

The removal of major barriers to international trade and foreign direct investment, which has caused much globalization.

International trade

The selling of one good or service to another country.

Foreign direct investment

Investment by a company based in one nation in the business activities of another nation.

Trade barriers

Government-imposed restrictions such as tariffs and quotas that have been weakened to promote globalization.

Cross border flow

The increasing movement of goods, services, capital, and know-how between countries.

Economic interdependence

The state in which countries are reliant on each other for goods and services, contributing to globalization.

Global network

A worldwide system through which economies, societies, and cultures become integrated.