International Economic Integration and Global Economy

This set of flashcards covers key vocabulary and definitions related to international economic integration and globalization, helping students familiarize themselves with important concepts for exam preparation.

Globalisation

The integration between different countries and economies and the increased impact of international influences on all aspects of life and economic activity.

Economic Integration

Refers to the breakdown of trade barriers between countries, supported by free trade and market deregulation.

International Financial Flows

Movement of capital across borders which affects economic conditions in different countries.

Transnational Corporations (TNCs)

Companies that operate in multiple countries, impacting investment and trade across borders.

International Trade in Goods and Services

Exchange of goods and services across international borders, essential for measuring economic integration.

Barriers to Trade

Obstacles, such as tariffs and quotas, that hinder the free exchange of goods and services between countries.

COVID-19 Pandemic

Global health crisis in 2020 that significantly disrupted international supply chains and international travel.

Gross World Product (GWP)

The sum total of the economic output of all countries in the world over a given period.

Comparative Advantage

The ability of a country to produce a good at a lower opportunity cost than another country.

Deregulation

The reduction or elimination of government rules controlling how businesses can operate.

Foreign Direct Investment (FDI)

Investment made by a company or individual in one country in business interests in another country.

Exchange Rate

The value of one currency for the purpose of conversion to another.

Trade Agreements

Formal accords between countries to govern trade relationships and reduce trade barriers.

Bilateral Agreements

Trade agreements between two nations to facilitate trade and economic cooperation.

Statistical Inconsistencies

Discrepancies in data that arise from measurements of trade and investment flows.

Trade Diversion

The rerouting of trade patterns due to the formation of trade agreements.

Import Quotas

Limits placed on the amount of a specific good that can be imported into a country.

Tariff

A tax imposed on imported goods to increase their price and protect domestic industries.

Local Content Rules

Regulations that require a specific percentage of a product to be made from local resources.

Export Incentives

Government programs that assist and encourage domestic producers to sell their goods internationally.

Gini Index

A statistical measure of income inequality within a population.

Brain Drain

The emigration of highly trained or qualified individuals from a particular country.

Integration of Economies

The process through which economies become interconnected through trade, investment and technology.

International Monetary Fund (IMF)

An international organization that aims to ensure the stability of the international monetary system.

World Trade Organization (WTO)

An intergovernmental organization that regulates international trade.

Global Supply Chains

Networks of production and distribution that span across international borders.

Financial Flows

The movement of money for the purpose of investment, trade, or business production across borders.

Transnationalism

The process whereby economic, political, and social activities extend across national borders.

Foreign Exchange Market (FOREX)

A global decentralized or over-the-counter market for trading currencies.

Human Development Index (HDI)

A composite statistic of life expectancy, education, and per capita income indicators, used for ranking countries.

Domestic Economy

The economy of a specific country or region, distinguished from foreign interactions.

Structural Adjustment Policies

Programs designed by the IMF and World Bank that aim to stabilize economies through economic reforms.

Environmental Sustainability

The responsible interaction with the environment to avoid depletion or degradation of natural resources.

Global Capital Markets

Financial markets where financial instruments are traded internationally.

Offshoring

The relocation of a business process from one country to another.

Migration Trends

Patterns in the movement of individuals or groups from one geographic area to another.

International Division of Labour

The separation of tasks in different countries where each specializes in specific products or services.

Economic Sovereignty

The capacity of a state to govern itself and make its own economic decisions free from external control.

Barriers to Labour Migration

Obstacles that inhibit the movement of workers across borders.

Trade Volatility

Fluctuations in trade volumes and prices that can be caused by geopolitical events or economic shifts.

Economic Recession

A significant decline in economic activity across the economy lasting more than a few months.

Regional Trade Agreements

Treaties that facilitate trade between countries in a specific area.

Digital Disruption

Changes that occur when new digital technologies and business models affect the current state of industries.

Emerging Economies

Nations with social or business activity in the process of rapid growth and industrialization.

Commodity Prices

The price for raw materials or primary goods that are traded on the market.

Trade Imbalances

A situation where a country imports more than it exports.

Labor Mobility

The ease with which labor workers can move between jobs or geographic locations.

Protective Tariffs

Taxes placed on imports to protect domestic industries from foreign competition.

Global Economic Growth

An increase in the inflation-adjusted market value of the goods and services produced by an economy over time.

Cultural Globalization

The worldwide exchange and integration of cultural elements due to global flows.

Supply Chain Disruption

Interruption of the flow of goods due to various factors, including natural disasters, geopolitical tensions, or pandemics.