The Global Economy

AP Human comes in clutch

​European Union (EU) (Europe)

An economic and political union of 27 European nations that allows free trade, shared laws, created a single market, and a common currency (the Euro).

​Economic Liberalization (Global)

Government policy that reduces regulations, tariffs, restrictions, and limits government intervention in the economy to promote free-market growth and private business activity.

​World Bank (Global; HQ is in the US)

An international financial institution that provides loans, grants, and financial assistance to developing countries for infrastructure and economic development.

​World Trade Organization (WTO) (Global)

An international organization that regulates global trade rules and facilitates international trade between nations.

​North Atlantic Free Trade Agreement (NAFTA) (North America)

A 1994 trade agreement between the U.S., Canada, and Mexico that eliminated most tariffs to encourage free trade in North America (replaced by USMCA in 2020).

​Association of Southeast Asian Nations (ASEAN) (Southeast Asia)

A regional organization aimed at promoting economic cooperation, political stability, and trade among its ten member states in Southeast Asia.

​General Agreement on Tariffs and Trade (GATT) (Global)

A 1947 international treaty between many countries designed to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas. Later replaced by the WTO.

​International Monetary Fund (IMF) (Global; HQ is in the US)

A global organization of 190 countries that provides financial assistance and economic advice to countries experiencing financial crises.

​G20 (Global)

A group of the world’s 19 largest economies that meet to discuss global economic stability and financial policy.

​Government Subsidies (Global)

Financial support provided by the government to a person or business to keep the price of a product or encourage production.

​Austerity Measures (Global)

Government policies that reduced government spending on social services and increased taxes to lower the national debt.

​Mercosur (Latin America)

A South American trade bloc established to promote free trade, economic cooperation, and the movement of goods, people, and currency.

​Ronald Reagan (North America)

U.S. President (1981–1989) who promoted free-market policies, tax cuts, reduced government regulation, and a strong anti-communist foreign policy.

​Reaganomics (North America)

The economic policies of Ronald Reagan, characterized by tax cuts, decreased social spending, increased military spending, and deregulation, all to stimulate economic growth.

​Protective Tariffs (Global)

Taxes on imported goods designed to protect domestic industries from foreign competition.

​Trade War (Global)

An economic conflict where countries impose trade barriers (like tariffs) on each other’s goods in retaliation for other trade barriers.

​Margaret Thatcher (Europe)

Prime Minister of the UK (1979–1990) known for privatizing state industries, promoting free markets, reducing government involvement in the economy, and reducing the power of labor unions.

​Economic Liberalism (Global)

An economic philosophy supporting free markets, private property, and limited government intervention.

​Free Markets (Global)

Economic systems in which prices and production are determined by supply and demand with unrestricted competition between privately owned businesses.

​Augusto Pinochet Latin America)

The military dictator of Chile (1973–1990) who overthrew Salvador Allende and moved Chile toward a free-market economy while committing significant human rights abuses.

​Deng Xiaoping (East Asia)

The leader of China after Mao Zedong; he introduced market-oriented economic reforms in China after 1978 such as Special Economic Zones, and reduced restrictions on religious activity, all while maintaining Communist political control

​Road and Belt Initiative (East Asia)

A global infrastructure development strategy adopted by the Chinese government to expand its economic connections across Asia, Europe, and Africa, by investing in nearly 150 countries and international organizations.

​Asian Tigers (East Asia)

The highly developed economies of Hong Kong, South Korea, Singapore, and Taiwan, which underwent rapid industrialization between the 1960s and 1990s.

​Multinational Corporations (Global)

Large companies that operate in multiple countries, with production, offices, or markets across the world, often wielding significant economic and political influence.

​Nestle (Europe)

A multinational food and beverage corporation headquartered in Switzerland.

Nissan (East Asia)

A Japanese multinational automobile manufacturer.

Nike (North America)

An American multinational corporation that designs and sells athletic shoes, clothes, and equipment.

Apple (North America)

An American multinational technology company known for products like the iPhone and Mac computers.

Starbucks (North America)

An American multinational coffeehouse chain that expanded globally as part of consumer culture.

​Consumer Culture (Global)

A society in which the economy is focused on the selling of consumer goods and the spending of consumer money.

​Global Brands (Global)

Products, names, or symbols recognized and sold worldwide (e.g., Coca-Cola, Apple) that represent a standardized product across different cultures.

Online Commerce (Global)

The buying and selling of goods and services over the internet.

​Child Labor (Global)

The employment of children in work or an industry that is harmful, exploitative, or interferes with education.

​Sweatshop Labour (Global)

Factories or workshops, especially in the clothing industry, where manual workers are employed at very low wages for long hours and under poor conditions, often in developing countries.

​Human Trafficking (Global)

The illegal trade and exploitation of human beings, a modern form of slavery, for the purpose of commercial sexual exploitation or forced labor.

​Debt Relief (Global)

The partial or total forgiveness of debt, or the slowing or stopping of debt growth, owed by individuals, corporations, or nations, in order to improve their financial stability.

​Debt Restructuring (Global)

A process used by countries or companies to change the terms of their debt to make it easier to pay back.

​Brexit (Europe)

The withdrawal of the United Kingdom from the European Union, which took place on January 31, 2020, following a 2016 referendum.

​World Fair Trade Organization (Global)

An international organization that practices Fair Trade, ensuring producers in developing countries are paid fairly, work in safe conditions, and promote ethical production and sustainable trade practices.