Introduction to Globalization, Global Economy, and Market Integration

Vocabulary flashcards covering the core concepts, historical periods, trade policies, economic models, and international financial institutions of globalization.

Globalization

The process in which people, ideas, and goods spread throughout the world, spurring more interaction and integration between the world's cultures, governments, and economies (defined by Ohmae in 1992 as the onset of the borderless world).

Prehistoric Period of Globalization

The historical period ($10000\text{ BCE}-3500\text{ BCE}$) driven by basic human needs through four aspects: trade, missionary work, adventures, and conquest.

Pre-modern Period of Globalization

The historical period ($3500\text{ BCE}-1500\text{ CE}$) in which the invention of writing (Cuneiform) and the wheel moved globalization forward, along with the rise of empires and the Silk Road.

Early Modern Period of Globalization

The historical period ($1500-1750$) between the Enlightenment and the Renaissance that witnessed the birth of capitalism and major global explorations.

Economic Globalization

The increasing integration of economies around the world, particularly through the cross-border movement of goods, services, capital, labor, and technology.

Protectionism

A policy of systematic government intervention in foreign trade, usually through quotas and tariffs, aimed at encouraging domestic production.

Trade Liberalization

The process of making the movement of goods and services around the world easier through free trade agreements and technological advances in transportation and communication.

International Trade

The exchange of goods or services along international borders, allowing for greater market competition and competitive pricing.

National Trade Policy

A type of trade policy designed to safeguard the best interest of a country's trade and citizens.

Bilateral Trade Policy

A policy formed to regulate trade and business relations specifically between two nations.

Tariffs

Taxes or duties paid on traded goods.

Market Integration

A measure of how easily two or more markets can trade with each other.

Capitalism

An economic model in which all natural resources and means of production are privately owned, emphasizing profit maximization and competition.

Socialism

An economic model where the means of production are under collective government ownership and allocated to all citizens.

Primary Labor Market

Occupations that provide many benefits to workers, representing white-collar professions such as doctors, accountants, teachers, and engineers.

Secondary Labor Market

Jobs that provide fewer benefits and consist of lower-skilled or blue-collar roles, such as fast-food workers, janitors, sales clerks, and factory workers.

Bretton Woods System

An international monetary system created in $1944$ in New Hampshire, USA, to stabilize the global economy by pegging member currencies to the US dollar.

World Trade Organization (WTO)

An independent multilateral organization headquartered in Geneva, Switzerland that regulates global rules of trade between nations.

International Monetary Fund (IMF)

An international financial institution established to assist member countries experiencing short-term financial problems.

North American Free Trade Agreement (NAFTA)

A trade agreement between Canada, the United States, and Mexico that took effect on January $1$, $1994$, to remove tariffs and trade barriers.