Ch. 1 - Globalization

Week 2

Globalization

The worldwide interaction and integration of people, companies, and governments, driven by trade, investment, and technology.

Trade liberalization

The reduction of trade barriers to promote international trade and economic integration.

Privatization

The transfer of ownership of public services or businesses from the government to private entities.

State sovereignty

The authority of a state to govern itself without external interference.

Developed countries

Countries with advanced economies and high living standards, marked by industrialization and high Human Development Index (HDI) scores.

Developing countries

Nations with low income and industrialization, face economic growth and social development challenges.

Transitioning countries

Countries transitioning from developing to developed status through economic and social reforms to enhance living standards.

Non-governmental organizations

Independent organizations focused on humanitarian, environmental, or social issues.

Multinational enterprises

Large corporations operating across multiple countries, impacting local economies and global trade.

Economies of scale

Cost advantages achieved as production increases, resulting in lower per-unit costs.

Cost of production

Total expenses for manufacturing goods, including raw materials, labour, and overhead.

Base of the pyramid

A socioeconomic concept referring to the largest but poorest socio-economic group, often used in business strategies to address needs and create markets.