Contemporary World - Globalization, Global Economy, and Global Interstate System

Vocabulary practice flashcards covering definitions, historical context, stages, institutions, and theoretical frameworks of globalization, global economics, and the global interstate system from the lecture notes.

Globalization

The increasing interaction of people, states, or countries through the growth of the international flow of money, ideas, and culture, primarily focused on an economic process of integration with social and cultural aspects.

Charles Taze Russel

Coined the term 'CORPORATE GIANTS' in 1897 to refer to a large national trust and other enterprises of that time.

Theodore Levitt

Popularized the term 'globalization' in the late 1980s.

Stage 1: Partnership

The first stage of globalization involving arm's length service activity where an essential domestic company moves into foreign markets by linking up with local dealers and distributors.

Stage 2: Planning Stage

The second stage of globalization where a domestic company or institution takes over its overseas service activities on its own.

Stage 3: Implementing Stage

The third stage of globalization in which the domestic-based company begins carrying out its own manufacturing, marketing, and sales in key foreign markets.

Stage 4: Authorization Stage

The fourth stage of globalization where a company moves to a full insider position in key foreign markets supported by a complete business system, R&D, and engineering.

Stage 5: Full Operation Stage

The final stage of globalization characterized by a genuinely global mode of operation and global localization, where the institution directly serves local customer needs around the world.

Global Economy

Also referred to as 'world economy', it is the international exchange of goods and services or the free movement of goods, capital, services, technology, and information across borders.

Market Integration

A condition occurring when prices among different locations or related goods follow the same pattern over a long period of time and move proportionally to each other.

International Financial Institutions (IFIs)

Institutions chartered by more than one country and subject to international law, whose owners or shareholders are generally national governments.

International Monetary Fund (IMF)

An organization headquartered in Washington DC with 190 member countries that works to foster global monetary cooperation, secure financial stability, facilitate international trade, and reduce poverty.

World Bank Group

A family of 5 international organizations that provides leverage loans to developing countries to aid in poverty reduction.

African Development Bank

An IFI that contributes to poverty reduction and economic and social development in least developed African countries by providing concessional funding for projects, programs, studies, and capacity building.

Asian Development Bank

An institution committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while eradicating extreme poverty through loans, technical assistance, grants, and equity investments.

Inter-American Development Bank

An organization that works to improve lives in Latin America and the Caribbean through financial and technical support to reduce poverty and inequality.

European Bank of Reconstruction and Development (EBRD)

An international organization comprising 60 countries in the European community and the European Investment Bank to foster economic and democratic transition and promote private/entrepreneurial initiative.

Global Corporation

A business defined by Michael Porter as maintaining a strong headquarters in its home country while investing in multiple foreign locations and striving to create economies of scale by selling standardized products.

International Company

A company headquartered in one country (e.g., the US) that operates overseas and is governed by its home country regulations while its foreign subsidiaries follow local laws.

Global Interstate System

The overall system of human interactions politically structured as a system of competing and allying states.

Immanuel Wallerstein's World-systems Theory

A theory that explains global inequality by viewing the world as a single interconnected economic system divided into core, semi-periphery, and periphery zones.

Core Zone

High-income dominant capitalist nations (such as the US, Western Europe, and Japan) that serve as the world's manufacturing base and exploit peripheral countries for labor and raw materials.

Semi-periphery Zone

Middle-income countries (such as India, Brazil, and South Africa) that share characteristics of both core and peripheral nations and maintain ties to the global economic core.

Periphery Zone

Low-income countries (much of Africa, parts of Latin America) whose natural resources and labor support wealthier countries under neocolonialism and remain dependent on core countries for capital.

Cyclical Rhythms

Short-term fluctuations of the economy within Wallerstein's world-system model.

Secular Trends

Deeper long-run economic tendencies within the world-system, such as general economic growth or decline.

Contradiction (World-system)

A general controversy in the world-system usually concerning short-term versus long-term trade-offs.

Crisis (World-system)

A temporal feature in the world-system occurring when a constellation of circumstances brings about the end of the system.

Global Governance

A movement towards political cooperation among transnational actors negotiating responses to problems affecting more than one state or region, or designating rules intended for a global scale.

Internationalization

The increasing importance of international trade, relations, treaties, and alliances where the nation remains the fundamental unit.

Globalism

The global economic integration of many formerly national economies into one global economy, mainly driven by free trade, free capital mobility, and uncontrolled migration.