POSC138S; Quizlet import

Labor

Human effort (physical and mental) used to produce goods and services.

Informal economy

Economic activity not regulated, taxed, or recorded by the state; "under-the-table" work.

Official unemployment rate

Percentage of the labor force actively seeking but unable to find work.

Underemployment

Working below one's potential in hours, pay, or skill level.

Young people

Youth (15-24) who face unemployment rates about 2-3× higher than adults globally.

Productivity

Output produced per unit of input, usually per worker or per hour worked.

Wages

Monetary compensation workers receive for their labor.

GDP

Gross Domestic Product; total market value of all final goods and services produced within a country in a year.

GINI coefficient

Statistical measure of income inequality (0 = equal, 1 = unequal).

Wealth

Accumulated assets and value created by the interaction of labor, capital, and natural resources.

Three key features of economic globalization

Trade, finance, and migration flows across borders.

International economic integration

Process of linking national economies through trade, investment, and policy coordination.

Where there is globalization, there are rules

Global markets depend on institutions and regulations to function.

Economic liberalism

Belief that free markets and limited government promote growth and efficiency.

Adam Smith

Classical economist who argued that the state should protect property, enforce contracts, and provide public goods.

Lower transaction costs

Reduction of barriers such as tariffs, transportation, and bureaucracy that make trade cheaper.

Institutions

Organizations or rules (e.g., IMF, WTO, World Bank) that structure economic and social behavior.

First Great Globalization

19th-century period (1870-1914) of rapid trade, migration, and capital flows under the Gold Standard.

Commodity

A good produced for sale on the market.

Fictitious commodities

Land, labor, and money—treated as commodities even though not originally produced for sale (Polanyi).

The Great Transformation

Shift to a self-regulating market society in the 19th century (Polanyi).

Stagflation

Combination of high inflation and high unemployment (1970s crisis).

Keynesianism

Economic theory favoring government spending to manage demand and maintain full employment.

Decommodification

Making basic needs less dependent on market income via welfare or public goods.

Embedded liberalism

Post-WWII system balancing free markets with social protections (1945-1973).

Neoliberalism

Policy framework favoring deregulation, privatization, free trade, and weak labor protections.

Flexible labor

Precarious, short-term, or outsourced work arrangements aimed at reducing labor costs.

Union avoidance industry

Consulting sector that helps firms prevent or discourage unionization.

Varieties of capitalism

Idea that different countries organize capitalism differently (liberal vs. coordinated).

Capital

Tools, machinery, and financial assets used to produce goods and services.

Factor of production

Basic input to production—land, labor, or capital.

TNC (Transnational Corporation)

Firm operating in multiple countries with integrated global production.

Vertical integration

Control over multiple stages of a supply chain.

Horizontal integration

Expansion by acquiring competitors in the same industry.

Conglomerate integration

Corporate expansion into unrelated industries.

Outsourcing

Contracting tasks or services to another firm.

Offshoring

Moving production to another country to lower costs.

Global value chain

Sequence of production stages distributed across multiple countries.

FDI (Foreign Direct Investment)

Cross-border investment with ownership or control over production in another country.

EPZs (Export Processing Zones)

Special areas offering tax and labor incentives to attract export-oriented industries.