Global Issues: Free Trade vs. Protectionism

These flashcards cover key concepts related to globalization, free trade, protectionism, and related economic principles.

Globalization

The increasing interaction of people through the growth of the international flow of money, ideas, and culture.

Free Trade

A trade policy that allows for the unrestricted import and export of goods between countries.

Protectionism

An economic policy that restricts imports from other countries through tariffs or other regulations.

Anti-Dumping

A form of protectionism where tariffs are imposed on foreign imports priced below fair market value to protect domestic industries.

Comparative Advantage

The principle that countries should specialize in producing goods where they have a lower opportunity cost.

Industrial Clusters

Geographical concentrations of interconnected companies and institutions in a particular field, which support each other.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Tariff

A tax imposed by a government on imported goods.

Subsidy

A financial support extended by the government to promote economic sectors or prevent market failures.

Dumping

Selling products in a foreign market at prices lower than those charged in the home market or below the cost of production.

Neoliberalism

An economic philosophy that emphasizes free-market capitalism, deregulation, and reduction of state intervention in the economy.

Interdependence

A mutual reliance between two or more groups, typically seen in economic contexts where countries rely on each other for resources.