Globalization, Economic Policies, and International Organizations in Modern Geography

Globalization

The increasing interconnectedness of people, cultures, economies, and nations facilitated by technology, trade, and cultural diffusion

Multinational Corporations (MNCs)

a company like McDonalds or Exxon with facilities or assets in more than one country.

Neoliberalism

economic ideology favoring policies that support the free market and reduce trade barriers

Special Economic Zones (SEZs)

areas along China's east coast designated by the government as regions where private businesses could attract foreign direct investment

Privatization

converting government-owned industries to businesses run with free-market forces that are owned and operated by private investors

Nationalization

government-owned industries run without free-market forces

Pemex

Mexico's state-owned petroleum company(since 1938) and government's largest source of revenue- Neo-liberal reforms by PRI in the 1990s began privatization of Pemex but president AMLO has reverted to re-nationalizing Pemex

Nigerian National Petroleum Corporation (NNPC)

government-owned oil corporation enabling Nigeria to become overly dependent on unstable global oil market. NNPC has become increasingly privatized since the 1980s due IMF loan requirements.

Foreign Direct Investment (FDI)

Investment(of monies) from abroad into economic activity in another country. An aspect of globalization

Environmental Degradation

deterioration of state's environment(ecology) through depletion of resources such as quality of air, water and soil; the destruction of ecosystems; habitat destruction; the extinction of wildlife; and pollution. A result of industrialization and growth and an issue which causes push back against globalization

Economic Liberalization

policies that reduce the role of government in the economy, supports the free market, and reduces trade barriers

Subsidies

money paid by a government to help an organization or industry reduce its costs, so that it can provide products or services at lower prices

Tariffs

special payments or taxes imposed by governments on imports from other countries

Income Inequality

measured by the Gini index and seen as a result of economic liberalization policies in which increased national GDP is not equally distributed throughout population widening the gap between rich and poor.

Infrastructure

facilities that generate, transport, and distribute energy; roads, bridges, ports.

International organizations

Organizations that offer financial assistance,operate across boundaries and have the participation of multiple countries; exert influence on states by establishing preconditions for financial assistance

International Monetary Fund (IMF)

an international organization that works to achieve sustainable growth and prosperity for all of its 190 member countries by supporting economic liberalization policies through conditional loans and advice that promote financial stability and monetary cooperation.

Economic Sanctions

commercial and financial penalties applied by one or more countries against a targeted self-governing state, group, or individual. Iran has been sanctioned by other countries due to their poor record on human rights.

Structural Adjustment Programs

requirements for receiving assistance from international lenders (IMF), including the privatization of state-owned companies, reducing tariffs, and reducing subsidies for domestic industries

The World Bank

multi-country financial services provider and lender that offers conditional loans and grants for lower income and developing countries

Import Substitution Industrialization (ISI)

States enacting high tariffs and providing incentives (subsidies) to encourage the growth of domestic manufacturing (protectionism)

Foreign Dependency

states such as Nigeria that are dependent upon outside investment for economic development. Can be a threat to state sovereignty and stability

Supranational Organizations

a body in which member countries have some say in governing and give up some sovereignty over issues affecting the organization as a whole (EU, WTO)

Economic Community of West African States (ECOWAS)

a supranational organization that lowers tariffs and supports trade between West African states. Nigeria is its largest member.

European Union (EU)

a supranational organization that makes decisions on economic policies for member states and supports trade between member states

The World Trade organization (WTO)

supranational organization which negotiates trade agreements and settles disputes between member states.

Gender Equity

civil rights ideal for women to be protected with equal treatment and to secure equal power as men in governing a country, For example: Mexico's quotas for Congressional seats

Social Welfare Policies

government policies to reduce poverty, increase literacy, and improve public health, both to improve citizens' lives and to maintain or bolster political legitimacy. Prospera program in Mexico, NHS in UK, bonyads in Iran

Hukou System

China's household registration system which determines both where citizens are allowed to live and their access to social welfare benefits. Policy restricts and controls internal migrations but has been more recently relaxed due to need for workers

Green technologies

technologies that utilize renewable resources such as wind and solar power with the intent to mitigate or reverse the effects of human activity on the environment.

Budget Deficit

when government spending is more than what is generated through taxes and revenues. Often a reason for states to seek loans from international organizations which might make loans conditional on austerity measures

World market fluctuations

a critique of globalization—regional changes or fluctuations are felt globally by all states thus making states more vulnerable to economic problems and pressure to reinstate ISI practices

Austerity Measures

Supranational organizations(EU) might require member states to enact cuts to social services spending to reduce deficit/national debt. Can also be self-imposed by government (UK)

Internal population Movement (where)

migration within a state such as in China where emphasis on industry has led to migrations from rural west to SEZs in urban east.

External Population Movement

Economic liberalization in China has led to growing population whose rising incomes allow them to pursue work and educational opportunities abroad (WA's large pre-Covid Chinese student population)

Brain Drain

Highly skilled or well-educated individuals have left home countries such as Iran and Nigeria to escape government policies or practices that are perceived as limiting, corrupt, or repressive

Maquiladora Zones

areas of Mexico's manufacturing industry mostly located in northern Mexico; factories established to assemble parts imported from the United States for assembly in Mexico made more possible due to NAFTA. Contributed to greater economic development in the north than in the south and prompted internal migrations

Positive Net Migration

Increase in immigrants coming into UK and has resulted in social and political tensions and parties such as UKIP to campaign for immigration restrictions and Brexit.

Graying Population

when a population is steadily becoming more dominated by older people puts pressure on governments to increase social service spending (medical, pensions)

Pronatal Policies

government initiatives such as tax breaks and increased social services designed to encourage the increase of birth rates. China dropping one-child rule , free daycare.

Rentier States(example)

state that relies almost exclusively on the export of oil or from the leasing of resources to foreign entities as a significant source of government revenue (Nigeria, Iran). Less dependent on tax base thus less responsive to citizen's desires

Resource Curse

a problem faced by countries that have a valuable and abundant natural resource that limits diversification of the economy and can have negative environmental consequences (Niger Delta)

Economic Diversification

promoted by international organizations as a means to encourage states to avoid problems associated with over dependence on one source of economic activity (oil)