Globalization and Global Interactions Vocabulary

Vocabulary flashcards covering core definitions and terms related to globalization, trade balances, economic indicators, and global interaction patterns.

Free trade

The ability for a country to exchange goods and services without tariffs, quotas or taxes.

Protectionism

Adding subsidies and other means to protect domestic agriculture/industries from foreign competition.

Remittances

When someone goes to work to another country and sends money back.

Globalization

The process of increasing interconnectedness and interdependence between people, countries and places worldwide, driven by the increasing movement of goods, services, people, capital, information, ideas and culture.

Cultural homogenization

A process that can lead to cultural identity loss by eradicating local traditions, languages, and identities, and replacing them with a standardized, consumer-driven global culture.

KOF Globalisation Index

An index measuring the economic, social, and political dimensions of globalisation on a scale of 1:100.

Trade balance

The difference between exports and imports.

Trade surplus

Having more exports than imports.

Trade deficit

Having more imports than exports.

Comparative advantage theory

When a country can produce one item more cheaply than another country because of favourable geographical conditions.

Primary goods

Raw materials.

Manufactured goods

Goods made in a factory.

Cultural diffusion

The spread of culture which has increased because of migration and higher paid tertiary jobs.

Containerisation

A form of cheaper and faster transport that, alongside technology and TNC growth, contributed to a $30\%$ increase in globalization since 2000.