The Global Economy: Key Terms

Vocabulary flashcards covering key terms from the lecture notes on the global economy, IMF, WB, WTO, and the Pantawid Pamilyang Pilipino Program.

Economic Globalization

The process of making the world economy an integrated system by extending transnational economic activities and deepening interdependencies among countries.

Transnational economic processes and economic relations

The ways in which economic activities (trade, investment, labor movements, financial transactions) extend beyond borders to connect multiple countries.

Deepening economic interdependencies

The increasing reliance of countries on one another for capital, technology, labor, commodities, and services.

Bretton Woods Conference

The 1944 meeting that laid the foundation of the modern international monetary system and led to the creation of IMF and the World Bank.

United Nations Monetary and Financial Conference

Official name of the Bretton Woods Conference.

International Monetary Fund (IMF)

An international organization that provides short‑term loans to prevent currency devaluation and to help maintain fixed exchange rates during balance‑of‑payments deficits.

Devaluation

A decrease in the value of a country's currency relative to foreign currencies.

Balance-of-payments deficit

A situation where a country spends more on imports and payments to other countries than it earns from exports and receipts.

World Bank (WB)

Part of the World Bank Group; not a traditional consumer bank; funds long‑term development and reconstruction through two main institutions (IBRD and IDA).

International Bank for Reconstruction and Development (IBRD)

Provides loans to middle‑income and creditworthy low‑income countries; funds infrastructure, education, health, agriculture, and environmental protection.

International Development Association (IDA)

Established in 1960 to support the world’s poorest countries; provides concessional loans and grants for development.

General Agreement on Tariffs and Trade (GATT)

An international trade framework designed to reduce tariffs and trade barriers; precursor to the World Trade Organization.

World Trade Organization (WTO)

International organization governing trade and investment, with authority to establish international trade laws and to provide a strong system for dispute settlement.

Dispute settlement (WTO)

The mechanism within the WTO to resolve trade disputes between countries.

Pantawid Pamilyang Pilipino Program (4Ps)

Philippines’ social welfare program that provides cash grants to poor families to reduce poverty and improve children's health and education.

4Ps beneficiaries

Primarily children aged 0–18 and pregnant women in poor households.

4Ps cash grants usage

Monthly cash grants; portions for children’s education (supplies, uniforms) and for health-related expenses (check-ups, vitamins).