Globalization and Economic Growth Review

These flashcards cover key vocabulary and concepts from the lecture on globalization, economic growth, and convergence.

Globalization

Market integration on a world scale.

Law of One Price

Identical goods have the same price in all countries when complete market integration exists.

Convergence

The phenomenon where poorer countries grow faster than richer ones.

Capital Mobility

The ability to move capital easily between countries, significant before WWI and returning 1980-present.

International Factor Flows

The movement of labor and capital across borders, where factors flow from abundant to scarce areas.

Economic Development

Increase in the amount of goods and services produced over time.

GDPPC

Gross Domestic Product per capita, a measure of economic growth.

Productivity

Output per hour of work, explaining differences in wealth among countries.

Meiji Revolution

The 1868 change in Japan that initiated modernization and adoption of Western technology.

Convergence Club

Countries like Canada, U.S., Australia, and Japan which experienced economic convergence in the Golden Age.