Globalization: A Very Short Introduction Chapter 3

Britton Woods

1944; rebuild world; system of monetary management established the rules of commercial and financial regulations among the world's major industrial states in the mid-20th century; gold exchange standard

Social Welfare

a system/program that provides assistance to needy individuals and families; types and amount of welfare available to individuals and families vary for country, state, or region

GFC (Global Financial Crisis)

a worldwide period of economic difficulty experienced my markets and consumers; a difficulty experienced by markets and consumers; a difficult business environment to succeed in since potential consumers tend to reduce their purchases of goods and services until the economic situation improves

Self-Regulating Markets

adjusting, ruling, or governing itself with outside interference; operating or functioning without externally imposed controls or regulations (but the people's demand)

Trickle-Down Economics

an economic idea which states that decreasing marginal and capital gains tax rates, especially for corporations, investors, and entrepreneurs, can stimulate production in the overall economy; emerged with neoliberalism (rich "trickles down" to poor to reduce taxes, pass down jobs, etc.)

Keynesianism

an economic theory of total spending in the economy and its effects on output and inflation; some government regulation; 1930's by John Maynard Keynes

WB (World Bank)

an international financial institution that provides loans and developing countries for capital programs; long-term loans for reconstructing countries

OPEC (Organization of Petroleum Exporting Countries)

attempted to fix oil supply issue in 1971; helped to avoid oil price fluctuation and attempted to create cheap fossil fuels; cartel that aims to manage the supply of oil in an effort to set the price of oil on the world market in order to avoid fluctuations that might affect the economies of both producing and purchasing countries

Globalization from Above

brings about the hegemonic elites, and the economic elites, and the economic and cultural hegemony multinational corporations creating bourgeoisie elites who bring cars, music, and a different way of life into developing countries

TNC (Transnational Corporation)

corporation that is registered/operates in multiple countries at once

IMF (International Monetary Fund)

created to administer the international monetary system; international organization created for the purpose of standardizing global financial relations and exchange rates; stets price for currency; short-term loans to rebuild Europe

GATT (General Agreement on Tariffs and Trade)

established in 1947 as a global trade organization charged with fashioning and enforcing multilateral trade agreements; WTO was founded as the successor organization to GATT

WTO (World Trade Organization)

founded in 1995 as the successor organization go GATT; by the late 199's, it had become the focal point of the intense public controversy over the design and effects of the economic globalization; no tariffs on market

Free Trade

international trade left on its' natural course without tariffs, quotas, or other restrictions

Washington Consensus

refers to a set of broadly free market economic ideas, supported by prominent economists and international organizations, such as the IMF, WB, EU, and US (neoliberalism)

Structural Adjustment Programs

self-regulating; a package of economic and institutional measure designed to solve macroeconomic problems in developing countries by reducing government intervention in the economy, correcting the borrowing country's deficits and opening the country's economy to the global market

Tariffs

taxes or duties to be paid on a particular class of imports or exports; protects products while they're being developed

Comparative Advantage

the ability of an individual, or group to carry out a particular economic activity (such as making a product) more efficiently tan other activity; refining head start; colonized "new world"; extracted raw materials lie cotton and manufactured it

Deregulation

the reduction/elimination of governmental power in a particular industry, usually enacted to create more competition within the industry

Trade Liberalization

the removal or reduction of restrictions or barriers on the free exchange of goods between the nations; includes removal of tariffs and non-tariff obstacles

The Great Recession

the sharp decline in economic activity during the late 2000's which is generally considered the largest downturn since the Great Depression

Securities

the state of being free from danger or threat

Corporate Mobility

the trend toward a shift in work habits, with more employees working out of the office and using mobile devices and cloud services to perform business tasks

Increased Inequality

widening gap between social classes, countries, etc.; wealthy is about 1% of the population