Key Terms
Shipping goods using standard-sized containers transformed global logistics.
What is containerization?
he process of removing tariffs and quotas so goods move more freely.
What is trade liberalization?
“Government should step back; supply and demand will guide prices.”
Who is Adam Smith?
Using resources so they remain available over the long term
What is sustainability?
Growth driven by research, education, technology, and new ideas.
What is the knowledge economy?
Payments made to make amends after wrongdoing, often by a defeated country after a war.
What are reparations?
Trade between partners that have removed tariffs and taxes on each other’s goods.
What is free trade?
The metaphor most closely associated with capitalism.
What is the “invisible hand”?
Meeting today’s needs without harming future generations’ ability to meet theirs.
What is sustainable development?
Reducing costs by sourcing from countries with cheaper labor or looser regulations.
What is outsourcing?
Selling a government-owned service to private owners
What is privatization?
The organization that acts like the “police” for global trade rules and disputes.
What is the WTO (World Trade Organization)?
An economy with minimal regulation where firms make their own decisions.
What is a market economy?
Taking responsibility for caring for Earth’s resources.
What is stewardship?
The spreading of cultural customs and traditions across regions.
What is cultural diffusion?
A long period of very low economic activity and high unemployment.
What is an economic depression?
A penalty, often economic, used to pressure a government to change behavior.
What are sanctions?
An economic and political system aiming to eliminate class distinctions via collective ownership.
What is communism?
he amount of Earth’s surface needed to support a person’s lifestyle and absorb waste.
What is an ecological footprint?
After WWII, countries increasingly built institutions and agreements to prevent future devastation—this effect on the world.
What is increased international cooperation/globalization?
A ship registered in a country different from its owner’s to benefit from looser rules or lower costs.
What is a flag of convenience?
The main reason some countries refused to ratify the Kyoto Protocol.
What is concern over the negative economic impact of emission-reduction quotas?
“A business that makes nothing but money is a poor kind of business” supports this concept.
What is corporate social responsibility (CSR)?
Small but steady changes in average global temperatures over time
What is global climate change?
Coca-Cola, GE, Toyota, KFC, Subway, and Gap are examples of these.
What are multinational corporations?