Terms and Definitions
Trade Liberalization
The reducing of barriers to make it easier to trade between countries
What did NAFTA do?
Reduced train barriers between the USA, Canada, and Mexico
Why are transnational corporations considered so powerful?
They use most of the world's resources and in some cases may be more wealthy than the countries they operate in
What is an ecological footprint?
The impact that we have on the earth (negatively)
What is the USMCA?
The new NAFTA!!
Privatization
Selling a publicly owned/sponsored service to a private company
What happened at the Bretton Woods Conference?
The creation of the World Bank and the International Monetary Fund
What is free trade? How is it different from fair trade?
Free trade is the eliminating of barriers to liberalize trade between countries. Fair trade ensures that everyone gets paid for the work they put in, and therefore may cause products to be more expensive.
Why is the ecological footprint of Bangladesh smaller than the ecological footprint in Canada?
Bangladesh is a developing country. Its people are usually poorer than we are here in Canada. This means they consume less, and therefore have less waste.
What was Hayek's main points about the economy?
We need freer markets! Gov't stay out and away!
Containerization
The process of items being shipped in containers
The Kyoto Protocol was created to achieve what goal?
To reduce greenhouse gas emissions
What is the high cost of low prices?
Conditions are poor both in our country and in the countries that the goods we may buy are produced in.
What is shipbreaking? How is it harmful to the environment and to individuals?
The recycling of materials used to build a ship, it causes chemicals and other materials to leak into the ocean and onto beaches, and workers may be crushed in the process or inhale chemicals and other particles
What is an example of an career of somebody in the knowledge economy?
a professor, an entrepreneur...
Foreign Investment
One country buying or investing in another country
GATT stands for what and does what?
General Agreement one Tariffs and Trade
Eliminates tariffs and trade barriers between member countries
What is outsourcing? What kinds of things do we outsource?
Sending your means of production to another part of the world... we outsource everything!
What is the connection between outsourcing, flags of convenience, and the environment?
Often, the places we outsource to have looser environment legislations, which brings down overall production or manufacturing costs. Flags of Convenience is sailing a ship under a different country to avoid harsh regulations.
What is a benefit of Foreign Investment?
Strengthens the economy the other country
Builds a better relationship with the other country
Sustainable Prosperity
Living your life in a manner that can be maintained and contributes positively to your life (wealth, health, security)
What is the IMF and what does it do?
International Monetary Fund
Provides short term loans to countries in need
Describe how economic and social goals clash
To compete with other corporations you may need to compromise jobs in your home country in order to stay in business.
Who uses most of the world's resources?
Transnational Corporations!
What are the factors that expanded globalization? (4)
1. The Media
2. Communication Technologies
3. Transportation
4. Trade