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.
Gives financial aid to underdeveloped nations.
World Bank
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
Wants lower taxes and less government involvement
Milton Friedman
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.
Pay disparity, harsh working conditions and cramped and unsanitary climates.
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
Responsible for encouraging smooth free trade
World Trade Organization
What is outsourcing? What kinds of things do we outsource?
Sending your means of production to another part of the world... we outsource everything!
Conference held following WW2 discussing the rules for trade disputes and setting up key financial institutions across the World.
Bretton Woods
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!
too many strict conditions