Economic Globalization Overview

A period of significant social and economic reforms in Japan, starting in 1868, aimed at modernizing and industrializing the nation.

Vertically integrated, family-owned Japanese conglomerates that played a key role in Japan's industrialization.

The difference in wealth and income between individuals or groups within a particular society.

The ability to move up or down in a society's social hierarchy based on merit and effort.

The wealthiest class in industrial societies, characterized by ownership of capital and control of production.

The working class in industrial societies, who sell their labor for wages.

A method of adapting Western technology to suit local contexts (low wages, cheap labor), as in Japan's industrialization.

The unequal treaties signed by Japan in the 19th century, limiting its economic autonomy and forcing it to open its markets.

The process of transforming a nation's economy from primarily agricultural to industrial, marked by advancements in technology and production methods.

A set of key factors traditionally believed to drive a nation's industrialization, including the creation of a unified market, a supportive government, investment in infrastructure, and the presence of human capital.

A key factor for successful industrialization, involving the construction of rail lines, roads, and canals to connect different regions and facilitate the transport of goods and people.

Creating a single, integrated market across a country, eliminating barriers to trade between regions and fostering competition.

The government's role in supporting industrialization through policies such as investing in infrastructure, promoting innovation, and providing education.

The process of acquiring and utilizing knowledge, skills, and experience, often through formal education or on-the-job training, to enhance the economy.

The use of machines and automated processes to increase production efficiency and output, a key driver of industrialization.

The unrestricted movement of goods, services, and people across a nation without tariffs or other impediments, crucial for economic growth.

A model that suggests population growth cannot exceed the limits of agricultural and food supply, leading to increased mortality unless technological innovations or positive supply shocks occur.

A major shift in economic fortunes leading to significant differences in prosperity between societies, often caused by technological advancements, resource availability, or institutional factors.

A period of industrialization and technological advancements that broke the limitations of the Malthusian growth model, allowing for sustained economic growth and population increase.

A pandemic that significantly reduced population, leading to labor shortages which in turn increased real wages. It's a powerful example of how a crisis can lead to wealth redistribution and create a more equal society.

A localized version of economic divergence, specifically the gap in economic growth between Northern and Southern Europe, observed around the 1500s and later in the 1800s.

A theological doctrine that emphasized predestination, or the belief that one's fate is predetermined, leading to a focus on hard work, frugality, and saving, which are seen as indicators of God's favor.

Social, legal, political, and economic structures that shape a society's functioning, including its institutions, laws, norms, and values.

The extent to which laws and regulations uphold fairness, predictability, and prevent corruption, thereby providing a stable and predictable environment for economic activities to flourish.

Measures income or wealth distribution across a country, calculated from the Lorenz curve.

A visual representation of income/wealth distribution within a country, used to calculate the Gini-Coefficient.

The difference between the actual Gini-Coefficient and the maximum possible Gini-Coefficient in a society.

Explains the relationship between economic development and income inequality, suggesting a U-shaped pattern.

The monetary value of consumption below which an individual is considered poor.

The process of shifting workers from the agriculture sector to industry, often leading to higher wages and initial inequality.

The widening income gap between rich and poor countries, which increased in the 19th century as industrialization led to greater economic disparities.

The tendency for intra-national inequality to decline during the 20th century because of factors like social spending and economic growth.

A process where governments reduce their involvement in industries like public transportation, postal services, and banking. This can involve selling state-owned enterprises to private companies.

A type of monetary policy where central banks limit the money supply to control inflation. This can involve raising interest rates or reducing the amount of money banks can lend.

The loosening of regulations in the financial sector, often leading to increased competition and innovation but also potentially more risk.

The process of packaging and selling financial assets, such as mortgages, into securities. This can make them more attractive to investors but also create risks if the underlying assets are faulty.

The establishment of a completely new operation by a foreign company in a host country, rather than acquiring an existing business. This is one method of foreign direct investment.

The purchase of foreign securities without any control over the management of the foreign entity. This is a type of foreign investment, but it doesn't involve direct ownership and control.

Foreign direct investment (FDI) refers to the ownership and control of assets in foreign countries. This can be achieved by acquiring an existing company or by making a greenfield investment.

The accumulated value of foreign direct investment held by a company at the end of a specific period, such as a year.

A period from 1945 to 1973 characterized by substantial economic prosperity and growth in many developed countries; it was a time of high employment, low inflation, and rising living standards.

An economic theory advocating for tax cuts and deregulation to stimulate economic growth by encouraging investment and job creation.

The practice of establishing colonies and exploiting their resources for economic benefit.

The decline of manufacturing industries in a region, often due to competition from cheaper production in other countries.

An economic system where nations specialize in specific products or services and trade with each other, leading to a global division of labor.

The economic relationship between countries in the developed 'North' and the developing 'South', where the South primarily exports raw materials and the North exports manufactured goods. As a result, the South often faces economic dependence and inequality.

The economic model associated with the 1950s and 60s, characterized by high wages, high productivity, and social stability through welfare programs. It is linked to the rise of the middle class and a decreasing gap between rich and poor.

A decline in the relative share of manufacturing in an economy, often accompanied by job losses, reduced productivity, and a shift towards service industries.