Globalization Chapter 2: Multinational Trade

A period of significant technological advancements, primarily in Great Britain, that led to mass production and transformed societies.

The movement of goods, services, and capital across national borders, facilitated by technological advancements and reduced transportation costs.

The process by which countries exert political and economic control over other regions, often through military force and exploitation of resources.

The forced migration of people, typically for labor purposes, often under harsh conditions.

The rapid increase in investments and financial transactions across national borders, driven by globalization and technological advancements.

The increased mobility of people across national borders, driven by factors like globalization, trade, and migration.

The Industrial Revolution's impact on global trade and the movement of people and capital led to the emergence of a connected world economy.

The Industrial Revolution, by displacing traditional industries in countries like China and India, propelled Great Britain to become the world's leading manufacturing powerhouse.

A period of time that experienced relatively little widespread warfare compared to previous centuries.

Economic policies that favor free markets, limited government intervention, and free trade.

Taxes imposed on goods imported from other countries.

A system where the value of currencies is directly linked to a fixed amount of gold. This stabilizes exchange rates.

A nation's central bank, which manages the money supply, interest rates, and the overall stability of the financial system.

The large-scale movement of people from one country to another, often for economic reasons.

A type of travel ticket for people who travel on cargo ships, typically those of limited means.

The continuous flow of knowledge, resources, and investments across international borders within a company.

Investments made by a company in a foreign country to control assets like factories or businesses.

The use of various organizational structures by companies to conduct business internationally, often involving partnerships or joint ventures.

Companies starting their operations domestically and then expanding their activities to foreign markets.

Building and maintaining a strong competitive position in the global marketplace through strategic planning and management of resources across international borders.

Companies leveraging their existing skills and expertise to successfully establish and maintain operations in foreign markets.

Companies engaging in a variety of activities across international borders, including manufacturing, resource extraction, and service provision.

Companies specializing in services like financing, insurance, and transportation, playing a significant role in the global economy.

The Industrial Revolution led to a surge in demand for raw materials like copper, aluminum, zinc, tin, and oil, as new industries like chemicals, machinery, food processing, and automobiles emerged. This also created a need for markets to sell these products.

The Industrial Revolution's demand for raw materials and markets pushed countries like Britain to expand their trade beyond their borders, leading to increased global interconnectedness.

The Industrial Revolution triggered the growth of international trade due to increased demand for raw materials and markets for manufactured products.

The Industrial Revolution brought about significant improvements in transportation and communication, enabling faster and more reliable trade across borders. This included the development of railroads, advanced sailing ships, steamboats, and the telegraph.

The Industrial Revolution encouraged liberal economic policies where governments lessened their involvement in economic activities, fostering free trade and foreign company investment.

The McKinley Act of 1890 raised tariffs in the United States, limiting foreign goods but not companies. This pushed multinational companies to set up factories within the US market.

The Suez Canal, opened in 1869, shortened the journey between Europe and Asia, significantly impacting international trade and reducing transportation costs.

The Panama Canal, opened in 1915, also significantly reduced sea travel times and costs between Atlantic and Pacific oceans, further integrating global trade.

The ability of a company's owners to be legally separate from the company, meaning they are not personally liable for the company's debts. This encouraged investment and business growth.

The process of large companies becoming dominant in various industries due to factors like limited liability and technological advancements. This transformed the economic landscape.

The rise of technologies like railroads, telegraphs, steam ships, and cables facilitated the production and marketing of goods on a larger scale. This marked a shift towards mass production and consumption.

The early 20th century witnessed a decline in global trade and interconnectedness due to factors like World War I, trade barriers, and anti-immigration sentiment. This reversed the trends of globalization seen during the 19th century.

This period saw a rise in nationalistic policies, protectionist measures, and restrictions on immigration. This contributed to the decline of global trade and the first global economy.

The increasing use of tariffs, import quotas, and other trade barriers by countries to protect domestic industries from foreign competition.

A period of intense economic downturn characterized by widespread unemployment, declining production, and financial instability.

An economic policy where a country raises its tariffs on imported goods, hoping to protect domestic industries but often leading to retaliatory measures by other countries.

The process of restricting immigration by setting quotas or imposing other barriers on the entry of foreign nationals.

The movement of people from one country to another, often for economic opportunities or to escape political or social unrest.