Globalization: Importance & Impact

The process of businesses and trade expanding from domestic to global markets, leading to increased interconnectedness between national economies.

Globalization is driven by advancements in technology and transportation, facilitating the flow of goods, services, ideas, and people across borders.

The total value of goods and services traded internationally. It reflects the volume of global trade.

Policies that prioritize domestic industries and restrict foreign competition through tariffs, quotas, and other barriers.

The process of removing barriers to international trade and investment, allowing for freer flow of goods, services, and capital across national borders.

The movement of people from one country to another for work, study, or other reasons. It impacts economic growth, labor markets, and cultural diversity.

Before World War I, world trade experienced steady growth at an average rate of 5% per year.

After World War I, global trade recovered but faced a sharp decline during the Great Depression due to protectionist policies implemented by countries.

A policy aimed at developing domestic industries by protecting them from foreign competition.

A policy designed to promote the growth of new domestic industries by shielding them from foreign competition.

A strategy used by countries to protect their domestic industries from foreign competition by replacing imported products with locally produced goods.

Taxes imposed on imported goods, often used to protect domestic industries.

An economic theory suggesting that countries should focus on producing and exporting goods they are best suited for.

A policy aimed at creating a more open and interconnected global economy.

A situation where countries focus on protecting their domestic industries from international competition.

Large multinational corporations can exert influence on government policies, potentially leading to decisions that favor their interests over the interests of the general public.

The process of countries specializing in producing goods and services where they have a comparative advantage, leading to more efficient resource allocation and potentially higher overall welfare.

The movement of people from one country to another, often driven by economic opportunities or seeking a better life.

Concerns that immigration leads to increased unemployment and lower wages for native workers. Research suggests these concerns are often unfounded.