Globalization: Importance & Impact

The spread of business activities and trade from national markets to international markets, creating interconnectedness between countries.

Economic policies implemented to promote domestic businesses by restricting foreign competition, often through tariffs, quotas, and subsidies.

Removing barriers to international trade and investment, encouraging open competition and free market principles.

The movement of people from one country to another to reside and work, often driven by economic opportunities or political asylum.

The total value of goods and services traded between countries, measured annually.

The significant decline in global trade between 1930-1939, primarily caused by the Great Depression and protectionist measures.

International institutions like the IMF, World Bank, and WTO that promote international cooperation and facilitate global economic growth.

The period after World War II saw a significant increase in global trade, driven by international cooperation and a movement towards free trade.

A policy focused on developing domestic industries and making them more competitive by reducing reliance on imports.

An argument for protectionist policies, claiming that newly established industries need temporary support to grow strong enough to compete in the global market.

A strategy used by governments to protect domestic industries by substituting imports with locally produced goods.

A tax imposed on goods imported from other countries.

A measure of a country's economic output per person.

The positive effects of economic liberalization, such as increased trade and economic growth.

The negative effects of economic liberalization, such as job losses in certain sectors or increased inequality.

The benefits that arise when countries specialize in producing goods and services they are best at and trade with others. This leads to lower prices, more choices, and economic growth.

Economic liberalization can lead to long-term economic growth, increased international cooperation, and a reduction in conflict. By promoting free trade and investment, countries can benefit from each other's strengths.

When a country opens up to foreign investment, it can attract businesses from other countries who want to set up operations and invest. This brings in capital, technology, and jobs.

Concerns about the impact of immigration on native workers' wages and employment are often unfounded. Studies have shown that immigration generally has a positive or neutral impact on the economy.