Economics in the Global Age - AP World History: Modern

It can lead to cultural homogenization. Critics worry about losing local cultures and traditions.

A group of countries that have agreed to reduce trade barriers among themselves. Members enjoy preferential trading relationships within the group.

European Union (EU). This bloc represents one of the most integrated trade regions.

Increased market access for member countries. Members face fewer trade barriers within their regional group.

Centralized government control of resources and production. The state directs economic activity through central planning.

The gap between those with and without access to digital technology. Technology access creates economic advantages for some regions.

A movement aimed at ensuring fair prices and wages for producers. Ensures ethical treatment and compensation for developing world producers.

Advocating for sustainable and ethical business practices. These organizations promote corporate responsibility and social justice.

Improved working conditions for producers. Workers receive better wages and safer working environments.

The unequal distribution of wealth and income. Globalization can worsen disparities between rich and poor.

Environmental degradation. Rapid industrialization often harms natural resources and ecosystems.

To influence a country's behavior by restricting trade or financial flows. Economic pressure serves as a diplomatic tool for policy change.

Meeting current needs without compromising future generations. Balances economic growth with environmental and social responsibility.

Environmental protection. Combines economic development with ecological conservation efforts.

Offshoring. Companies move operations abroad to reduce labor and production costs.

They increase the price of imported goods. These taxes make foreign products more expensive for consumers.

Globalization is the integration of global markets and economies. This process connects economies worldwide through trade and investment.

Increased international trade and interdependence. Nations become more connected through expanded cross-border commerce.

World Trade Organization (WTO). Replaced GATT to oversee global trade rules and dispute resolution.

To stabilize international exchange rates and financial systems. Provides financial assistance and promotes monetary cooperation globally.

A company that operates in multiple countries. These corporations expand operations beyond their home country borders.

North American Free Trade Agreement (NAFTA). Eliminated most tariffs between these three North American nations.

Contracting out business processes to external parties. Companies delegate tasks to external providers to reduce costs.

Job losses in domestic industries due to outsourcing. Workers face unemployment when production moves to cheaper locations.

Countries are mutually reliant on each other economically. Global integration creates mutual dependence between national economies.

When a country's imports exceed its exports. This creates an imbalance in a nation's trade account.

Access to a wider variety of goods and services. Consumers benefit from increased choice and competitive prices.

To protect domestic industries from foreign competition. Uses barriers like tariffs to shield local producers.

A tax imposed on imported goods. This trade barrier raises revenue while protecting domestic producers.