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29 Cards in this Set
- Front
- Back
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Globalization
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Increasing movement of goods, services and capital across national borders
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Global Market Channels
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Build successful business at home and then export products or services to buyers in other countries
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Global Operations
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Establish manufacturing plants or service operations abroad
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Global Supply Chains
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Purchasing raw materials, components, or other supplies from sellers in other countries
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Transnational Corporations (TNC)
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Firms that control assets abroad
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Acceleration of Globalization Factors
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Technological Innovation
Transportation Systems The Rise of Major Transnational Corporations Social and Political Reforms |
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International Financial and Trade Institutions
(IFTI) |
World Bank
International Monetary Fund World Trade Organization |
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World Bank
1944 |
Economic development loans to member nations
Strict Conditions of pay Structural Adjustment Plans - government demands to cut spending, devalue currency, increase exports, liberalize financial markets, reduce wages and remove agricultural price subsidies LEAD TO HARDSHIP and persistent poverty |
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International Monetary Fund
1944 |
Makes currency exchange easier for member countries so that they can participate in global trade
imposes strict restrictions on governments that receive loans |
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World Trade Organization
1995 |
international body that establishes the ground rules for trade among nations
Just sets rules for international trade cannot discriminate against foreign products for any reason Switzerland successor to the General Agreement on Tariffs and Trade |
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Debt Relief
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IMF extends to poor nations
Debt forgiveness |
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Vulture Funds
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Take advantage of a poor nation's situation by buying up the debt of countries such as Zambia, Nicaragua, Cameroon for pennies on the dollar and suing them to recover unpaid debts
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Rounds
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WTO conducts multi-year negotiations that meet in different cities
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Benefits of Globalization
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Increase economic productivity
Reduce prices for consumers Gives access to foreign investment funds for economic development Support spread of democracy and freedom Reduce military conflict |
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Theory of Competitive Advantage
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Productivity rises more quickly when countries produce goods and services for which they have natural talent
natural resources; skills, education or experience of critical mass of people; existing production infrastructure |
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Costs of Globalization
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Job insecurity "Race to the Bottom"
Environmental and labor standards weakened with move to lax regulations WTO's most favored nation rules make it tough for individual nations to adopt policies promoting environmental and social objectives erodes regional and national cultures compatible with despotism |
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anti-Americanism
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resentment at the penetration of the values of the dominant U.S.-based transnational corporations into every corner of the world
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Democracy and political freedom
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Fair elections
Independent media Separation of powers Open society with independent organizations |
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Military dictatorships
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repressive regimes ruled by dictators with total control
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Human Rights
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Rights and privileges accorded to all people, simply by virtue of being human
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Human Rights Problems
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Preventable child deaths (10 million/yr)
Genocide Forced labor Lack basic political and social rights of minorities |
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Authoritarian Capitalism
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Modern states that combine elements of a market economy with political control by nonelected elites.
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Central State Control
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Economic power is concentrated in hands of government officials and political authorities
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Index of Economic Freedom
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The fundamental rights of every human being to control his or her own labor and property
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Constructive Engagement
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Transnational corporations operate according to moral principles, they become a force for positive change in other nations in which they operate
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Three Sector World
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sector- broad divisions of a whole
Private sector (business) Public sector (government) Civil society |
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Civil Society
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comprises nonprofit, educational, religious, community, family and interest-group organizations (social organizations that do not have a commercial or governmental purpose).
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NGOs
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Concerned with issues of environmental risk, labor practices, worker rights, community development and human rights
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Collaborative Partnerships
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alliances among the three sectors draw on unique qualities of each
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