Globalization Glossary

The difference between the monetary value of a nation's exports and imports over a given period.

The emigration of highly trained or qualified people from a country, reducing its stock of human capital.

The post-WWII international monetary framework (1944-1971) that pegged currencies to the U.S. dollar and established the IMF and World Bank.

The ability of a country to produce a good at a lower opportunity cost than another country, forming the basis for mutually beneficial trade.

The spread of cultural products, ideas, and practices across national boundaries through media, migration, and commerce.

A theory that underdevelopment in the Global South results from the exploitative structure of the global economic system favoring wealthy nations.

Investment by a company or individual in one country into business interests in another country involving lasting control over the enterprise.

International trade conducted without tariffs, quotas, or other government-imposed barriers.

The international network of organizations involved in producing and distributing a product from raw materials to end consumers.

The increasing interconnectedness of economies, societies, and cultures through cross-border flows of goods, services, capital, people, and ideas.

The adaptation of globally marketed products and services to suit local tastes and cultural norms.

A global institution promoting international monetary cooperation, exchange rate stability, and providing financial assistance to countries in crisis.

A firm that owns or controls production or service facilities in one or more countries other than its home country.

Moving business operations or production to a foreign country, often to reduce labor costs.

Contracting out business functions or processes to an external provider, either domestically or internationally.

Government policies that restrict international trade to shield domestic industries from foreign competition.

A quantitative limit on the amount of a good that can be imported or exported during a specified period.

Competition among jurisdictions to attract investment by lowering taxes, wages, and regulatory standards.

Money sent by migrants working abroad to family or communities in their home country.

A designated area within a country where business and trade laws differ from the rest of the country, typically offering tax incentives and relaxed regulations to attract foreign investment.

A tax levied on imported goods to raise revenue or protect domestic industries.

The process of reducing barriers to international trade, including tariffs, quotas, and regulatory obstacles.

A set of free-market economic policies (fiscal austerity, privatization, trade liberalization) advocated by the IMF and World Bank for developing countries.

An international financial institution providing loans and grants to developing countries for projects aimed at reducing poverty.

The international body governing the rules of trade between nations, providing a platform for negotiation and dispute resolution.