Globalization Terms

Globalization• The growing worldwide connection

(interdependence) between different parts of the world. – expansion of international cultural, economic,

and political activities– as people, ideas, knowledge, and goods

move more easily around the globe, the experiences of people around the world become more similar

– facilitated by rapid advances in communication and lower labor costs in some parts of the world.

Globalization Defintions

• Product/Good – something that is manufactured and can be sold/purchased

• Service – assistance that can be purchased

• Westernization – influencing a country or culture to recognize the rights of individuals, the importance of democracy and the superiority of capitalism (as used in the US, Canada, Europe . . .)

Globalization Definitions

• Domestic – inside the home country

• Foreign – outside the home country

• Export – goods sold to another country

• Import – goods purchased from another country

Globalization Definitions

• Outsourcing – sending jobs to countries where wages are lower, hiring foreign workers to do a job once done by domestic workers

• Multinational Corporation – a business with locations in more than one country

Globalization definitions• Gross Domestic Product (GDP)–

– Gross means “total”– Domestic means “inside a country”– Product is “things that are produced or made”

So GDP is the total amount of goods and services produced by a country in one year

• GDP per capita – – Per capita means per person, so GDP per capita

is the average amount a person in a country produces in a year

Globalization Definitions• Developed country – a country with a high level of

resources (finance, education, utilities, etc.) and a high standard of living (people are wealthy on average)

• Developing country – a country whose economy is growing quickly but whose economy has not yet reached that of developed status (Brazil, Russia, India, China, South Africa – BRICS) Also called “less developed”

• Underdeveloped country – country with a low level of resources, making economic growth extremely difficult

Did You Know 2009

Did You Know 2013