Some important Some important Globalization Globalization terms…terms…

Some important Some important Globalization Globalization terms…terms…

Globalization…Globalization…

A trend whereby local, provincial or A trend whereby local, provincial or national activities become global. national activities become global. There are different kinds of There are different kinds of Globalization; economic Globalization Globalization; economic Globalization involves economies operating in an involves economies operating in an increasingly global contextincreasingly global context

General Agreement on Tariffs General Agreement on Tariffs and Trade (GATT)…and Trade (GATT)…

Never a formal institution or Never a formal institution or organization, GATT was founded in organization, GATT was founded in 1948 to develop common rules and 1948 to develop common rules and agreements for international trade and agreements for international trade and goods. GATT was replaced by the goods. GATT was replaced by the WTO in 1995WTO in 1995

Some important Some important Globalization Globalization terms…terms…

World Trade Organization World Trade Organization (WTO)…(WTO)…

A global free trade institution based in A global free trade institution based in Geneva and created in 1995. It has Geneva and created in 1995. It has 155 member countries (as of 2012) 155 member countries (as of 2012) and deals with “the rules of trade and deals with “the rules of trade between nations”. It’s a negotiating between nations”. It’s a negotiating forum. it’s a set of rules. It helps to forum. it’s a set of rules. It helps to settle trade disputes.settle trade disputes.

Multilateral Trading System…Multilateral Trading System…

A trading system where trade A trading system where trade agreements, treaties, conferences etc. agreements, treaties, conferences etc.

have 3 or more participants.have 3 or more participants.

Some important Some important Globalization Globalization terms…terms…

Subsidies…Subsidies…

Money granted by the government to Money granted by the government to producers of certain goods to enable producers of certain goods to enable them to compete within the global them to compete within the global marketplace.marketplace.

Tariff…Tariff…

A duty (customs tax) on a particular A duty (customs tax) on a particular class of imports or exports.class of imports or exports.

Some important Some important Globalization Globalization terms…terms…

Trade Barrier…Trade Barrier…

A policy or regulation that restricts A policy or regulation that restricts trade between countries, provinces, trade between countries, provinces, etc.etc.

Transnational/Multinational Transnational/Multinational Corporation…Corporation…

Although there are differences, both Although there are differences, both are corporations with offices and are corporations with offices and plants/factories in countries other than plants/factories in countries other than where the corporate headquarters are where the corporate headquarters are located.located.