Concepts and Terms


To what extent did the economic foundations of globalization shape contemporary globalization?

As you progress through this unit, ask the following questions:

  • What are some of the ideas that led to globalization as we know it?

  • What factors are at work in a capitalist, command, or mixed economy?

  • Can economic development continue unchecked, or are there limits?

  • Should individuals, government, or international agencies be making the economic decisions?



In this unit, you will learn more about the following big ideas:

  • Who should make decisions about producing, buying, and selling goods and services?

  • How do people benefit from competition?

  • How do people benefit from trade?

  • What theories explain how trade should be conducted between nations?

  • Who are the great economic thinkers and what do they believe?


The following are important words in this unit. Select the word to read the definition, or look in the online glossary.

Adam Smith

John Maynard Keynes

balance of payments

business cycle

capital

capitalism

collectivism

Cold War

communism

competition

corporation

deficit

demand

equilibrium

free trade

International Financial Institution (IFI)

International Monetary Fund (IMF)

invisible hand

investment

labour

monetary policy

multinational/transnational

Poverty Reduction Strategy

privatization

quota

self-interest

supply

tariff

trade

trade liberalization

World Bank

World Trade Organization (WTO)