GLOBALIZATIONGLOBALIZATION

International Trade• the exchange of

goods and services across international borders

Globalization• the process by which

regional economies, societies, and cultures have become integrated through a global network of political ideas through communication, transportation, and trade

World Trade Organization• An international agency which

encourages trade between member nations, administers global trade agreements and resolves disputes when they arise.

European Union• An economic and political association of

certain European countries with internal free trade and common external tariffs.

• November 1, 1993• 27 member states• 16 use the euro

NAFTA• North American Free Trade

Agreement• 1994• United States, Canada, and

Mexico • Removed tariffs to encourage free trade

CAFTA• Central America Free Trade Agreement

Command Economy• is planned and controlled by a central

administration• as in the former Soviet Union– Communism or Autocracy

Market Economy• An economy that operates by voluntary

exchange in a free market • Free enterprise• Supply & Demand

Traditional Economy• an economy based on custom and

tradition

Triangular Trade• 18th Century• slaves were bought on the

African gold Coast with England rum and then traded in the West Indies for sugar or molasses, which was brought back to England to be manufactured into rum.

Colombian Exchange• a dramatically widespread exchange of

animal, plants, culture (including slaves), communicable diseases, and ideas between the Eastern and Western hemispheres

Draw this diagram in your notebook

Silk Road• An ancient caravan route that linked

Xian in central China with the eastern Mediterranean