The study of how international trade and globalization affects the distribution of economic activity across regions and how it shapes economic growth and development.
Comparative advantage: This is the idea that countries should specialize in producing goods or services in which they have a lower opportunity cost than other countries.
Free trade vs. protectionism: The debate between whether countries should engage in free trade or protect their markets through tariffs and other trade barriers.
World Trade Organization (WTO): The international organization that regulates global trade and settles disputes between member countries.
Multinational corporations (MNCs): Companies that operate in multiple countries and often play a significant role in trade and globalization.
Foreign direct investment (FDI): When a company invests in and operates a business in a foreign country.
Outsourcing: When a company contracts out a portion of its work to another company, often in a different country.
Global supply chain management: The process of managing the flow of goods and services across borders.
Cultural exchange: The exchange of ideas, customs, and traditions between countries through trade and globalization.
Regional trade agreements: Agreements between countries in a particular region to reduce barriers to trade within that region.
Neoliberalism: An economic philosophy that advocates for free markets and limited government intervention in market activity.
International trade: This is the exchange of goods and services between different countries.
Free trade: This means that there are no barriers, such as tariffs or quotas, to trade between countries.
Protectionism: The use of barriers or tariffs to restrict the entry of foreign goods into the domestic market.
Globalization: This refers to the process of increasing interdependence between countries and people around the world, and the resulting increase in economic, cultural, and social interactions.
Outsourcing: The practice of contracting work out to another company, usually in a different country, in order to reduce costs.
Offshoring: The relocation of a company's operations to another country, in order to take advantage of lower costs or better access to resources.
Import substitution: The policy of replacing foreign imports with domestic production in order to promote domestic industries.
Export-oriented industrialization: The policy of promoting exports as a means of industrializing a country.
Regional trade agreements: These are agreements between countries within a particular geographic region, aimed at reducing barriers to trade and promoting economic integration.
Bilateral trade agreements: These are agreements between two countries aimed at reducing barriers to trade and promoting economic cooperation.
Multilateral trade agreements: These are agreements between multiple countries, typically negotiated through the World Trade Organization (WTO), aimed at reducing barriers to trade and promoting international cooperation.