Terms Study Guide - Globalization Emerging market economies...

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Globalization the socio-economic reform process of eliminating trade, investment, cultural, information technology, and political barriers across countries, which in turn can lead to increased economic growth and geo-political integration and interdependence among nations of the world Emerging market economies countries that are implementing more open trade and free-market policies Decoupling a fundamental global shift in which industrialized country-dependent developing economies begin to grow based on their own underlying economic Multi-polar world a world economy in which the engines of growth could comprise several major industrialized and emerging market economies such as the United States, the European Union, China, India, Brazil, Russia, and South Africa rather than the United States alone International monetary systems - the system of exchange rates and international payments that enables countries and their citizens to purchase goods and services from one other Economic reforms - economic policy changes that promote private sector development, competitive markets, market-pricing, freer trade, and deregulation Capital markets - a stock exchange where long-term financial instruments such as stocks and bonds can be bought and sold Liberalization of the trading system - lowering and/or removing trade barriers such as tariffs, quotas, and subsidies Institutions - the rules, enforcement mechanisms, and organizations that support market transactions Adaptive institutions - government organizations that create strong incentives for private investment and operate under a
system of checks and balances Accountability - a system of responsibility in which an authority, such as the government, is answerable for its actions Transparency - a system of full disclosure and openness that aims to avoid any semblance of corruption and cronyism Antitrust laws - national laws aimed at maintaining competition in all sectors of the economy and preventing monopolistic behavior of firms Digital era - the period of transformation that adjusts lifestyles to make the Internet and wireless technologies a part of everyday life Bandwidth - the amount of data and other information that can be transferred in a second via the Internet The web - the world wide web, abbreviated as “www” and commonly known as the web; a system of interlinked documents contained and accessed via the Internet Digital divide - the perceived economic gap between countries or people with easy access to digital and information technology (and its benefits) and those with very limited access, or none at all International business - all commercial transactions, both private and public between nations of the world Trade - the two-way flow of exports and imports of goods (merchandise trade) and services (service trade) Foreign Direct Investment (FDI) - inflows of capital from abroad for investing in domestic plant and equipment for the production of goods and/or services as well as for buying domestic companies Outsourcing - the corporate practice of acquiring or producing quality goods or services abroad at a lower cost

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