Americanization: Refers to the influence of the United States on other cultures, whether it be forced upon or willingly accepted. Examples include the proliferation of American media across the globe, as well as multination corporations based in the US opening up markets in other countries (Coca-Cola, Mcdonalds, etc).
Cosmopolitanism: Part of this is the idea that all of humanity belongs to a single moral community. It can also be seen as an approach to deal with different communities; "live and let live attitude"
Economic Rationalism:Political life focused on a conservative pessimistic account of human nature that sees individuals as self interested and potentially aggressive in the face of limited resources. This is better known as Realism. This ideology can be transcribed from the human to a state's ideology, partially explaining why states are in a constant struggle for power.
Free Trade:
Pro: Consumers have access to global markets. Products traded between countries are not entitled to any taxes, quotas, tariffs, or other preventive import measures. By creating a world market without restrictions, comparative advantage is established and companies compete on the world market enabling the consumer to receive products at the lowest possible cost. Consumers would now be able to look at foreign products as a possible alternative to domestic products because the prices are similar from no import taxes/tariffs/quotas.
Con: Developing countries are able to produce certain goods (raw materials, textiles, et cetera) at lower costs than developed nations (i.e. United States) usually because of cheap labor. If the U.S. adopted a free trade policy, products and raw materials would flow into the U.S. and consumers would buy those imported goods over domestic goods causing domestic business's to lose massive profits and/or go bankrupt. This leads to U.S. workers being unemployed due to global competition. Examples of this are the steel and textile industry.
Globalization 1.0:From 1942, Columbus opened trade between Old World and the New World, until around 1800. The major force driving global integration during this period was from the key agent, horsepower/force/creativity a country or government deployed.
Globalization 2.0: The second era of Globalization that lasted from about 1800-2000. It was interrupted by the Great Depression and World Wars I and II. The key agents in this period were multinational companies, which created and developed a global economy. Advances in hardware, beginning with the steam engine and the railroad and ending with the telephone and computers, lowered transportation costs and telecommunication costs, which drove the era.
Globalization 3.0: Began in the year 2000, the world continues to shrink as multination corporations increasingly enter the global economy for markets and labor. Technology has continued to increase transportation and communication as well as lower production costs. Individuals have been empowered through NICTs (New Information and Communication Technologies). They no longer have to live in or travel to the US or Europe to participate in cultural, educational, or business relationships. Friedman believes globalization 3.0 will increasingly be driven by non-Western groups and individuals, whereas 1.0 and 2.0 were driven by Westerners.
Horizontal value creation:
Human Security: Developed by the United Nations development program in 1994. This initiative outlines seven basic areas of human security: economic, food, health, environmental, personal, community, and political. There was also six main threats to human security: unchecked population growth, disparities in economic opportunities, migration pressures, environmental degradation, drug trafficking, and international terrorism.
International Monetary Fund(IMF): Overseas the global financial system using macroeconomic policies (exchange rate, balance of payments) specified by its' members. This institution is considered to be a lender of last resort to states that have failing economies and poor infrastructure. There has been criticism about the IMF's "conditional lending" practices and whether or not this institution is effective. Many countries that requested funds from this institution were left in a worse economic situation and overloaded with debt to the IMF. Another criticism of the IMF is that many UDC (under developed countries) are in such economic disarray that they have no alternative options for financing except the IMF because they have no or little credit.
In-forming:
Insourcing: This is the opposite of outsourcing, its doing work with inhouse employees. In other words creating jobs in your own country to maintain control of certain critical production. Examples would include hiring local contractors or building a facility within the country.
Multi-culturalism: A trade agreement between Canada, Mexico, and the United States. It came into effect January 1, 1994 and is today the largest trade bloc in the world in terms of total GDP of its members. The agreemnt eliminates most tariffs on goods traded between the three member nations. It also protects intellectual property rights and removes investment restrictions.
New Middlers:
North American Free Trade Agreement (NAFTA):One of many trade blocs that have created in the past decade to improve trade relations with neighboring countries. NAFTA is a trade agreement that eliminates tariffs, taxes, and quotas between Canada, the U.S. and Mexico. This was created by President Clinton and although NAFTA does not eliminate all trade restrictions, it reduces them enough to encourage more trade between these three countries. Trade blocs are one step closer towards creating a global trade bloc or free trade market. Some other trade blocs are EU (European Union), ASEAN (Association of South East Asian Nations), GAFTA (Greater Arab Free Trade Area), and AEC (African Economic Community). *Note- there are many more trade blocs.
Offshoring: A practice in which a company moves production to a country with lax pollution/labor laws and a cheap labor force. Offshoring may also occur "on-shore" if a state creates separate special economic zones (SEZ) or international banking facilities (IBF) within its own territory which are characterized by de-regulation.
Outsourcing: is subcontracting a process to a third-party company. It involves the moving of the management and/or daily execution process of an entire business function to a third-party provider.
Outsourcing(Another definition): Subcontracting a division or part of a company to a third party. This allows management to effectively improve efficiency, growth and infrastructure in the company. Outsourcing has been a common tool of companies and Multi-national corporations as a form of reducing costs and increasing profits. This technique has led to companies becoming more profitable and competitive in the marketplace and creating jobs in other countries. One major problem of outsourcing is that the direct communication between the company and the third party are limited; this can create major problems for companies if management is not on the same level as the third party they outsourced. Outsourcing can also lead to domestic job cuts within the company. For example, Microsoft's customer service division has been outsourced to India, leading to fewer domestic CR representatives. Overall, companies outsource to improve their competitive advantage in the marketplace.
Social Darwinism:(Charles Darwin) a theory that competition between all individuals, groups, nations, and ideas drives social evolution in human societies. Some Darwinists support a laissez-faire political and economic system that favors competition and self-interest in social and business affairs (survival of the fittest).
Steroids: (Flattener #10).
Supply-Chaining: A system of organizations, people, activites, information, and resources involved in moving a product or service from supplier to customer. It is a way of transforming raw materials and components into a finished product. It often includes multiple steps such as constructing, assembly, and storage.
Triple Convergence:
World Bank(WB): A global institution that provides loans to developing countries to improve infrastructure, the economy, and other developmental programs. The WB claims it plays a supportive role in global poverty reduction and improvement of living standards offering loans to middle income countries and certain poor countries, however many criticize this institution for doing the opposite. One main criticism is that the WB has been imposing a neo-liberal agenda, forcing policies on developing countries and doing more harm than good. Other criticisms have been that the WB is an extending hand of Western imperialism upon the developing countries.
Zippies: "Zippies are the huge cohort of Indian youth who are the first to come of age since India shifted away from socialism and dived headfirst into global trade and the information revolution by turning itself into the world's service center" (Friedman page 215)