| A | B |
|---|
| The World Is Flat | Popular book on globalization by Thomas L. Friedman |
| globalization | the creation of a single world-wide economy and community |
| outsourcing | companies hire other companies in other countries to do their work |
| offshoring | practice of moving production overseas |
| infrastructure | the investment a society makes in building roads, railroads, power plants, telephone systems, internet systems, etc. |
| productive resources | natural, human, and capital resources, along with entrepreneurship |
| natural resources | materials from the natural world--minerals, plant fibers, animal products, and energy |
| human resources | human labor required to produce something |
| capital resources | goods necessary to produce other goods and services: machines, tools, transportation routes, etc. |
| entrepreneurship | people who bring together and organize other productive resources--business owners and managers |
| specialization | when each region tends to make certain types of goods based on resources available |
| comparative advantage | when each region produces those goods and services it can make at the lowest cost |
| trade | the exchange of goods and services |
| imports | goods brought into a country for sale from outside |
| exports | goods being sent to other countries for sale |
| protective tariff | taxes added to goods coming from other countries to make them more expensive |
| free trade zones | associations between countries with no tariffs or quotas |
| tariff | a tax appled to goods |
| Euro | the currency of most countries in the European Union |
| connectivity | ease of communication |
| pandemic | world-wide spread of disease |
| examples of connectivity | skype, facebook, email, cell-phones |
| Atlantic Trade | trade between Europe, the Americas and Africa |
| Columbian Exchange | spread of European plants and animals to the Americas and American plants and animals to Europe |
| North American Free Trade Agreement | Association to limit tariffs between USA, Canada, and Mexico |
