GLOBALIZATION

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, 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 18 th 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