Glossary
Asian Tigers
The highly developed economies of Hong Kong, Singapore, South Korea, and Taiwan, which underwent rapid industrialization and economic growth from the 1960s to the 1990s.
Example:
South Korea's rise from a war-torn nation to a global leader in electronics and automotive industries exemplifies the economic success of the Asian Tigers.
Automation
The use of technology and machines to perform tasks previously done by humans, often leading to increased efficiency and reduced labor costs.
Example:
The widespread use of robotic arms on assembly lines in car manufacturing plants is a prime example of automation transforming industrial production.
Deng (Deng Xiaoping's policies)
Economic reforms initiated by Chinese leader Deng Xiaoping, which introduced market-oriented principles while maintaining Communist Party control, leading to rapid economic growth.
Example:
The establishment of Special Economic Zones (SEZs) in coastal cities like Shenzhen was a key part of Deng's policies, attracting foreign investment and fostering industrial development.
Economic Globalization
The increasing interconnectedness of economies worldwide through the movement of goods, services, capital, and technology across national borders.
Example:
The global supply chain for smartphones, where components are sourced from various countries and assembled in another, exemplifies economic globalization.
Economic Liberalization
The process by which governments reduce or remove controls over markets, often involving deregulation, privatization, and opening up to international trade and investment.
Example:
China's shift from a centrally planned economy to one with special economic zones and increased private enterprise under Deng Xiaoping is a prime example of economic liberalization.
Free Market Economic Policies
Economic systems characterized by private ownership of businesses and property, with minimal government intervention in the economy.
Example:
The push for deregulation and privatization in many Western countries during the late 20th century reflected a shift towards free market economic policies.
Knowledge Economy
An economic system where the production of goods and services is based on knowledge-intensive activities, relying heavily on information technology, innovation, and skilled labor.
Example:
Countries like Finland, known for their strong emphasis on education, research, and technological innovation, are key players in the global knowledge economy.
Manufacturing Hubs
Regions or countries that specialize in and are major centers for industrial production and the assembly of goods.
Example:
China's Pearl River Delta, with its vast network of factories producing everything from electronics to textiles, is a prominent global manufacturing hub.
McDonaldization
A concept describing the increasing rationalization and standardization of society, based on the principles of efficiency, predictability, calculability, and control, often associated with the spread of fast-food culture.
Example:
The global proliferation of standardized coffee shop chains, offering the same menu and experience worldwide, reflects the process of McDonaldization.
Multinational Corporations (MNCs)
Large companies that operate and have assets in multiple countries, often with a headquarters in one nation and production or sales facilities in others.
Example:
Coca-Cola, with its bottling plants and distribution networks spanning nearly every country, is a classic example of a multinational corporation.
Outsourcing
The practice of contracting out business functions or processes to third-party providers, often in other countries, to reduce costs or improve efficiency.
Example:
Many Western companies outsourced their customer service call centers to India, leveraging lower labor costs and a skilled English-speaking workforce.
Pinochet (Augusto Pinochet's policies)
Economic policies implemented by Chilean dictator Augusto Pinochet, characterized by radical free-market reforms, including extensive privatization and deregulation, often referred to as the 'Miracle of Chile.'
Example:
The privatization of Chile's state-owned copper company, Codelco, under his regime was a significant aspect of Pinochet's policies to reduce state control.
Post-Industrial Economy
An economy that has transitioned from primarily manufacturing-based production to one dominated by services, information, and knowledge-based industries.
Example:
The decline of traditional factory jobs in the American Midwest and the rise of tech companies in Silicon Valley illustrate the shift towards a post-industrial economy in the United States.
Reagan (Ronald Reagan's policies)
Economic policies of U.S. President Ronald Reagan, known as 'Reaganomics,' which emphasized supply-side economics, tax cuts, deregulation, and reduced government spending.
Example:
The significant tax cuts enacted in the early 1980s were a cornerstone of Reagan's policies, intended to stimulate economic growth.
Rust Belt
A region in the northeastern and midwestern United States that experienced industrial decline, deindustrialization, and significant population loss due to the shrinking of its once-dominant manufacturing sector.
Example:
Cities like Detroit and Pittsburgh, once thriving centers of steel and auto production, became part of the Rust Belt as manufacturing jobs moved overseas or were automated.
Thatcher (Margaret Thatcher's policies)
Economic policies implemented by British Prime Minister Margaret Thatcher, focusing on reducing inflation, curbing the power of trade unions, and privatizing state-owned industries.
Example:
The privatization of British Telecom and British Airways under her leadership demonstrated Thatcher's policies aimed at increasing market efficiency.
Transnational Corporations
Companies that operate in multiple countries but are not strongly tied to any single nation-state, often having a more decentralized global structure than traditional MNCs.
Example:
A tech company with research and development teams in Silicon Valley, manufacturing in Vietnam, and customer support in Ireland, without a strong national identity, could be considered a transnational corporation.
Truman Doctrine
A U.S. foreign policy established in 1947 that committed the United States to supporting free peoples resisting attempted subjugation by armed minorities or outside pressures, primarily aimed at containing communism.
Example:
The financial aid provided to Greece and Turkey after World War II to prevent them from falling under Soviet influence was a direct application of the Truman Doctrine.