The Contemporary World — Midterm Study Guide

Color-coded notes covering all 5 exam topics (60 items, 12 each) + Master Glossary

A The Structure of Globalization

What is Globalization? (know several definitions — MC exams love matching quotes to authors)

Goldstein & Pevehouse (2009): expanded trade, monetary coordination, multinational corporations, telecommunications, cultural exchange, migration/refugee flow, rich–poor relations.
Ritzer & Dean: a transplanetary process — growing multidirectional flows of people, objects, places, and information, plus the structures that block or speed up those flows.
WHO: increased interconnectedness/interdependence of peoples and countries — open borders for goods, services, finance, people, ideas + institutional/policy change.
Manfred B. Steger (b.1961, U. of Hawaii sociologist): Globalization = multidimensional phenomenon (economics, politics, culture, ideology, environment, technology) — the expansion and intensification of social relations and consciousness across world-time and world-space.

Simple version: Globalization = integration between people, companies, and governments; it changes how nations, businesses, and people interact.

4 Common Themes of Globalization (Steger)

1Creation of new + multiplication of existing social networks/activities that overcome traditional political, economic, cultural, geographical boundaries.
2Expansion and stretching of social relations, activities, and interdependence.
3Intensification and acceleration of social exchanges and activities.
4Involves the subjective plane of human consciousness (not just objective/material).

4 main dimensions (Steger): economic, cultural, political, ecological.

8 Segments of Globalization

Political
Social
Economic
Technological
Financial
Cultural
Ecological
Geographical

(all interconnected — influence each other)

Globalism vs. Globalization

Globalism	Globalization
An ideology: people, information, goods should cross borders unrestricted (the "belief")	The actual spread of technology, products, information, jobs across nations (the "process")
Ideological component of globalization	Increasing interconnection between people & regions worldwide

4 types of Globalism: Economic (flows of goods/services/capital/info), Military (long-distance force networks), Environmental (transport of materials — air/river/land), Social & Cultural (movement of ideas, images, information, and people).

Internationalism (nations choosing to cooperate) has 4 types: Hegemonic (one country dominates), Liberal (sovereign states cooperate/create interdependency — e.g., EU, ASEAN), Socialist (working-class solidarity across borders), Revolutionary (int'l alliances shape internal conflicts — e.g., French/Cuban Revolution).

Antiglobalization = opposition to globalization's methods/practices. Pro-Globalization = belief that global market integration benefits everyone (spreads freedom/democracy).

Scapes Theory (Arjun Appadurai) — 4 Scapes/Levels of Globalization

Metaphors & Flows of Globalization

3 Historical Phases of Globalization

Advantages 😊 vs. Disadvantages ☹ of Globalization

Quick Facts (Lecture 1 & 2)

Economy, Culture, Politics & Social Protection (the 4 pillars affected by Globalization)

Trivia — Richest & Poorest Countries (Lecture 2)

Advantages	Disadvantages
Peaceful relations, employment, education, cheaper prices, GDP increase, free trade, tourism, better access to external finance, cultural exchange, "citizens of the world"	Cultural loss, income inequality, transport/environmental damage (emissions, warming, pollution), health issues (pandemics, HIV), wealth gap widening, climate change, disparity, conflict/violence

B Globalization of World Economy (incl. IFIs)

What is the Global/World Economy?

Also called "world economy" — the international exchange of goods and services; free movement of goods, capital, services, technology, information. Concerns globalization of production, finance, markets, technology, institutions, corporations, and labor. Expanding since trans-national trade emerged, accelerated by communication/technology and the creation of the WTO (countries cut trade barriers, opened current/capital accounts).

GDP Basics

GDP (Gross Domestic Product) = total monetary value of all final goods and services produced within a country's borders in a period; equals total expenditure on final goods/services. Best single measure of economic health.
GDP per capita = total GDP ÷ total population.

Top 10 Economies by GDP (2025, billions USD)

#	Country	GDP (billion USD)
1	USA	26,854
2	China	19,374
3	Japan	4,410 (4% of world economy; $33,824 per capita)
4	Germany	4,309
5	India	3,750
6	U.K.	3,159
7	France	2,924
8	Italy	2,170
9	Canada	2,090
10	Brazil	2,080

Philippines: $431.77 billion — 36th in the world, 15th largest in Asia (IMF).

10-Event History Timeline of Globalization of World Economy

1Silk Road — oldest known international trade route; China → Middle East → Europe; silk was a top traded product. International, but NOT global (no ocean routes to the Americas).
21453 BCE — Ottoman Empire closed the Silk Road.
3130 BCE — Chinese Han Dynasty opened trade to the West.
41571 — Manila–Acapulco Galleon Trade established, linking Manila (Philippines) and Acapulco (Mexico). First time the Americas connected directly to Asian trade routes — economic globalization began on Philippine shores. Marks the start of the Age of Globalization.
5Mercantilism (16th–18th c.) — restrictive global trade system; European monarchies imposed high tariffs, banned colonies from trading with others, restricted routes, subsidized exports to boost national monetary reserves.
6Gold Standard Era — Paris conference 1867; UK, US, Europe adopt it. Currency fixed & convertible to gold; restrictive (needed fixed gold reserves) but promoted efficient trade & prevented isolationism.
7WWI (1914–1918) — countries drained gold reserves to fund armies; many abandoned gold standard for floating currencies.
8Great Depression (1929–1939) — worst economic downturn in industrialized history; started with Oct. 1929 stock market crash; some blame the gold standard (limited money supply → less demand). Indirect gold-standard versions lasted until late 1970s.
9WWII (1939–1945) — transformed the U.S. from mid-level power to leader of the "Free World" (term for Allies/Western Bloc/aligned nations).
10Post-WWII (1945–2025) — new global economic order & international cooperation established.

International Financial Institutions (IFIs)

Primary role: financing + technical assistance; support economic/social development in developing countries; promote international economic cooperation & stability. Chartered by more than one country → subject to international law. Owners = mainly national governments. All IFIs admit only sovereign countries as members.

Composition:

IMF (International Monetary Fund) — est. 1945; gives temporary financial assistance for balance-of-payments problems; aims to prevent systemic crises. Global in scope.
5 Multilateral Development Banks (MDBs):
1. World Bank Group (founded 1945, same conference as IMF) — Global
2. African Development Bank — regional
3. Asian Development Bank — regional
4. Inter-American Development Bank — regional
5. European Bank for Reconstruction and Development — regional

MDBs provide: long-term loans, very long-term loans, grant financing.

Company / Business Type Definitions (classic MC trap — memorize the 4!)

Term	Definition	Example
Global Company (= Multinational/Global Corporation)	Operates in 2+ countries; offices/factories in many countries + centralized HQ that coordinates global management (may have HQ in multiple countries but no single dominant one)	Ayala Corp (PH); Samsung, Coca-Cola
International Company	Based in ONE home country; only relationship to cross-border trade is importing/exporting; no foreign investments	Apple, Nike, Coca-Cola, IBM
Global Business	Operates facilities (factories, distribution centers) in MANY countries	Starbucks
International Business	Sells products worldwide but has facilities ONLY in home country	Apple

Note: Apple is used as an example of BOTH International Company and International Business in the lecture — pay attention to which definition is being tested.

Company vs. Business: Business = any profit-generating activity. Company = a distinct legal entity with its own rights/obligations.

Global vs. International: Global = whole world scope. International = 2+ countries only (smaller scope than global).

C Market Integration

Definitions

Market Integration = the process of combining/merging different entities within a market to achieve various objectives; an indicator of how related different markets are.

If prices in different locations/related goods follow the same pattern over time → market integration exists.
If groups of prices move proportionally to each other, clearly, across markets → the market is integrated.

4 Types of Merger / Market Integration

Type	Definition	Example
Horizontal	Merger between companies with SIMILAR products (same stage of value chain, often competitors)	Marriott + Starwood Hotels (2016) → world's largest hotel co.
Vertical	Merger that consolidates the SUPPLY LINE of a product (different stages of the supply chain)	Netflix producing its own content; ExxonMobil absorbing oil refineries
Concentric	Merger between companies with SIMILAR AUDIENCES but DIFFERENT products	—
Conglomerate	Merger between companies offering DIVERSE, often unrelated, products/services	Berkshire Hathaway, Amazon, Alphabet, Meta, P&G, Unilever, Diageo, J&J, Warner Media; PH: SM Investments Corp (largest), San Miguel Corp

Vertical Integration — 3 Subtypes

Backward Integration — acquiring a supplier / earlier-stage company (e.g., car maker buys a tire maker). → more control over inputs, quality, cost.
Forward Integration — acquiring a post-production/distribution entity (e.g., car maker buys a dealership). → control over distribution, customer reach, market penetration.
Balanced Vertical Integration — combination of backward + forward, covering multiple supply-chain stages.

Horizontal vs. Vertical — Pros & Cons

	Pros	Cons
Horizontal	Larger customer base, increased revenue, greater market share, less competition, economies of scale, reduced production costs	Government/antitrust scrutiny, potential monopoly, higher prices/fewer choices, more bureaucracy, less flexibility, integration challenges
Vertical	Increased sales, reduced costs across production, tighter quality control, better info flow, more control over production volume	Concentration of resources (risk), high capital requirements, decreased flexibility, coordination costs, potential conflicts of interest

Key Distinguishing Facts

Horizontal Integration = 2 companies merge at the SAME stage of the value chain.
Vertical Integration = companies merge at DIFFERENT stages of the supply chain.
A conglomerate must have wholly/partially owned subsidiaries (a subsidiary is owned by another company) — a regular corporation may or may not have subsidiaries. Must first register as a corporation before becoming a conglomerate.
Conglomeration = the process of creating a conglomerate.
Biggest global conglomerate by market value (Feb 2025): Samsung ($254.87B).
San Miguel Corporation — founded 1890, first brewery in Southeast Asia, now a major PH conglomerate (infrastructure, etc.).

D Global Interstate System (GIS) & Global Governance

Definition of GIS

GIS = the relationship and participation of different countries in the world economy.

7 Facts / Characteristics of GIS

1GIS is the whole system of human interactions.
2GIS is a system of competing and allying states (unequally powerful, competing states).
3GIS is the main focus of the field of International Relations.
4GIS is an international system.
5GIS includes all cultural aspects and interaction networks of the human population.
6The modern world system is structured politically as an interstate system.
7The interstate system is a concept used within World-System Theory.

Result: Global inequality — result of competition & cooperation among 195 countries.

4 Key Attributes of World Politics

Independent, self-governing states/countries.
States interact with each other through diplomacy.
International organizations facilitate these interactions.
International organizations also take on lives of their own (beyond just facilitating meetings).

Country vs. State vs. Nation vs. Nation-State

Term	Meaning	Example
Country	The physical area under a state's jurisdiction	—
State	Political term — needs ALL 4: people, territory, government, sovereignty	Great Britain
Nation	Ethnic term — people sharing history/culture/language/religion; may span many states	European Nation, Arab Nation
Nation-State	A cultural group (nation) that is ALSO a state (territorially bounded, sovereign)	United States, Philippines

4 basic elements of a state: territory, people, sovereign power (sovereignty), government.

Taiwan is NOT a state (sovereignty claimed by/belongs to China). The Philippines IS a sovereign nation-state (own government, territory, citizens, laws, policies).

Do You Know? — What Else a Country Needs (beyond population, territory, government, ability to enter relations)

1To protect the general interest.
2To promote the national welfare.
3Respect for human rights and justice.
4The courts are independent.

Effects of Globalization on Government (+/−)

As the world becomes more interconnected, the roles/tasks of states and governments shift.

😊 Positive effects	☹ Negative effects
Communication/communications (of ideas/information), media coverage, education, culture, resources, investment, competition	Culture (loss), developing countries (strain), religion, international politics (countries act individualistically to defend national interests globally), morals, economy, science (rapid scientific revolutions across many fields)

World-System Theory (Immanuel Wallerstein, 1970s)

The world operates as a single integrated economic/political system, composed of Core, Semi-Periphery, and Periphery nations. Also called Dependency Theory: rich (core) countries exploit/extract resources from poor (peripheral) countries → "the rich get richer, the poor get poorer."

Zone	Traits	Examples
Core	Highly developed, independent of outside control, strong militaries/economies, tech leaders, import more than they produce, history of colonial control	Australia, UK, Canada, Finland, France, Germany, Japan, USA
Semi-Periphery	Intermediate; less developed, not dominant in trade; status can shift rapidly; aspire to core status	Brazil, China, India, South Africa
Periphery	Least developed; high uneducated %, cheap unskilled labor source, high inequality, weak government, history of colonization	Afghanistan, Argentina, Bangladesh, Cambodia, Central African Republic, Cuba, Zimbabwe

Hegemon = a core state with significantly greater economic power than any other, taking on the political role of system leader.

Polity (synonyms: republic, commonwealth, country, nation, society, state) = a society/state considered as a political unit.

Global Governance (GG)

Global Governance = the system of decision-making & cooperation among international actors (states, IGOs, NGOs, civil society) — the sum of laws, norms, policies, and institutions mediating trans-border relations. Non-hierarchical (no centralized world government); relies on voluntary cooperation & consensus among sovereign states.

3 basic sources of GG:

States sign treaties & form organizations.
International NGOs lobby states (e.g., Amnesty International, Save the Children, Green Cross International).
Powerful transnational corporations (TNCs) affect labor/environmental/trade policy (e.g., Microsoft, Shell, Amazon).

IGO vs. NGO

IGO	NGO / INGO
Members are STATES/governments; 2+ governments sign a multilateral treaty and finance operations	Association of PRIVATE individuals; a private, self-governing, not-for-profit organization
Examples: WHO, WTO, OPEC, OECD, UN, NATO	Examples: Oxfam Int'l, Amnesty International, Green Cross International, Save the Children, UNESCO

Key IO acronyms: IO=International Organization · IGO=Intergovernmental Org · NGO/INGO=(Int'l) Non-Governmental Org · EU=European Union · NATO=North Atlantic Treaty Org · UNESCO=UN Educational, Scientific and Cultural Org · OPEC=Org. of Petroleum Exporting Countries · OECD=Org. for Economic Cooperation and Development · OXFAM=Oxford Committee for Famine Relief · WHO=World Health Org · WTO=World Trade Org · UN=United Nations · ASEAN=Assoc. of Southeast Asian Nations · AIESEC=Int'l Assoc. of Students in Economics and Commercial Sciences.

Barnett & Finnemore — IOs wield influence via 3 mechanisms: classifying the world (setting standards), fixing meanings (defining concepts), and diffusing norms (shaping state behavior).

The United Nations (UN)

Largest, most-represented, most powerful IGO. NOT a world government (no sovereignty over the whole world); functions via voluntary state cooperation.

4 main purposes (UN Charter):

Maintain international peace & security.
Develop friendly relations among nations.
Achieve international cooperation on economic/cultural/social/humanitarian problems.
Be a center for harmonizing nations' actions.

6 UN organs: General Assembly, Security Council, Economic & Social Council, Trusteeship Council, International Court of Justice, Secretariat.

Global Challenges of the 21st Century (Conclusion of GG)

Terrorism, biological/nuclear/chemical weapons, environmental degradation & pollution, climate change, natural disasters, piracy, transnational crimes, drug trafficking, economic crisis, organized crime, global pandemics.

E The Global North & The Global South

Key Idea

Absolute interconnectedness does NOT exist — factors always separate places/individuals/groups from the rest of the world. The North–South divide = socio-economic and political division between developed (rich, "North") and developing (poor, "South") countries. It is more metaphorical/socio-economic than strictly geographical (exceptions: Australia & New Zealand are rich but in the southern hemisphere).

The Brandt Line

Concept of a development/wealth gap between Global North & South. Developed in the 1980s by Willy Brandt (German politician) as a visual (map) depiction of the divide, based on GDP per capita. Richer countries are almost all in the Northern Hemisphere — except Australia & New Zealand.

Historical Timeline

1June 7, 1494 — Treaty of Tordesillas (signed in Tordesillas, Spain): Spain & Portugal divided the (non-European) world between themselves along a meridian 370 leagues west of Cape Verde — monopoly zones for discovery, navigation, trade.
2Cold War (after WWII): U.S. vs. U.S.S.R. — war of ideologies, never a direct physical war. Divided the world into capitalist/democratic vs. communist blocs.

Resulting 3-World Division:

World	Definition	Examples
First World	Industrialized, democratic, pro-U.S., anti-Soviet	Western Europe, North America, Australia
Second World	Formerly communist, not poor but not wealthy	Kazakhstan, Poland, Ukraine, USSR
Third World	Non-aligned, widespread poverty, undeveloped	Parts of Asia, Latin America, Afghanistan

This scheme was abandoned once Second World countries joined the First World → replaced by the North/South divide: First World → Global North; Third World → Global South.

Note: China & Russia were once "Second World" but are now considered to straddle BOTH first- and third-world characteristics.

Global North vs. Global South — Characteristics

Global North	Global South
High income, developed societies, established wealth	Developing countries, agrarian economies (Africa, India, Latin America, developing Asia incl. Middle East)
Technological advancement, political stability	Political instability, low economic development
Zero population growth, low fertility rates	High fertility rates
Dominance of world trade & politics	Large inequality, low life expectancy
Low poverty, low child mortality	Lack of human rights, poverty, conflicts, wars
High economic & educational development	Low economic & educational development
Stable governments, low gender-related illiteracy	Unstable governments, high gender-related illiteracy
Examples: Norway, Japan, Canada, Australia, Western Europe	Examples: much of Africa, India, Latin America

3 North–South Divide Issues

Standard of living
Economic competition worldwide
Distribution of income around the world

Wealth Distribution Numbers

Rich/developed regions: ~95% have enough food & shelter; economy driven by industry, big business, commerce, finance; control 4/5 of world income; own/host 90% of manufacturing industries.
Poor/developing regions: ~5% have enough food & shelter; agriculture-based; source of raw materials for the North; access to only 1/5 of world income.

Measuring Development — 3 Indicators

Indicator	Meaning
GDP	Total value of goods produced & services provided in a country in one year
GNI (Gross National Income)	Total factor income earned by a country's residents
HDI (Human Development Index)	UN tool to measure/rank countries' social & economic development levels

Extra Regional Notes

North America = Canada, USA, Mexico.
Latin America = Central + South America; countries colonized by Spain in the Americas. Mexico: geographically North America, ethnologically Latin American; most populous Spanish-speaking country.
The Philippines was a Spanish colony historically (also colonized by the U.S. and Japan — see below).
PH colonization timeline: Spanish rule (1521–1898) → American rule (1898–1946) → Japanese occupation (1941–1946, overlapping) → Philippine self-rule (1946–present).
Most important historical driver of colonization: the opportunity to make money.

From the Lecture Summary — International Relations & Political Divide

The Global North holds significant influence in international organizations such as the UN, World Bank, and IMF — shaping policies, economic aid, and development agendas, often reflecting Global North interests/priorities.
Political divide: the Global North is generally characterized by stable democratic systems, strong governance, and respect for human rights. The Global South experiences a wider range of political systems — including authoritarian regimes, fragile democracies, and ongoing conflicts — with instability/corruption/limited freedoms hindering development.
Global South challenges: poverty, food insecurity, inadequate healthcare, political instability, environmental degradation.
Global South opportunities: emerging markets, a young/dynamic workforce, untapped natural resources.
Calls for equity: scholars/activists/policymakers advocate for fairer trade practices, debt relief, technology transfer, sustainable development, and greater Global South representation in global decision-making.
Caveat: "Global North"/"Global South" are useful but can oversimplify — there is variation within each category, and some countries don't fit neatly into either.

F (bonus) Current Global Issues — Lecture 4

Not on the official topic coverage list, but included here just in case a question slips in.

Framing Ideas (memorize these 3 lines)

1Global issues require global solutions.
2Global problems cannot be solved one-at-a-time.
3Global problems are complex and cannot be solved easily or fast.

Problem solving = core of human evolution; the method for understanding environment, identifying desired change, and figuring out how to achieve it. Basis of invention, social/cultural evolution, market economies, continuous improvement, communication, and learning.

The 8 Issues — Problem / Consequences / Solutions (condensed)

Issue	What is the Problem?	Key Consequences	Key Solutions
Climate Change	Long-term shifts in weather patterns, mainly from human activity (fossil fuels, deforestation, industry) releasing GHGs (CO₂, CH₄, N₂O) → greenhouse effect & warming	Rising temps, extreme weather, ecosystem/biodiversity loss, health risks, food/water insecurity	Renewable energy, energy efficiency, reforestation, int'l agreements (Paris Agreement), climate adaptation
Gender Equality	Persistent discrimination/inequality based on gender	Unequal access to education/healthcare/jobs, gender-based violence, wage gaps, limited leadership representation	Anti-discrimination laws, women's empowerment/education, workplace diversity, awareness campaigns, anti-violence initiatives
Refugee & Displacement Crisis	Forced movement of people (across or within borders) due to conflict, persecution, violence, or environment (refugees, asylum seekers, IDPs)	Humanitarian emergencies, overcrowded camps, strain on host countries, lost livelihoods/trauma, trafficking risk	Diplomacy/conflict resolution, humanitarian aid/funding, resettlement & integration programs, legal protection of asylum rights, address root causes
Poverty & Inequality	Disparities in income, wealth, and access to resources within/between countries, rooted in social/economic/political structures	Lack of basic needs, limited education/mobility, social unrest, unequal access to services, health disparities	Social safety nets, progressive taxation/redistribution, education & healthcare investment, inclusive growth, tackle systemic discrimination
Access to Education	Many children worldwide still lack quality education, esp. in low-income countries (poverty, gender inequality, conflict)	Cycle of poverty, economic inequality, reduced job prospects, hindered social mobility	Investment in infrastructure/teacher training, scholarships/financial aid, gender equality in education, affordable online learning, int'l cooperation
Healthcare Disparities	Differences in health outcomes across populations, from socioeconomic status, race, ethnicity, geography	Preventable illness/death, cycles of poverty, strained healthcare systems, vulnerable groups suffer most	Universal healthcare, investment in primary/preventive care, health education, address social determinants, global health cooperation
Racial Discrimination	Unjust treatment based on race/ethnicity, affecting employment, education, housing, criminal justice	Systemic racism, limited opportunity/mobility, mental/physical health harm, social unrest	Enforce anti-discrimination laws, promote diversity/inclusion, raise awareness, support marginalized communities, encourage dialogue
Armed Conflicts & Humanitarian Crises	Widespread suffering triggered by political instability, ethnic tensions, resource scarcity	Loss of life, displacement, destroyed infrastructure, disrupted food/water/healthcare/education, long-term trauma	Diplomacy, humanitarian aid, peacekeeping missions, dialogue/reconciliation, address root causes (instability, resource disputes)

📖 Master Dictionary / Glossary — All Key Terms

Tags show which topic each term belongs to: A Structure of Globalization B World Economy C Market Integration D Global Interstate System E Global North/South F Current Global Issues (bonus)

AGlobalization: Integration between people, companies, and governments; the expansion & intensification of social relations/consciousness across world-time and world-space.
AGlobalism: An ideology: the belief that people, information, and goods should be able to cross national borders unrestricted.
AAntiglobalization: Opposition to the methods and practices of globalization.
APro-Globalization: Belief that global economic market integration benefits everyone by spreading freedom and democracy.
AScapes Theory: Arjun Appadurai's theory that globalization occurs across 4 intersecting dimensions: ethno-, media-, finance-, and idea-scapes.
ALiquid / Solid Metaphor: Solid = barriers to movement; Liquid = ease of movement (the dominant metaphor for globalization today).
AAssertiveness: Communication skill: expressing feelings/opinions/needs appropriately, without manipulation, aggression, or passivity, while respecting others.
ASocial Protection: A human right ensuring access to healthcare and income security; provides support when sick, unemployed, injured, pregnant, or too old to work. Has 9 branches (health, sickness, unemployment, old-age, injury, family/child, maternity, disability, survivor's benefits).
ADSWD: Department of Social Welfare and Development — the Philippine government body that executes social welfare and development programs and services.
BGlobal Supply Chain: Cross-border network through which companies produce, source, and distribute goods; expanded through globalization of production.
BEmerging Economy: A developing nation moving toward becoming more advanced, usually through rapid growth and industrialization (comparable to "semi-peripheral" nations in world-systems terms, e.g., Brazil, China, India, South Africa).
BIMF (International Monetary Fund): Established 1945; provides temporary financial assistance to member countries for balance-of-payments issues; aims to prevent systemic financial crises. Global in scope.
BWorld Bank Group: Founded 1945 at the same conference as the IMF; a Multilateral Development Bank; global in scope.
BTrade Liberalization: Reduction/removal of trade barriers (tariffs, quotas) between nations — linked to the creation of the WTO and countries opening current/capital accounts.
BMultinational Corporation (Global Company): A company operating in 2+ countries, with offices/factories worldwide and centralized management coordination (e.g., Samsung, Coca-Cola, Ayala Corp).
BMercantilism: 16th–18th century global trade system with high tariffs, trade restrictions, and export subsidies used by European monarchies to boost national wealth.
BGold Standard: Monetary system fixing a currency's value to a set amount of gold, freely convertible; adopted 1867 in Paris by UK, US & Europe.
BGalleon Trade: 1571 trade route connecting Manila (Philippines) and Acapulco (Mexico); first direct link between Asia and the Americas; marks the start of the Age of Globalization.
BGDP (Gross Domestic Product): Total monetary value of all final goods/services produced within a country in a given period.
CMarket Integration: The process of combining/merging different entities within a market; exists when prices across markets move proportionally to each other over time.
CHorizontal Integration: Merger between companies with similar products, at the same stage of the value chain (often direct competitors) — e.g., Marriott + Starwood.
CVertical Integration: Merger consolidating the supply line of a product across different production stages — e.g., Netflix producing its own content.
CBackward Integration: A company acquires a supplier / earlier-stage business (e.g., a car maker buying a tire maker).
CForward Integration: A company acquires a distributor / later-stage business (e.g., a car maker buying a dealership).
CBalanced Vertical Integration: Combination of backward + forward integration, spanning multiple supply chain stages.
CConcentric Integration: Merger between companies with similar audiences but different products.
CConglomerate: A large corporation composed of several unrelated businesses/subsidiaries operating in different industries (e.g., Berkshire Hathaway, SM Investments Corp).
CSubsidiary: A company owned by another (parent) company; a conglomerate must have wholly/partially owned subsidiaries.
DGlobal Interstate System (GIS): The relationship and participation of different countries in the world economy; the whole system of human interactions among competing/allying states.
DGlobal Governance (GG): The non-hierarchical system of institutions, laws, norms, and processes (UN, WTO, treaties) managing transnational issues without a centralized world government.
DState: A political entity with 4 essential elements: territory, people, government, sovereignty.
DNation: An ethnic term for a group of people sharing common history, culture, language, or religion; may span multiple states.
DNation-State: A cultural group (nation) that is also a sovereign state (e.g., Philippines, United States).
DSovereignty: A state's independent authority and self-government over a defined territory.
DWorld-System Theory: Immanuel Wallerstein's (1970s) theory that the world is a single integrated economic/political system divided into Core, Semi-Periphery, and Periphery nations; also called Dependency Theory.
DDependency Theory: The idea that rich "core" countries exploit and extract resources from poor "peripheral" countries, perpetuating global inequality.
DCore Nations: Highly developed, powerful, technologically advanced states with strong militaries/economies (e.g., USA, Japan, Germany).
DSemi-Peripheral Nations: Nations positioned between core and periphery — less developed, not dominant in trade, status can shift rapidly (e.g., Brazil, China, India, South Africa).
DPeripheral Nations: Least economically developed nations; high inequality, weak governments, cheap labor providers to core nations (e.g., Afghanistan, Cambodia, Zimbabwe).
DHegemon: A core state with significantly more economic power than any other state, taking the political role of system leader.
DIGO (Intergovernmental Organization): An international organization whose members are governments/states, formed via multilateral treaty (e.g., WHO, WTO, NATO, UN).
DNGO / INGO (Non-Governmental Organization): A private, self-governing, not-for-profit organization composed of private individuals (e.g., Amnesty International, Oxfam, UNESCO).
DUnited Nations (UN): The largest, most powerful IGO; promotes international cooperation and order but is NOT a world government.
DPolity: A society or state considered as a political unit (synonyms: republic, commonwealth, country, nation, state).
EBrandt Line: A visual concept (map) of the wealth/development gap between the Global North and Global South, proposed by Willy Brandt in the 1980s, based on GDP per capita.
EGlobal North: Economically advanced, high-income, politically stable countries mostly in the Northern Hemisphere (plus Australia & New Zealand).
EGlobal South: Developing, lower-income countries with less political stability, mostly in Africa, Asia, Latin America, and the Caribbean.
ETreaty of Tordesillas (1494): Agreement between Spain and Portugal dividing the (non-European) world between them for exclusive discovery/trade rights.
EFirst / Second / Third World: Cold War classification: First World = capitalist/democratic allies of the US; Second World = communist/formerly communist states; Third World = non-aligned, poorer, undeveloped nations. Replaced by the Global North/South framework.
EGNI (Gross National Income): The total factor income earned by the residents of a country (regardless of where it was earned).
EHDI (Human Development Index): A United Nations tool used to measure and rank countries' levels of social and economic development.
ENorth–South Divide: Socio-economic and political division between developed ("North") and developing ("South") countries; more metaphorical than strictly geographic.
FClimate Change: Long-term alterations in Earth's weather patterns, mainly from human activities (fossil fuels, deforestation, industry) releasing greenhouse gases → warming.
FGreenhouse Gases (GHGs): Gases like CO₂, methane (CH₄), and nitrous oxide (N₂O) that trap heat in the atmosphere, driving the greenhouse effect.
FGender Equality: Ensuring all individuals, regardless of gender, have equal rights, opportunities, and treatment.
FRefugee: A person forced to flee across an international border due to conflict, persecution, or violence.
FInternally Displaced Person (IDP): A person forced to flee their home but who remains within their own country's borders.
FAsylum Seeker: A person who has fled their country and is seeking international protection but whose claim has not yet been legally recognized.
FPoverty & Inequality: Disparities in income, wealth, and access to resources within and between countries, often rooted in social, economic, and political structures.
FHealthcare Disparities: Differences in health outcomes between populations, arising from factors like socioeconomic status, race, ethnicity, and geography.
FRacial Discrimination: Unjust treatment of individuals based on race or ethnicity, affecting employment, education, housing, and criminal justice.
FHumanitarian Crisis: Widespread human suffering, often from armed conflict, triggered by political instability, ethnic tension, or resource scarcity.

Compiled from Lectures 1, 2, 3, and 5 for the Sept 7, 2026 Midterm — good luck, ace it! 💪