INR2002 Final Exam

exchange rate
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Terms in this set (41)
exchange rate
the price at which one currency is exchanged for another
appreciate
to increase in value in terms of other currencies
depreciate
to decrease in value in terms of other currencies
devalue
to reduce the value of one currency in terms of other currencies
monetary policy
an important tool of national governments to influence broad macroeconomic conditions such as unemployment, inflation, and economic growth; typically governments alter their monetary policies by changing national interest rates or exchange rates
central bank
the institution that regulates monetary conditions in an economy, typically by affecting interest rates and the quantity of money in circulation
fixed exchange rate
an exchange rate policy under which a government commits itself to keep its currency at or around a specific value in terms of another currency or a commodity, such as gold
gold standard
the monetary system that prevailed between about 1870 and 1914, in which countries tied their currencies to gold at a legally fixed price
floating exchange rate
an exchange rate policy under which a government permits its currency to be traded on the open market without direct government control or intervention
Bretton Woods monetary system
the monetary order negotiated among the WW2 allies in 1944 which lasted until the 1970s and was based on a U.S. dollar tied to gold; other currencies were fixed to the dollar but were permitted to adjust their exchange rates
adjustable pega monetary system of fixed but adjustable rates; governments are expected to keep their currencies fixed for extensive periods but are permitted to adjust the exchange rate from time to time as economic conditions changeinternational monetary regimea formal or informal arrangement among governments to govern regulations among their currencies; the agreement is shared by most countries in the world economyless developed countries (LDCs)countries at a relatively low level of economic developmentinfrastructurebasic structures necessary for social activity such as transportations and telecommunications networks, and power and water supplyprimary productsraw materials and agricultural products, typically unprocessed or only slightly processed; the primary sectors are distinguished from secondary sectors [industry] and tertiary sectors [services]oligopolya situation in which a market or industry is dominated by a few firmsterms of tradethe relationship between a country's export prices and its import pricesimport-substituting industrializationa set of policies, pursued by most developing countries from the 1930s through the 1980s to reduce imports and encourage domestic manufacturing, often through trade barriers, subsidies to manufacturing, and state ownership of basic industriesexport-oriented industrializationa set of policies, originally pursued in the late 1960s by several East Asian countries, to spur manufacturing for export, often through subsidies and incentives for export productionWashington Consensusan array of policy recommendations generally advocated by developed-country economists and policy makers starting in the 1980s, including trade liberalization, privatization, openness to foreign investment, and restrictive monetary and fiscal policiesGroup of 77a coalition of developing countries in the UN formed in 1964 with 77 members; grown to over 130 members but maintains original namecommodity cartelsassociations of producers of commodities (raw materials and agricultural products) that restrict world supply and thereby cause the price of the goods to riseinternational lawa body of rules that binds states and other agents in world politics and is considered to have the status of lawcustomary international lawinternational law that usually develops slowly, over time, as states recognize practices as appropriate and correctobligationthe degree to which states are legally bound by an international rule; high-obligation rules must be performed in good faith, and, if breached, require reparations to the injured partyprecisionthe degree to which international legal obligations are fully specified; more precise rules narrow the scope for reasonable interpretationdelegationthe degree to which third parties, such as courts, arbitrators, or mediators, are given authority to implement, interpret, and apply international legal rules to resolve disputes over the rules or to make additional rulesnormsstandards of behavior for actors with a given identity; norms define what actions are "right" or appropriate under particular circumstancesnorms entrepreneursindividuals and groups who seek to advance principled standards of behavior for states and other actorstransnational advocacy network (TAN)a set of individuals and nongovernmental organizations acting in pursuit of a normative objectivenorms life cyclea three-stage model of how norms diffuse within a population and achieve a "taken for granted" statusboomerang modela process through which NGOs in one state are able to activate transnational linkages to bring pressure from other states on their own governmentshuman rightsrights possessed by all individuals by virtue of being human, regardless of their status as citizens of particular states or members of a group or organizationUniversal Declaration of Human Rights (UDHR)adopted by the UN General Assembly in 1948, this declaration defines a "common standard of achievement for all peoples" and forms the foundation of modern human rights lawInternational Covenant on Civil and Political Rights (ICCPR)the agreement completed in 1966 and in force from 1976 that details the basic civil and political rights of individuals and nationsInternational Covenant on Economic, Social, and Cultural Rights (ICESCR)the agreement completed in 1966 and in force from 1976 that specifies the basic economic, social, and cultural rights of individuals and nationsInternational Bill of Rightsrefers collectively to the UDHR, ICCPR, and the ICESCR; together these three agreements form the core of the international human rights regimenonderogable rightsrights that cannot be suspended for any reason, including at times of public emergencyprisoners of conscience (POCs)a label coined and used by the human rights org Amnesty International to refer to individuals imprisoned solely because of the peaceful expression of their beliefsindividual petitiona right that permits individuals to petition appropriate international legal bodies directly if they believe a state has violated their rightInternational Criminal Court (ICC)a court of last resort for human right cases that possesses jurisdiction only if the accused is a national of a state party, the crime took place on the territory of a state party, or the UN Security Council has referred the case to the prosecutor