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Poli 315 Exam 3
Terms in this set (73)
countries should produce goods that they can produce "better" than anyone else (at the lowest cost possibles, economic efficiency)
Taxes placed on another exporting state's alleged selling of a product at a price below the cost to produce it.
The selling of one currency (or product) and purchase of another to make a profit on chang- ing exchange rates.
Interactions between two transnational actors.
classical liberal economic theory
A body of thought based on Adam Smith's ideas about the forces of supply and demand in the marketplace, emphasizing the social and economic benefits when individuals pursue their own self-interest.
collective action dilemma
Paradox regarding the provision of collective goods in which, if there is no accountability for paying the costs of maintaining or providing the good, it may cease to exist.
The Marxist ideology maintaining that if society is organized so that every person produces according to his or her ability and consumes according to his or her needs, a community without class distinctions will emerge, sovereign states will no longer be needed, and imperial wars of colonial conquest will vanish from history.
Trade will still be beneficial with no absolute advantage (if specializes in production of that good at a lower opportunity cost)
Government tariffs to offset suspected subsidies provided by foreign governments to their producers.
The process by which sovereign independence was achieved by countries that were once colonies of the great powers.
A category used by the World Bank to identify Global North countries with an annual GNI per capita of $12,746 or more (WDI, 2015)
A category used by the World Bank to identify low- income Global South countries with an annual GNI per capita at or below $1,045 and middle-income countries with an annual GNI per capita of more than $1,045 but less than $$12,746 (WDI, 2015).
The processes, economic and political, through which a country develops to increase its capacity to meet its citizens' basic human needs and raise their standard of living.
The division between the Internet technology rich Global North and the Global South in the proportion of Internet users and hosts.
deliberate actions against a target country to deprive it of the benefits of economic relations
Approach to the Bretton Woods system that combined open international markets with domestic state intervention to attain such goals as full employment and social welfare
Countries with rising political and economic capabilities and influence that seek a more assertive role in international affairs.
A propensity to see one's nationality or state as the center of the world and therefore special, with the result that the values and perspectives of other groups are misunderstood and ridiculed.
How much of another country's money can you purchase with a unit of your own or vice versa
usually result from negotiated agreements b/t producers and consumers and restrict the flow of products from the former to the later
A growth strategy that concentrates on developing domestic export industries capable of competing in overseas markets.
The relatively wealthy industrialized countries that share a commit- ment to varying forms of demo- cratic political institutions and developed market economies, includ- ing the United States, Japan, the European Union, Canada, Australia, and New Zealand.
fixed exchange rates
Maintained at certain levels by central bank and international institutions
floating exchange rates
Fluctuates w/ the relative supply and demand for various currencies in the world's foreign exchange market
Economic assistance in the form of loans and grants provided by a donor country to a recipient country for a variety of purposes.
foreign direct investment (FDI)
A cross-border investment through which a person or corporation based in one country purchases or constructs an asset such as a factory or bank in another country so that a long-term relationship and control of an enterprise by nonresidents results.
Differences between men and women in opportunity and reward that are determined by the values that guide states' foreign and domestic policies.
Gender Inequality Index (GII)
An index that uses female reproductive health, political and educational empowerment, and participation in the labor market to assess the extent to which gender inequality erodes a country's human development achievements.
Systematic killing of members of a specific gender.
The relationship between geography and the economic conditions and behavior of states that define their levels of production, trade, and consumption of goods and services.
A term used to refer to the world's wealthy, industrialized countries located primarily in the Northern Hemisphere.
A term now often used instead of "Third World" to designate the less developed countries located primarily in
the Southern Hemisphere.
The integration of states through increasing contact, communication, and trade, as well as increased global awareness of such integration
globalization of production
transnationalization of the productive process in which finished goods rely on inputs from multiple countries outside of their final market
gross national income (GNI)
A measure of the production of goods and services within a given time period, which is used to delimit the geographic scope of production. this measures production by a state's citizens or companies, regardless of where the production occurs
Group of 77 (G-77)
The coalition of Third World countries that sponsored the 1963 Joint Declaration of Developing Countries calling for reform to allow greater equality in North-South trade
Human Development Index (HDI)
An index that uses life expectancy, literacy, average ress of human development, the HDI comes close as an estimating procedure. It measures number of years of schooling, and income to assess a country's performance in providing for its people's welfare and security.
Those basic physical, social, and
political needs, such as food and freedom, that are required for survival and security.
The political rights and civil liberties recognized by the international community as inalienable and valid for individuals in all countries by virtue of their humanity
The use of peace- keeping troops by foreign states or international organizations to protect endangered people from gross violations of their human rights and from mass murder
limit the quantity of a particular product that can be imported from abroad
A strategy for economic development that centers on providing investors at home incentives to produce goods so that previously imported products from abroad will decline.
the native ethnic and cultural inhabitant populations within countries, referred to as the "Fourth World"
Newly established industries ("infants") that are not yet strong enough to compete against mature foreign producers in the global marketplace until in time they develop and can then compete
international monetary system
The financial procedures used to calculate the value of currencies and credits when capital is transferred across borders through trade, investment, foreign aid, and loans
commerce that takes place BETWEEN an MNC's cross border affiliates (this is 40% of US' total trade)
the philosophical principle of free markets and free trade to give people free choices with little governmental regulation
Political economic perspective that views international trade in zero-sum terms and calls for active state intervention into domestic economies
A view of development popular in the Global North's liberal democracies that wealth is created through efficient production, free enterprise, and free trade, and that countries' relative wealth depends on technological innovation and education more than on natural endowments such as climate and resources
Central bank policy tools for managing economies; policies fall into 2 basic categories: altering $ supply and adjusting interest rates
The total amount of currency in circulation calculated to include demand deposits and time deposits
most-favored nation principle (MFN)
principle that says the tariff preferences granted to one state must be granted to all others
- No "favored nation" among members
multinational corporations (MNCs)
Business enterprises headquartered in one state that invest and operate extensively in many other states
New International Economic Order (NIEO)
The 1974 policy resolution in the United Nations that called for a North-South dialogue to open the way for the less developed countries of the Global South to participate more fully in making international economic policy
newly industrialized countries (NICs)
The most prosperous members of the Global South, which have become important exporters of manufactured goods as well as important markets for the major industrialized countries that export capital goods
All members have the same level of access to the markets of other member states
2 forms: MFN principle and national treatment
(a GATT principle)
nontariff barriers (NTBs)
a large array of measures other than tariffs that limit imports, assist domestic production, and promote exports
(a GATT principle)
official development assistance (ODA)
Grants or loans to countries from donor countries, now usually channeled through multilateral aid institutions such as the World Bank, for the primary purpose of promoting economic development and welfare
policies designed to protect domestic industries from foreign competition
collective goods whose use is nonexclusive and nonrival in nature
- anyone can use the good
- available to all
the theoretical outlook prescribing that countries should increase their power and wealth in order to compete with and dominate other countries
A country benefiting from another country's trade concession should provide roughly equal benefits
(a GATT principle)
mutual or reciprocal lowering of trade barriers
regional trade agreements(RTAs)
Treaties that integrate the economies of members through the reduction of trade barriers
The money earned by immigrants working in rich countries (which almost always exceeds the income they could earn working in their home country) that they send to their families in their country
Higher-than-normal financial returns on investments that are realized from restrictive governmental interference or monopolistic markets
Currency held in large amounts by governments for the purpose of settling international debts and supporting the value of their national currency
During the Cold War, the group of countries, including the Soviet Union, its (then) Eastern European allies, and China, that embraced communism and central planning to propel economic growth
The liberal doctrine that people should be able to determine the government that will rule them
Massive sales of a country's currency, caused by the anticipation of a future decline in its value
strategic trade policy
Government can create a competitive advantage for a particular domestic industry to help them gain advantage over foreign producers
- gov directed growth
taxes places on imported goods
A Cold War term to describe the less-developed countries of Africa, Asia, the Caribbean, and Latin America
voluntary export restrictions (VERs)
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