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Exam 3 INT 105

Terms in this set (41)

economics
how to organize production and exchange most efficiently (minimal cost, maximum gain)
capitalism
An economic system based on private property and free enterprise/ free global market
liberalism
the economy is embedded in social relationships
Mutual interdependence=progress
Exclusion from capitalist social relations
creates poverty and misery
positive outlook
just not wealthy yet
comparative advantage
ability of one person or country to produce a good at a lower cost than another
Smoot-Hawley Tariff Act
Raised US Tariffs on imported goods
reciprocity
the practice of exchanging things with others for mutual benefit
nondiscrimination
the idea that countries would extend preferential trade status to all their partners
most-favored nation (MFN)
a level of status given to one country by another and enforced by the World Trade Organization
dependency theory
make third world countries dependent on Northern markets like wheat and soy
World Systems Theory
this economic model is concerned with the dependency of peripheral economies to a powerful core economy (global north v global south)
petrodollars
Currency that is earned by the export sales of petroleum
-recycled back into western banks in the US
-Foundation for loans to third war countries
structural adjustment programs (SAPs)
Restructure a countries economy in order to ensure debt repayment
-did not focus on health and education
-want to focus on revenue making sectors
Washington Consensus
This refers to economic policies that constituted the standard reform package promoted for crisis-wracked developing countries by Washington, D.C.-based institutions such as the IMF, WB, and the U.S. Treasury
neoliberalism
free-market; limited government control in the marketplace
conditionality
the IMF's policy that before they grant loans, countries have to structurally adjust
Marxist theory
The Economy creates social relationships
Unequal interdependence = exploitation
Inclusion creates poverty and misery
Class divisions & class struggles
Capitalism feeds on exploitation & inequality
outsource
Send jobs to other countries where it is cheaper to do work but stay a national company
Con of the elimination of trade barriers
International Monetary Fund
The institutional administers the international monetary system
Exchange rates
Development > liberal economic policies
World Bank
This institutions primary goals is to reduce poverty and promote shared prosperity in a sustainable way
IMF membership required
World Trade Organization
Originally, General Agreement on Tariffs and Trade (GATT)
multilateral trade agreements
supervise and liberalize international trade
Open trade for the benefit of all
Ensure that trade flows as smoothly, predictably and freely as possible.
gross domestic product
The sum total of the value of all the goods and services produced in a nation
How did the Great Depression affect international trade?
50% decline in international trade
Slowed and halted construction, mining, and logging
~60% decline in crop prices
What was the goal, and what were the major outcomes of the Bretton Woods Conference?
try to overcome barriers set up during create depression
-created a stable open international economy
-created new economic institutions
How did structural adjustment programs restructure domestic spending in Third World countries?
Restructure budget to spend money on revenue making sectors-- less money spent on education and health care
-lead to illiteracy and unemployment
Doha Round
Goal: Lower trade barriers, and
Improve trade for developing countries
protectionism
any action taken by a government to protect their domestic economy from foreign competition
North American Free Trade Agreement (NAFTA)
Canada, US, Mexico---lowered prices for consumers
multinational corporations (MNCs)
A corporate organization that owns or controls production of goods/services in one or more countries other than their home country.
transnational corporations (TNCs)
A corporation that does business in a number of countries but does not identify itself with one national home
Group of Twenty (G-20)
This is an economic forum consisting of twenty wealthy countries...
sovereign debt
debt owned by a specific country
emerging economies
lesser developing countries that are experience rapid economic growth over a short period of time
fair trade
This kind of trade focuses on raising the standard of living for small-scale producers
conscious consumerism
Being aware of what you purchase and how it affects the world
buy recycled--encourage less production or eco-friendly
Brexit
a term for the potential or hypothetical departure of the UK from the European Union (British Exit)
What are the pros and cons of removing international trade barriers?
pros: Consumers benefit
Innovative products
Cheap Prices
Global prosperity
Stimulate developing economies
New technologies
Shared Culture
Peace

cons: Outsourcing
Declining standards
Labor
Environment
Decline of small business
Social inequality
Increased debt
Conspicuous consumption
What is Brexit and its potential impacts on the global economy?
a sharp rise in the value of the US dollar versus the euro decreasing will put added pressure on US manufacturing sector, burst of inflation for British consumers as imported goods become sharply expensive, export industries will be be competitive
In your opinion, is fair trade a pathway to remedying inequality in the global economic system?
Somewhat because it benefits small scale farmers and improves trading conditions in developing countries, also improves market access for small farmers, and strengthens relationships between consumers and producers
What is China's political economic relationship with Africa?
China looking to take up land in afrcia to grow food
-policy of non interference
-most aide from china -based on if they open up trade with china
-sudan—pres did war crimes—whateves you do what you want just give us open access
Illicit- The Dark Trade (National Geographic)
Black market is everywhere!
Fake cough medicine with poison --no one checked it
mercantilism
belief in the benefits of profitable trading; commercialism, the economic theory that colonies exist to bring profit to the mother country, triangle trade 16th-18th century
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