Unit 2 History Test
Terms in this set (45)
Gross Domestic Product- the total market value of all final goods and services produced annually in an economy
A period of economic downturn marked by 2 or more quarters of decline in the GDP
Gross National Income, monetary worth of what is produced within a country plus income received from investments outside the country. This takes into account taxes and such
It was a global economic crisis that began in 1929, shortly after World War I. It was caused by the crash of the American stock market, which influenced countries worldwide. Other causes include collapse of agricultural prices, unemployment, waning optimism, and unequal levels of demand and production.
One country has an _______________ in the production of a good over another country if it can produce a given amount of that good using fewer resources than the other country can
The ability of a country to produce a good at a lower cost than another country can.
A government's establishment of economic policies that restrict imports to protect domestic industries. Subsidies to local companies, cheap interest, or creating high tariffs on imported goods.
A government tax on imports or exports
An economic system in which the government makes all economic decisions.
Soviet Union, Cuba, and North Korea
Examples of command economies
Human Development Index, measure of quality of life using factors like life expectancy, literacy, access to clean water, income, etc.
Nations outside the capitalist industrial nations of the first world and the industrialized communist nations of the second world; generally less economically powerful, but with varied economies; usually tend to produce raw materials and poorly made manufactured goods. (the new term for the dependent nations) Examples are North Korea, Iran, and Cuba.
Alternative to international trade that emphasizes small businesses and worker owned and democratically run cooperatives and requires employers to pay workers fair wages, permit union organizing, and comply with minimum environmental and safety standards.
An economic policy that allows businesses in different nations to sell and buy goods without paying tariffs or other limitations.
A shortfall of tax revenue from government spending.
A resource that has a theoretically unlimited supply and is not depleted when used by humans.
An economy in which decisions about production and consumption are made by individual producers and consumers.
The tendency toward an international integration of goods, technology, information, labor and capital, or the process of making this integration happen. Creating a world-wide economy
Effects of the 2008 Crash
Unemployment has greatly spiked, Banking systems world-wide have collapsed, and housing markets collapsed
The Four Tigers
South Korea, Taiwan, Singapore, and Hong Kong (Because they are very successful economies
The World Trade Organization - an international body that enforces agreements that reduce barriers to international trade; successor to the GATT
Negative effects of WTO
They do not help individual problems like poverty. They also they do not listen to the problems of everybody.
When a company tries to flood the market with lower priced goods. The purpose behind this is to put other businesses out of business.
A trade agreement between Canada, the United States and Mexico that encourages free trade between these North American countries.
Example of Comparative Advantage
Germany and Japan are producing the parts of iphones, even though the US can do it for cheaper, we can not make them as good as they can... Plus we do not have the training
Hawley Smoot Tariff
(HH) 1930 , charged a high tax for imports thereby leading to less trade between America and foreign countries along with some economic retaliation. It backfired
Food assistance given to an area. Can take away the incentive to produce food in that area. Distribution is an issue.
Negative Effects of Free Trade
It hurts the poorer countries since they cannot compete with the bigger and richer ones. Also with other countries being able to produce cheaper, the domestic jobs and industries are harmed.
INDIA AUTOMOTIVE INDUSTRY
Senegal Agriculture Problems
Food is becoming super expensive in Senegal. People are going hungry because they cannot afford to buy food for themselves. Senegal is trying to fix this by becoming self dependent on food production, but they do not have the right conditions for it.
Occurs when nations choose to exchange goods with one another. It is necessary because no nation can produce everything it wants or needs.
Positive Effects of Trade
greatly increased the production of goods and raised the standard of living, healthier diets, better housing, and cheaper clothing, increased demand for workers. A more available market
A subsidy is a grant or other financial assistance given by one party for the support or development of another
Bretton Wood Conference
a gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire, United States, to regulate the international monetary and financial order after the conclusion of World War II
International Monetary Fund; a United Nations agency to promote trade by increasing the exchange stability of the major currencies
The World Bank
an organization whose main aims are to provide aid and advice to developing countries, as well as reducing poverty levels and encouraging and safeguarding international investment.
General Agreement on Tariffs and Trade; international trade organization that encourages free trade by lowering tariffs and other trade restrictions. Replaced by the WTO
An international organization of European countries formed after World War II to reduce trade barriers and increase cooperation among its members
A set of processes that are increasing interactions, deepening relationships, and heightening interdependence without regard to country borders.
west african economic and monetary union
The primary reason large U.S. companies send U.S. jobs abroad is because labor costs are higher in the United States.
Negative Effects of Outsourcing
Jobs are lost in the US because they are being worked elsewhere
There is not as much spending to be done if there are not enough jobs
Positive Effects of Outsourcing
Cheaper labor with jobs outside the US
Negative effects of a globalized economy
Countries are more likely to collapse if another country does
Individual security is not as high
Positive Effects of a Globalized Economy
Wider range of products available
Competition makes countries work harder