*7 State Roles Flashcards
beliefs, traditions, and identity
cultures
behavioural standards
norms
systems of belief
ideologies
taxes imposed on imports and/or exports (according to product type)
tariffs
quantity restrictions imposed on imports and/or exports (according to product amount)
quotas
regulations or restrictions that limit or prevent entry into an industry (i.e.
bureaucratic obstacles like labeling, packaging, handling, and customs procedures)
non-tariff barriers
domestic industries at their early stage of development (which receive tariff
protection from foreign competitors until they mature and can successfully compete with
imports)
infant industries
the combination of government expenditures and taxes
fiscal policy
decisions to print money and issue credit
monetary policy
the ability of a place to produce an item more efficiently than other
places (based on economic and human resource endowments)
competitive advantage
the ability of a place to produce an item more cheaply than other
places (based on natural resource endowments)
comparative advantage
removal of all trade barriers among members and individual trade policies
with non-members
free-trade area
free trade area + common trade restrictions with non-members
customs union
customs union + free movement of the factors of production (labour, capital,
and investment) within the customs union
common market
common market + coordination of economic policies and practices via
common central bank, monetary and tax systems, and foreign economic policy
economic union
economic union + supranational authority with executive, judicial, and
legislative branches
political union
What are the four determinants of competitive advantage?
- Factor conditions
- Demand conditions
- related and supporting industries
- firm strategy, structure and rivalry
What are the 4 economic development stages?
- Factor-Driven Stage
- Investment-Driven Stage
- Innovation-Driven Stage
- Wealth-Driven Stage
Name the Economic Development Stage:
development relies on basic factors (natural resources, semi-skilled
workers, imported technologies)
Factor-Driven Stage
Name the Economic Development Stage:
development relies on capital-intensive production (i.e.
modernize infrastructure via investing in new technologies)
Investment-Driven Stage
Name the Economic Development Stage:
Development relies on the creation of new technologies, products,
and markets
Innovation-Driven Stage
Name the Economic Development Stage:
Development relies on improving competitive advantages of existing
industries and developing the capability to compete in higher-productivity industries
Wealth driven stage
T/F: states have become increasingly liberal towards foreign direct investment
true
T/F: states use various trade, FDI and industrial policies to influence the level and type of (internal/external) economic activities
True
T/F: there are varying degrees of regional economic integration
True
T/F: the major impact of regional economic integration is the concentration of production, trade and investment within the global triad
True
T/F: States still matter, they influence global production, trade, and investment patterns
true
The major roles of states include being: (4)
(1) containers of distinctive cultures, practices, and institutions;
(2) regulators of trade, foreign investment, and industry;
(3) competitors within the world market; and
(4) collaborators within regional economic/trade agreements
