Big Boy Pants Economics

Question 1

SEZ

Answer 1

Special Economic Zones (CHINA)
- six cities that allow for more free-market activities and experimentation
- designed by Deng Xiaopeng to increase URBANIZATION (a requirement for communism)
- contributed to 22% of China’s GDP and increased foreign investment

Question 2

Pemex

Answer 2

Mexico State Controlled Oil Company
- IS NOT PRIVITIZED ON COLLEGE BOARD TEST
- privitized by President Enrique Nieto that opened Mexico’s oil sector to private investments which ended the Pemex monopoly
- met with considerable backlash
- corruption and inefficiency within the company

Question 3

NNPC

Answer 3

Nigerian National Petroleum Corporation
- was state-owned and is now a for profit oil company
- NNPC limited is the only entity licensed to operate within the country’s petroleum industry

Question 4

Russia Nationalization

Answer 4

Putin’s re-nationalization of oil/natural gas industries and imposition of foreign investment limitations

Question 5

Varied Reactions

Answer 5

countries allow varying degrees of private control of natural resources (UK the most and China the least)

Question 6

Response to Global Market Forces

Answer 6

Governments respond to global market forces in order to:
- improve domestic economic conditions
- respond to domestic demands
- control domestic political debates
- extend national influence

Question 7

Globalization and Regime Sovereignty

Answer 7

• MNCs and foreign investment can challenge a gov.’s foundation
• cultural influences (often Western) can provoke a domestic backlash
• increased economic development can cause environmental degradation which can alienate citizens
• foreign governments can bring political and economic pressures

Question 8

Neoliberalism –> Economic Liberalization

Answer 8

• ECONOMIC LIBERALIZATION occurs when a state reduces its economic role and embraces free market mechanisms
• privatizing government owned industries
• economic liberalization is used by all regimes types to remedy undesirable domestic problems
• contributes to environmental pollution and uneven economic development

Question 9

Work Bank AGAIN!

Answer 9

international organization dedicated to providing financial stuff to developing nations to aid their economic development

Question 10

EU

Answer 10

European Union
- economic and political federation of 27 member nations
- allowing member states to have involvement in EU operations (Legitimacy)
- THE ONLY SUPRANATIONAL THAT GUARANTEES CITIZENSHIP
- Eurozone (19/27 states of the EU and institutions of the EU)

Question 11

1993

Answer 11

The Maastricht Treaty is signed and takes effect, thus finalizing the modern day EU

Question 12

Euro

Answer 12

official currency of the Eurozone (19/27 states of the EU and institutions of the EU)

Question 13

ECOWAS

Answer 13

• headquarters is Abuja, Nigeria
• GOAL: “to achieve collective self-sufficiency”
• proposed currency of ECO
• Tariffs

Question 14

The Next 11

Answer 14

11 countries that have been singled out by Goldman Sachs investment bank that has the potential to become the world’s largest economies in the 21st century (IRAN, MEXICO, NIGERIA)