CH 1 - International Political Economy Flashcards
International trade system
- each country gains access to the cross-border flow of goods and services.
- WTO AND GATT have enabled governments to progressively eliminate tariffs
International monetary system
Enabled people living in different countries to conduct economic transactions with each other
Multinational corporations
Firm(s) that controls production facilities in at least two countries
Economic development
Developing country governments have adopted explicit development strategies
Welfare consequences
(Consequences on resource allocation decision making) - determine the level of societal well-being
Distributional consequences
(Consequences on resource allocation decision making) - influence income distribution between groups within countries and between nations within the international system
Explanatory studies
Answer “why” questions - explaining the foreign economic policy choices that governments make
Evaluative studies
-assessing policy outcomes, making judgments about them, proposing alternatives when a policy is a negative one
Welfare evaluation
Whether a particular policy choice raises or lower social welfare
- based on economic criteria and rely heavily upon economic theories
Mercantilism
National power = wealth
Liberalism
Market-based allocation of resources, international cooperation
Marxism
Conflict between private ownership of means of production (capital) and wage labor.
