Chaps 8 & 9 Flashcards
Colonialism
One country takes over another and administers it with a local bureaucracy
Bilateral
Relationships between TWO states
Bureaucracy
System of government in which most of the important decisions are made by state officials rather than by electric representatives
Metropole
“Mother city” or center of an empire
Mercantilism
An economic policy that combines free enterprise and government
Protectionism
A policy of blocking or restricting trade from other countries to protect domestic business
Beggar-thy-neighbor
An economic policy that stresses trade protectionism and causes other countries to bear at the cost of efforts at securing prosperity at home
Industrial revolution
Transition of many states from an agricultural economic system to one based on industry. factories replaced farms
Hyperinflation
Situation where a currency loses it’s value very quickly. Most of it’s value can be lost I. A year, month or even day
Trade war
When many or all states engage in protectionism. Try to block imports & promote exports, since all countries do this little international trade occurs
Comparative advantage
Being more efficient at producing a good or service relative to another good or service. Countries benefit by specializing in the products they produce most efficiently and trading for others
Absolute advantage
When a country is more efficient at producing a single good than another country
Breton Woods System
Established by US & other countries after WWII to promote capitalism, free trade and policy coordination
World Bank
Bretton Woods org created in 1945 that provides loans and grants to countries for long term development
General Agreement on Tariffs and Trade
Replaced by WTO, org of countries that agreed to work together to reduce trade barriers and promote free trade
Most-Favored Nation
Preferential trade status that members of the GATT gave to other members
Great society program
Aka War on Poverty, large increase on social spending in US during Johnson administration
Non tariff barrier
Requirement that foreign goods must meet that is specifically designed to block or obstruct those goods or services from sale in that market
Devalue
Situation when currency loses its value compared to other currencies
Centrally planned (or command) economy
Economy run by the gov rather than private citizens. Svt unn/NK
Liberal capitalism
Philosophy of complete or near complete free markets and no gov regulation in the economy. Minimal government involvement
Globalization
Increasing integration of global society through the spread of technology, foreign trade, transportation, cultural exchange, political institutions & social connections
Islamists
Extreme fundamentalist Muslims
Fair trade
Concept that producer should be laid a fair price for their products
