Chapter 9 Flashcards
Liberalization
Reducing barriers to trade (increasing free trade)
Barriers to trade
Quotas, tariffs, and subsidies, regulations that discriminate against imports
Fiscal Policy
The use of a government budget deficit or surplus to stimulate or slow economic growth
Monetary Policy
Raising or lowering central bank interest rates to stimulate or slow economic growth
Zero-sum vs Positive-sum game
One can win only at the expense of other vs both can benefit
Balance of trade
Exports minus imports (measured in dollar value); a net accounting of how much in the way of goods and services is exported from a country compared to how much is imported
Exchange rates
The price of one currency in terms of another
Protectionism
Measures taken by states to limit their imports
Neomercantilism
The belief that states should seek a trade surplus. This focus on the balance of trade makes trade a zero-sum game, as it was for traditional mercantilists
Embedded liberalism
The normative consensus that guided international economic arrangements after WWII. It combined a commitment to expansion of free trade with acceptance that states would have to intervene domestically to protect themselves from some of the effects of free trade
Gendered economic roles
women generally arent counted intraditional economic measures. Can be helped by micro-loans and have higher rates of repayment
Declining terms of trade
Conditions of international trade that force countries that primarily produce raw materials to export ever-increasing amounts of raw materials to earn the revenue needed to buy the manufactured goods they require
International political economy
the two-way relationship between international politics and international economics
Competitive devaluation
competition between states to have the lowest-value currency in order to boost domestic employment
Quota
A numerical limit on the amount of a certain item that can be imported
