Econ Globe Flashcards
What is Economic Globalization?
The process of increasing economic connections between countries through trade, investment, technology, and the movement of goods and services.
What is Trade Liberalization?
The process of reducing or removing trade barriers, such as tariffs and quotas.
Define Free Trade.
Trade between countries without restrictions, like tariffs or quotas.
What is a Tariff?
A tax that a country places on imported goods to make them more expensive.
What does USMCA stand for?
United States-Mexico-Canada Agreement.
What was NAFTA?
A free trade agreement between Canada, the U.S., and Mexico that started in 1994.
What is the purpose of the Bretton Woods Conference?
To create a global financial system after World War II, leading to the IMF and World Bank.
What does WTO stand for?
World Trade Organization.
What is the role of the IMF?
To help countries in financial trouble by giving short-term loans and advising on economic policies.
What does the World Bank do?
Provides loans and financial aid to developing countries to reduce poverty and build infrastructure.
What are Heavily-Indebted Poor Countries (HIPC)?
A group of developing countries with very high debt levels, helped by the IMF and World Bank.
What is Structural Adjustment?
Economic policies that countries must follow when they borrow money from the IMF or World Bank.
Who is John Maynard Keynes?
A British economist who believed in government spending to boost the economy during downturns.
Who is Frederick Hayek?
An economist who argued for free markets with little government interference.
Who is Milton Friedman?
An economist who promoted free markets and minimal government involvement in the economy.
Define Transnational Corporations (TNCs).
Large businesses that operate in multiple countries seeking low-cost labor and resources.
What is Communism?
An economic system where the government controls all businesses and resources.
What is Capitalism?
An economic system where businesses and individuals make most economic decisions with little government interference.
Define Mixed Economies.
Economic systems that combine elements of both capitalism and government involvement.
What is the United Nations (UN)?
An international organization created in 1945 to promote peace, security, and cooperation.
What was the Great Depression?
A severe worldwide economic crisis in the 1930s caused by stock market crashes and bank failures.
What are Sanctions?
Economic or political penalties placed on a country to pressure it into changing its behavior.
What are Maquiladoras?
Factories in Mexico, usually near the U.S. border, where goods are assembled for export.
What does the EU stand for?
European Union.
How does globalization impact economic globalization?
Increases economic interconnectedness through trade, investment, and technology.
What are the main differences between the IMF and the World Bank?
- IMF provides short-term loans and policy advice
- World Bank offers long-term loans for development projects.
Explain outsourcing.
Moving jobs or services to another country to save money.
Fill in the blank: Tariffs are removed or reduced in a _______.
free trade zone.
List arguments in favor of the World Bank and IMF.
- Help struggling economies recover
- Provide financial aid for development projects
- Promote global economic stability.
List arguments against the World Bank and IMF.
- Policies can cut social programs
- Often prioritize wealthy nations’ interests
- Structural adjustments can increase inequality.
The process of increasing economic connections between countries through trade, investment, technology, and the movement of goods and services.
What is Economic Globalization?
The process of reducing or removing trade barriers, such as tariffs and quotas.
What is Trade Liberalization?
Trade between countries without restrictions, like tariffs or quotas.
Define Free Trade.
A tax that a country places on imported goods to make them more expensive.
What is a Tariff?
United States-Mexico-Canada Agreement.
What does USMCA stand for?
A free trade agreement between Canada, the U.S., and Mexico that started in 1994.
What was NAFTA?
To create a global financial system after World War II, leading to the IMF and World Bank.
What is the purpose of the Bretton Woods Conference?
World Trade Organization.
What does WTO stand for?
To help countries in financial trouble by giving short-term loans and advising on economic policies.
What is the role of the IMF?
Provides loans and financial aid to developing countries to reduce poverty and build infrastructure.
What does the World Bank do?
A group of developing countries with very high debt levels, helped by the IMF and World Bank.
What are Heavily-Indebted Poor Countries (HIPC)?
Economic policies that countries must follow when they borrow money from the IMF or World Bank.
What is Structural Adjustment?
A British economist who believed in government spending to boost the economy during downturns.
Who is John Maynard Keynes?
An economist who argued for free markets with little government interference.
Who is Frederick Hayek?
An economist who promoted free markets and minimal government involvement in the economy.
Who is Milton Friedman?
Large businesses that operate in multiple countries seeking low-cost labor and resources.
Define Transnational Corporations (TNCs).
An economic system where the government controls all businesses and resources.
What is Communism?
An economic system where businesses and individuals make most economic decisions with little government interference.
What is Capitalism?
Economic systems that combine elements of both capitalism and government involvement.
Define Mixed Economies.
An international organization created in 1945 to promote peace, security, and cooperation.
What is the United Nations (UN)?
A severe worldwide economic crisis in the 1930s caused by stock market crashes and bank failures.
What was the Great Depression?
Economic or political penalties placed on a country to pressure it into changing its behavior.
What are Sanctions?
Factories in Mexico, usually near the U.S. border, where goods are assembled for export.
What are Maquiladoras?
European Union.
What does the EU stand for?
Increases economic interconnectedness through trade, investment, and technology.
How does globalization impact economic globalization?
- IMF provides short-term loans and policy advice
- World Bank offers long-term loans for development projects.
What are the main differences between the IMF and the World Bank?
Moving jobs or services to another country to save money.
Explain outsourcing.
free trade zone.
Fill in the blank: Tariffs are removed or reduced in a _______.
- Help struggling economies recover
- Provide financial aid for development projects
- Promote global economic stability.
List arguments in favor of the World Bank and IMF.
- Policies can cut social programs
- Often prioritize wealthy nations’ interests
- Structural adjustments can increase inequality.
List arguments against the World Bank and IMF.
