Economy and Globalisation Flashcards
Political economy
study of interaction between states and markets
Inflation
increase in the general price level of goods and services and resulting loss of value in a country’s currency.
Deflation
period of falling prices and values for good, services, investments and wages.
Tariffs
taxes on imported goods
Quotas
limits on the quantity of good imported
Nontariff regulatory barriers
policies and relocations to limit imports
Why regulate trade?
- to generate state revenue.
- to keep wealth in the country
- to protect local jobs
- to foster local industry
Why not regulate trade?
- to promote competition
- to keep the costs of goods low
- to stimulate domestic innovation in areas of comparative advantage.
Political economic system
relationship between political end economic institutions in a particular country and the policies and outcomes they create.
Liberalism
high priority on individual, political, and economic freedom over collective equality, and on power of markets over the state.
- faith in the market
- weak state
- limited regulation
- public goods only in critical areas
- lower taxes
- encouraged trade
-laissez-faire
Social democracy
balance individual freedom and collective equality; yes to private property and market forces but cautions about their impacts on society
- higher taxes
- higher levels of social expenditures
- trade promoted but balances
- government regulation and ownership of important sectors of the economy.
Neo-corporatism
critical decisions are taken by the government with corporations and trade unions.
Communism
elimination of individual freedom to achieve collective quality
- private property fully nationalised
- market forces eliminated
- profit goes to the state for public expenditures
- restricted trade
Is democracy possibile??
Mercantilism
system in which national economic power is paramount and it serves as an instrument to serve the needs of the state.
- active industrial policy
- economy directed by the state toward certain industries and away from others.
- parastatal industries
- trade regulations
- lower taxes
- lower welfare benefits
GDP
total market value of all goods and services produced in a country over a period of one year, divided per capita.
PPP
statistical tool that estimates the buying power of income across different countries by using the US as a benchmark.
Gini index
statistical formula that measure the amount of inequality in a society.
0 = perfect equality
100 = perfect inequality.
HDI
statistical tool that evaluate the overall wealth, health and knowledge of a country’s people.
Happy Planet Index
Tool that evaluates the level of happiness in a country, by considering wellbeing, life expectancy, inequality outcomes and ecological footprint.
Globalisation
process of expanding and intensifying linkages between states, societies and economies.
KOF
index measuring the degree of globalisation considering economic, political and social aspects.
DHL
measure cross-border movements in trade, information, people and capital.
- how much activity
- how many borders crossed
FDI
investments in foreign economies.
Economic globalisation
integration of national economies into the international economy through trade, fyi, capital flows, migration and spread of technologies.
Political globalisation
increasing trend toward multilateralism, emerging transitional state apparatus, emergence of a national and international NGOs acting as watchdogs over governments.
Political globalisation outcomes
- State loses: international institutions will take on many of the tasks that states normally conduct.
- State wins: mange to expand their capacities for regulation and control
- balance: transformation process.
Societal globalisation
impact of globalisation on the life and work of people, on their families and their societies.
- increasing mobility of human
- technical innovations to be interconnected.
Negative aspects of globalisation
RISE OF INEQUALITY
- violence will change form
- not more democratic: citizens lack the ability to control indirectly elected bodies.
- loss of jibs
- business lack any sovereign control (avoid taxation, oversights…)
- migration and outsourcing.
- remittences
Negative aspects of globalisation
VEHICLE FOR GLOBAL PROSPERITY
- innovation, specialisation and lower costs.
- new jobs
- wealth diffused more effectively
Slowbalisation
slowing of globalisation, characterised by the slowing of global trade, investments, loans…
