Exam #3 Flashcards

1
Q

Absolute Advantage

A

Overall production of who can produce more opportunity goods

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2
Q

Comparative Advantage

A

2 countries can both benefit from trade even when one can produce more cheaply than the other

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3
Q

Invisible Hand

A

Decentralized markets efficiently produce goods and services and get them to consumers

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4
Q

Trade Adjustment Assistance (TAA)

A

Money for people who lost jobs due to foreign competition

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5
Q

“Do no direct harm”

A

A principle that people are hurt by economic decisions out of their control

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6
Q

Protectionism

A

The practice of shielding a country from foreign imports

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7
Q

Tariff

A

A tax imposed by the govt on imports from another country

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8
Q

Monopoly

A

The exclusive control of the supply, production, and trade of a good/service

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9
Q

Capitalism

A

An economic and political where a country’s trade is controlled by private owners for profit.

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10
Q

Gold Standard

A

Monetary system where a country’s currency has a value linked to gold

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11
Q

Bretton Woods

A

The Conference led by the US where leaders created a framework to govern international and monetary trade with institutions (e.g. GATT, IMF, World Bank)

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12
Q

General Agreement on Tariffs and Trade (GATT)

A

International agreement to reduce tariffs/other trade restrictions

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13
Q

Free Trade

A

Flow of goods and services without restrictions

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14
Q

World Bank

A

An international organization that works to reduce poverty in developing economies

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15
Q

IMF

A

An international organization that handles global monetary matters across the world and in its member countries

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16
Q

WTO

A

An international organization that regulates and facilitates trade between nations

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17
Q

RTA

A

A treaty between 2+ governments that defines the rules of trade for all signatories

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18
Q

Trade Follows the Flag

A

Economics and trade align with a country’s geopolitical strategy

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19
Q

Sanction

A

A restriction of a country’s economic ability

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20
Q

Mercantilism

A

Economic system where trade serves the interest of the state and protects manufacturers

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21
Q

Trade Liberalism

A

The removal of trade restrictions and the encouragement of free trade

22
Q

Non-Tariff Trade Barriers

A

Non-tariff measures used to restrict trade on another country

23
Q

Business Cycle

A

Natural peaks and troughs in any economy

24
Q

Preemptive Blow

A

An attack against an enemy in response to an obvious threat of attack by that enemy

25
Preventative Blow
A strike carried out in order to deter the enemy from expected aggression
26
Détente
The easing of hostility between countries
27
Enduring Rival
Countries that have signaled each other out for intense security competition
28
Containment
Plot to weaken control of ccp and make China economically and politically dependent to the West
29
Brute Force
Application of violence towards another party
30
Power to Hurt
31
Defense
32
Deterrence
Strategy to prevent an opponent from acting on something (target has not acted)
33
Compellence
Strategy to persuade an opponent to start or stop a behavior (target has acted)
34
Swaggering
35
Offensive Advantage
36
Defensive Advantage
37
Brinksmanship
38
Extended Deterrence
Expanding deterrence based on time frame, number of countries, and specific policy
39
Security Dilemma
When efforts states make to defend themselves make other states less secure
40
Tragedy of the Commons
41
Private Good
42
Public Good
43
Club Good
44
Excludable Goods
45
Non-excludable Goods
46
Excludable Goods
47
Rivalrous Goods
48
Non-rivalrous Goods
49
Positive Externality
50
Negative Externality
51
Finite Resources