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International Relations > Final > Flashcards

Final Flashcards

1
Q

Autarky

A

The separation of a country from the world economy. Done to protect its economy from the effects of the global market.

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2
Q

Utility

A

Well-being attained from consuming goods and services

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3
Q

Production Possibilites Frontier/Curve

A

Graph of different combinations of goods that a country can produce

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4
Q

Absolute Advantage

A

A situation in which one state has a productive over another in two or more goods

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5
Q

Comparative Advantage

A

When one country has a lower opportunity cost to produce an extra unit of a good than another country

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6
Q

Terms of Trade

A

The rate of which goods will be exchanged between two states

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7
Q

Protectionism

A

Policies designed to restrict incoming goods in order to protect the domestic economy

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8
Q

Infant-Industry Protection

A

When imports from a particular industry are restricted to allow that industry to grow domestically

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9
Q

Tariffs

A

Tax collected by the government on goods coming into the country

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10
Q

Non-Tariff Barriers

A

Policies states use to control imports and their prices without using tariffs
Ex: anti-dumping duties, import quotas, controlled government procurement

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11
Q

Dumping

A

(NTB) When producers sell goods cheaper in another country than they do at home.

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12
Q

Anti-Dumping Duties

A

(NTB) Tariffs that offset the price cuts offered by foreign producers below what they charge in their own markets. Allowed by international law.

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13
Q

Government Procurement

A

(NTB) When the government buys goods and services from suppliers. This is a non-tariff barrier because of how much money governments can spend.

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14
Q

Import Quotas

A

NTB that places limits on how much of a particular good/service may be imported in a period of time.

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15
Q

Voluntary Export Restraints

A

NTB where one country agrees to limit how much their industries will supply to another. Technically “voluntary” but usually comes from pressure from a trading partner.

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16
Q

Foreign Exchange Market

A

Marketplace in which currency is bought and sold

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17
Q

Exchange Rate

A

The amount of one currency needed to buy another

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18
Q

Flexible/Floating Exchange-Rate System

A

When gov’t allows the exchange rate to be set by supply and demand in foreign exchange markets

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19
Q

Fixed/Pegged Exchange-Rate System

A

When gov’t sets an exchange rate by locking in the value of their currency to another currency or group of currencies. Gov’t takes measures to keep those exchange rates in place.

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20
Q

Currency Market Intervention

A

Purchase or sale of currency by a state to maintain a constant exchange rate.

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21
Q

Balance of Payments

A

Summary of international transactions by a state’s residents with resident’s of other states.

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22
Q

Current Account

A

A country’s balance of trade in goods and services (Exports minus imports) plus its income receipts.

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23
Q

Currency Union

A

When a group of currencies decide to use the same currency. Ex: Eurozone

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24
Q

Eurozone

A

The most prominent currency union

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25
Q

Dollarization

A

When a country adopts a foreign currency in place of its own in its home market. Most commonly done with the US dollar.

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26
Q

Price inflation

A

When there is too much money in an economy and the prices of goods and services increase.

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27
Q

Inflationary Expectations

A

The belief that price increases are always about to happen.

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28
Q

Austerity

A

The policy where governments raise interest rates or reduce gov’t spending to discourage consumption and investment at home to alleviate inflation/inflationary pressures.

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29
Q

Multinational enterprises

A

Businesses that operate in multiple countries other than where their headquartered.

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30
Q

National Treatment

A

A clause in the European Economic Community (EEC) that allowed American firms to be treated as though they were European firms.

31
Q

Fixed Capital

A

A company’s value of assets used in an ongoing way to produce goods/services

32
Q

Gross Fixed Capital Formation

A

The total increase in fixed capital during a given period of time

33
Q

Intra-Firm Trade

A

Cross-country movement of different components to a final product to be assembled.

34
Q

Race to the Bottom

A

When two or more countries continue to lower environmental protections and workers rights to stop the loss/ to attract foreign investments

35
Q

Pollution Haven

A

States that have low standards or lax enforcement of environmental protection, attracting foreign companies.

36
Q

Regional Blocs

A

Groups of smaller countries dominated by great powers to help the great powers’ economies during the great depression

37
Q

Bretton Woods System

A

International System created in 1944 to encourage trade liberalization and stable monetary relations between all countries. Created the ITO, GATT, WTO, IMF, and World Bank

38
Q

International Trade Organization (ITO)

A

Ambitious trade plan for global trade management that failed due to lack of US support. Replaced by GATT

39
Q

General Agreement on Tariffs and Trade (GATT)

A

Attempt by US and western countries to lower their respective tariff rates and to establish a set of rules to resolve trade disputes

40
Q

World Trade Organization

A

Successor of GATT; Most countries are members, has a more developed mechanism for resolving trade disputes than GATT.

41
Q

Free Trade Agreement

A

An agreement between two or more states to eliminate tariffs, preferences, and import quotas on all or most goods between them

42
Q

North American Free Trade Agreement

A

Free trade agreement between the US, Canada, and Mexico, signed in the early 1990s

43
Q

Mercosur

A

Free trade agreement (common market of the south) formed in 1991 between Argentina, Brazil, Paraguay, Uruguay, Chile, and Bolivia

44
Q

International Monetary Fund

A

Institution to facilitate and reinforce the exchange-rate system created in the aftermath of WWII. One of the most important international economic institutions

45
Q

World Bank

A

The International Bank for Reconstruction and Development. Initially created to provide loans to help countries with economic recovery after WWII, but today manages and finances projects to foster growth in the developing world.

46
Q

Conditionality

A

IMF practice of lending foreign currency to a state running a deficit to allow that state to buy its own currency on international markets where the IMF prescribes economic policies as a condition of the loan.

47
Q

Devaluation

A

When a country lowers the official price of its currency to more accurately reflect its market value.

48
Q

Washington Consensus

A

Group of controversial US backed policies (smaller state sectors, privatized markets, and liberalized trade and financial sectors) set forth by the IMF as the path to economic prosperity from 1980 to 2008. These became highly questions after 2008.

49
Q

Group of 7 (G-7) , Group of (G-8), Group of 20 (G-20)

A

G-7 = USA, UK, France, Germany, Japan, Italy, Canada
G-8 = G-7+Russia
G-20 = G-8 + more.
Meetings by these countries governed the international economic system because they coordinated their exchange rates and their domestic monetary and fiscal policies.

50
Q

Developing Country

A

Poor countries with small economies whose residents have not yet attained a standard of living typically enjoyed by wealthy countries

51
Q

Human Development

A

Process of giving people more choices and greater means to lead valuable lies. Typically include factors such as life expectancy, income, and education.

52
Q

Economic Development

A

Increase in GDP per capita growth rate

53
Q

Good Governance

A

A gov’t with transparent and consistent political and legal systems that combats corruption and protects property.

54
Q

Dependencia

A

School of thought that suggests international linkages hinder economic growth in developing countries because these linkages solely benefit the wealthy country and the small number of elites in the poorer countries.

55
Q

Worker Productivity

A

The amount of output any worker can produce in a fixed period of time

56
Q

Import-Substitution Industrialization (ISI)

A

National development strategy of avoiding international economic linkages in favor of domestic production. High tariffs and other similar measures help encourage the local economy to buy and produce goods by national champions

57
Q

National Champion

A

Firms the government believes could do the best job of producing substituted industrial goods in an ISI strategy.

58
Q

International Commodity Cartels

A

Grouping of developing state governments that control the supply of raw materials to help drive up the price and maximize profits

59
Q

International Commodity Agreement

A

An agreement setting the price of a particular commodity exported by a developing country. These aim not to maximize profits but to create a stable and acceptable price the gov’t can rely on

60
Q

Export-Led Growth

A

Strategy of moving government credit and foreign currency from import oriented to export oriented firms so that countries can export more and become more tied into the international system

61
Q

Asian Tigers

A

Originally Taiwan, South Korea, Singapore, and Hong Kong. Now includes many Asian countries that achieved rapid economic growth rates using export-led growth.

62
Q

Beijing Consensus

A

Belief that it is more beneficial for some smaller countries to have authoritarian rule and for the state to play a heavy hand in trade integration, capital inflows/outflows, movement of labor, and the value of currency to spur growth.

63
Q

International Financial Flows

A

Movement of capital from one country to another. Consists of private and official financial flows.

64
Q

Official Financial Flows

A

International financial flows that originate with government entities.

65
Q

Private Financial Flows

A

International financial flows that originate with non-government entities.

66
Q

Foreign Direct Investment

A

When an enterprise moves money from one country to another with the intention of establishing ongoing business practices. Biggest portion of private financial flow to developing countries

67
Q

International Bank Loan

A

When a bank in one country extends a loan to residents in another

68
Q

International Portfolio Investments

A

When an investor in one country buys shares in a firm in another country

69
Q

International Bonds

A

When individuals or firms in one country buy bonds from another country

70
Q

Official Development Assistance

A

When one government provides grants or loans to another with highly favorable repayments terms

71
Q

Four Kinds of Private Capital Flows Between Countries

A

International Bank Loan, Foreign Direct Investment, International Portfolio Investments, International Bonds

72
Q

Tied Aid

A

When a government provides aid to a developing country but requires that the money be spend on goods and services from their country.

73
Q

Poverty Trap

A

When a country is so poor that most of its natural resources must be used to satisfy the basic needs of its population with little to none left over for savings or investments

International Relations (1 decks)

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