Foundations Flashcards
Infrastructure
Is a basic physical and organizational structures needed for the operation of a society or enterprise or the services and facilities necessary for an economy to function
Tariffs
A tax imposed on imports to increase their price and thus reduce competition with domestic products
Protectionism
The economic policy of restraining trade between states (countries) through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow (according to proponents) fair competition between imports and goods and services produced domestically
Social Costs
Social cost is the total cost to society. It includes both private costs plus any external costs
New Deal
The set of federal programs launched by President Franklin D. Roosevelt after taking office in 1933, in response to the calamity of the Great Depression. Included economic recovery, job creation, investment in public works, and civic uplift.
Capitalist economy
A system of economics based on the private ownership of capital and production inputs, and on the production of goods and services for profit.
Exchange rate
The price at which one national currency can be purchased for another
Breton Woods agreement
Established a system of rules, institutions, and procedures for the postwar global economy. It created the World Bank, the International Monetary Fund, and a system of international trade for the worlds major industrial countries.
International Monetary System
Global network of institutions to promote international trade and the regulation of currency among Western countries
Fixed exchange rate
Value of a countries currency that is set by the government
Gold Standard
All printed money would be convertible to gold and could be cashed in at any time for that gold
Inflation
Country ends up with more currency by each unit of currency buys less
Floating exchange rate
Currency value decided by supply and demand based on value in foreign exchange markets
World Bank
International bank got reconstitution and development. An agency for the UN. Provides loans to less developed countries that it in financial difficulty. In charge of long term financial assistance.
IMF
The International Monetary Fund - work together with the world bank to bring stability to international monetary affairs and to help expand world trade. Monitors exchange rates and provides short term financial assistance.
Quotas
Proportional shares which member countries pay to the IMF to fund it
International Money Markets
Markets in which funds that are loaned for a short term to businesses or governments are bought and sold.
Mutual Fund
Combines clients money and invests it in a collection is sticks, bonds, and securities
Recession
Period of reduced economy activity lasting more then 6 months
GATT
General agreements on tariffs and trade - agency of the UN. operates under 4 principles.
- Conduct trade in a non-discriminatory manner
- Treat import goods the same as export goods
- Protect domestic industries through tariffs
- Member countries to provide open list of tariffs and other trade restrictions imposed on member countries
FTA
Free Trade Agreement - open up trade between Can and USA - removing most tariffs
NAFTA
North American Free Trade Agreement - Mexico, Can, USA
WTO
World Trade Organization - works to improve trade relations among countries of the world especially by removing tariffs and other barriers to trade
G8
Informal group of 8 major industrial democracies
- Canada
- France
- Germany
- Italy
- Japan
- Russia
- UK
- USA
La Francophonie
Enhance the economic development of countries with French speaking citizens
CIDA
Canadian International Development Agency - government agency responsible for administering foreign aid programs in less developed countries
Intermodal Transportation
Several types of transportation needed to move freight because of distance and geography
Common Market
Strongest form of regional integration. Include free trade of goods and services and free movement of capital and labour within trading bloc
EU
European Union - 25 European countries - the strongest and largest, most powerful common market
Anti-globalization
These against global trade agreements and their consequences for people in less developed countries, the environment, and peace.
Austerity Programs
Reducing government debts by increasing taxes and cutting social programs
Trade Liberalization
Describes the process of reducing barriers to trade
Crown Corp
Owned by the government - owned by Queen
Deregulation
Removing government regulation and opening up industry to more competition.
Privatization
Method of deregulation - sale to private business from gov
Economic nationalism
Impact of foreign investment in countries economic independence and identity
Outsourcing
Company hires outside help to fulfill certain tasks in production
Knowledge economy
Use of knowledge to produce economic benefits
