International Political Economy Flashcards
What is a sovereign wealth fund?
a state-owned investment fund comprising financial assets such as stocks, bonds, real estate, or other financial instruments.
Autarky
A policy of economic self-sufficiency, where a country seeks to produce all the goods and services it needs domestically, without relying on trade with other countries.
Dependence
A situation where a country relies heavily on imports from other countries for goods and services it cannot produce domestically.
Interdependence
A state of mutual reliance and cooperation between countries, where they depend on each other for resources, markets, and economic stability.
Belt and Road Initiative (BRI)
A global infrastructure development and investment strategy led by China, aiming to enhance connectivity and economic cooperation among countries across Asia, Europe, Africa, and beyond by constructing roads, railways, ports, and other infrastructure projects.
Nationalization
The process of transferring private assets, industries, or resources into public ownership and control by the government.
Privatization
The sale of state-owned assets or enterprises to private investors or entities, transferring ownership and control from the public to the private sector.
Comparative advantage
An economic principle that suggests countries should specialize in producing goods and services in which they have a lower opportunity cost relative to other countries, allowing for mutually beneficial trade based on differences in relative efficiencies and resource endowments.
Microfinance
The provision of financial services, such as small loans, savings accounts, and insurance, to low-income individuals or communities who typically lack access to traditional banking services.
Foreign direct investment (FDI)
The investment made by a company or individual in one country into business interests in another country, involves the acquisition of a significant ownership stake in a foreign company or the establishment of new business operations abroad.
How is the poverty rate for nations defined?
by the percentage of the population living below a certain income threshold, such as the national poverty line or an international poverty line set by organizations like the World Bank or the United Nations.
Which 5 countries have the worst poverty rate?
Burundi, Central African Republic, Equatorial Guinea, Madagascar, South Sudan
The United States accounts for roughly what share of world exports?
In 2022, the United States accounted for approximately 8.5% of world exports
The United States accounts for roughly what share of world imports?
In 2022, the United States accounted for approximately 13.2% of world imports.
US exports of goods and services represent roughly what percentage of US GDP?
In 2022, US exports of goods and services represented roughly 10% of US GDP.
