Key concepts #3 Flashcards
Who is Milton Friedman
Milton Friedman who believed in monetarism
Who are the Chicago Boys
A group of boys who studied under Milton Friedman
What is the Pinochet of Chile
It was wen the chicago boys returned and let Chile to implement a more neoliberalist approach.
What did the pinochet of Chile lead to
It lead to the abolisment of tarriffs and subsidies.. which led to more foriegn investments and they privatized pensions and reduced social services. This lead to the economy growing but unemployment also grew with it.
What is globalization?
The intertwinement of countries, goods being traded, and movement of people become less restricted
What is mercantilism?
Is the idea that you import more than you export.
What is realism?
It is the idea that people hold no morality.
How do realist thing alliances work
That alliances are temporary. Alliances should only be formed on the base of power balancing not bandwagoning
How does bandwagoning and power balancing work?
Bandwagoning is the idea that a smaller state makes an alliance with bigger states, Power balancing is a bunch of similar sized states making alliances with eachother creating a balanced alliance.
Who are the winners of globalization?
Consumers
Who are the losers of globalization?
Producers/Companies who cannot produce their product for the cheapest price on the market
What are the advantages of foreign investement?
It can help development their economy and it can also lead to better relations between countries
What are the disadvantages of foreign investment?
It can destabilize a country, if the money stops coming in. It can also displace local business which can lead to foreigners having control over resources
What is liberalism?
Liberalist believe that countries have moral values, they care about things such as treaties, peace talks and war rules
What is the difference between soft power and hard power?
Soft power is related to liberalism, they base their power on attraction and Hard power is related to realism, they base their power on pure cohersion. They focus on military power and economic sanctions.
