LESSON 2 Flashcards
It is the study of how economic theory and methods influence political ideology. It is a branch of social science that studies the relationship that forms between a nation’s population and its government when public policy is enacted.
Political Economy
It studies the reciprocal relationship between politics and economics in the global system. It focuses on the politics of economic phenomena that transcend state borders, whether be they trade transactions, exports imports, protectionism, tariffs, non-type barriers, or production.
International Political Economy (IPE)
What are the 2 main intervention in the market?
- Political
- Economic
It concerned with protecting the interests of certain groups within a nation.
Political arguments
It concerned with boosting the overall wealth of a nation - benefits both producers and consumers.
Economic arguments
These are tariffs that are levied as a foxed charge for each unit of a good imported.
Specific tariffs
These are tariffs that are levied as a proportion of the value of the imported goods.
Ad valorem tariffs
These are policies that are bureaucratic rules that are designed to make it difficult for imports to enter a country.
Administrative Policies
This policy are designed to punish foreign firms that engage in dumping. The goal is to protect producers from “unfair” foreign competition.
Antidumping Policies
____ is selling goods in a foreign market belie their cost of production, or selling goods in a foreign market at below their FMV
Dumping
He argues that strategic trafe policies aimed at establishing domestic firms in a dominant position in a global industry are beggar-thy-neighbor policies that boost national income at the expense of other countries.
Paul Krugman
____ economic success strained what had been more equal trading patterns.
Japan’s
A country’s political nuances is one of the primary challenges of international business. Political leaders often make decisions that impact labor laws, education, transportations, and taxes.
International Factors
It refers to the process of creating goods and services that are worth more than the resources used to produce them.
Value creation
An individual’s consumption of goods doesn’t prevent anyone else from accessing then.
Non-rivalrous
Nobody is prevented from using the good.
Non-excludable
