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SSP114 > SSP > Flashcards

SSP Flashcards

1
Q

From 1633 to 1853, the _____ decided to severely restrict Japan’s trade relations with other countries. It did not create a huge impact on the global economy in a way it would if the present-day government of Japan suddenly decides to close its economy to the world.

A

Tokugawa Shogunate

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2
Q

Most of the events happening in one economy are expected to have an impact overseas- both ___ and ___.

A

Regional and Global

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3
Q

A deeper _____ characterizes the contemporary global economy. The world is experiencing greater flows of money from investments to overseas remittances or international financial aid to countries needing it.

A

International Trade

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4
Q

The increasing integration of economies around the world through the movement of goods, services, capital, labor, and technology across international borders is what we refer to as ?

A

Economic Globalization

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5
Q

True or False
one economy opens to other economies, it tries to the global community deepen while its exposure to the global impact of an economic event increases.

A

True

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6
Q

This raises awareness of other peoples’ cultures or ways of life. For instance, the introduction of smart phone in our country did not only increase our dependence on internet-based applications but also underscored how other economies have become highly dependent on electronic transactions.

A

Economic globalization

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7
Q

The advent of the internet, which continues to reach a higher penetration rate along with people’s access to it, has significantly reduced ___ and ___.

A

Transport and Communication

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8
Q

It has practically eliminated face-to-face transactions and the need to build a physical store.
It also increases the speed of the movement of goods and services from all parts of the world.

A

Internet

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9
Q

the reduction of ____ such as import tariffs or quotas have allowed increased flow of goods, services, and even knowledge across national boundaries.

A

Trade Barriers

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10
Q

____ have provided consumers with wider variety of goods at lower prices while increased competition pushed local companies to innovate and improve to remain relevant in the market.

A

Higher imports

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11
Q

stronger ___ have contributed to economic growth, job creation, and rising household income.

A

Exports

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12
Q

• At the end of the _____, the United States emerged as the dominant political and economic power in the world. The US became the world’s primary source of industrial goods, capital, and development aid.

A

Second World War

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13
Q

• Financial support received by an exporting firms from many developed or rich countries from their government

A

Export Subsidy

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14
Q

• These forms of assistance from the government help exporters to reduce its cost of producing the good and sell it at a lower price which can weaken foreign competition.

A

Export Subsidy

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15
Q

It may come in the form of low-cost loans, tax relief for exporters, or even direct payments to exporters by the government.

A

Subsidies

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16
Q

• Plays a major role in shaping the global economy
• It increases and strengthens linkages among nations and contributes to the industrialization of their respective economies.

A

International Trade

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17
Q

• It promises prosperity, which serves as a strong motivation for smaller countries to open their economies and make it globally competitive.

A

International Trade

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18
Q

A pact between two or more nations to reduce barriers to imports and exports among them.

A

Free Trade Agreement (FTA)

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19
Q

This set-up, agricultural producers from developed countries will lose to those who come from developed countries.

A

• In an ideal free trade set-up

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20
Q

the ____ extended by developed countries to their agricultural producers provide unfair advantage to these producers from developing countries.

A

Subsidies

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21
Q

• Refers to reducing the barriers among countries to transactions and to movements of goods, capital, and labor, including harmonization of laws, regulations, and standards.
• Countries are forming smaller economic unions or regional trading blocs

A

Economic Integration

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22
Q

Economic Integration

A
  1. European Union (EU)
  2. ASEAN Economic Community for Southeast Asian countries
  3. North Atlantic Free Trade Agreement (NAFTA)
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23
Q
  • is a powerful alliance of 27 European countries that promotes democratic values among its members. It serves to facilitate political and economic integration throughout the region. Many, though not all, of its members share the euro as their official currency.
A

European Union (EU)

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24
Q

The EU countries are:

A

Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary.
Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

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25
Q
  • set up in 2003 with the objectives of creating a single market and production base, enhancing equitable economic development as well as facilitating the integration into the global economy.
A

ASEAN Economic Community (AEC)

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26
Q

Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and VietNam

A

ASEAN Economic Community

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27
Q

NAFTA

A

North Atlantic Free Trade Agreement (NAFTA)

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28
Q

An agreement, in force from 1994 to 2020, implemented to promote trade between the U.S., Canada, and Mexico.

A

North Atlantic Free Trade Agreement (NAFTA)

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29
Q

allows countries to combine their resources, thus, creating a larger market for their economies.

A

Economic Integration

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30
Q

Being part of an economic union or a trading bloc can enhance their global competitiveness because ____ provides stronger bargaining power.

A

Trading bloc

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31
Q

Economic integration allows_____ in member-countries to reach expanded markets

A

infant industries

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32
Q
  • the primary face of global city
  • plays a crucial role in expanding the global economy and the rise of newly industrializing economies
A

MULTINATIONAL CORPORATIONS (MNCs)

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33
Q

A company that has business operations in at least one country other than its home country.

A

Multinational Corporation

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34
Q

-refers to an investment made to acquire a lasting or long-term interest in businesses operating outside of the investor’s home country

A

FOREIGN DIRECT INVESTMENT (FDI)

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35
Q

Is normally are large-scale investments on the host economy whose impact comes in the form of direct or indirect job creation.

A

FDI

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36
Q

The purchase of an interest in a company by an investor located in another country.

A

Foreign Direct Investment (FDI)

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37
Q

from one country to another, granting the foreign investors extensive ownership stakes in domestic companies and assets.

A

Foreign Investments

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38
Q

Foreign Direct Investment
Pros

A

Diversifies investors portfolios
Promotes stable long term lending
Provides financing to developing countries
Provides technology to developing countries

39
Q

Foreign Direct Investments Cons

A

Not suitable for strategically important industries
I the balance
Investors may have less moral attachment
Unethical access to local markets

40
Q
  • the voluntary transfer of resources from one country to another, is also a source of external funding for many developing countries
A

Foreign Aid

41
Q

Types of Foreign Aid

A

• Bilateral aid
• Multilateral aid
• NGO’s

42
Q
  • refers to any type of assistance that one country voluntarily transfers to another, which can take the form of a gift, grant, or loan.
A

Foreign Aid

43
Q
  • financial aid given directly to a government from another government
A

Bilateral Aid
- Example: CIDA (Canadian International Development
Agency)

44
Q
  • financial aid given to a government from many other governments.
A

• Multilateral aid -
- Examples: United Nations, World Bank, IMF

45
Q
  • financial aid provided to countries from non governmental organizations.
A

• NGO’s
- Examples: Oxfam, Red Cross, Doctors Without Borders, Amnesty International (human rights)

46
Q

may have pure intentions when helping other countries. For the most part, however, they provide assistance because it serves their political, economic, and strategic interest

A

Donor Countries

47
Q

• Is one of the earliest examples of international aid.
• Introduced by the United States in 1948, it sought to help its Western Europe allies to recover and rehabilitate their economies from the destruction of World War II.

A

Marshall Plan

48
Q

• Also used as an instrument to counter the global spread of communism

A

Marshall Plan

49
Q

How did the Marshall Plan stop the spread of communism?

A

• The US government feared that a hungry, devastated Europe might turn to communism (as China would do in 1949).
• To stabilize the European economy, US Secretary of State George C.
Marshall proposed a plan to provide Europe with $13 billion in economic aid.

50
Q

a set of unified rules and policies that provided the framework necessary to create fixed international currency exchange rates.

A

The Bretton Woods System

51
Q

Set up network of global financial institutions

A

Promote economic interdependence and prosperity

52
Q

Inagurated in 1944

A

During the UN Monetary and Financial Conference

53
Q

Influenced by John Maynard Keynes

A

Economic crises occur not when money is not being spent and not moving

54
Q

When economies slow down-governments have to reinvigorate markets with infusions of capital

A

Global Keynesianism

55
Q

How many Financial Institution TBWS

A

Two Financial Institution

56
Q

Responsible for funding postwar reconstruction projects

A

International Bank of Reconstruction and Development (IBRD/World Bank)

57
Q

Global lender of last resort to prevent individual countries from spiraling intro credit crises

A

International Monetary Fund (IMF)

58
Q

Reduce tariffs and hindrances to free trade

A

General Agreement on Tarriffs and Trade

59
Q

Where does the World Bank get its funds?

A

Raises money for development at the lowest rates by tapping the world’s capital markets
Through contributions from wealthier member governments
Issues bonds which are purchased by member governments and private sector institutions

60
Q

Ideology and policy model that emphasizes the value of

A

value of free market competition.

61
Q

as the means to achieve human progress

A

Sustained economic growth

62
Q

as the most-efficient allocation of resources, minimal state intervention in economic and social affairs, and its commitment to the freedom of trade and capital.

A

Free markets

63
Q

1940s to early 1970
Governments poured money into their economies, allowing people to purchase more goods and increase demand for these products.

A

Keynesianism

64
Q

As demand increased, the prices of these goods ___.

A

increased.

65
Q

OAPEC

A

Organization of Arab Petroleum Exporting Countries’ (OAPEC)

66
Q

Early 1970s the Prices of ___ rose

A

Oil

67
Q

Imposition of an embargo in response to the decision of the United States and other countries to resupply the Israeli military with the needed arms during the Yom Kippur War.

A

The Arab member-countries of the Organization of Petroleum Exporting Countries or OPEC

68
Q

The ____ affected the Western economies that were reliant on oil.

A

Oil embargo

69
Q

Imposition of an embargo in response to the decision of the United States and other countries to resupply the Israeli military with the needed arms during the

A

Yom Kippur War.

70
Q

A decline in economic growth and employment (stagnation) takes place alongside a sharp increase in prices (inflation)

A

Stagflation

71
Q

Economists Friedrich Hayek and Milton Friedman challenged the Keynesian orthodoxy. They argued that the governments’ practice of pouring money into their economies had caused inflation by increasing demand for goods without necessarily increasing supply.

A

Neoliberalism

72
Q

in economies distort the proper functioning of the market.

A

Government intervention

73
Q

Neoliberalist

A

Friedrich Hayek and Milton Friedman

74
Q

An economic cycle characterized by slow growth, a high
unemployment rate, and high inflation.

A

Stagflation

75
Q

became the codified strategy of the US Treasury Department, the World Bank, the IMF, and eventually the World Trade Organization (WTO)

A

Neoliberalism

76
Q

a new organization founded in 1995 to continue the tariff reduction under the General Agreement on Tariffs and Trade (GATT).

A

World Trade Organization

77
Q

GATT

A

General Agreement on Tariffs and Trade (GATT)

78
Q

interest rates should be determined by market forces and should remain positive to attract investment yet not so high as to encourage an unsustainable inflow of foreign investment.

A

Policies forwarded came to be called the Washington Consensus

79
Q

To help its members use trades as a means to raise living standards, create jobs, and improve people’s lives

A

World Trade Organization

80
Q

Dominated economic policies from 1980s-2000s
Level of agreement between___,____,___.

A

the IMF,
World Bank,
and the US Department the Treasury

81
Q

True/False

Pressured governments, particularly in the developing world to reduce tariffs and open up their economies

A

True

82
Q

True or False
Washington Consensus
Advocates for minimal government spending to reduce government debt

A

True

83
Q

True/False
Privatization of government-controlled services like water, power, communications, and transport

Pressured governments, particularly in the developing world to reduce tariffs and open up their economies

A

True

84
Q

Post-communist Russia
After Communism had collapsed in the 1990s, the IMF called for the immediate ___ of all government

A

privatization

85
Q

Global Financial Crisis of 2007-2008
Russia’s case was an example of how the “____” of neoliberalism which did not lead to the ideal outcomes predicted by economists who believed in free markets.

A

Shock theraphy

86
Q

Greatest economic downturn since the Great Depression Can be traced back to the 1980s when the US removed various banking and investment restrictions.

A

Global Financial Crisis of 2007-2008

87
Q

Attempt to promote the free market, government authorities failed to regulate bad investments occurring in the US Housing market.
Took advantage of “____”

A

cheap housing loans

88
Q

Removing government controls or rules from a country’s economy

A

Deregulation

89
Q
  • Limited partnership of private investors whose money is managed by fund managers who invest in risky or non-traditional assets
A

Hedge Fund Trading

90
Q

Agreement between you and a lender that gives the lender the right to take your property if you fail to repay

A

Mortgages

91
Q

Anyone who doesn’t have good enough credit to qualify for a creditor’s prime rates and terms

A

Subprime Borrowers

92
Q

To mitigate risk- banks were lending houseowners’ money pooled these mortgage payments and sold them as “___” (MBSs).

A

Mortgage-backed securities (MBSs)

93
Q

Economic Globalization Today

A

Increased exports
Developed countries are often protectionists
Poorer countries can do very little to make economic globalization
Beneficiaries of global commerce are Transnational Corporations

SSP114 (4 decks)

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