Unit 3 Flashcards
Protectionism
The belief or idea of protecting something
Free trade block
Things that block free trade, quotas, politics, tariffs, conflicts, language, etc.
Sustainable prosperity
To be sustainable while also being wealthy/prosperous. It is difficult to do both at the same time.
Transnational corporation
A company that operates in more than one country for profit. They control most of the worlds economy, they extract most of the worlds mineral resources. Can be positive, reducing poverty.
Per capita
For each person, use this in income, GDP.
Economic Globalization
The increasing interdependence of world economics as a result of growing worldwide trade of goods and services, flow of money, and spread of technology.
Globalization
The interconnectedness of the world
Bretton woods agreement
To cooperate and agree to come together (44+ countries)
GNI
The total amount of factor incomes earned by the residents of a country. Same as GDP.
Tariffs
Taxes on goods being imported. This is so companies produce products in that country instead of using outsourcing.
Outsourcing
Reducing costs by using supplies of products and services from other countries.
Capitalism
An economic and political system in which a country’s trade and industry are controlled by private owners for profit.
Deforestation
The removal of trees and forests by humans.
Quota
A limited quantity of a particular product which under official controls can be produced, exported, or imported.
Monetary
to promote sustainable economic growth by controlling the overall supply of money that is available to the nation’s banks, its consumers, and its businesses.
Free trade
Reduction of trade barriers
GDP
Measures income and standard of living of people in a country.
HDI (Human development index)
Life expectancy, knowledge, standard of living, reflects behind GDP.
Standard of living
Standard of living refers to the degree to which a person can afford necessities, comforts, and luxuries.
Ecological footprint
The impact of a person or community on the environment, expressed as the amount of land required to sustain their use of natural resources.
Foreign investment
The investment in domestic companies and assets of another country by a foreign investor.
Friedman ideas
Less gov & freer markets = more prosperity & political and social freedom, communism & socialism represent extreme gov control, people should not be dependent on gov.
Hayek ideas
Disagrees with Keynes, gov should protect the market to ensure competition with no rules and laws, competition keeps economy healthy, the gov should stay out of the way, allow competition and to not interfere with economy.
Keynes ideas
Unrestricted capitalism failed, gov not interfering with economy is bad, world was and great depression was because of no gov involvement, gov fully involved in economy helps people get jobs.
