Unit 9: Topic 4 - Global Economies Flashcards
Reaganomics
Refers to the economic policies implemented by US President Ronald Reagan during the 1980s, characterized by tax cuts, decreased regulation and government spending, and an increase in military spending. The goal of Reaganomics was to stimulate economic growth and reduce inflation through supply-side economics, which emphasized the role of businesses and the private sector in driving economic growth, rather than the government. While Reaganomics had some positive effects on the economy, it also led to increased budget deficits and a growing income gap.
Socialism with Chinese Characteristics
Socialism with Chinese characteristics is a set of political theories and policies of the Chinese Communist Party (CCP). Their proponents see it as representing Marxism–Leninism adapted to Chinese circumstances and specific periods. The periods consist of Deng Xiaoping Theory, Three Represents (Jiang Zemin), Scientific Outlook on Development (Hu Jintao), and Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era.
Socialist Market Economy
The economic system for China. This system is a market economy with trade and private businesses, but most of the market is comprised of public ownership and state-owned enterprises. The policy allows entrepreneurs and investors to take profits but within the control of the State.
Knowledge Economy
A knowledge economy is an economic system where goods and services are produced based on activities that contribute to technical and scientific innovation. An example of a knowledge economy is academic institutions, companies engaging in research and development (R&D), programmers developing new software and search engines for data and health workers using digital data to improve treatments.
World Trade Organization
Founded on January 1, 1995, the World Trade Organization (WTO)is an intergovernmental organization that regulates international trade. It makes sure that trade operates as smoothly and freely as possible. WTO aims to help producers of goods and services, exporters, and importers conduct their business.
North American Free Trade Agreement
The North American Free Trade Agreement (NAFTA) was an agreement between the United States, Canada, and Mexico, creating a free trade zone between the three. It eliminated tariffs and quotas between the three countries.
Nestle
Nestlé is a multinational corporation that operates in over 190 countries, with a diverse range of products and brands that span across multiple categories such as food and beverages, health science, and cosmetics. Globalization has facilitated the expansion of multinational corporations like Nestlé, allowing them to access new markets, take advantage of lower costs of production in different countries, and leverage economies of scale to increase their competitiveness.
Nissan
A Japanese auto manufacturer that has a presence in over 190 countries, with production facilities, research and development centers, and sales and marketing operations spread across multiple continents.
Mahindra & Mahindra
Mahindra & Mahindra is an Indian automotive company with a presence throughout Europe, the Americas, and Australia. They produce tractors at a large scale and are the number one tractor manufacturer in North America
Economic liberalization
Refers to a set of policies aimed at freeing up markets and reducing the role of government in the economy. This typically involves measures such as reducing trade barriers, deregulating industries, privatizing state-owned enterprises, and cutting government spending. The goal of economic liberalization is to increase efficiency, encourage entrepreneurship, and boost economic growth by creating a more competitive and open market environment.
Asian Tigers
The Four Asian Tigers are the high-growth economies of Hong Kong, Singapore, South Korea, and Taiwan. Fueled by exports and rapid industrialization, the Four Asian Tigers have consistently maintained high levels of economic growth since the 1960s. They have collectively joined the ranks of the world’s wealthiest nations.
maquiladora
A manufacturing plant that imports and assembles duty-free components for export. The arrangement allows plant owners to take advantage of low-cost labor and to pay duty only on the “value added”—that is, on the value of the finished product minus the total cost of the components imported to make it. The maquiladoras became a means of providing employment and significant foreign-exchange earnings for Mexico’s developing economy.
Mercosur
A South American trade bloc established in 1991, consisting of Argentina, Brazil, Paraguay, and Uruguay as full members, and several other countries as associate members. Its main goals are to promote free trade and economic integration among its member states, as well as to enhance their political and cultural ties. Mercosur operates as a common market, allowing goods and services to be traded freely between member states and imposing common tariffs on non-member countries.
Association of Southeast Asian Nations
An organization that aims to accelerate the economic growth, social progress, and cultural development in Southeast Asia through joint endeavors in the spirit of equality and partnership to strengthen the foundation for a prosperous and peaceful community of Southeast Asian Nations.
General Agreement on Tariffs and Trade
(GATT)
A multilateral agreement signed in 1947 by a large number of countries, including the United States, the United Kingdom, France, and many others. Its main purpose was to reduce barriers to international trade and promote economic cooperation by reducing tariffs (taxes on imports) and other trade restrictions. Over the years, GATT evolved into the World Trade Organization (WTO), which now serves as the main international forum for negotiating and enforcing global trade rules.
