Vocab 5 Flashcards
A set of policies championed by prime minister Margaret Thatcher’s conservative government in the 1980s, and that diminishing the role of the state in the economy
Neoliberalism
A political view that does not have a consistent ideological foundation, but that emphasizes hostility toward elites and established state and economic institutions and favors greater power in the hands of the public
Populism
Firm that produces, distributes, and markets its goods or services in more than one country
Multinational Corporations (MNCs)
An economy in which production, investment, prices, and incomes are determined centrally by a government
Command Economies
A type of economic system where supply and demand regulate the economy, rather than government intervention
Market Economies
The process of expanding and intensifying linkages between states, societies, and economies
Globalization
The process by which a political regime becomes democratic
Democratization
The study of the interaction between states and markets
Political economy
Goods or services that are owned by an individual or group, privately or publicly
Property
The interaction between the forces of supply and demand that allocate resources
Markets
Goods, provided or secured by the state, available to society, and which no private person or organization can own
Public goods
State provision of public benefits, such as education, healthcare, and transportation
Social expidentures
The state institution that controls how much money is flowing through the economy as well as how much it costs to borrow money in that economy
Central Bank
A tax on imported goods
Tariffs
Policies and regulations used to limit imports through methods other than taxation
Non-tariff regulatory barriers
A non-tariff barrier that limits the quantity of a good that may be imported into a country
Quotas
The ability of one country to produce a particular good or service more efficiently relative to other countries’ efficiency in producing the same good or service
Comparative advantage
A statistical tool that attempts to estimate the buying power of income across different countries by using prices in the US as a benchmark
Purchasing power parity (PPP)
And outstripping of supply and demand, resulting in an increase in the general price level of goods and services and a consequent loss of value in a country’s currency
Inflation
Inflation of more than 50% a month for more than 2 months in a row
Hyperinflation
Group created by states to serve particular policy goals
Intergovernmental organizations (IGOs)
An organization of 189 countries that foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and stable economic growth, and reduce poverty. Created in aftermath of the Great depression and world war II
International monetary fund (IMF)
An international development organization owned by 187 countries. Its role is to reduce poverty by lending money to the government’s of its poor members to improve their economies and to improve the standard of living of their people
World Bank
A unique partnership between 27 countries, known as member states. Together they cover much of the European continent. This supernational organization is home to around 447 million people, which is around 6% of the world’s population. Citizens of member states are also citizens to the super national organization
European union (EU)
The only supranational organization dealing with the rules of trade between nations. At its heart are the agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their legislatures. The goal is to help producers of goods and services, exporters, and importers conduct their business
World trade organization (WTO)
Economic Community of West African States. Supernational organization in West Africa with the goal of improving the standard of living in conjunction with the economies of the 15-member Nations
ECOWAS
The removal or reduction of restrictions or barriers on the free exchange of goods between nations
Trade liberalization
The purchase of assets in a country by a foreign firm
Foreign direct investment (FDI)
The unequal distribution of income and opportunity between different groups in society. It is a concern and almost all countries around the world and often people are trapped in poverty with little chance to climb up the social ladder
Economic growth inequality
The rules and norms that link states together and shape their relationships to one another, usually regarding some specific issues such as greenhouse gases or trade
International regime
An economic regime that managed international economic relations; includes IMF, World Bank, and WTO. This system collapsed in 1970s, and was replaced with floating exchange rates that still exists to this day
Bretton wood system
A process by which a firm moves some of its work to a secondary business, outside the home country, that can do the work more efficiently or cheaply
Offshore outsourcing
Proposed agreement with 12 countries to liberalize trade through reduced tariffs and common regulations; abandoned by the United States in 2017
Trans-pacific partnership
North American Free Trade Agreement. An agreement between canada, mexico, and the United States that liberalizes trade between three countries, renegotiated in 2020 and replaced with the United States - Mexico - Canada agreement (USMCA)
NAFTA
