Sustainable Prosperity & Free Trade Vocabulary

Flashcards covering vocabulary from lecture notes on Sustainable Prosperity and Free Trade.

Adam Smith

Considered the "Father of Capitalism" who advocated for a free market economy and laissez-faire economics.

Free Market Economy

An economic system where decisions are based on supply and demand, not government control.

Invisible Hand

The self-regulating nature of a free market economy.

Laissez-faire Economics

An economic system that advocates for minimal government intervention; means "leave it be" economics.

David Ricardo

Developed the Theory of Comparative Advantage, promoting specialization and free trade.

Theory of Comparative Advantage

The idea that countries should specialize in producing goods/services they are best at, leading to higher combined output through trade.

Internationalism

A political principle advocating for greater political and/or economic cooperation among nations.

United Nations

A global governing body formed after World War II to address political issues.

Bretton Woods Conference

A meeting at the end of World War II to establish a system for the post-war global economy.

World Bank

An organization created at the Bretton Woods Conference to help long-term development and reduce poverty in poor countries.

International Monetary Fund (IMF)

An organization created at the Bretton Woods Conference to stabilize exchange rates by lending money to nations with devalued currencies.

Structural Adjustment Programs (SAPs)

Loans from the IMF and World Bank that come with economic conditions, often criticized for their negative impacts.

Outsourcing

Hiring employees/services from other countries, often to take advantage of lower labor costs or a larger talent pool.

Sweatshop

A factory or workshop where workers are employed at very low wages for long hours under poor conditions.

Friedrich August Von Hayek

A proponent of free market economics who believed errors create profit opportunities for entrepreneurs.

Milton Friedman

An American economist who believed in free-market capitalism and the quantity theory of money.

Free Trade

The ability to trade goods and services around the world without tariffs or restrictions.

Fair Trade

A movement to help producers in developing countries get a fair price for their products, promote ethical treatment, and support sustainable practices.

NAFTA

A trade agreement between the US, Canada, and Mexico that has both positive and negative impacts on each country's economy.

Foreign Direct Investment (FDI)

Investment made by a company or entity based in one country, into a business or entity based in another country.

Maquiladora

Factories in Mexico owned by foreign companies, often employing Mexican workers near the US border.

Supply Chains

The network of parties involved in producing and distributing a product from producer to consumer.

Crown Corporation

A corporation established and regulated by a country or government (federal or provincial).

Deregulation

The process of removing or reducing state regulations, typically in the economic sphere.

Privatization

The sale of government-owned industries and services to private businesses.

Mercantilism

An economic policy that aimed to increase a nation's wealth by government regulation of all of the nation’s commercial interests.

Economic and Social Council

One of the six principal organs of the United Nations.

Classic Liberalism

A political ideology that values the freedom of individuals — including the freedom religion, speech, press, assembly, and markets — as well as limited government.

Monetarism

A theory that states that changes in the money supply are the primary drivers of inflation and economic activity.

Austerity programs

Policies that aim to reduce government debt by increasing taxes and cutting social programs.

Internationalism

political principle which advocates for a greater political and/or economic cooperation among nations and people