Global Political Economy

What is free trade?

Free trade is trade without major restrictions or tarrifs

What is economies of scale?

Economies of scale is when costs decreases as production increases

What is financial speculation?

Financial speculation is profit through risky financial investments

What is Capital market liberalisation?

Capital market liberalisation is opening markets to global capital flows

What is Capital market protection?

Capital market protection is restricting capital movement to protect the economy

What is the HH Index

The HH Index measures market concentration (higher on the index means less competition)

What is optimum currency theory?

When regions benefit from sharing a currency

What is the Mundell Trilemma?

The Mundel Trilemma is when you can’t have fixed exchange rate, free capital, and monetary independence at once

What is the Reserve Currency?

The reserve currency is the currency used globally (ex: USD)

What is the petrodollar?

Petrodollar is oil traded in US dollars

What is the petroyuan?

Petroyuan is oil traded in Chinese yuan

What is de-dollarisation?

De-dollarisation is reducing reliance on the US dollar

What is the RMB internationalisation?

The RMB internationalisation is expanding global use of China’s currency