International Political Economy Flashcards

Flashcards for reviewing key vocabulary and concepts in International Political Economy. These flashcards cover major theories, terms, and current events discussed in the lecture notes.

International Political Economy

The study of power and wealth among states and other international actors.

Mercantilism/Economic Nationalism

Derived from a structural realist perspective, prioritizing power over wealth.

Economic Liberalism

Prioritizes wealth over power, emphasizing collective prosperity and absolute gains.

Comparative Advantage

Specialization; a nation produces what it can most efficiently relative to other goods.

Competitive Advantage

Using the state to protect domestic industry from competition and build capabilities.

Opportunity Cost

Potential benefits lost when choosing one option over another.

Absolute Advantage

Nation can produce more of something than another using the same amount of resources.

Relative vs Absolute Gains

One state versus how it benefits everybody nationally; absolute and relative gains.

Interdependence

Mutual reliance between countries where their actions and policies affect others.

Protectionism/Managed Trade

Government intervention in international trade.

Industrial Policy

Government intervention in domestic trade, separate from international trade.

Infant Industry

Newly established industry needing protection to grow.

Tariffs

Tax on imports or exports.

Non-Tariff Barriers

Subsidies, quotas, sanctions, regulations.

Intellectual Property Rights

Protect creations of the mind

World Trade Organization (WTO)

Helps operate smooth trade internationally by investing in living standards and jobs.

General Agreement on Tariffs and Trade (GATT)

Agreement signed to reduce trade barriers.

Organization of Petroleum Exporting Countries (OPEC)

Organization to stabilize petroleum policies and oil markets.

International Finance

Examines how money moves between countries through trade and exchange rates.

Hard Currency/Convertible Currency

Widely accepted and stable currency for global trade.

Exchange Rate

Relative price of one currency expressed in another.

Fixed Exchange Rate

Currency value attached to another currency or basket of currencies.

Floating Exchange Rate

Currency value determined by market forces (supply and demand).

Autarky

National policy of economic self-sufficiency.

GATT/WTO/Managed Float

Replaced GATT; managed by a central bank, exchange rate is not free or fixed.

Pegged Exchange Rate

Tying a nation's currency against another stable nation’s rate.

International Monetary Unit

Oversees international monetary system, provides financial help; gold standard.

Monetary Stability

The value of money is consistent, preventing fluctuations in exchange rates.

Balance of Trade

Difference between total exports and imports.

Balance of Payments

Statement summarizing all economic transactions between a country and the rest of the world over a specific time period.

Balance of Payments Crisis

When a nation can no longer pay for imports or service their debt.

Exchange Controls

Restrictions on the flow of foreign currency within a country's border.

Devaluation, Deflation

Decline in value of a nation’s currency.

Reserves

External assets a country sets aside, managed by monetary authorities.

Central Bank

Manages a country's monetary policy and financial system.

Inflation

Measure of the general price of products and services rising in an economy.

International Monetary Fund (IMF)

Promotes financial stability and cooperation internationally.

North American Free Trade Agreement (NAFTA)

Trade agreement between US, Canada, and Mexico eliminating tariffs.

Integration vs Interdependence

Merging of nation’s policies vs a mutually beneficial relationship.

Supranationalism

Countries working together/giving away some sovereignty to be a member of an international organization

Free-Trade Area

Reduced trade barriers on goods traded within the area.

Customs Union

Member countries eliminate tariffs amongst themselves and establish a common external tariff on non-member countries.

Common Market

Member countries remove trade barriers, including tariffs and quotas, and establish common policies regarding trade, transportation, and potentially the free movement of labor and capital.

European Union

Acting as a major actor in diplomacy, trade, and development cooperation

Cultural Imperialism

The imposition of one culture onto another.

Sustainable Development

Balance between economic growth, social equity, and environmental protection.

GNP (Gross National Product)

Measure of a nation's total economic output.

GNP per capita

Measure of a country's total value of goods and services produced by its citizens

Demographic Transition

Population shifts from high to low birth and death rates as societies develop.

Carrying Capacity

Level at which an ecosystem is sustainable.

Infant Mortality

Key indicator in international relations, reflecting a nation's social and economic development and health system quality

Anthropocene/Holocene

Human activities have fundamentally altered the planet.

Kyoto Protocol/Kyoto Global Warming Negotiations

International treaty aimed at reducing greenhouse gas emissions.

Paris Agreement

International treaty addressing climate change by limiting global warming and reducing greenhouse gas emissions.

Collective Goods Problems

Difficulty of states cooperating for shared benefits.

Tragedy of the Commons

Shared resources depleted due to individual self-interest.

North and South Gap

Concept referring to a gap between the most and least well-off actors.

Imperialism

State's policy of extending power over other territories.

Neocolonialism

Powerful nations exerting control through indirect means.

Capitalism vs Socialism

Private ownership vs. social ownership of production means.

Import Substitution vs Export-Led Growth

Reducing foreign dependency vs. focusing on exporting goods.

IMF Conditionality

Policy requirements imposed by the IMF on loan-receiving countries.

Multilateral Aid

Aid channeled through international organizations.

Private Aid

Assistance from non-governmental sources.

Military-Industrial Policy

Strengthening defense capabilities through industrial means.

Capital Accumulation

Increasing a country's stock of capital.

Liberalization vs Protectionism

Reducing trade barriers vs. restricting trade.

Terms of Trade

Ratio of a country's export prices to its import prices.

Bilateral Aid

Aid provided directly from one country to another.

Disaster Relief Model

Coordinated assistance following disasters.

The Millennium Development Goals (MDGs)

Internationally agreed upon development goals adopted in 2000.

The Sustainable Development Goals (SDGs)

Universal blueprint for a sustainable world by 2030.

Industrial Policy

Government intervention influencing the structure and direction of an economy.

Economic Nationalists

Prioritizes a nation’s economic interests over any others.

Economic Liberals

The more interdependence the less conflict.

Functionalism

A little economic cooperation/interdependence leads to need for economic, political, and (eventually) Military integration

Comparative Advantage

Results in a few things of high quality at high cost