APCG FRQ TEST

Globalization

The increased interconnectedness of people, states, and economies.

Foreign direct investment (FDI)

Investment from abroad in economic activity in another country.

Trade

The flow of goods and services across national borders.

International capital flow

Movement of money across international borders.

Multinational corporation (MNC)

A company with facilities or assets in more than one country.

Rentier state

A state that relies on the export of oil or from the leasing of resources to foreign entities as a significant source of government revenue.

International organization

A body established by a treaty or other agreement among countries.

Import substitution industrialization (ISI)

Enacting high tariffs and providing incentives to encourage the growth of domestic manufacturing.

Economic-liberalization policy

Policy that reduces the role of government in the economy, supports the free market, and reduces trade barriers.

Structural adjustment program

Requirements for receiving assistance from international lenders (such as the IMF), including the privatization of state-owned companies, reducing tariffs, and reducing subsidies for domestic industries.

Supranational organization

A body in which member countries have some say in governing and give up some sovereignty over issues affecting the organization as a whole.

Nongovernmental organization (NGO)

A nonprofit group outside government control that usually focuses on social or political issues.

Dual rule

A system in which two different groups with authority run a state.

Chinese Communist Party (CCP)

The political party that has ruled China from 1949 to the present.

Communism

An ideology that advocates state ownership of all property, with the government exercising complete control over the economy.

National Party Congress

A body within the CCP that acts as a legislature, passing policies put forth by the party elite.

Politburo

A powerful body of elite policymakers within the CCP.

Politburo Standing Committee

A subgroup of the Politburo, consisting of the most powerful people in the CCP.

General secretary

The head of the CCP and the most powerful individual in China.

State Council

The cabinet that leads the formal bureaucracy in China.

National People’s Congress

China’s unicameral legislature.

One-party state

A country where only one party is allowed to control the government.

Household responsibility system

An agricultural reform that allowed farmers more control over their own production.

Township and village enterprise (TVE)

Factories and other businesses mostly owned by local governments.

State-owned enterprise (SOE)

A factory or other business owned by the government.

Special economic zone (SEZ)

A strategically located area in China with a large labor pool, well-developed infrastructure, and tax incentives to attract foreign companies.

Neoliberalism

An economic ideology favoring policies that support the free market and reduce trade barriers.

Protectionist economic policy

A policy designed to shelter domestic industry from competition and reduce foreign influence on sectors of the economy.

Import substitution industrialization (ISI)

Enacting high tariffs and providing incentives to encourage the growth of domestic manufacturing.

Structural adjustment program (SAP)

Requirements for receiving assistance from international lenders (such as the IMF), including the privatization of state-owned companies, reducing tariffs, and reducing subsidies for domestic industries.

Austerity measures

Cuts to social services, which might include programs to help women, children, the poor, and the elderly, in an effort to reduce government debt.

Human capital

The education, skills, training, and other positive attributes that people bring to the economy.