International Organizations and Economic Policies

Vocabulary flashcards based on key concepts in international organizations and economic policies.

International Organizations

Organizations joined by member states with a common interest, such as the International Monetary Fund (IMF), the World Bank, and the United Nations.

International Monetary Fund (IMF)

Exerts great influence through preconditions for financial assistance, requiring countries to agree to structural adjustment programs.

Supranational Organizations

Organizations where member states grant sovereignty to a governing body over policies, typically related to trade, like the European Union.

Structural Adjustment Programs

Neoliberal reforms required by international organizations granting loans; involve privatization, reduced tariffs, and decreased government subsidies.

Economic Globalization

Growing interconnectedness of economic networks; involves a worldwide market with actors unconstrained by political borders.

Multinational Corporations (MNCs)

Businesses with a significant presence in multiple countries, influencing global markets and domestic policies.

Special Economic Zones

Regions in China where private businesses can attract foreign direct investment, particularly along the east coast.

Privatization

Transfer of government-owned industries to businesses run by private investors under free market forces.

Nationalization

Government ownership of industries run without free market forces.

Foreign Direct Investment

Investment made by individuals or corporations in private businesses outside of their home country.

Environmental Degradation

Problems resulting from industrialization and economic development that harm the environment.

Tariffs

Taxes imposed by a government on imported goods.

Subsidies

Government funding used to support domestic industries against foreign competition.

Import Substitution Industrialization (ISI)

Policies aimed at reducing foreign dependency by raising tariffs and promoting local production.

Austerity Measures

Government cuts or tax increases intended to decrease budget deficits and national debt; often required for IMF loans.

Rentier States

Countries that generate revenue mainly from the export of oil and gas, raising standards of living due to resource wealth.

Resource Curse

Negative consequences faced by countries that rely excessively on exporting commodities.

Gender Equity

The ideal that women should have equal protection and power in governance as men.

Maquiladora Zones

Manufacturing areas in Mexico, mainly in the north, established to assemble US-imported parts due to NAFTA, contributing to economic disparities.

Economic Diversification

Balancing a country's economy among agriculture, manufacturing, and services to avoid overdependence on one sector.