Studied by 2 people
Multinational Corporations
________ play a key role as engines of economic growth, providing international finance and items to trade.
US spending spree
The ________ was accompanied by the importation of cheap goods from China which caused an unsustainable trade imbalance with China and the oil- exporting countries.
Bretton Woods Conference
At the ________ in July 1944, world leaders agreed to create 3 institutions to facilitate worldwide economic coordination and development.
Financial loss
The ________ was as twice as great as the recession caused by the 2008, 2009 crisis.
Alexander Hamiliton
________ argued that such policies limit the competition domestic industries face from foreign producers, and using protectionist policies would protect the growth of the ner nations manufacturers.
Germany
________) the value of exported goods, services and investment income is greater than the value of imported goods, services, and investment income.
Automobile manufacturers
________ were required to include 75 % of their parts from a USMCA country to avoid having tariffs imposed and more parts were to be made by workers earning at least $ 16 an hour- provisions designed to boost auto production in the U.S. 2.
automatic patent
The removal of an extension of the length of time for copyright protection and ________ extensions caused the U.S. to leave but will rejoin CTPP if stronger labor and environmental provisions are renegotiated.
regional agreements
Bilateral and ________ are not becoming a stepping stone to global trade arrangements but rather an approach used when global negotiations have broken down.
Mercantilist government
________ encouraged exports over imports and industrialization over agriculture, protected domestic production against competition from imports, and intervened in trade to promote employment.
Non governmental organizations
________ (NGOs) are some of the major critics of WTO activities.
Soviet Union
The end of colonialization following the end of WWII led not only to geopolitical competition between the U.S. and the ________ but also to the emergence of newly independent states that were poor and lacking the material resources and expertise to deliver economic goods to their citizens.
Heckscher Ohlin Theory
The ________: Posits that countries will export goods that use the most intensive endowments of the state.
UN
The ________ has undertaken the tasks of setting and monitoring a broad set of development goals that emphasize not just GNI per capita but also other indicators of human development like education and health.
Mercosur
________ wished to reach an agreement with the EU to eliminate tariffs, open up of government procurement to companies, and more stable rules for trade and investment.
Organizations
________ are the major determinant of a states policy, which states providing market rules and a level playing field.
NDB
The ________ was founded by Brazil, Russia, India, China, and South Africa referred to as the BRICS.
AIIB
The ________ supports loans to stimulate long- term growth through massive investment in diverse infrastructure related to energy, transportation, and water.
Britain
________ facilitated trade by lowering its own tariffs, opening its markets, policing the sea, and encouraging investment abroad.
Microcredit
________ does offer clients freedom in how the funds are used, even though it does not transform their lives.
Grameen Foundation
Using a variety of funds, the ________ gives microloans, savings accounts, and other financial services, programs have been incubated in India, Indonesia, the Philippines, and Ethiopia, among others.
IFC
The ________ provides loans to promote the growth of private enterprises in developing countries.
USMCA
The ________ was initiated by Trump and made changes in 5 areas.
1986
In ________, the Uruguay Round began, convering new items such as telecommunications, financial services, insurance, intellectual property rights (copyrights, patents, trademarks) and agriculture.
Petroleum
________ is a key commodity necessary for economic growth in the industrial era and a major driver of economic success for the oil- exporting countries that depend on revenue for foreign exchange.
Economic Nationalism
________ has seen a resurgence in the 21st century.
2001
In ________, the UN sponsored Millennium Summit set forth 8 goals designed to reduce proverty by 2015 and promote sustainable human development in direct response to globalization.
MDG
The ________ goals included poverty reduction, better education, improved health, environmental sustainability and global partnerships and these goals had specific targets, time frames and performance indicators.
Exchange Rates
________: The price of money depends on, and the price of one currency in relation to another.
Nontariff Barriers
________: the restrictions on international trade designed to protect health, safety, or national security.
1980s
The ________ saw a shift toward reliance on private- sector participation to meet the task of restructuring economies and reconstructing states torn apart by ethnic conflict.
MNCs
________ engage in activities such as investing in foreign countries, importing and exporting goods and services, negotiating licenses in foreign markets, and opening facilities abroad.
General Agreement
________ on Tariffs and Trade (GATT): Founded by treaty as the Bretton Woods institution responsible for negotiating a liberal international trade regime that included the principles of nondiscrimination in trade and most facored nation status; reformed as the World Trade Organization.
Austrialia
CPTPP: Japan, ________, New Zealand and 11 other states signed the Comprehensive and Progressive Trans- Pacific Partnership.
Adam Smith
________ believed that human beings act in rational ways to maximize their self- interest.
IMF
________ was supposed to provide short- term loans for member states confronting temporary balance of payments deficits but it was expanded to include policy advice on macroeconomic issues and economic restructuring.
Tariff policies
________ may be used to protect the domestic economy, the consumer, new industries, and even national security.
Losses
________ may result from expropriation, government currency restrictions, or civil war or ethnic conflict.
SDG
The ________ includes 17 goals such as ending poverty and hunger, ensuring healthy lives in safe and inclusive cities, and developing reliable and sustainable modern energy supplies.
Alexander Hamilton
________ advocated protectionism.
national security
The EU adopted the CAP because of agricultural supplies and foodstuffs are vital for ________.
stigma of conditionality
Monitoring loans is also done more quietly to reduce the ________.
NGOs
Involving ________ in development was one approach for improving the accountability and effectiveness of both multilateral and bilateral donor programs.
Asian financial crisis
The ________ of the 1990s is an example of the possible outcomes of the globalization of finance.
NAFTA
________ also caused the negative outcome of the slide in real manufacturing wages due to the movement of lower skilled jobs to China; the failure to develop backward linkages in its main export sectors; and the relative stagnation of Mexican wages with poverty remaining about the the same level.
intellectual property
The WTO incorporated the general areas of the GATTs jurisduction and expanded jurisdiction in services and ________.
European Monetary Union
The ________ set forth in the Maastrict Treat in 1992, called for the establishment of a single currency, the euro; it became the unit of exchange for business in 1998 and for consumers in 2002.
IDA
The ________ provides capital to the poorest countries usually in the form of interest free loans.
International Monetary Fund
________ (IMF): Institution to guarantee exchange- rate stability; today its purpose is to act as a lender of last resort to keep debtor countries from collapsing.
Bretton Woods institutions
The ________ did not include actual surveillance and temporary fixes for richer countries or the economically strong United States.
Economic Liberalism
Ideas based on Adam Smith that when individuals pursue their own self-interest, efficiency for everyone is achieved; markets function best when governments interfere the least
Mercantilism
Economic theory that international commerce should increase a states wealth, especially gold; state power is enhanced by a favorable balance of trade
Protectionism
policies designed to restrict imports from other countries
Economic Nationalism
Modern version of core mercantilist ideas that economic policies should be subservient to the national interest
Economic Radicalism
Beliefs drawn from Marxist and neo-Marxist writing that poor labor conditions, colonial expansion, and divisions between the rich and poor are blamed on international capitalism
Beggar Thy Neighbor Policies
Policies designed to solve a states own economic problems at the expense of others
Currency Devaluation
Reducing the price of your currency to make your exports more competitive in other countries and imports from those countries more expensive in your own
Macroeconomic Policies
Government policies designed to address macroeconomic conditions, including fiscal and monetary policies
Fiscal Policies
affect a governments budget, including the level of government spending and the tax rates
Monetary Policies
Policies affecting national interest rates or exchange rates designed to affect employment and inflation rates
Microeconomic Policies
Policies on regulation, subsidies, competition, and antitrust actions
Exchange Rates
The price of money depends on, and the price of one currency in relation to another
Tariffs
The taxes on goods and services crossing borders
Nontariff Barriers
the restrictions on international trade designed to protect health, safety, or national security
Current Accounts
Measure the net border flows between countries of goods, services, governmental transfers, and income on capital investments
Capital Accounts
Measure the flows of capital between countries, including foreign direct investment and portfolio investment in and out
Balance of Payments
A countrys current and capital account balances
MNC/Multinational Corporations
Corporations that span state borders either through their actual presence in several countries or through investment in and trade with other corporations within them
World Bank
A global lending agency focused on financing projects in developing countries; formally known as the International Bank for Reconstruction and Development established as one of the key Bretoon Woods institutions to deal with reconstruction and development after WWII
AIIB
Asian Infrastructure Investment Bank
NDB
New Development Bank
BRICS
An informal group of emerging economic powers, including Brazil, Russia, India, China and South Africa
International Monetary Fund (IMF)
Institution to guarantee exchange-rate stability; today its purpose is to act as a lender of last resort to keep debtor countries from collapsing
Group of 7 (G7)
Group of the traditional economic (U.S., Great Britain, France, Japan, Germany, Italy, Canada) who meet annually to address economic problems; when Russia joins, the G8 discussions turn to political issues
Bank policies that have been rigidly developed without considering local conditions and local knowledge end up disproportionately affecting the disadvantaged sectors of the population
the unskilled, women, and the weak
General Agreement on Tariffs and Trade (GATT)
Founded by treaty as the Bretton Woods institution responsible for negotiating a liberal international trade regime that included the principles of nondiscrimination in trade and most facored nation status; reformed as the World Trade Organization
1/4 liberal principles for the GATT
Support of trade liberalization, because trade is the engines for growth and economic development
2/4 liberal principles for the GATT
the most favored nation principle
3/4 liberal principles for the GATT
Preferential access in developed markets to products from the less developed countries to stimulate economic development
4/4 liberal principles for the GATT
support for national treatment of foreign enterprices
Most Favored Nation Principle
Nondiscrimination in trade whereby states agree to give the same treatment to all other GATT members as they gie to their best (most-favored) trading partner
National Treatment
Treating foregin enterprises in the same way that domestic firms are treated
Exemptions
safeguards to accomodate any domestic or balance of payments difficulties that might result from existing trade agreements
Trade Policy Review Mechanism (TPRM)
conducts periodic surveillance of the trade practices of member states
Dispute Settlement Body
An authoritative panel to hear and settle trade disputes
Trade Related Aspects of Intellectual Property Rights (TRIPS)
protects intellectual property such as patents, trademarks, creative material, and software
Foreign Direct Investment (FDI)
constuction of factories and investment in the facilities for extraction of natural resources by MNCs and through portfolio investment
Portfolio Investment
Investment in another countrys stocks or bonds, either short or long term, without taking direct control of those investments
Sovereign Wealth Funds
State controlled investment funds composed of financial assets, including stocks, bonds, precious metal, property, or other financial instruments formed in capital surplus countries such as China and in the major petroleum exporters such as Kuwait, United Arab Emirates, Norway, Russia, and Canada
Derivatives
Financial instruments often derived from an asset (mortages, loans, foreign exchange, interest rates) which parties agree to exchange over time; a way of buying and selling risk in international financial markets
Offshore Financial Centers
States or jurisdictions with few regulation on banking and financial transactions ofthen with low taxation; used by individuals and international banks to transfer funds
GDP
Gross domestic product
The three interrelated components of the managed international monetary system are
reserve currencies, central banks, and international banks
Comparative Advantage
The ability of a country to make and export a good relatively more efficiently than other countries; the basis for the liberal economic principle that countries benefit from free trade among nations
The Heckscher-Ohlin Theory
Posits that countries will export goods that use the most intensive endowments of the state
CAP
Common Agricultural Policy
NAFTA
North American Free Trade Agreement
USMCA
U.S. Mexico Canada Agreement
Backward Linkages
Growth in one sector leads to growth in the industries that supply them
Common Market of the South
Mercosur
Note
Flashcard