Key Concepts in International Political Economy and Economics

1st Rule Retail Sales

Don't kill the customer.

Thomas Piketty

An economist known for arguing that wealth inequality grows when returns on capital exceed economic growth.

Liberal Feminism

Advocates equal freedoms for women within existing institutions through reform

Global Broadening

Extension of geographic linkages to all major societies & states

IGO

Intergovernmental organization

Nation State

Union of cultural nation and political state

Monetary Policy

Value of money; "gas pedal" of system

Global Corporation

Corporation that has no 1 primary national market.

Laissez-faire

Minimal governmental intervention in economy

Technology

Tools

Absolute Advantage

One trading party has productivity advantage in all production

MOP

Mode of Production

Liberalism

Free markets, individual rights, and limited government.

Politics

Making of common decision for a group of people; process of turning many into the community

Economics

Process of turning material world into things necessary for survival

Radicalism

Class conflict, exploitation, and structural inequality.

Zero-sum

A situation where one actor's gain is another actor's loss.

Regulatory Policy

Laws (from govt.)

Negative-sum

Both sides lose, end up worse overall

UN HDI

UN Human Development Index

Inflation

Price rises, unemployment lowers

Mercantilism

Prioritizes state power through trade surpluses and protectionism

Macroeconomics

Economy on large-scale, including growth, inflation, and unemployment.

Nation

Culture

Triad

US, Europe, Japan

Market

A system where buyers and sellers exchange goods and services.

Comparative Advantage

Both trading partners have productivity advantage in some production

MNC

Multinational Corporation

Matriarchy

A social system where women hold primary power.

Neo-Liberalism

Favoring free-market capitalism

David Ricardo

Comparative advantage vs absolute advantage; economics = positive-sum game.

Protectionism

Policies creating barriers to imports to protect domestic producers; beggar thy neighbor policies

Fiscal Policy

Tax & spending; "brake" of system

Invisible Hand

Sum rationality buyer/seller

Reciprocity Principle

Put off short-term gain for long-term stability

Kleptocracy

Rule of thieves

TNGI

Transnational governing institution

NGO

Nongovernmental Organization

Hard Power

Coercive or direct persuasive measures

Collective Action Problem

The difficulty of achieving cooperation when individuals can free-ride.

Property

Legal rights over the use and ownership of resources.

Socialism

Govt. ownership over the means of production; make everything publicly owned

Economic Nationalism

National identity based on shared economic prosperity

Tight Monetary Policy

Absorb money from economy; higher interest rates, less spending in investment

Loose Monetary Policy

Squeeze money into economy; lower interest rates, more spending in investment

Class Struggle

Conflict between social classes over economic resources and power.

Logical Contradiction

Both want different things; for one to get what they want the other can't (zero-sum game)

FX

Foreign Exchange

Tariffs

Tax on imports

Central Bank

Entity responsible for overseeing monetary system for nation/group of nations

Exchange Rates

The price of one currency in terms of another.

Washington Consensus

Globalization of free market principles & free trade

Nationalism

A political ideology emphasizing loyalty to one's nation and its interests.

Wealth of Nations

Adam Smith; advocating free markets and specialization; inspiration for capitalism

Capitalism

Economic system based on the reinvestment of the surplus of wealth

Colonialism

The control of one territory by another for economic and political gain.

State Capitalism

State directs markets

Bretton Woods

The post-WWII monetary system establishing the IMF, World Bank, and fixed exchange rates.

Economou

Care & maintenance of the household

Constructivism

Alexander Wendt; anarchy is what states make of it, IR = social construction

Moderate Globalists

International relations between states versus extraterrestrial global relations; midrange position

IMF

International Monetary Fund

World System Theory

Systems of global economics/political power dominates IPE; Wallerstein

Gramscian Analysis

Easier to change peoples' minds than product

Historic Bloc

Union of state and cultural power

Hyperglobalists

Globalization creating borderless world; traditional nation-states have become unnatural in global economy

Problem of the Commons

Everybody lies and cheats

Shock Therapy

Sudden dramatic changes in national economic policy can turn state-controlled economy to free-market economy

Scarcity

Want same thing; not enough available

UN HDI

UN Human Development Index

Stolper-Samuelson

A theorem predicting trade benefits abundant factors and harms scarce ones.

G > R

Piketty's claim that rate of return of capital is greater than the growth of economy which results in inequality

Labor Theory of Value

All value comes from the work put in

End of History

The nation-state

Constructivism

Alexander Wendt; anarchy is what states make of it, IR = social construction

Autarky

Economic independence or self-sufficiency

Neo-Mercantilism

Using state power to promote national economic interests.

Neo-Radical

Focusing on global inequality and structural exploitation.

Balance of Payments

Difference in total value between payments into and out of a country over a period = capital account + current account

Current Account

Exports minus imports

FDI

Foreign Direct Investment

Environmentalism

Focus on sustainable development

Gesinnungsethik

Ethics of conviction

Verantwortungsethik

Ethics of responsibility

Social Contract

I'll respect your rights if you respect mine; protects natural rights