Waples/Comparative Government and Politics 1e - Ch 10

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 (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.

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 the government's control. NGOs usually focus on social or political issues.