Political Economy and Globalization

These flashcards cover key vocabulary terms related to the concepts of political economy and globalization discussed in the lecture notes.

Political Economy

The study of how economic factors influence political decision-making and vice versa.

Mercantilism

An economic theory that emphasizes state intervention to promote national power through a positive trade balance.

Protectionism

A policy aimed at shielding a country's industries from foreign competition by imposing tariffs or quotas.

Neoliberalism

An ideology that seeks to minimize state intervention in the economy while emphasizing free-market principles.

Laissez-faire economics

An economic system where transactions between private parties are free from government intervention.

Classical Political Economy

Economic theories proposed by Adam Smith and David Ricardo, underpinned by liberal assumptions about individuals as utility maximizers.

Marxist Political Economy

A critique of capitalism that views it as a system of class exploitation where the bourgeoisie exploits the proletariat.

State Capitalism

An economic system where the state has significant control over the production and allocation of resources within the economy.

Keynesianism

An economic theory advocating for government intervention to manage economic cycles and ensure full employment.

Globalization

The process of increased interconnectedness among countries, affecting cultural, economic, and political relations.

Economic Globalization

The integration of national economies into a global economy characterized by free movement of goods, services, and capital.

Cultural Globalization

The sharing and merging of cultural elements across the globe, resulting in diminished cultural differences.

Democratic Deficit

The situation where a government is perceived to be not responsive to the will of the people, often due to global economic pressures.

The Great Depression

A severe worldwide economic depression that took place during the 1930s, leading to significant changes in economic policy.

Paradox of Thrift

The economic theory that suggests that when individuals save more during economic downturns, total savings may actually decrease due to reduced consumption.