Free Trade and International Political Economy

Flashcards covering key concepts related to free trade, perspectives in international political economy, and economic measures.

Free Trade

A system where countries exchange goods and services across borders without government restrictions such as tariffs, quotas, subsidies, or regulatory barriers.

Protectionism

Involves government restrictions to protect domestic industries, supporting national economic interests at the expense of free trade.

Comparative Advantage

The core claim of free trade theory that suggests countries should specialize in producing goods they can create most efficiently.

Liberal Perspective on Free Trade

Views free trade as a means to increase efficiency and prosperity.

Realist Perspective on Free Trade

Worries about national security and the risks associated with strategic industries in relation to free trade.

Marxist Perspective on Free Trade

Believes free trade reinforces global inequalities and exploitation of poorer nations by richer ones.

Development Perspective on Free Trade

Questions if free trade aids in economic transformation or locks developing countries into low-value production.

Institutional Perspective on Free Trade

Argues that trade works best when supported by strong international rules and institutions, such as the WTO.

Economic Nationalism

The viewpoint that states should intervene in the economy to allocate resources for national power and development.

Economic Liberalism

Sees the international economy as harmonious and beneficial to all countries under the right conditions.

Structuralism

Emphasizes global inequality and a world economy where core countries dominate over peripheral countries.

IMF Policies in Jamaica

Economic Nationalism questions whether these policies weakened Jamaica's domestic industries and reduced economic sovereignty.

GDP (Gross Domestic Product)

Measures total production within a country's borders, focusing on geographic output.

GNP (Gross National Product)

Measures production by a country's citizens or firms regardless of their location, focusing on ownership.

Globalization

A phenomenon that causes production and ownership to cross borders, affecting GDP and GNP interpretations considerably.

Evidence-Based Analysis

The key habit of mind for analyzing international political economy, emphasizing theory selection based on evidence.