Polsci Midterm 2 Exam Study Guide

A comprehensive set of flashcards to aid in studying for the Polsci Midterm 2 Exam, covering key terms and concepts.

International Political Economy (IPE)

The study of the politics of trade, monetary, and other economic relations among nations, and their connection to other transnational forces.

Mercantilism

An economic theory and political ideology opposed to free trade; it believes that each state must protect its own interests without seeking mutual gains.

Economic Liberalism

An approach in IPE that assumes anarchy but sees extensive cooperation as possible for common economic gains, emphasizing free markets and trade.

Free Trade

The flow of goods and services across national boundaries without tariffs or other restrictions.

Trade Protectionism

An economic policy that restricts imports from other nations through tariffs, quotas, and subsidies.

Balance of Trade

The relationship between a nation's exports and imports, with surpluses occurring when exports exceed imports and deficits when imports exceed exports.

Comparative Advantage

The principle that states should specialize in producing goods that they can make most efficiently and at the lowest cost.

Tariffs

Taxes levied on imports as a percentage of their value to protect domestic products.

Nontariff Barriers

Policies other than tariffs that restrict trade, such as quotas and regulations.

Dumping

Selling products in foreign markets at prices below the cost of production.

International Regimes

Sets of rules and norms around which expectations converge on specific international issue areas.

World Trade Organization (WTO)

An organization established in 1995 to regulate international trade and replace GATT with enhanced focus.

Intellectual Property Rights

Legal protections for original creations under patent, copyright, and trademark laws.

Globalization

The increasing integration of the world in communications, culture, and economics.

Command Economies

Economic systems where a central authority makes all production and pricing decisions.

Mixed Economies

Economic systems that blend market capitalism with government intervention.

Floating Exchange Rate

Rates determined by the global currency markets where currencies are traded freely.

Managed Float Exchange Rate

A system involving occasional government interventions to stabilize floating currency rates.

Hard Currency

Money that is readily convertible to leading world currencies.

Central Bank

An institution responsible for maintaining currency value and controlling inflation.

Discount Rate

The interest rate at which central banks lend money to private banks.

Current Account

A key component of a country's balance of payments, recording net income from trade and investments.

Balance of Payments

Summary of all monetary flows into and out of a country.

International Monetary Fund (IMF)

An intergovernmental organization that coordinates currency exchange and balance of payments.

World Bank

An organization established to provide loans for economic reconstruction and development.

Keynesian Economics

The economic theory advocating for government intervention to stabilize the economy.

Foreign Direct Investment (FDI)

Investment by residents of one country in business operations in another country.

International Integration

The process of supranational institutions replacing national ones.

Supranational Institutions

Organizations that include multiple states and function beyond national authorities.

Neofunctionalism

A theory suggesting that economic integration leads to increased political integration.

Security Community

A situation where low expectations of violence allow high levels of political cooperation.

Tragedy of the Commons

A dilemma arising when shared resources are overused and depleted due to lack of cooperation.

Biodiversity

The variety of plant and animal species within an ecosystem.

Ozone Layer

The atmospheric layer that protects against harmful ultraviolet radiation.

Greenhouse Gasses

Gases that trap heat in the atmosphere, contributing to global warming.

Kyoto Protocol

An international treaty aimed at reducing carbon emissions, effective since 2005.

Demographic Transition

The shift from high birth and death rates to lower rates as a country industrializes.

Pronatalist

Policies aimed at encouraging increased birth rates.

Migration

The movement of people between states for economic or social reasons.

Refugees

Individuals fleeing their countries due to conflict or persecution.

Trafficking

The illegal trade of people for exploitation purposes.

Remittances

Money sent home by migrant workers to their families.

Resource Curse

The challenges faced by resource-rich countries, including economic dependency and instability.

Dependency Theory

A Marxist-oriented theory about the interplay between domestic relations and foreign capital.

Import Substitution

Developing local industries to replace imports, usually protected by trade barriers.

Export-led Growth

An economic strategy focused on developing export-capable industries.

Microcredit

Small loans provided to help entrepreneurship, often focused on women.

Technology Transfer

The process of acquiring technology from foreign sources.

Brain Drain

The emigration of skilled workers from one country to another.

Debt Default

The failure to meet the legal obligations of a debt agreement.

Debt Renegotiation

Revising the terms of a loan to avoid default.

IMF Conditionality

The requirements attached to IMF loans that borrowing countries must fulfill.

Foreign Assistance

Aid provided to developing countries for economic development or humanitarian needs.

UN Development Program (UNDP)

A program managing multilateral development assistance projects worldwide.

Four Tigers

most successful newly industrialized areas of east asia: South Korea, Taiwan, Hong Kong, Singapore

Fixed exchange rate

official rates of exchange for currencies set by governments