AP COMP GOVERNMENT UNIT 5

International Organizations

organizations made up of states cooperating to achieve common goals

Supranational Organizations

organizations made up of states where the organization has authority super ceding the authority of member states

Multinational Corporations

large companies doing business in more than one country

Nationalization

When the government takes over major industries, becoming the owner

Privatization

When the government gives up control of major industries, placing them in the hands of businesses and individuals

Economic Liberalization

policies that support free trade, privatization, a reduction of government control over the economy, and opening up the economy to foreign direct investment

Rentier state

States that obtain a sizable percentage of total government revenue from the export of oil and gas or from leasing the resource to foreign entities

Globalization

The growing interconnectedness of the world

Import Substitution Industrialization

Economic policies aimed at reducing foreign dependence by raising tariffs and encouraging local production of industrialized products

Austerity Measures

Economic policies that cut social programs and raise taxes to reduce state deficits

Foreign Direct Investment

money invested in a business which is located in another country

Economic sanctions

commercial and financial penalties that a state or institution will use against another state in an attempt to coerce them to change their behavior

Welfare state

government programs to protect the health and well citizens, such as nationalized health care

Tariffs

tax on imports

Brain Drain

when the most educated part of a population leave the country for better opportunities elsewhere

Neoliberalism

economic ideology favoring policies that support the free market and reduce trade barriers

Identify and Explain 1 political benefit of large supplies of natural resources

More government funds

Identify at least 3 disadvantages politically to having large supplies of natural resources

Less economic diversification

More corruption

More civil conflict and unrest

Less incentive for government to listen to people without taxes Income inequality within the country

Economy subject to fluctuating international prices