Final Exam Review: International Political Economy

International Political Economy (IPE)

Intersection of politics and economics across borders.

Globalization

Expansion of free trade and global markets.

Free Trade

Policy allowing unrestricted trade between countries.

Liberalism

Economic theory advocating minimal state interference.

Mercantilism

Economic policy prioritizing state interests and protectionism.

Protectionism

Economic policy shielding domestic industries from foreign competition.

Comparative Advantage

Ability to produce goods at lower opportunity cost.

Tariffs

Taxes imposed on imported goods to protect local industries.

Quotas

Limits on the quantity of goods that can be imported.

Subsidies

Financial support to local businesses to enhance competitiveness.

Non-Tariff Barriers

Regulations other than tariffs restricting trade.

Economic Nationalism

Prioritizing domestic industries over foreign competition.

Infant Industries

New industries needing protection to develop.

Most-Favored Nation (MFN)

Trade status ensuring equal trade advantages among countries.

World Trade Organization (WTO)

International body regulating trade agreements and disputes.

General Agreement on Tariffs and Trade (GATT)

Predecessor to WTO, focused on reducing trade barriers.

Bilateral Agreements

Trade agreements between two countries.

Regional Agreements

Trade agreements among multiple countries in a region.

International Monetary Fund (IMF)

Organization coordinating international currency exchange and stability.

World Bank

International financial institution providing loans for development.

Structural Adjustment Policies

Economic reforms required by IMF for loan approval.

Mission Creep

Expansion of an organization's original goals and objectives.

Debt

Money borrowed that must be repaid, often with interest.

Moral Hazard

Risk that parties take excessive risks when insulated from consequences.

Asian Tigers

Economically successful East Asian countries following mercantilist policies.

Anti-Globalization Protests

Opposition movements against negative impacts of globalization.

Economic Policies

Strategies implemented by governments to influence economic conditions.

Labor Rights

Legal rights and protections for workers.

Environmental Concerns

Issues related to the impact of economic activities on nature.