AP Comp Gov Unit 3 Vocab

Economic globalization

Involves the growth of interconnected economic networks, creating a worldwide market that transcends political borders and reduces state control over economies.

Multinational corporations (MNCs)

Businesses with a significant presence in multiple countries, dominating global markets and often conflicting with domestic economic policies.

Special economic zones

Designated areas in China where private businesses can attract foreign direct investment.

Privatization

The process of transferring government-owned industries to private investors, operating under free-market forces.

Nationalization

The process of government ownership of industries that are run without free-market forces.

Foreign direct investment

Investment in private businesses by individuals or corporations outside of the country affecting government economic policies.

Environmental degradation

Environmental challenges and issues resulting from industrialization and economic development.

International organizations

Entities formed by member states with shared interests, such as the IMF, World Bank, and United Nations.

International Monetary Fund (IMF)

An organization that influences countries by enforcing preconditions for financial assistance, often involving structural adjustment programs.

Supranational organizations

Organizations in which member states give governance control to a higher authority, often related to trade agreements.

Tariffs

Taxes imposed by governments on imported goods.

Subsidies

Government support aimed at helping domestic industries compete against foreign products.

Import substitution industrialization (ISI)

Economic policies that reduce foreign dependency by increasing tariffs and promoting local industrial production.

Austerity measures

Cuts to government spending and increases in taxes to reduce budget deficits and national debt, often needed for IMF loans.

Gender equity

The principle of equal rights and treatment of women, ensuring equal power in governance.

Maquiladora zones

Mexican manufacturing areas where factories assemble parts imported from the U.S., contributing to regional economic disparities.

Rentier states

Countries that derive significant revenue from exporting resources like oil and gas, supporting government programs and living standards.

Resource curse

Negative economic, political, and environmental consequences faced by countries overly reliant on commodity exports.

Economic diversification

Achieving a balance between agriculture, manufacturing, and services to reduce dependency on a single economic sector.