Unit 5 Vocab

economic liberalization

the process of reducing government control over the economy, including lowering trade barriers, privatizing industries, and allowing more free-market activity

special economic zones

specific areas within a country where business and trade laws are more relaxed to attract foreign investment and boost economic growth

North American Free Trade Agreement (NAFTA)

a trade agreement between the United States, Canada, and Mexico that reduced tariffs and encouraged trade and economic integration across North America

brain drain

the loss of highly educated or skilled workers who leave their home country to live and work in another country

rentier states

countries that receive a large portion of their national revenue from natural resources (like oil) rather than from taxing citizens, often leading to less government accountability

International Monetary Fund (IMF)

an international organization that provides financial assistance and advice to countries facing economic instability or debt crises

World Trade Organization (WTO)

an international organization that regulates global trade, resolves trade disputes, and promotes free trade between nations

World Bank

an international organization that provides loans and financial support to developing countries to reduce poverty and promote economic development

globalization

the increasing interconnectedness of countries through trade, communication, technology, and cultural exchange

neoliberalism

an economic philosophy that supports free markets, limited government intervention, privatization, and trade liberalization

supranational organizations

international organizations in which member countries give up some sovereignty to make decisions collectively (example

Economic Community of West African States (ECOWAS)

a regional organization of West African countries that promotes economic integration, trade cooperation, and political stability

social welfare policies in the UK

government programs in the United Kingdom that provide support to citizens, including healthcare (like the National Health Service), unemployment benefits, pensions, and housing assistance

supranational organizations

international organizations where member states voluntarily give up some sovereignty to a higher governing body that can make binding decisions over them in certain areas like trade, law, or policy coordination (examples include the European Union)

rentier states

countries that generate most of their national income from renting or exporting natural resources (especially oil or gas) rather than from taxing citizens or building a diversified economy, which can reduce incentives for democratic accountability and broad economic development