Political and Economic Changes and Development

This set of flashcards includes key vocabulary and concepts related to political and economic changes and development as outlined in Unit 5.

Economic globalization

Includes economic networks that are growing more interconnected, a worldwide market with actors unconstrained by political borders, and a reduction in state control over economies.

Multinational corporations (MNCs)

Businesses with a large presence in countries in different regions of the world, dominating global markets and posing challenges to domestic economic policies.

Special economic zones

Areas in China designated by the government as regions where private businesses could attract foreign direct investment.

Privatization

The transfer of government-owned industries to businesses run with free-market forces owned and operated by private investors.

Nationalization

Government-owned industries run without free-market forces.

Foreign direct investment

Money invested in private businesses by individuals or corporations outside of the country.

Environmental degradation

Environmental problems created by industrialization and economic development.

International organizations

Organizations joined by member states with a common interest, such as IMF, World Bank, and United Nations.

International Monetary Fund (IMF)

Exerts great influence through preconditions for financial assistance, requiring structural adjustment programs from countries.

Supranational organizations

Organizations in which member states grant the governing organization sovereignty over policies related to trade.

Structural adjustment programs

Neoliberal reforms often required by international organizations for countries receiving emergency loans.

Tariffs

Taxes imposed by a government on imported goods.

Subsidies

Government funding made to support domestic industries against foreign competition or to shape economic behaviors.

Import substitution industrialization (ISI)

Policies aimed at reducing foreign dependency by raising tariffs and encouraging local production.

Austerity measures

Funding cuts to state programs and/or tax increases intended to decrease budget deficits and national debt.

Gender equity

Civil rights ideal for women to be protected with equal treatment and secure equal power as men in governing.

Maquiladora zones

Areas of Mexico’s manufacturing industry established to assemble parts imported for assembly in Mexico, contributing to regional economic disparities.

Rentier states

Countries that obtain a significant portion of government revenue from the export of oil and gas or leasing resources.

Resource curse

Negative economic, political, and environmental consequences faced by countries relying too heavily on commodity exports.

Economic diversification

Achieving a balance between agriculture, manufacturing, and service sectors without over dependence on one commodity.