Hildebrant, Human Geography for the AP® Course 1e - Module 57

mercantilism

A theory of trade stating that each country strives to export more than it imports in order to accumulate wealth

protectionism

Trade rules that restrict imports in order to protect domestic industries

absolute advantage

A country's ability to produce a good or service more efficiently than another country

comparative advantage

A country's ability to produce one product much more efficiently than it can produce other products within its economy

complementarity

A measure of how well one country's export profile matches another country's import profile

transnational corporation (TNC)

A firm with the power to coordinate and control operations in more than one country, even if it does not own those operations

competitive advantage

A firm's relative ability to outperform other TNCs in its industry

neoliberalism

A range of pro-market and antigovernment positions on the economy, such as reducing government ownership and regulation and promoting privatization and market-based solutions

International Monetary Fund (IMF)

International organization that seeks to foster global monetary cooperation, achieve financial stability, facilitate international trade, and promote sustainable economic growth

World Bank

An international financial organization that provides funding and expertise to promote sustainable economic growth in developing countries

World Trade Organization (WTO)

An international organization that regulates trade among 184 member states, providing a framework for negotiating trade agreements and resolving trade disputes

free-trade agreement

A treaty between two or more countries that reduces tariffs and promotes foreign investment

tariff

Tax on imported goods and services

customs union

A free trade agreement among two or more member countries, combined with a single, common external trade policy for nonmembers

Mercosur

Spanish acronym for the Southern Common Market, a South American customs union that includes Argentina, Brazil, Paraguay, and Uruguay as its full members

Organization of the Petroleum Exporting Countries (OPEC)

An international trade agreement designed to regulate the output of oil

trade embargo

An official ban on trade with a specific country or of a specific good

financial market

Marketplace where financial instruments are traded; stock markets, bond markets, and foreign exchange markets are all financial markets

debt crisis

Occurs when a government's debts exceed its tax revenues to the point that it cannot meet its loan payments

import substitution industrialization (ISI)

An economic development policy intended to replace imported goods with domestically produced goods as a way to spur industrialization and reduce dependence on other countries