International Relations and Global Economics Concepts

A collection of flashcards covering key concepts in international relations and global economics for exam preparation.

Foreign Direct Investment

A cross-border investment where a person or corporation purchases or constructs assets in another country, establishing a long-term relationship and control of an enterprise.

Prospect Theory

A theory on how people perceive risks when making choices under uncertainty, impacting decision-making in foreign policy.

Comparative Advantage

The economic principle that a country benefits from specializing in the production of goods at a lower opportunity cost.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Power Transition Theory

A theory suggesting that war is likely when a dominant power feels threatened by a rival's rapid growth.

Hegemonic Stability Theory

The theory that global dominance by a single great power is necessary for order in international economics and security.

Wild Card Scenario

Unexpected events that drastically change the future, often with low probability but high impact.

Globalization

The process by which businesses or other organizations develop international influence, affecting economic relationships and policies.

Sanctions

Economic or diplomatic measures imposed to pressure a target to change behavior or enforce international law.

Annexation

The act of a country taking control over a territory from another country.

Collective Security Principle

An agreement by major powers that any act of aggression will be met with a collective response.

R2P (Responsibility to Protect)

Principle stating the international community's duty to protect populations from war crimes and atrocities.

Dollar Overhang

A situation where the total amount of dollars owed outside the U.S. exceeds the amount backed by gold, leading to instability.

Fragile States

Countries whose governments have failed to manage their policies effectively, risking civil war and rebellion.

Peacemaking vs Peacebuilding

Peacemaking refers to stopping active conflicts, while peacebuilding involves actions that prevent conflicts from restarting.

Imperialism

The policy of extending a country's power and influence through territorial acquisition or military dominance.

Human Security

A measure focused on the welfare of individuals, beyond traditional state-centric security concepts.

Game Theory (Stag Hunt, Prisoner's Dilemma, Chicken Game)

Models in game theory illustrating cooperation, conflict, and strategic decision-making among agents.