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What is Economic Globalization
Economic globalization means national economies are more connected through trade, investment, and technology. This integration leads to economic growth.
What is the International Monetary Fund (IMF)?
IMF provides financial aid & advice to members in economic trouble to promote global economic growth, stability & reduce poverty.
What is the World Bank?
The World Bank helps developing nations with loans and grants for projects. Its goal is to reduce poverty and aid development through financial and technical assistance.
What its the World Trade Organization?
The WTO regulates global trade with 164 member nations. It promotes free trade by reducing barriers,(tariffs and quotas) and settling disputes between members.
Why does joining these organizations cause economic reform in the AP course countries?
It promotes Economic Liberalization and requires policy changes to be admitted and receive assistance.
What is a multinational organization?
Multinational organizations operate in multiple countries with a centralized management system and global strategy. They engage in international trade and investment.
What is Neoliberalism?
This ideology supports free markets, individualism, and less government involvement in the economy for growth and efficiency. However, it can lead to inequality and harm the environment.
What is privatization?
Privatization is the transfer of a public sector entity to a private sector entity through sale or lease.
What is Nationalization?
Nationalization is the opposite of privatization; when privately-owned corporations become government owned.
What is an example of privatization in Mexico?
The Mexican oil industry opened up to direct foreign investment, which created competition for PEMEX
What is an example of privatization in Nigeria?
The joint ventures between the Nigerian government and foreign oil companies.
What is an example of Russian Nationalization?
Putin REnationalized the oil (Rosneft) and National Gas (Gazprom) industries.
What is Economic Liberalization?
When a Government reduces its economic role in their state.
What are free market mechanisms?
Economic Data that companies use to determine the prices for things.
What are Tariffs?
Taxes on imported goods. Sometimes for all countries, or sometimes only one state will have to pay a specific tariff. They’re set by the country doing the exports.
What are government owned industries?
Industries owned by the government. Duh.
Ex: Bus system, Train system, Post office
What is Foreign Direct Investment (FDI)?
FDI is when your country opens it’s resources and another country takes interest in your resources and they invest in it.
Ex: China buying U.S. farmland.
What is the Gini Index?
A system that measures inequality, poverty, and other things like that for many international states.
What does the Human Development Index measure?
It measures how humans are developing and their average personal income (among other things).
What is the Gross Domestic Product (GDP)?
Everything that is made IN THE COUNTRY per year.
What is GDP per capita?
What an individual person makes per year on average.
Why do states implement Economic Liberalization Policies
They adopt them to fix their problems (rising unemployment, reduced productivity, trade deficits), and to improve legitimacy.
What are some effects of Economic Liberalization?
GOOD: it reduces inflation, increases national income,
BAD: it increases unequal wealth distribution.
How do international organizations influence state economics?
Organizations like the World Bank and IMF Influence with financial assistance IN RETURN FOR structural adjustments like privatization and reduced tariffs.
What were the GOALS of the 1986 structural adjustment in Nigeria?
To reduce their debt and separate the economy from their government.
Where were the RESULTS of the 1986 Nigerian structural adjustment?
VERY mixed results, because the country is still in major debt, and the prices of oil are fluctuating so Nigeria has
Why is structural adjustment an example of Economic Liberalization?
Because it requires the government to change and free parts of their economy.
What is “Important Substitution Industrialization” (ISI)?
The idea that state governments should nationalize their own economic industries so that citizens will buy things made more locally and it’ll boost the economy.
What is “Export Oriented Industrialization?”
When state governments integrate their own economies into the global one by making things that are used internationally. (predominantly used by Taiwan, Korea, Singapore and Hong Kong).
What is an example of ISI in 1900’s Mexico?
Industrial nationalization; investment in roads, electricity and other public spaces; concentration of presidential power.
What are Supranational Organizations?
Organizations like the EU, WTO and ECOWAS have economic power over member states to make change.
What countries create the Commonwealth of Independent States? (CIS).
Russia, Georgia, Armenia, Azerbaijan, Turkey and Iran.
Which country dominates the CIS?
Russia definitely.
How powerful is the organization internally?
Not really powerful. Russia dominates and has most of the power.
What are Gender Equity policies?
Policies moving for equitable opportunity, pay, and status for both men and women.
What are health care policies?
Policies being created to reduce the cost of health care.
What are educations policies?
Policies that make education more accessible and easier to get.
What are social welfare policies?
Policies that aim to make the lives of citizens (particularly minority citizens) better in a certain country by providing benefits (money, land, etc).
Define “Free Market”
An economic system that determines things through competition and not by the government or fear of monopolies.
Define “subsidies”
Resources like money or land given to individuals or organizations provided by the government
What is “population growth?”
When the amount of people in a country increases (the amount can decrease too)
determined by a census
What is “Austerity?”
A firm or strict tone towards something/someone
A British/U.K. campaign for less government spending (budget cutting) suggested and implemented by the conservative party.
What is “trade liberalization"
A reduction in government and supranational organization’s involvement in trading.
What is “social welfare?”
The well being (financially, housing, health) of the citizens of a country.
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