7.6 HGAP KBAR

Comparative Advantage

The economic theory that countries specialize in producing goods they can create more efficiently than others and trade to obtain what they need.

Complementarity

A measure of how well one country's import profile matches another's export profile, facilitating successful trade.

Transnational Corporations (TNCs)

Firms that coordinate operations in more than one country, impacting global trade dynamics.

Neoliberalism

An economic policy model that emphasizes deregulation, privatization, and free-market capitalism.

International Monetary Fund (IMF)

An organization that promotes global monetary cooperation and provides loans to countries in financial distress.

World Bank

An institution that offers funding and expertise to newly industrialized countries.

World Trade Organization (WTO)

A global forum for negotiating trade agreements and resolving disputes among member countries.

Free Trade Agreements

Treaties between two or more countries that reduce tariffs and promote foreign investment.

Customs Unions

Groups of countries that adopt a no-tariff policy among themselves but have a common external tariff policy.

Mercosur

A South American free trade agreement that includes Argentina, Brazil, Paraguay, and Uruguay.

OPEC

An organization of oil-producing nations that manages the supply and pricing of oil.

Tariffs

Taxes imposed on imported goods and services, which can lead to trade wars between nations.

Trade Embargo

An official ban on trade with specific countries or on specific products.

Latin American Oil Crisis

A crisis in the 1980s caused by skyrocketing oil prices due to OPEC's embargos, leading to widespread debt in the region.

Import Substitution Industrialization (ISI)

An economic strategy that promotes replacing imported goods with domestically produced goods in order to promote economic growth and reduce reliance on foreign countries.

Global Financial Crisis of 2008

A worldwide economic downturn triggered by the housing market collapse in the U.S. and subsequent banking failures.

Surplus Petrodollars

Excess money earned by oil-exporting countries, often used for international investments.

Foreign Trade Delegations

Representatives appointed by local or state governments to encourage international trade.

Financial Markets

Markets where financial assets such as stocks and bonds are bought, sold, and traded.

Globalization

The process by which businesses develop international influence or operate on an international scale.

Economic Development Policies

Strategies adopted by governments to foster growth in their economies.