APCG FRQ TEST

Unit 5 – Globalization

Chapter 10

1. Globalization – The increased interconnectedness of people, states, and economies

2. Foreign direct investment (FDI) – Investment from abroad in economic activity in

another country

3. Trade – The flow of goods and services across national borders

4. International capital flow – Movement of money across international borders

5. Multinational corporation (MNC) – A company with facilities or assets in more

than one country

6. Rentier state – A state that relies on the export of oil or from the leasing of

resources to foreign entities as a significant source of government revenue

7. International organization – A body established by a treaty or other agreement

among countries

8. Import substitution industrialization (ISI) – Enacting high tariffs and providing

incentives to encourage the growth of domestic manufacturing

9. Economic-liberalization policy – Policy that reduces the role of government in the

economy, supports the free market, and reduces trade barriers

10. Structural adjustment program – Requirements for receiving assistance from

international lenders (such as the IMF), including the privatization of state-

owned companies, reducing tariffs, and reducing subsidies for domestic

industries

11. Supranational organization – A body in which member countries have some say

in governing and give up some sovereignty over issues affecting the organization

as a whole

12. Nongovernmental organization (NGO) – A nonprofit group outside government

control that usually focuses on social or political issues.

Chapter 11

13. Dual rule – A system in which two different groups with authority run a state

14. Chinese Communist Party (CCP) – The political party that has ruled China from

1949 to the present

15. Communism – An ideology that advocates state ownership of all property, with

the government exercising complete control over the economy

16. National Party Congress – A body within the CCP that acts as a legislature,

passing policies put forth by the party elite

17. Politburo – A powerful body of elite policymakers within the CCP

18. Politburo Standing Committee – A subgroup of the Politburo, consisting of the

most powerful people in the CCP

19. General secretary – The head of the CCP and the most powerful individual in

China

20. State Council – The cabinet that leads the formal bureaucracy in China

21. National People’s Congress – China’s unicameral legislature

22. One-party state – A country where only one party is allowed to control the

government

23. Household responsibility system – An agricultural reform that allowed farmers

more control over their own production

24. Township and village enterprise (TVE) – Factories and other business mostly

owned by local governments

25. State-owned enterprise (SOE) – A factory or other business owned by the

government

26. Special economic zone (SEZ) – A strategically located area in China with a large

labor pool, well-developed infrastructure, and tax incentives to attract foreign

companies

Chapter 12

27. Neoliberalism – An economic ideology favoring policies that support the free

market and reduce trade barriers

28. Protectionist economic policy – A policy designed to shelter domestic industry

from competition and reduce foreign influence on sectors of the economy

29. Import substitution industrialization (ISI) – Enacting high tariffs and providing

incentives to encourage the growth of domestic manufacturing

30. Structural adjustment program (SAP) – Requirements for recieiving assistance

from international lenders (such as the IMF), including the privatization of state-

owned companies, reducing tariffs, and reducing subsidies for domestic

industries.

31. Austerity measures – Cuts to social services, which might include programs to

help women, children, the poor, and the elderly, in an effort to reduce

government debt.

32. Human capital – The education, skills, training, and other positive attributes that

people bring to the economy