Chapter 10 &11: GPE in the Global North and South

Question 1

Comparative Advantage

Answer 1

the ability to produce a good with the lowest cost of anyone else, thus making you the most efficient producer of said good

Question 2

GDP or Gross Domestic Product

Answer 2

the total value of all economic activity within a country by its own and foreign individuals and companies in one year

Question 3

GNP or Gross National Product

Answer 3

the total value of a nation’s economic output in one year

Question 4

GDP Per Capita

Answer 4

the economic metric that breaks down a country’s total economic output per person in one year

Question 5

Economic Nationalism / Mercantilism

Answer 5

the notion that a state should use its economic strength to maximize national interests if possible, in relation to realist thought

Question 6

Foreign Direct Investment and MNCs

Answer 6

a cross-border investment in which an investor resident in one economy establishes a lasting interest in and a significant degree of influence in another economy

Question 7

Tariffs

Answer 7

a tax or fee placed on imports and exports, acting as a trade barrier

Question 8

Cartels

Answer 8

an international agreement among producers of a good that attempts to control the production and pricing of this good

Question 9

Dumping

Answer 9

predatory pricing where manufacturers export a product to another country for cheaper than its home market price

Question 10

Subsidies

Answer 10

an assistance paid to businesses to prevent a decline or negative impact or price increase on its products

Question 11

NTBs

Answer 11

meaning “non-tariff barriers (to trade)”

Question 12

ODA or Official Development Assistance

Answer 12

refers to the concessional economic flow from Global North to Global South, taking the forms of grants or loans with low-interest rates

Question 13

BRICS

Answer 13

the term indicates Brazil, Russia, India, China, and South Africa who are all countries who exhibit a somewhat higher level of development comparatively to the rest of the Global South

Question 14

GATT or General Agreement on Tariffs and Trade

Answer 14

a series of multilateral trade negotiations that reduced tariffs after WW2 to encourage economic prosperity, and became enforced by the WTO in 1993

Question 15

World Bank and IMF

Answer 15

established in WW2, mainly loaning grants and funding to the Global South