Exam 1 Review

Question 1

Hacienda

Answer 1

1. Definition: a large estate or plantation with a dwelling house
2. Relevance:
3. empirical example:

Question 2

Clientelism

Answer 2

1. a social order that depends upon relations of patronage; in particular, a political approach that emphasizes or exploits such relations.
   2.
   3.

Question 3

NAFTA

Answer 3

1. Free trade agreement between Canada, U.S. & Mexico
2. Prior to NAFTA, Mexico was relying on ISI and a domestic market; however, this led to over borrowing and the debt crises. NAFTA allowed for Mexico to focus on its comparative advantages and increase its trade with the U.S. to spur economic growth.
3. NAFTA was enacted in 1994 and put an end to ISI to allow for free trade between the U.S. and Mexico.

Question 4

Comparative Advantage

Answer 4

1. the ability to produce a good or service at a lower cost than other producers
2. NAFTA allowed for free trade between U.S. and Mexico which allowed for each country to focus on their comparative advantages. Comparative advantages allowed Mexico’s economy to become more efficient because they only had to focus on producing goods that they were good at producing rather than spreading themselves thin trying to produce all of their own goods.
3. Mexico was able to focus on their comparative advantages when NAFTA was enacted in 1994 and Mexico ended its domestic market economy.

Question 5

Maquiladoras/maquila

Answer 5

1. Assembly line factories mostly along the border of Mexico for easy export to U.S.
2. Maquiladoras appeared when Mexico switched from ISI to a globalized market. Maquiladoras brought employment opportunities and brought women into the workforce.
3. During the switch from ISI to a more global market economy, maquiladoras were increasing due to the opportunities for trade with the U.S.

Question 6

Dominant Party Regime

Answer 6

1. A regime in which public offices are filled through elections that are minimally free but maximally unfair and there is a low chance that opposing parties will win.
2. Mexico was ruled by a dominant party system for much of its history. The dominant party, the PRI, ruled for 71 years. The PRI had complete control and many of the officials were corrupt.
3. Mexico was ruled by a dominant party regime, mostly the PRI, for many years until Mexico switched to a democracy in 2000.

Question 7

PAN

Answer 7

1. one of the three main political parties in Mexico
2. 3.

Question 8

Emiliano Zapata

Answer 8

1. leading figure in the Mexican revolution
2. Zapata wanted land reforms for Mexico. During the Mexican Revolution, he inspired the agrarian movement, Zaptismo
3. Zapata expressed his concerns for land reforms in Mexico during the Mexican Revolution

Question 9

Democratic Regime

Answer 9

1. a regime in which public offices are filled from free and fair elections
2. Mexico was ruled by a single dominant party until 2000 when democracy was formed in Mexico; however, democracy brought challenges such as an increase in poverty and inequality with the promise of a free market economy.
3. The democratic regime in Mexico was Brought about when the PRI was pushed out of power in 2000.

Question 10

Porfirio Diaz

Answer 10

1. Mexican president before the Mexican Revolution
2. Porfirio Diaz introduced the Porfiriato, which was intended to create a relationship between the U.S. and Mexico; however it caused oppression for Mexico’s indigenous people and Mexican workers weren’t receiving the same working conditions as American workers, so it led to the Mexican Revolution.
3. The Mexican Revolution began due to Diaz’s failure to reform land distribution and Mexico’s working conditions.

Question 11

constitution of 1917

Answer 11

1. Constitution created after the Mexican Revolution with a focus on land reforms and the labor sector.
2. Prior and during the Mexican Revolution, indigenous people and laborers in Mexico were oppressed. The Constitution included reforms for land distribution and equality for Mexican workers.
3. The constitution of 1917 was written after the Mexican Revolution in which Mexican citizens revolted for their rights to land reforms and reforms in the labor sector.

Question 12

The “lost” decade

Answer 12

1. a period in which Mexico goes through economic crises and experiences a decrease in GDP.
2. Mexico experienced the “Mexico Miracle,” in which there was consistent economic growth. The “lost decade” began when Mexico experienced the debt crisis due to over borrowing from other countries.
3. The lost decade began in 1982 when Mexico experienced the debt crisis due to borrowing money from other countries.

Question 13

free trade

Answer 13

1. trade in which there are no import licenses or tariffs.
2. During ISI, Mexico placed import tariffs and licenses. When NAFTA was enacted, free trade allowed Mexico to increase exports to the U.S. and imports from the U.S. so their economy could become more efficient.
3. Mexico increased free trade with the U.S. when NAFTA was enacted in 1994

Question 14

import tariffs

Answer 14

1. taxes placed on imported goods
2. During ISI, Mexico placed tariffs on imported goods. Import tariffs raised the price of imported goods to artificially lower the prices of Mexican made goods and protect their domestic market form foreign competition.
3. Import tariffs were placed on Mexico’s imports when Mexico utilized ISI.

Question 15

crony capitalism

Answer 15

1. a corrupt system in which people who have friends in high places benefit from their friends’ high positions
2. During the privatization process, SOEs were sold to those who were friends with government officials. This allows for those who are already to rich to become richer and be at an advantage over small business owners.
3. During the privatization process, crony capitalism was most evident when SOEs were sold to those who were friends with government officials

Question 16

Political Corruption

Answer 16

1. Political corruption is when government officials take advantage of their power.
2. Political corruption is especially expressed when the PRI was in office. The PRI took advantage of public budgets to complain and pay for their votes. It allowed the PRI to be in office for a consecutive 71 years while opposing parties struggled against them.
3. Political corruption was caused by the dominant party regime allowing for one party to dominate Mexico and have access to all of Mexico’s resources prior to the switch to Democracy in 2000.

Question 17

peasant

Answer 17

1. someone of low economic status, a farmer

Question 18

foreign direct investment

Answer 18

1. investing in an industry
2. This was the way of investing before portfolio investment was allowed for by technology. It is less fluid than portfolio investment so it is a higher risk of investment
3. Foreign direct investment was more common prior to technology allowing for portfolio investment.

Question 19

“El Dedazo”

Answer 19

1. a mechanism for nominating candidates to public office in which the president would choose the nominees
2. El Dedazo was popular during Mexico’s dominant party regime because Mexico’s president had most of the power over the branches of government, “hyperpresidentialism.” This gave the President the power to choose who ran for all of the public offices.
3. El Dedazo was the method of choosing nominees for candidacy during the dominant party regime in Mexico.

Question 20

state-owned enterprises

Answer 20

1. enterprises owned by the states/government
2. during the privatization process, the SOEs were sold to those who were friends with those in power in a system called crony capitalism. The selling of the SOEs caused less funding for the government, which meant less money for the PRI to use for their campaigning
3. SOEs were owned by the Mexican government until the privatization process occurred when switching from ISI to free market economy

Question 21

import licenses

Answer 21

1. Licenses necessary for goods to be imported into Mexico
2. Import licenses were in place during ISI. They made it more difficult for imports to compete with Mexican made goods; therefore, protecting Mexico From foreign competition
3. Import licenses were put in place when ISI was utilized by Mexico.

Question 22

Economic Privatization

Answer 22

1. process in which the government doesn’t control businesses anymore
2. SOEs were sold to mostly large business owners. Some of these business owners were friends with people in high gov positions and were able to receive a large amount of these enterprises for a low cost (crony capitalism).
3. The economic privatization process began when Mexico began to switch from ISI to free market

Question 23

politicized public resources

Answer 23

1. When public resources are used to the advantage of government officials
2. public resources were politicized when ISI and the dominant party regime were still prevalent in Mexico. The PRI used the public budget for their campaigns. This ended, however, when the privatization process caused the SOEs to be sold and the government didn’t receive the same amount of funding
3. politicized public resources was most common when the PRI was in office and they used public budget to pay for campaigns, this ended when the switch to free market began

Question 24

economic globalization

Answer 24

1. switch to a free market economy in which there is foreign competition
2. economic globalization occurred in Mexico due to ISI becoming exhausted. This allowed for NAFTA to be agreed on by Mexico because they needed to strengthen their economy and engage in competition with other countries.
3. Economic globalization began in Mexico when ISI became exhausted and Mexico switched to a free market economy

Question 25

Debt crisis

Answer 25

1. The Debt Crisis in Mexico was a period when Mexico was in extreme debt from borrowing money from other countries 2. Mexico borrowed money from other countries during economic crisis. Mexico then discovered oil so they borrowed more money to be able to extract their oil, but interest rates raised and Mexico was no longer able to pay off their debts. The debt crisis led to Mexico's globalization and free market processes 3. The Debt crisis in 1982 marked a transition from ISI to a global economy