Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

International Relations > Final > Flashcards

Final Flashcards

(73 cards)

Start Studying
1
Q

Autarky

A

The separation of a country from the world economy. Done to protect its economy from the effects of the global market.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Utility

A

Well-being attained from consuming goods and services

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Production Possibilites Frontier/Curve

A

Graph of different combinations of goods that a country can produce

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Absolute Advantage

A

A situation in which one state has a productive over another in two or more goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Comparative Advantage

A

When one country has a lower opportunity cost to produce an extra unit of a good than another country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Terms of Trade

A

The rate of which goods will be exchanged between two states

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Protectionism

A

Policies designed to restrict incoming goods in order to protect the domestic economy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Infant-Industry Protection

A

When imports from a particular industry are restricted to allow that industry to grow domestically

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Tariffs

A

Tax collected by the government on goods coming into the country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Non-Tariff Barriers

A

Policies states use to control imports and their prices without using tariffs
Ex: anti-dumping duties, import quotas, controlled government procurement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Dumping

A

(NTB) When producers sell goods cheaper in another country than they do at home.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Anti-Dumping Duties

A

(NTB) Tariffs that offset the price cuts offered by foreign producers below what they charge in their own markets. Allowed by international law.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Government Procurement

A

(NTB) When the government buys goods and services from suppliers. This is a non-tariff barrier because of how much money governments can spend.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Import Quotas

A

NTB that places limits on how much of a particular good/service may be imported in a period of time.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Voluntary Export Restraints

A

NTB where one country agrees to limit how much their industries will supply to another. Technically “voluntary” but usually comes from pressure from a trading partner.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Foreign Exchange Market

A

Marketplace in which currency is bought and sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Exchange Rate

A

The amount of one currency needed to buy another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Flexible/Floating Exchange-Rate System

A

When gov’t allows the exchange rate to be set by supply and demand in foreign exchange markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Fixed/Pegged Exchange-Rate System

A

When gov’t sets an exchange rate by locking in the value of their currency to another currency or group of currencies. Gov’t takes measures to keep those exchange rates in place.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Currency Market Intervention

A

Purchase or sale of currency by a state to maintain a constant exchange rate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Balance of Payments

A

Summary of international transactions by a state’s residents with resident’s of other states.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Current Account

A

A country’s balance of trade in goods and services (Exports minus imports) plus its income receipts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Currency Union

A

When a group of currencies decide to use the same currency. Ex: Eurozone

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Eurozone

A

The most prominent currency union

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Dollarization
When a country adopts a foreign currency in place of its own in its home market. Most commonly done with the US dollar.
26
Price inflation
When there is too much money in an economy and the prices of goods and services increase.
27
Inflationary Expectations
The belief that price increases are always about to happen.
28
Austerity
The policy where governments raise interest rates or reduce gov't spending to discourage consumption and investment at home to alleviate inflation/inflationary pressures.
29
Multinational enterprises
Businesses that operate in multiple countries other than where their headquartered.
30
National Treatment
A clause in the European Economic Community (EEC) that allowed American firms to be treated as though they were European firms.
31
Fixed Capital
A company's value of assets used in an ongoing way to produce goods/services
32
Gross Fixed Capital Formation
The total increase in fixed capital during a given period of time
33
Intra-Firm Trade
Cross-country movement of different components to a final product to be assembled.
34
Race to the Bottom
When two or more countries continue to lower environmental protections and workers rights to stop the loss/ to attract foreign investments
35
Pollution Haven
States that have low standards or lax enforcement of environmental protection, attracting foreign companies.
36
Regional Blocs
Groups of smaller countries dominated by great powers to help the great powers' economies during the great depression
37
Bretton Woods System
International System created in 1944 to encourage trade liberalization and stable monetary relations between all countries. Created the ITO, GATT, WTO, IMF, and World Bank
38
International Trade Organization (ITO)
Ambitious trade plan for global trade management that failed due to lack of US support. Replaced by GATT
39
General Agreement on Tariffs and Trade (GATT)
Attempt by US and western countries to lower their respective tariff rates and to establish a set of rules to resolve trade disputes
40
World Trade Organization
Successor of GATT; Most countries are members, has a more developed mechanism for resolving trade disputes than GATT.
41
Free Trade Agreement
An agreement between two or more states to eliminate tariffs, preferences, and import quotas on all or most goods between them
42
North American Free Trade Agreement
Free trade agreement between the US, Canada, and Mexico, signed in the early 1990s
43
Mercosur
Free trade agreement (common market of the south) formed in 1991 between Argentina, Brazil, Paraguay, Uruguay, Chile, and Bolivia
44
International Monetary Fund
Institution to facilitate and reinforce the exchange-rate system created in the aftermath of WWII. One of the most important international economic institutions
45
World Bank
The International Bank for Reconstruction and Development. Initially created to provide loans to help countries with economic recovery after WWII, but today manages and finances projects to foster growth in the developing world.
46
Conditionality
IMF practice of lending foreign currency to a state running a deficit to allow that state to buy its own currency on international markets where the IMF prescribes economic policies as a condition of the loan.
47
Devaluation
When a country lowers the official price of its currency to more accurately reflect its market value.
48
Washington Consensus
Group of controversial US backed policies (smaller state sectors, privatized markets, and liberalized trade and financial sectors) set forth by the IMF as the path to economic prosperity from 1980 to 2008. These became highly questions after 2008.
49
Group of 7 (G-7) , Group of (G-8), Group of 20 (G-20)
G-7 = USA, UK, France, Germany, Japan, Italy, Canada G-8 = G-7+Russia G-20 = G-8 + more. Meetings by these countries governed the international economic system because they coordinated their exchange rates and their domestic monetary and fiscal policies.
50
Developing Country
Poor countries with small economies whose residents have not yet attained a standard of living typically enjoyed by wealthy countries
51
Human Development
Process of giving people more choices and greater means to lead valuable lies. Typically include factors such as life expectancy, income, and education.
52
Economic Development
Increase in GDP per capita growth rate
53
Good Governance
A gov't with transparent and consistent political and legal systems that combats corruption and protects property.
54
Dependencia
School of thought that suggests international linkages hinder economic growth in developing countries because these linkages solely benefit the wealthy country and the small number of elites in the poorer countries.
55
Worker Productivity
The amount of output any worker can produce in a fixed period of time
56
Import-Substitution Industrialization (ISI)
National development strategy of avoiding international economic linkages in favor of domestic production. High tariffs and other similar measures help encourage the local economy to buy and produce goods by national champions
57
National Champion
Firms the government believes could do the best job of producing substituted industrial goods in an ISI strategy.
58
International Commodity Cartels
Grouping of developing state governments that control the supply of raw materials to help drive up the price and maximize profits
59
International Commodity Agreement
An agreement setting the price of a particular commodity exported by a developing country. These aim not to maximize profits but to create a stable and acceptable price the gov't can rely on
60
Export-Led Growth
Strategy of moving government credit and foreign currency from import oriented to export oriented firms so that countries can export more and become more tied into the international system
61
Asian Tigers
Originally Taiwan, South Korea, Singapore, and Hong Kong. Now includes many Asian countries that achieved rapid economic growth rates using export-led growth.
62
Beijing Consensus
Belief that it is more beneficial for some smaller countries to have authoritarian rule and for the state to play a heavy hand in trade integration, capital inflows/outflows, movement of labor, and the value of currency to spur growth.
63
International Financial Flows
Movement of capital from one country to another. Consists of private and official financial flows.
64
Official Financial Flows
International financial flows that originate with government entities.
65
Private Financial Flows
International financial flows that originate with non-government entities.
66
Foreign Direct Investment
When an enterprise moves money from one country to another with the intention of establishing ongoing business practices. Biggest portion of private financial flow to developing countries
67
International Bank Loan
When a bank in one country extends a loan to residents in another
68
International Portfolio Investments
When an investor in one country buys shares in a firm in another country
69
International Bonds
When individuals or firms in one country buy bonds from another country
70
Official Development Assistance
When one government provides grants or loans to another with highly favorable repayments terms
71
Four Kinds of Private Capital Flows Between Countries
International Bank Loan, Foreign Direct Investment, International Portfolio Investments, International Bonds
72
Tied Aid
When a government provides aid to a developing country but requires that the money be spend on goods and services from their country.
73
Poverty Trap
When a country is so poor that most of its natural resources must be used to satisfy the basic needs of its population with little to none left over for savings or investments

International Relations (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions