Unit 3 Sustainable Prosperity Flashcards
(36 cards)
Economist who believed in having free market economy.
• F.A. Hayek
Economist who believed in government intervention in the economy during times of crisis.
• John Maynard Keynes
This was held during WWII 1944 to make financial arrangements for the postwar world after the expected defeat of Germany and Japan. (44 states including the Soviet Union). It drew up a project for the International Bank for Reconstruction and Development (IBRD) to make long-term capital available to states urgently needing such foreign aid, and a project for the International Monetary Fund (IMF) to finance short-term imbalances in international payments in order to stabilize exchange rates.
• Bretton Woods Conference
Contemporary economist who advocated minimizing the role of government in a free market as a means of creating political and social freedom.
• Milton Friedman
A theoretical economic system characterized by the collective ownership of property and by the organization of labor for the common advantage of all members.
A system of government in which the state plans and controls the economy and a single, often authoritarian party holds power, claiming to make progress toward a higher social order in which all goods are equally shared by the people.
communism
An economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market.
capitalism
Any of various theories or systems of social organization in which the means of producing and distributing goods is owned collectively or by a centralized government that often plans and controls the economy.
This is the stage in Marxist-Leninist theory intermediate between capitalism and communism, in which collective ownership of the economy under the dictatorship of the proletariat has not yet been successfully achieved.
socialism
a formal agreement between two or more states, as in reference to terms of peace or trade.
• international agreements
an economic and political union of 27 member states which are located primarily in Europe.
o European Union
Free Trade Agreement between Canada, Mexico, and the U.S. (1994)
NAFTA (North American Free Trade Agreement)
objective to prevent the spread of nuclear weapons and weapons technology, to promote cooperation in the peaceful uses of nuclear energy.
o Nuclear Nonproliferation
(refers to 2 rounds of bilateral talks and corresponding international treaties involving the U.S. and the Soviet Union on the issue of armament control.
o SALT: Strategic Arms Limitation Talks
Treaty between U.S. and the Soviet Union to reduce the number of nuclear weapons they have
o START: Strategic Arms Reduction Treaty
an international alliance involving many different countries
• international organizations:
An alliance of countries from North America and Europe committed to fulfilling the goals of the treaty.
o NATO (North Atlantic Treaty Organization):
is an international organization (founded in 1945 after World War II to replace the League of Nations) whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace and to stop wars between countries, and to provide a platform for dialogue. It contains multiple subsidiary organizations to carry out its missions.
o United Nations (UN):
Established in 1944, it is an international financial institution that provides loans to developing countries for capital programs. It is a vital source of financial and technical assistance to developing countries around the world.
o World Bank
is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
o IMF: The International Monetary Fund
corporations that are registered in more than one country or that has operations in more than one country. (i.e. Wal-Mart, McDonalds, Costco)
• transnational corporations
the removal or reduction of restrictions or barriers on the free exchange of goods between nations. (NAFTA)
• trade liberalization:
flows of capital from one nation to another in exchange for significant ownership stakes in domestic companies or other domestic assets.
• foreign investment
an increase in the capacity of an economy to produce goods and services, compared from one period of time to another.
• economic growth
process of transferring ownership of a business, enterprise, agency, public service or public property
• privatization:
the contracting out of a business process, which an organization may have previously performed internally or has a new need for, to an independent organization from which the process is purchased back as a service.
• outsourcing
