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22 Cards in this Set
- Front
- Back
Gross Domestic Product (GDP)
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One way to measure the size of a country's economy; the value of all goods and services produced in a country in one year.
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Gross National Product (GNP)
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Value of all goods and services produced in a country in one year, plus income earned by citizens abroad, minus income earned by foreigners in the country.
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Purchasing Power Parity (PPP)
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Uses the exchange rate of two countries to equalize their purchasing power
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Rentier state
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A state whose economy is dependent on only one product for income from other countries (e.g. Iran and Nigeria)
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Inflation
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When a country's currency loses value, resulting in a general rise of prices relating to an increase in the volume of money.
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Debt crisis
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The massive accumulation of loans taken out by Third World countries and owed to northern banks and governments from the 1970s onward (ex: in Mexico and Nigeria)
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EU's standard currency
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The Euro
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Market-Leninism
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A combination of socialist ideas with a market economy
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Market Economy
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A capitalist competitive economy driven by privately owned industry
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Command Economy
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An economy controlled entirely by the state (means of production, the marketplace, etc.)
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Mixed Economy
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A combination of command and market economies
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Iran's main economic problem
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Iran is a "single export" (rentier) state, so their economy is dependent on the fluctuating price of oil
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Import substitution
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An economic development strategy in which governments put tariffs and other barriers on certain imports to stimulate domestic industry
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World Bank
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Major international lending agency for development projects
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International Monetary Fund (IMF)
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Makes temporary loans to low-income countries to help with poverty reduction
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Common Agricultural Policy of the EU (CAP)
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A system of agricultural programs that regulates labeling, ingredients, prices, subsidies
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What is NAFTA and which country has benefited from it the most?
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The North American Free Trade Agreement between the US, Canada, and Mexico. Mexico has benefitted from it the most, (specifically the northernmost part)
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Which Mexican president nationalized oil
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Cardenas in 1938; nationalized industry known as PEMEX
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Newly Industrializing Country (NIC)
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Countries whose economies have not yet reached first world status but have outpaced their developing counterparts. Another characterization of NICs is that of nations undergoing rapid economic growth
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European Monetary Union (EMU)
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The "big bank" of the EU
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Shock therapy
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Refers to the sudden release of price and currency controls, etc; used in former communist countries to make as rapid a shift to a market economy as possible
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Structural Adjustment
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An economic development strategy that stresses integration into global markets (i.e., reducing trade barriers), privatization, etc. Usually used as a condition for third world countries to get loans from northern banks.
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