Final

Front 1

mercantilism

Back 1

economic system in which states pursued wealth by promoting exports and limiting imports creating a zero sum struggle for material advantage

Front 2

hegemonic stability theory

Back 2

realist theory that a hegemonic power is necessary to support a highly intergrated world economy

Front 3

elements of british hegemony

Back 3

beginning in the latter part of the 18th century England emerged as the dominant country in Europe. the British military dominance allowed them to expand globally

Front 4

gold standard

Back 4

a pre-World War 1 system of international payments based on gold which was fixed in price with respect to local currencies

Front 5

pax americana

Back 5

american hegemony after world war II first within the west and then after the Cold War throughout the world

Front 6

GATT

Back 6

initial post-war trade organization, significantly lowered tariffs on manufactured goods

Front 7

IMF

Back 7

international institution that supervises the exchange rate system and short-term balance of payment lending

Front 8

Principles of Economic Liberalism

Back 8

the evolution of the global economy can be explained primarily in terms of technological change, specialization, trade and increasing interdependence and the strengthening of global rules and institutions

Front 9

invisible hand

Back 9

economic concept that if each nation or individual acts in its own best economic interests the common good will be served

Front 10

comparative advantage

Back 10

a relationship in which two countries can produce more goods from the same resources if they specialize in the goods they produce most efficiently at home and trade these goods internationally

Front 11

terms of trade

Back 11

relative price of imports and exports

Front 12

protectionism/managed trade

Back 12

the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow (according to proponents) "fair competition" between imports and goods and services produced domestically

Front 13

absolute vs. relative gains

Back 13

relative gains just focus on power while absolute takes power and other factors into account

Front 14

GDP/GNP

Back 14

the quantification of a country's production of goods and services at home

Front 15

per capita GDP

Back 15

GDP per person

Front 16

opportunity costs

Back 16

the costs associated with using the same resources to produce one product over another

Front 17

inflation and deflation

Back 17

rise in the general level of prices of goods and services in an economy over a period of time and deflation in the opposite

Front 18

Balance of Payments

Back 18

a country's current and capital account balances plus reserves and statistical error

Front 19

exchange rate changes and effect on trade

Back 19

The change in the exchange rate will change the relative price of imports and exports. For instance, if the exchange rate was to appreciate (increase in value) then the price of exports would increase compared to their previous position, so causing a contraction in demand. In contrast, the price of imports would appear to be relatively cheaper, this would cause an extension in demand. The overall effect would be that the trade balance (exports minus imports) would deteriorate.

Front 20

Foreign Direct Investment

Back 20

capital flows involving the acquisition or construction of manufacturing and other facilities in a foreign country

Front 21

money supply

Back 21

the total amount of monetary assets available in an economy at a specific time

Front 22

trade-related intellectual property issues

Back 22

policy to boost local suppliers to international standards through FDI polcies

Front 23

Doha round

Back 23

the ninth and most current round of trade talks which offers significant potential benefits to developing countries in agriculture medicines and infrastruture

Front 24

sources of globalization

Back 24

internationalization of economic activity, global liberalization, technological changes, improvements in transportation, globalized production structures

Front 25

Troubled Asset Relief Program

Back 25

program of the United States government to purchase assets and equity from financial institutions to strengthen its financial sector

Front 26

Fannie Mae and Freddie Mac

Back 26

The corporation's purpose is to expand the secondary mortgage market by securitizing mortgages in the form of mortgage-backed securities and was created in 1970 to expand the secondary market for mortgages in the US by buying mortgages on the secondary market, pooling them, and selling them as a mortgage-backed security to investors on the open market

Front 27

import-substitution policies

Back 27

policies developed in Latin America that substitute domestic industries for imports

Front 28

informal sector

Back 28

business activities that take place outside the legal system of the country because of excessive regulations

Front 29

economic autarky

Back 29

a closed domestic economic system based on protectionism and state-owned industries

Front 30

capital flight

Back 30

moving money out of the local currency and country because of inflation and economic or political instability

Front 31

stagflation

Back 31

slow growth accompanied by high inflation

Front 32

East Asian Miracle

Back 32

a period of unprecedented economic growth and development in East Asia between 1965 and 2005

Front 33

Real Economy

Back 33

the trade and investment markets involving production activities