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67 Cards in this Set
- Front
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international political economy
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the study of the intersection of politics and economics that illuminates the reasons why changes occur in the distribution of states' wealth and power
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paradigm
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an example, model, or essential pattern; structures thoughts about an area of inquiry
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globalization
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the increasingly close international integration of markets both for goods and services and for capital
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high politics
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geostrategic issues of national and international security as related to war and peace
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low politics
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the category of global issues related to economic, social, demographic and environmnetal aspects of relations between governments and people
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international monetary system
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the financial procedures governing the exchange and conversion of national currencies so that they can be bought and sold for one another to calculate the value of currencies and credits when capital is transferred across borders through trade, investment, foreign aid, and loans
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commercial liberalism
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an economic theory advocating free markets and the removal of barriers to the flow of trade and capital as a locomotive for prosperity
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mercantilism
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the seventeeth-cnetury theory preaching that trading states should increase their wealth and power by expanding exports and protecting their domestic economy from imports, a competitive strategy which is still advocated by some today
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Liberal International Economic Order (LIEO)
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the set of regimes created after WWII, designed to promote monetary stability and reduce barriers to the free flow of trade and capital
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interdependence
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a situation in which the behavior of international actors greatly affects others with whom they have contact, making all parties mutually sensitive and vulnerable to the others' actions
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theory
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a set of conclusions derived from assumptions (axioms) and/or evidence about some phenomenon, including its character, causes, and probable consequences and their ethical implications
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comparative advantage
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the concept in liberal economics that a state will benefit if it specializes in those goods it can produce comparatively cheaply and acquires through trade goods that it can only produce at a higher cost
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laissez-faire economics
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Adam Smith and other commercial liberals in the 18th century used to descirbe the advantages of free-wheeling capitalism without government interference in economic affairs
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politics
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the use of power by those in authority to exercise influence against subordinates and other authorities, and the reciprocal use by other authorities for the same purpose
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externalities
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the side effects produced by choices and behaviors in one activity that alter other conditions, sometimes beneficially and sometimes harmfully; environmental protection, for example, contributes to long-term economic growth but can lead to short-term losses of employment opportunities
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absolute gains
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a measure of the degree to which all participants in an exchange become better off
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relative gains
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a measure of how much some participants in an exchange benefit in comparison to others
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nonmercantilism
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a contemporary version of classical mercantilism that advocates promoting domestic production and a balance-of-payment surplus by subsidizing exports and using tariffs and nontarriff barriers to reduce imports
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zero-sum
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an exchange in a purely conflictual relationship in which what is gained by one competitor is lost by the other
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hegemony
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the ability of one state to lead in world politics by promoting its worldview and ruling over arrangements governing international economics and politics
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hegemonic stability theory
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the proposition that free trade and interstate peace depend on the existence of a predominant great power willing and able to use economic and military strength to promote global stability
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hegemon
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a single, overwhelmingly powerful state that exercises great influence over other global actors
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long-cycle theory
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the proposition based on the evidence that great powers rise to positions of hegemonic global leadership but eventually decline when their leadership is challenged by ascendant rivals
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macroeconomics
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the study of aggregate economic indicators such as GDP, the money supply, and the balance of trade that governments monitor to measure changes in the national and global economy
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collective good
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a public good, such as safe drinking water, from which everyone benefits
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free riders
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those who enjoy the benefits of collective goods but pay little or nothing for them
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monetary system
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the processes for determining the rate at which each state's currency is valued against the currency of every other state, so that purchasers and sellers can calculate the costs of transnational financial transactions such as foreign investments, trade, and cross-border travel
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exchange rate
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the rate at which one state's currency is exchanged for another state's currency in the global marketplace
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monetary policy
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the decisions made by states' central banks to manage the national economy and control inflation using fiscal policies such as changing the money supply and interest rates
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money supply
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the total amount of currency in circulation in a state, calculated to include demand deposits, such as checking accounts in commercial banks, and time deposits, such as saving accoutns and bonds, in savings banks
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arbitrage
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the selling of one currency (or product) and purchase of another to make a profit ont he changing exchanging rates; traders help to keep states' currencies in balance through their speculative efforts to buy large quantities of devalued currencies and sell them in countries where they are valued more highly
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fixed exchange rates
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a system under which states establish the parity of their currencies and commit to keeping fluctuations in their exchange rates within narrow limits
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International Monetary Fund (IMF)
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a financial agency with 185 members affiliated with the United Nations, formed in 1945 to promote international monetary cooperation, free trade, exchange rate stability, and democratic rule by providing financial assitance and loans to countries facing financial crisis
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World Bank
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also known as the International Bank for Reconstruction and Development (IBRD), __ is the globe's major IGO for financing economic growth
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international liquidity
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reserve assets used to settle international accounts
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commercial domino theory
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the notion that under conditions of globalization the depletion of one country's currency reserves panics investors worldwide and spreads like a contagious disease to other countries, whcih, in a chain reaction, witness the decline of their own currency reserves as the flight of capital also reduces teh value of their currency
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floating exchange rates
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an unmanaged process where market forces and private investors rather than government influence the relative rate of exchange for currencies between countries
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Group of Seven(G-7)/Group of Eight(G-8)
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a group of advanced industrialized democracies comprised of the United States, Britain, France, Japan, Germany, Canada, and Italy that meets in regular economic summit conferences; since 1997, inicludes Russia
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regional currency union
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the pooling of sovereignty to create a common currency (such as the EU's euro) and single monetary system for members in a region, regulated by a regional central bank within the currency bloc to reduce the likelihood of large-scale liquidity crises
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international regime
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the set of rules, norms and decision-making procedures that coordinates state behavior in such areas as international trade
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General Agreement on Tariffs and Trade (GATT)
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an international organization affiliated with the United Nations that promotes international trade and tariff reductions, now the World Trade Organization
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transformation
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a change in the characteristic pattern of interaction among the most active participants in world politics of such magnitude that it appears that one "global system" has replaced another
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reciprocity
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the norm that accepts the ethical prescription that actors should treat others as they themselves would wish to be treated, so that the same standards of conduct apply
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Uruguay Round
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the multilateral trade negotiations of GATT that began in 1986 and concluded in 1995 with the creation of the WTO
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World Trade Organization (WTO)
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a multilateral agency that monitors the implementation of trade agreements and settles disputes among trade partners
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trade integration
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the difference between growth rates in trade and gross domestic product
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most-favored-nation (MFN) principle
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unconditional nondiscriminatory treatment in trade between contracting parties guaranteed by GATT; in 1997, US Senator Daniel Patrick Moynihan introduced legislation to replace with the term "normal trade relations(NTR)" to better reflect its true meaning
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nondiscrimination rule
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a principle for trade taht proclaims that goods produced at home and abroad are to be treated the same for import and export agreements
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neoliberalism
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a perspective that accounts for the way international institutions promote global cooperation and prosperity through reforms such as the creation of free markets and acceptance of free trade
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human rights
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the political rights and civil liberties recognized by the international community as inalienable and valid for individuals in all countries by virtue of their humanity
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North American Free TRade Agreement (NAFTA)
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an agreement that brings Mexico into the free-trade zone linking Canada and US
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Free Trade Area of Americas (FTAA)
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a set of rules to promote free trade among 34 democracies in North and South America
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regional trade agreements (RTAs)
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treaties between trading blocs that provide legal rules for the reciprocal stimulus and governance of trade by establishing special preferential arrangements to reduce trade barriers among the members
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protectionism
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a policy of creating barriers to foreign trade, such as tariffs and quotas, that protect local industries from competition
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beggar-thy-neighbor policies
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the attempt to promote trade surpluses by trade policies that cause trade partner to suffer trade deficits
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import quotas
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nontariff barriers to free trade that involve limits on the quantity of particular products that can be imported
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export quotas
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barriers to free trade agreed to by two trading states to protect their domestic producers
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orderly market arrangements (OMAs)
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voluntary export restrictions that involve a government-to-government agreement and often specific rules of management
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voluntary export restrictions (VERs)
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a protectionist measure popular in the 1980s and early 1990s, in which exporting countries agree to restrict shipments of a particular product to country to deter it from imposing an even more onerous import quota
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nontariff barriers (NTBs)
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measures that discriminate against imports without direct tax levies and are beyond the scope of international regulation
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infant industry
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a newly established industry that is not yet strong enough to compete effectively int eh global marketplace
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strategic trade policy
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an industrial policy that targets government subsidies toward particular industries so as to gain competitive advantage over foreign producers
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countervailing duties
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tariffs imposed by a government to offset suspected subsidies provided by foreign governments to their producers
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antidumping duties
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duties imposed to offset another state's alleged selling of a product at a price below the cost to produce it
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realism
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the theoretical tradition that operates from the assumption that competitive states seek self-advantage and are unlikely to cooperate
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two-level games
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the practice by countries to undertake policies that pay poltiical dividends at the domestic level by winning votes and public approval that also have costs for the country's relations with other states at the global level
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fast-track negotiating authority
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a concession by the US Congress permitting the president to negotiate reciprocal tariff-reduction agreements with other countries that, when granted, enable the US to reach bilateral trade treaties more easily
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