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27 Cards in this Set
- Front
- Back
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Mercantilism
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The theory 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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Comparative advantage
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The concepts in liberal economics that a state will benefit if it specializes in those goods it can produce 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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Coined by Adam Smith and other commercial liberals in the 18th century used to describe the advantages of free-wheeling capitalism w/o gov’t interference in economic affairs
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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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Neomercantilism
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A theory that advocates promoting domestic production and balance-of-payment surplus by subsidizing exports and using tariffs and non-tariff 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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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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Collective good
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A public good, such as safe drinking water, from which everyone benefits
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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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Free riders
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Those who enjoy the benefits of collective goods by pay little or nothing for them
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International Monetary Fund (IMF)
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A financial agency w/ 185 members affiliated w/ the UN, formed in 1945 to promote int’l monetary cooperation, free trade, exchange rate stability, and democratic rule by providing financial assistance and loans to countries facing financial crises
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World Bank
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Also known as the International bank for reconstruction and development (IBRD), it is the globe’s major IGO for financing economic growth
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Group of 7/Group of 8
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A group of advanced industrialized democracies comprised of the US, Britain, France, Japan, Germany, Canada and Italy that meets is regular economic summit conferences
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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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GATT (General Agreement on tariffs and trade)
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An international organization affiliated with the UN that promotes international trade and tariff reductions, now the WTO
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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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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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Most-favored-nation (MFN) policy
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Unconditional non-discriminatory 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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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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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 members
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Beggar-thy-neighbor policies
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The attempt to promote trade surpluses by trade policies that cause trade partners to suffer trade deficits
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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 in the 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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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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