Social Studies Unit 3

Front 1

Monetary System

Back 1

Anything that is generally accepted as a standard of value and a measure of wealth in a particular country or region

Front 2

The World Bank

Back 2

~An agency of the U.N. that in practice is independent and controlled by its 184 member countries
It provides loans to less developed countries that are in financial difficulty.
~Long Term Loans

Front 3

The IMF

Back 3

~An international agency that works with the World Bank to bring stability to international monetary affairs and to help expand world trade
~Short Term Loans

Front 4

Cold War

Back 4

A global economic and political competition that divided communist countries, led by the Soviet Union (the Soviet Bloc), against western capitalist democracies, led by the United States

It lasted from 1946 to 1989 (or 1991).

Front 5

The Bretton Woods Agreement

Back 5

An agreement forged after WWII in Bretton Woods, New Hampshire, by 44 countries to establish a system of rules, institutions, and procedures for the global economy

Front 6

Fixed Exchange Rate

Back 6

The value of a country’s currency as set by its government

Front 7

Gold Standard

Back 7

A provision of the Bretton Woods Agreement that all printed money, such as paper dollars, would be convertible to gold and could be cashed in at any time for that gold

Front 8

Floating Exchange Rate

Back 8

Currency rates that are not fixed by governments but instead find their own value on the foreign exchange market (supply and demand)

Front 9

Quotas

Back 9

Proportional shares ($) that are paid by all members of the I.M.F. so that it can provide loans

A country’s quota is based on its size in the world economy.

Front 10

Tariff

Back 10

A tax usually levied by a federal government on goods that are imported. Tariffs are designed to protect a nation-state’s local producers from foreign competition

Front 11

Subsidies

Back 11

Financial assistance (payments) made by governments to local producers or distributors in an industry in order to prevent its decline

Front 12

Free Market Economy

Back 12

An economic system in which government does not intervene (or intervenes only minimally) in the production and control of goods and services

Front 13

Centrally Planned Economy/ Command Economy

Back 13

An economic system under which government planners decide what goods to produce, and how many (instead of letting the forces of supply and demand determine this)

Front 14

Electronic Herd Effect

Back 14

A situation where increased communication among investors leads to more of them investing in profitable investments. It also leads them to quickly “jump ship” from an investment if it doesn’t seem profitable
The term “electronic herd” comes from the fact that these people seem to all be moving together like a herd of cattle.

Front 15

Outsourcing

Back 15

The subcontracting of a service, such as product design or manufacturing, to a third-party company (in many cases in another country); to obtain goods or supplies from an outside supplier

Front 16

Race To The Bottom

Back 16

A situation in which competition between governments leads to very excessive (harmful) deregulation; The idea that, if one country provides a competitive advantage to trans-nationals by lax regulation (of the environment, child labour, minimum wages for example) other countries will be forced to also weaken their own laws in order to attract these companies, reducing regulation to minimal levels everywhere

Front 17

The GATT/ WTO

Back 17

G.A.T.T. was a United Nations agency created by a multinational treaty to promote trade by the reduction of tariffs and import quotas among member countries. It became the W.T.O. in 1995, which is an international organization that monitors and enforces rules governing global trade.

Front 18

Free Trade

Back 18

A type of trade policy that allows traders to act and transact without interference from government; Also known as "trade liberalization," which means to reduce tariffs and other barriers, so countries can import and export without restraints

Front 19

The Group of a Eight (G8)

Back 19

An informal group of the eight leading industrialized, democratic countries - Germany, Canada, the United States, France, Italy, Japan, the United Kingdom and Russia

Front 20

Subsidiaries

Back 20

Smaller companies that are controlled by a Parent Company (usually a trans-national)

Front 21

Human Capitol

Back 21

The knowledge, skills, and talents that workers have

Front 22

Capital Intensive Production

Back 22

Manufacturing in which most work is done by machines

Front 23

Labour Intensive Program

Back 23

Manufacturing in which most work is done by hand

Front 24

Trading Bloc

Back 24

A group of countries that are involved in an intergovernmental agreement, where regional barriers to trade (tariffs, etc.) are reduced or eliminated among the participating states

Front 25

Common Market

Back 25

An agreement among countries that includes the free trade of goods and services and the free movement of capital and labour within the trading bloc

Front 26

Trade Liberalization

Back 26

The process of reducing barriers to trade; it includes deregulation and privatization of Crown Corporations

The free trade agreement (N.A.F.T.A) between Canada, the U.S. and Mexico is a form of trade liberalization.

Front 27

Deregulation

Back 27

Opening an industry to more competition by removing government regulations on it (control over it)
This often involves privatizing Crown Corporations and allowing other private companies to enter the marketplace and compete.

Ex. The retail liquor industry in Alberta was deregulated in 1993.

Front 28

Crown Corporations

Back 28

Government owned companies

Front 29

Privatization

Back 29

Changing something from state (government) to private ownership or control

Front 30

Disparity/income gap

Back 30

Economic inequality is the difference between individuals or populations in the distribution of their assets, wealth, or income.

Front 31

Fair Trade

Back 31

Trade in which fair prices are paid to producers in developing countries.

Front 32

Pandemic

Back 32

an outbreak of a pandemic disease.

Front 33

Sustainable Prosperity

Back 33

It is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Front 34

Democratization

Back 34

The action of making something democratic

Front 35

Trade Protectionism

Back 35

Protectionism is the economic policy of restraining trade between states through methods such as tariffs.

Front 36

Offshoring

Back 36

The practice of basing some of a company's processes or services overseas, so as to take advantage of lower costs.

Front 37

CAFTA

Back 37

The Dominican Republic – Central America Free Trade Agreement

Front 38

FTAA

Back 38

The Free Trade Area of the Americas was a proposed agreement to eliminate or reduce the trade barriers among all countries in the Americas but Cuba.

Front 39

Predatory Pricing

Back 39

The pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market.

Front 40

Hyperglobalism

Back 40

The authors describe the hyperglobalist perspective as an approach which sees globalization as a new era in human history

Front 41

Social Justice

Back 41

Justice in terms of the distribution of wealth, opportunities, and privileges within a society.

Front 42

Standard of Living

Back 42

The degree of wealth and material comfort available to a person or community.

Front 43

Gross Domestic Product

Back 43

The total value of goods produced and services provided in a country during one year.

Front 44

The APEC

Back 44

The Asia-Pacific Economic Cooperation (APEC) is a group of Pacific Rim countries who meet with the purpose of improving economic and political ties. 

Front 45

The OAS

Back 45

Is an inter-continental organization founded for the purposes of regional solidarity and cooperation among its member states.

Front 46

John Maynard Keynes

Back 46

~He believed that direct government intervention in the economy was necessary to increase total spending and prevent- or lift the economy out of recession.
~He believed in the importance of prices, many planners, free market, dynamic competition and human action but not human design.

Front 47

Friedrich Hayek

Back 47

~He believed that when societies were planned or controlled by government they were doomed for failure.
~He believed that human societies are too complex to be planned ~His theories were based on totalitarian regimes

Front 48

The “Asian Tigers”

Back 48

The highly free and developed economies of Hong Kong, Singapore, South Korea, and Taiwan.

Front 49

Multinational Corporations/Transnational Corporations

Back 49

Corporations that operate in two or more countries; also, people who are citizens of more than one country.