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58 Cards in this Set
- Front
- Back
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Dumping
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Exporting a product at below the coat of production and shipping
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Fixed exchange rate system
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currency is not responsive to supply and demand
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Floating exchange rate
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currency exchange rates are set by supply and demand
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foreign direct investment
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FDI investment in business in one country by a firm from another country
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foreign exchange market
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the global market for currency exchange
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Greenfield investments
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Developing an industry from scratch in a foreign country
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GDP
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The total value of goods and services produced within a country
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GNI
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total value of goods and services produced within a country, plus income it gets from other countries minus payments made to other countries
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Import quota
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Restricting how much of a specific foreign product enters the country
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intellectual property rights
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legal entitlements attached to intellectual
products with commercial value. Patents, copyrights, trademarks, trade secrets and industrial design rights |
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mercantilism
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economic approach where governments attempt to ensure that they have a positive balance of trade
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mergers and acquisitions
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buying a existing business in a foreign country
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non-tariff barriers
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imposing quotas or putting a country in a position where it limits its exports
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voluntary export restrictions
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caused by political or economical pressure. when a state agrees to limit the amount of specific of goods it exports
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monetary policy
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printing money
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fiscal policy
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spending money
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monetary regime
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the different policies over monetary policy
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monetary regime pre 1971
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fixed exchange rate with gold
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monetary regime post 1971
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free floating system, money is only what we put into it
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current account balance
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difference between a state's exports and imports
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MNC
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multination corporations
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portfolio investment
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buying stocks and bonds in foreign companies and countries
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Reasons for FDI
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It be cheaper in other countries
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race to bottom
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companies going to where standards are the lowest so as to make the most profit
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economic liberalism
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both side benefit from trade, policies serve economics
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comparative advantage
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the coast of producing a good in terms of another good
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Gatt
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General agreement on tariffs and trade
1947-1995. |
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WTO
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covers trade issues. trade authority and mediator.
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Problems with WTO
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special intrest groups hate it. environmental and labor groups
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autarky
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no trade
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why countries want FDI
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Bring in capital, grows econ, tech transfer, and job skills
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World system theory
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marxist by Immanuel Wallerstein
Core periphery Semi-periphery |
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Kyoto Protocol
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1997 placed limits on co2 emissions expires in 2012
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Montreal Protocol
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signed in 1987 to phase out CFC's
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Rio Earth Summit
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1992 treaties to deal with problem and address development
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Dependency theory
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states that the world economy works only for the few western countries and leaves the rest disadvantaged and exploited
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G-8
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holds an annual summit to discuss mutual concerns. Uk, Canada, US, Russia, Deutschland, Italy, Japan, France
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LDC's
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less developed countries. a rely primarily on production exports
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Modernization Theory
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state that the primary causes for underdevelopment are economic, political and cultural conditions
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economic determinism
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marxist states that economic structure not politics drive human development
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new industrialized nations
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above undeveloped but below industrialized nation (us,uk, france)
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normative
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what should be, a standard
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structural adjustment programs
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application of strict economic reforms, by america, IMF, and world bank
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Washington consensus
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economic philosophy, a list of 10 recommendations of most commonly offered aid by america
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World system theory
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similar to realists
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Import-substitution industrialization
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strategy economic isolation to encourage domestic entrepreneurs
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export-led industrialization
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work within the global economic system
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BRIC countries
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Brazil, Russia, India, China
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General principles
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recognition of law by civilized nations
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Global governance
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no world government
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international criminal court
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treaty in 1998 a permanent court that has the power to try individuals for war crimes and crimes against humanity and genocide
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Natural law
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human rights universal principles can be derived from human nature
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Positive law
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international law exists only through rules that are written down. Treaties
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non governmental organizations
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red cross
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security council
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Russia, US, UK, China, France resolutions are binding
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general assembly
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one state one vote. all resolutions are non-binding
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International Court of Justice
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organ of UN held in Neaderlands
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Secretariat
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lead by secretary general 5 year terms
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