Pol 130 Final Terms: Global Economy

Front 1

Liberal International Economic Order (LIEO)

Back 1

The post-WWII international economic order embodying the traditional liberal preference for free and open trade as a means of promoting economic efficiency and prosperity.

Front 2

Economic nationalism

Back 2

Policies designed to protect domestic industries from foreign competition, usually by using tariffs and quotas as barriers to imports.

Front 3

David Ricardo (1772-1823)

Back 3

English economist known for his defense of international free trade and theory of comparative advantage.

Front 4

Division of labor

Back 4

Individuals and/or nations SPECIALIZING in the production of certain commodities.

Front 5

Theory of comparative advantage

Back 5

The idea that all nations benefit when they produce those commodities each produces most efficiently. David Ricardo argued that free trade allows nations and consumers to benefit from their different comparative advantages.

Front 6

Tariffs

Back 6

Tax that nation places on imports to promote national economy.

Front 7

Quotas

Back 7

To forbid or restrict imports from other nations to promote national economy.

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Subsidies

Back 8

Money given to producers within one's own country to promote national economy.

Front 9

Friedrich List (1789-1846)

Back 9

German economist critical of David Ricardo and free trade. Rejected the liberal notion that individuals advancing their own interests inevitably serve the interests of the larger community or nation. Argued that nations need to approach trade from the perspective of the national interest and the interests of the community as a whole.

Front 10

Infant industries

Back 10

Industries at early stages of their development, particularly when the same industries are already well developed (i.e. mature) in other nations.

Front 11

Strategic trade policy

Back 11

Policies designed to enhance national power and encourage other nations to become dependent as a means of gaining leverage over them.