Globalization
An international organization that lends money to developing nations at low interest rates to encourage development.
What is the World Bank?
A measure of economic development that allows for a direct comparison of living standards in different countries
What is Purchasing Power Parity (PPP)?
Totalitarian regimes failed to deliver on the promise of economic progress which has cased the spread of this political model.
What is democracy?
A theory that advocates that government intervention is required so that countries simultaneously encourage exports and discourage imports.
What is mercantilism?
Theorist(s) who proposed factor endowments as a contributor to trade.
Who are Heckscher-Ohlin?
Name given to a company that operates production or sales facilities in several countries around the world.
What is a multinational enterprise (MNE)?
A measure used by the Human Development Index (HDI).
What is life expectancy at birth, education level, or income per capita?
Term used when a government shifts the ownership of state-owned enterprises towards private investors.
A theory proposed by Adam Smith which advocates for free trade and the reliance on market economies.
What is absolute advantage?
A trade theory proposed by Ron Vernon.
What is the Product Life Cycle Theory?
A transportation innovation that significantly lowered the costs of shipping goods over long distances by bundling items together.
What is containerization?
A portion of the economy that cannot be tracked as the transactions are not recorded and often results from bartering instead of trading currencies.
What is the black economy or shadow economy?
Terms used when a country removes price controls; abolishes laws regulating the establishment of private enterprises; and relaxing or removing restrictions on direct investment by foreign enterprises.
What is deregulation?
This trade theory advocates for minimal government intervention to allow certain industries to achieve economies of scale from global demand.
What is New Trade Theory?
A trade theory that states that a country should specialize only in the production of goods that is produces most efficiently even when it could produce two goods better than its trade partners.
What is comparative advantage?
Alongside the lowering of trade barriers, these three technological advances made it possible for the globalization of markets to occur in practice.
What are advances in communication technology, information processing (computer speed/power_, and transportation technologies?
While entrepreneurship is believed to be crucial to a nation's development, these additional two contributing factors are required for a country's business environment to be conducive to innovation and entrepreneurial activity.
What are strong property rights and a market-based economy?
When privatization occurs, deregulation must also occur in order to prevent companies from continuing to act like this type of company due to strong government intervention.
What is a state-owned enterprise?
While still promoting the importance of free trade, the Samuelson critique argues that these countries will benefit most from free trade which he considers to be a poor outcome to free trade.
What are the wealthier nations or rich countries?
In his model of National Competitive Advantage, Porter classifies the communication infrastructure, skilled labor, technological know-how as what type of factor endowments?
What are advanced factor endowments?
Globalization opponents believe that workers in wealthy nations will be impacted by this trend.
What is unemployment or the outsourcing of work to other nations?
This economic measure tends to grow faster in emerging markets than in developed nations
What is the GDP Growth Rate?
Totalitarian regimes that are committed to this type of economic model will be able to promote economic growth without a shift towards democracy.
What is a market-based economy?
Trade theory that proposed minimal government intervention to support the development of certain export-oriented industries by encouraging the creation of supporting industries, local demand, domestic competition, and favourable government policies.
What is Porter's Theory of National Competitive Advantage?
In practice, constant returns to specialization are not observed. Instead, it has been observed that consistent use of resources often causes these types of returns.
What are diminishing returns to production?