This states that a country should produce those goods and services it can most efficiently produce and trade them for other goods and services it does not produce as well.
What is Comparative Advantage Theory?
100
These are investments in a foreign country via the purchase of stocks, bonds, or other financial instruments.
What are Foreign Portfolio Investments?
100
This occurs when a state's currency decrease in value compared to other currencies which makes the state more attractive for its exports.
What is depreciation?
100
This is the total market value of all goods and services produced by workers within a nation's borders during a given period.
What is GDP?
100
This institution seeks to help states solve collective action problems during trade by monitoring and enforcing trade agreements.
What is the World Trade Organization (WTO)?
200
Because the regulation of shipping costs and other factors are difficult to account for, a state might do this to sell their products below the true cost of production in order to drive out competitors.
What is dumping?
200
Transnational Corporations (TNCs) and Multinational Corporations (MNCs) use this to establish production facilities in foreign countries.
What is Foreign Direct Investment (FDI)?
200
The gold standard is an example of this where a government commits itself to keep its currency at or around a specific value in terms of another currency.
What is a Fixed Exchange Rate?
200
This economic indicator accounts for inequality, something that can not be done through analyzing GDP/capita.
What is the GINI Coefficient?
200
The organization that regulates monetary conditions for its state's economy, typically by affecting interest rates and the quantity of money in circulation.
What is the Central Bank?
300
This is the practice of imposing trade barriers (tariffs/quotas) in order to protect local markets but can be harmful because it raises costs for consumers.
What is Protectionism?
300
Theses are loans from private financial institutions in one country to sovereign governments in other country.
What is sovereign lending?
300
This is an example of when a government fixes its currency value but allows for adjustment when its needed.
What is Bretton Woods or an "In-Between" exchange rate?
300
Education, food policy, public health and population are all examples of this type of factor that influences development.
What are domestic policies?
300
This sometimes controversial institution attempts to regulate debtor-creditor relations and also provides expertise and short-term loans to debtor countries.
What is the International Monetary Fund?
400
The belief that international trade will tend to make wages, profits, and other earnings more similar across countries over time.
What is factor price equalization?
400
These include policies to reduce consumption; typically by cutting government spending, raising taxes, and restricting wages in order to repay loans.
What is Austerity?
400
The US and most strong economies use this which permits their currencies to be traded on the open market without direct government control or intervention.
What are Floating Exchange Rates?
400
Economists in Latin America developed new theories such as this in an attempt to emulate US economic growth and as an alternative to comparative advantage.
What is Import Substitution Industrialization?
400
These institutions use formal or informal arrangement among governments to govern relations among their currencies and include the Gold Standard, Bretton Woods and the Floating Exchange Rate.
What are International Monetary Regimes?
500
This model emphasizes the SECTOR in which factors of production for a product (lobbying for almond interests) are considered rather than the nature of the factor itself (land/agriculture).
What is the Ricardo-Viner (specific-factors) model?
500
In the 1990's, FPIs invested heavily in development in Thailand. But when the financial bubble burst, investors pulled out and caused this to take affect when Indonesia and other East Asian economies consequently fell into poverty.
What is a contagion?
500
Today, International Monetary Systems center around these strong currencies which include, the US dollar, the British pound, the Japanese yen, and the Euro.
What are anchor currencies?
500
These are when a producer gets a tax break or incentive to produce within a certain zone so long as you agree to export those products. Locals rarely benefit from these.
What are Export Processing Zones (EPZs)?
500
This institution provides loans at below-market interest rates to developing countries, typically to enable them to carry out development projects; e.g., roads, schools, power plants, dams, highways, etc.