International Finance
These loans come from private financial institutions and flow across borders to fund the borrowing needs of foreign governments.
What is sovereign lending?
This principle, rooted in Article 2 of the UN Charter, prohibits states from threatening or using force against the territorial integrity or political independence of any state.
What is the principle of non-use of force?
This organization promotes trade liberalization through rounds of negotiations and provides dispute-resolution procedures that states often rely on to enforce trade rules.
What is the World Trade Organization?
When a currency increases in value relative to another—allowing, for example, one dollar to buy more pesos—this change is known by this term.
What is appreciation?
This strategy relies on small, lightly armed groups conducting hit-and-run attacks against military, state, and civilian targets rather than fighting conventional battles.
What is insurgency?
This form of international capital movement occurs when corporations like Volkswagen or ExxonMobil establish or acquire foreign facilities and retain managerial control, distinguishing it from foreign lending.
What is an FDI?
This article within the UN grants the Security Council the power to identify threats to peace, breaches of peace, or acts of aggression, and to recommend or decide measures to restore international peace and security.
What is Article 39?
This long-standing policy approach uses tools like tariffs and quotas to defend domestic industries from foreign competition, a strategy that even today’s wealthiest countries relied on heavily during their own development.
What is protectionism?
From roughly 1870 to 1914, many countries used this monetary system that required their currencies to be convertible into a fixed quantity of a precious metal.
What is the gold standard?
This type of conflict occurs when rival states avoid fighting each other directly and instead back opposing sides in another country’s war, often supporting governments, rebels, or both.
What are proxy wars?
This type of enterprise operates across several countries and maintains production or service facilities outside the nation where it is headquartered.
What is an MNC?
Kearns et al. explain that this UN body holds “primary responsibility” for international peace and security and can authorize sanctions, peacekeeping, and military action.
What is the UN Security Council?
This form of tax that is placed on imports that is levied at the border and paid by the importer.
What are tariffs?
This term refers to the formal or informal arrangement that most states share to manage how their currencies relate to one another in the world economy.
What is an international monetary regime?
This type of armed conflict occurs when groups with vastly unequal military capabilities face each other, such as when rebels or terrorist organizations take on far stronger state forces.
What is asymmetrical warfare?
An important international institution that provides loans at below-market interest rates to developing countries, typically to enable them to carry out development projects.
What is the World Bank?
This article in the UN authorizes the Security Council to order military action by air, sea, or land when non-force measures prove insufficient to maintain or restore international peace and security.
What is Article 42?
Obstacles to imports other than tariffs (trade taxes). Examples include restrictions on the number of products that can be imported (quantitative restrictions, or quotas); regulations that favor domestic over imported products.
What are nontariff barriers to trade?
This national institution manages a country’s monetary conditions by adjusting interest rates and controlling how much money circulates in the economy.
What is a central bank?
Civil wars are most likely in political systems that fall between democracies and autocracies, a pattern researchers describe using this shape.
What is the inverted U-shape?
This term refers to the total amount a national government owes to its lenders, including foreign governments, private banks, and other creditors.
What is sovereign debt?
Kearns et al. note that criticisms of the UN often center on this structural feature of the Security Council that grants unequal influence to a small number of states.
What is the veto power of the permanent five?
A model of trade relations that emphasizes the sector in which factors of production are employed rather than the nature of the factor itself.
What is specific factors model?
A rise in domestic interest rates attracts foreign capital seeking higher returns. This inflow increases demand for the home currency, causing this type of currency movement.
What is appreciation?
Civil wars are more likely when states possess these kinds of natural resources, which are easy for armed groups to extract and sell.
What are lootable resources?