IN THEORY
Theory: prioritize trade surpluses (and gold!)
What is Mercantilism?
Acceptance of unequal power distribution
What is Power Distance?
Only regional trade agreement that's a full economic union
What is the EU?
The basis for most currencies for 250+ years
What is the gold standard?
The IGO which promotes stable exchange rates
What is the IMF?
Theory: you can benefit trading with the less efficient
What is Comparative Advantage?
Tolerance for risk and ambiguity
What is Uncertainty Avoidance?
A customs union plus free movement of labor and capital
What is a common market?
The alternative to the gold standard
What is floating exchange rates?
The international reserve currency created by the IMF
What is the Special Drawing Right (SDR)?
Theory: look to proportions of land, labor, and capital
What is Heckscher-Ohlin? (Factor Endowment)
Persistence vs quick gratification
What is Long-Term Orientation?
The largest free trade area in the world
What is the RCEP?
The trade balance, plus investment and capital flows
What is the balance of payments?
The IGO whose organizations focus on development
What is the World Bank?
Theory: production moves near consumers in mature market
What is Product Life Cycle?
Personal goals vs group goals
What is Individualism-Collectivism?
The most comprehensive trade agreement (166 members)
What is the WTO?
The effect of rising domestic interest rates on a currency
What is strengthening?
World Bank arm for interest-free loans to the poorest countries
What is the IDA?
Theory: the edge goes to those with global economies of scale
What is Global Strategic Rivalry?
Task oriented vs person oriented
What is Motivation toward Achievement? (Masculinity)
The agreement that replaced NAFTA
What is the USMCA?
The effect of rising domestic inflation on a currency
What is weakening?
World Bank arm for structured finance to middle income lands
What is the IFC?