{"id":75,"date":"2025-04-08T12:58:07","date_gmt":"2025-04-08T12:58:07","guid":{"rendered":"https:\/\/routledgelearning.com\/globalpoliticaleconomy\/?page_id=75"},"modified":"2025-05-07T11:40:07","modified_gmt":"2025-05-07T11:40:07","slug":"glossary","status":"publish","type":"page","link":"https:\/\/routledgelearning.com\/globalpoliticaleconomy\/glossary\/","title":{"rendered":"Glossary"},"content":{"rendered":"\n
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Click on the appropriate letter to view the glossary.<\/p>\n\n\n\n

A<\/summary>\n

absolute advantage <\/strong> <\/p>\n\n\n\n

A country has an absolute advantage in a particular good if it can produce that good at a lower cost than another country. See comparative advantage. <\/p>\n\n\n\n

absolute gains <\/strong> <\/p>\n\n\n\n

Emphasizes the gains of each state without concern for the gains of others. See relative gains. <\/p>\n\n\n\n

actors <\/strong> <\/p>\n\n\n\n

Persons or organizations who have power to influence, decide or act in a situation <\/p>\n\n\n\n

African Continental Free Trade Area (AfCFTA) <\/strong> <\/p>\n\n\n\n

A free trade agreement covering the African continent, signed in 2018 <\/p>\n\n\n\n

antidumping duties (ADDs) <\/strong> <\/p>\n\n\n\n

Duties a country imposes on imported goods if it determines that the goods are being dumped and that this is causing or threatening material injury to its domestic producers. See dumping. <\/p>\n\n\n\n

appreciation <\/strong> <\/p>\n\n\n\n

A market-driven increase in the value or price of a currency. See depreciation. <\/p>\n\n\n\n

Asian Financial Crisis (AFC)<\/strong> <\/p>\n\n\n\n

Financial crisis in East and Southeast Asia from 1997\u2013 2000, sparked by a run on Southeast Asian currencies, based upon concerns around real estate bubbles <\/p>\n\n\n\n

Asian Infrastructure Investment Bank (AIIB) <\/strong> <\/p>\n\n\n\n

Launched by China in 2014, the AIIB (which now has 76 member countries) provides funds for large infrastructure projects. <\/p>\n\n\n\n

Association of Southeast Asian Nations (ASEAN) <\/strong> <\/p>\n\n\n\n

Established in 1967, ASEAN currently has 10 Southeast Asian members. The ASEAN Free Trade Area (AFTA) has made some progress toward free trade. <\/p>\n\n\n\n

automation <\/strong> <\/p>\n\n\n\n

Refers to the use of machines to perform tasks previously requiring human labor. Raises concerns about redundancy. <\/p>\n<\/details>\n\n\n\n

B<\/summary>\n

Baker Plan <\/strong> <\/p>\n\n\n\n

Proposed by US Secretary of the Treasury James A. Baker III in 1985 to deal with the LDC foreign debt crisis, the plan called for rescheduling debt service payments, providing new IMF and World Bank loans, and changing debtor country policies. <\/p>\n\n\n\n

balance of payments <\/strong><\/p>\n\n\n\n

A summary record of all international economic transactions a country has over a one-year period. The\u00a0<\/p>\n\n\n\n

most important components of the balance of payments are the current account and the financial account. <\/p>\n\n\n\n

balance of trade <\/strong> <\/p>\n\n\n\n

The net of exports minus imports for a country; if positive, called a surplus, if negative, a deficit. <\/p>\n\n\n\n

Bank for International Settlements (BIS) <\/strong> <\/p>\n\n\n\n

The oldest international financial institution, formed in 1930 to oversee German war reparations. Located in Basel, Switzerland, the BIS is the main forum for cooperation and consultation among central bankers in the OECD countries. <\/p>\n\n\n\n

barriers to entry <\/strong> <\/p>\n\n\n\n

Challenges for new companies or other producers to enter into markets, such as advanced technology\/know how, high capital investments required; this means many markets are not as competitive as economic theory proposes. <\/p>\n\n\n\n

basic needs <\/strong> <\/p>\n\n\n\n

A poverty reduction approach that focuses on health, education, family planning, rural development, and services to the poor and least developed countries. This approach became prominent in the 1970s and marked a shift from the emphasis on GNP growth in the 1960s. <\/p>\n\n\n\n

Beijing Model, Beijing consensus <\/strong> <\/p>\n\n\n\n

Refers to the role model that China\u2019s rapid development serves for the South, including major state intervention via industrial policy; state control of finance; and the alternative trading and investment relationships that China provides. <\/p>\n\n\n\n

Belt and Road Initiative <\/strong> <\/p>\n\n\n\n

Chinese loans to recipient countries for infrastructure inspired by the famous Silk Road. Seeks to enhance economic relations with partners through strategic investments. <\/p>\n\n\n\n

bilateral aid <\/strong> <\/p>\n\n\n\n

Aid that flows directly from a donor to a recipient government. The largest share of ODA is bilateral. <\/p>\n\n\n\n

bilateral investment treaties (BITs) <\/strong> <\/p>\n\n\n\n

BITs protect foreign investment. They uphold the MFN and national treatment principles, prohibit host-country performance requirements, and require compensation in cases of nationalization. <\/p>\n\n\n\n

bourgeoisie <\/strong> <\/p>\n\n\n\n

In a capitalist system, the bourgeoisie is the capital-owning class. <\/p>\n\n\n\n

Brady Plan <\/strong> <\/p>\n\n\n\n

Proposed by US Secretary of the Treasury Nicholas Brady in 1988, the plan introduced the idea that debt reduction was necessary for some LDCs with severe and protracted debt problems. <\/p>\n\n\n\n

Bretton Woods Conference <\/strong> <\/p>\n\n\n\n

The July 1944 conference to establish the postwar international economic order. The IMF and World Bank were established at Bretton Woods. <\/p>\n\n\n\n

Brexit <\/strong> <\/p>\n\n\n\n

Refers to the UK\u2019s decision to leave the European Union, based upon a 2016 referendum. The terms and issue remain contested. <\/p>\n\n\n\n

BRIC economies <\/strong> <\/p>\n\n\n\n

Four countries \u2013 Brazil, Russia, India, and China \u2013 that are challenging the North\u2019s economic dominance. <\/p>\n\n\n\n

BRICS economies <\/strong> <\/p>\n\n\n\n

The BRIC economies plus South Africa. <\/p>\n\n\n\n

brownfield investment <\/strong> <\/p>\n\n\n\n

Investment in an existing plant or company. <\/p>\n\n\n\n

business cycles <\/strong> <\/p>\n\n\n\n

The tendency for economies to go through periods of rapid growth followed by recessions or economic declines. <\/p>\n<\/details>\n\n\n\n

C<\/summary>\n

Cairns Group <\/strong> <\/p>\n\n\n\n

A group of smaller country agricultural exporters formed in 1986 that has pressured for agricultural trade liberalization in the GATT\/WTO. <\/p>\n\n\n\n

Canada\u2013US Free Trade Agreement (CUSFTA) <\/strong> <\/p>\n\n\n\n

Concluded in 1988, CUSFTA resulted from a US decision to participate in PTAs, and from Canada\u2019s desire to gain more assured access to the US market. NAFTA replaced CUSFTA in 1994. See North American Free Trade Agreement. <\/p>\n\n\n\n

capital <\/strong> <\/p>\n\n\n\n

A factor of production, along with land and labor, that consists of physical assets such as equipment, tools, buildings, and other manufactured goods that can generate income and financial assets. <\/p>\n\n\n\n

capital market <\/strong> <\/p>\n\n\n\n

Consists of institutions in a country (e.g., the stock exchange, banks, and insurance companies) that match supply with demand for long-term capital. (A money market deals with shorter-term loanable funding.) <\/p>\n\n\n\n

capitalist class<\/strong> <\/p>\n\n\n\n

see bourgeoisie <\/p>\n\n\n\n

central bank <\/strong> <\/p>\n\n\n\n

A public authority responsible for managing a country\u2019s money supply, and for regulating its financial institutions and markets. <\/p>\n\n\n\n

civil society <\/strong> <\/p>\n\n\n\n

A wide range of nongovernmental, noncommercial groups that seek to either reinforce or alter existing norms, rules, and social structures. <\/p>\n\n\n\n

class mobility <\/strong> <\/p>\n\n\n\n

The ability for a lower or middle class person to move up in income and wealth. <\/p>\n\n\n\n

climate change <\/strong> <\/p>\n\n\n\n

Changes in weather patterns based on humans\u2019 release of greenhouse gases through burning fossil fuels. Can lead to catastrophic damages to human and natural systems. <\/p>\n\n\n\n

club good <\/strong> <\/p>\n\n\n\n

Somewhere between a pure public good and a private (individual good), a club good is too expensive for any one individual to provide, but it can be exclusive. <\/p>\n\n\n\n

collective action problem <\/strong> <\/p>\n\n\n\n

Occurs when the uncoordinated actions of individuals or states do not produce the best possible outcome <\/p>\n\n\n\n

for them. <\/p>\n\n\n\n

commodities <\/strong> <\/p>\n\n\n\n

Largely undifferentiated products or services that tend to be sold in bulk; generally reflects the global division of labor, with the South primarily involved in commodity production. <\/p>\n\n\n\n

common market <\/strong> <\/p>\n\n\n\n

A common market has the characteristics of a customs union plus the free mobility of factors of production (capital and labor). See customs union. <\/p>\n\n\n\n

common property goods <\/strong> <\/p>\n\n\n\n

Resources such as air, water, outer space, and fish in nonterritorial waters that are rival (they can be depleted) but not excludable (no one owns them). <\/p>\n\n\n\n

comparative advantage <\/strong> <\/p>\n\n\n\n

A country has a comparative advantage in producing good X if it can produce X at a relatively lower cost than other goods, even if it does not have an absolute advantage in producing any good. See absolute advantage. <\/p>\n\n\n\n

Comprehensive and Progressive Trans-Pacific Partnership (CPTPP)<\/strong> <\/p>\n\n\n\n

Major trade agreement among 11 countries in the Asia-Pacific region. Signed in March 2018, the CPTPP entered into force in December 2018 for the six countries that ratified it. Successor to the TPP, the precursor organized by the US before it pulled out. <\/p>\n\n\n\n

concessional loans <\/strong> <\/p>\n\n\n\n

Loans with lower interest rates, longer grace periods, and longer repayment periods than commercial or hard loans; also called \u201csoft loans.\u201d <\/p>\n\n\n\n

Conditionality<\/strong> <\/p>\n\n\n\n

IMF conditions on loans that typically include borrowers\u2019 agreement to decrease government spending, increase government revenues, and adopt policies that facilitate deregulation and privatization. <\/p>\n\n\n\n

constructivism <\/strong> <\/p>\n\n\n\n

A theory that examines the role of collectively held (or \u201cintersubjective\u201d) ideas in IR. Constructivists believe that reality is socially constructed. <\/p>\n\n\n\n

consultative groups <\/strong> <\/p>\n\n\n\n

Donors use consultative groups to coordinate their bilateral aid-giving and to exert collective pressure on recipient states. <\/p>\n\n\n\n

core <\/strong> <\/p>\n\n\n\n

In dependency and world systems theory, the capitalist countries who control the global economy and extract the majority of profits. <\/p>\n\n\n\n

corporate social responsibility (CSR) <\/strong> <\/p>\n\n\n\n

The contributions a corporation may be expected to make to society. Some analysts see CSR as a legal responsibility of MNCs, while others simply view it as desirable behavior. <\/p>\n\n\n\n

Cotonou Agreement <\/strong> <\/p>\n\n\n\n

An agreement negotiated in 2000 to make the EU\u2019s relationship with associate ACP (African, Caribbean, Pacific) states more compatible with WTO rules. See Lom\u00e9 Convention. <\/p>\n\n\n\n

Counterhegemony<\/strong> <\/p>\n\n\n\n

Part of Gramscian theory that sees the possibility for an anti-capitalist movement to arise, fighting both capitalism\u2019s exploitation and the attempt to legitimize its exploitative effects. <\/p>\n\n\n\n

countervailing duties (CVDs) <\/strong> <\/p>\n\n\n\n

Duties a country imposes on imported goods if it determines that the goods benefit from trade distorting subsidies that cause or threaten material injury to its domestic producers. <\/p>\n\n\n\n

COVID-19 pandemic <\/strong> <\/p>\n\n\n\n

Global disease outbreak that surged from 2020 to 2022, killing over 7 million until vaccines were developed, according to the WHO in 2024 (found at https:\/\/www.who.int\/emergencies\/diseases\/<\/a> novel- coronavirus-2019 [accessed: May 3, 2024]). <\/p>\n\n\n\n

cryptocurrency <\/strong> <\/p>\n\n\n\n

A virtual (internet-based) currency that uses blockchain technology to record transactions. <\/p>\n\n\n\n

current account <\/strong> <\/p>\n\n\n\n

An item in the balance of payments that records a country\u2019s trade in goods and services with foreigners, investment income and payments, and gifts and other transfers paid to and received from foreigners. <\/p>\n\n\n\n

customs union (CU) <\/strong> <\/p>\n\n\n\n

Member states eliminate tariffs on substantially all trade with each other and develop a common external tariff toward outsiders. <\/p>\n<\/details>\n\n\n\n

D<\/summary>\n

debt crisis <\/strong> <\/p>\n\n\n\n

A crisis that occurs when some major debtor states lack sufficient foreign exchange to make the interest and\/or principal payments on their debt obligations. <\/p>\n\n\n\n

debt reduction agreements <\/strong> <\/p>\n\n\n\n

Agreements that allow for a decrease in the overall debt burden; that is, they include some debt forgiveness. <\/p>\n\n\n\n

debt rescheduling agreements <\/strong> <\/p>\n\n\n\n

Agreements that defer debt service payments and apply longer maturities to the deferred amount. <\/p>\n\n\n\n

debt service ratio <\/strong> <\/p>\n\n\n\n

The ratio of a country\u2019s interest and principal payments on its debt to its export income. It is often used to assess a country\u2019s ability to repay its foreign debt. <\/p>\n\n\n\n

dependency theory <\/strong> <\/p>\n\n\n\n

A development theory that sees the world as hierarchically organized, with capitalist states in the core of the global economy exploiting poorer states in the periphery. <\/p>\n\n\n\n

dependent development <\/strong> <\/p>\n\n\n\n

The idea that a country can improve its income while still remaining marginalized by continuing a similar role in the global economy; see semi-periphery. <\/p>\n\n\n\n

depreciation <\/strong> <\/p>\n\n\n\n

A market-driven reduction in the value or price of a currency. See appreciation. <\/p>\n\n\n\n

devaluation <\/strong> <\/p>\n\n\n\n

A reduction in the official rate at which one currency is exchanged for another. When a country devalues its currency, the prices of its imported goods and services rise while its exports become less expensive to foreigners. See revaluation. <\/p>\n\n\n\n

Development Assistance Committee (DAC) <\/strong> <\/p>\n\n\n\n

Part of the OECD, the DAC is the leading international forum for states that provide development assistance. <\/p>\n\n\n\n

developmental state <\/strong> <\/p>\n\n\n\n

A term coined in the 1980s to describe East Asian NIEs that provided extensive guidance to the market, made development their primary objective, invested heavily in education, and depended on a highly skilled technocratic bureaucracy. <\/p>\n\n\n\n

diffuse reciprocity <\/strong> <\/p>\n\n\n\n

Does not require an immediate response to an action. Instead, it imposes a more general obligation on the recipient for repayment in the future. See specific reciprocity. <\/p>\n\n\n\n

Doha Development Agenda (DDA) <\/strong> <\/p>\n\n\n\n

The name given to the WTO Doha Round, because of its promise to give special attention to concerns of the least developed countries. <\/p>\n\n\n\n

dumping <\/strong> <\/p>\n\n\n\n

When a firm sells a product for export at a lower price than it charges in the home market or below the cost of production. <\/p>\n<\/details>\n\n\n\n

E<\/summary>\n

economic and monetary union (EMU) <\/strong> <\/p>\n\n\n\n

The EMU includes the countries in the EU that have adopted the euro and common monetary policies. <\/p>\n\n\n\n

economic statecraft <\/strong> <\/p>\n\n\n\n

The use of economic tools to pursue foreign policy. <\/p>\n\n\n\n

economic union <\/strong> <\/p>\n\n\n\n

An economic union has the characteristics of a common market, and also harmonizes the industrial, regional, fiscal, and monetary policies of the member states. A full economic union also involves the adoption <\/p>\n\n\n\n

of a common currency. See common market, customs union. <\/p>\n\n\n\n

economism <\/strong> <\/p>\n\n\n\n

An overemphasis on the importance of economics. <\/p>\n\n\n\n

emerging economies <\/strong> <\/p>\n\n\n\n

Developing and transition economies that have achieved rapid growth and have adopted many elements of a free market system. <\/p>\n\n\n\n

endogenous growth theory <\/strong> <\/p>\n\n\n\n

Posits that technological change is not simply the result of fortunate breakthroughs in knowledge exogenous to the factors of production; technological knowledge is an endogenous factor of production along with labor and capital that gives Northern economies advantages over LDCs. <\/p>\n\n\n\n

epistemic community <\/strong> <\/p>\n\n\n\n

A group of professionals with acknowledged expertise and a recognized claim to policy-relevant knowledge in a particular issue area. <\/p>\n\n\n\n

Eurasian Economic Union <\/strong> <\/p>\n\n\n\n

A 2015 agreement for closer economic ties between Russia and Belarus, Kazakhstan, Armenia, and Kyrgyzstan. <\/p>\n\n\n\n

eurocurrency market <\/strong> <\/p>\n\n\n\n

Deals with currencies traded and deposited in banks outside the home country, usually (but not only) in Europe. <\/p>\n\n\n\n

European Coal and Steel Community (ECSC) <\/strong><\/p>\n\n\n\n

Six Western European states formed the ECSC in 1951 to integrate their coal and steel resources and prevent renewed conflict between France and Germany.\u00a0<\/p>\n\n\n\n

European Community (EC) <\/strong><\/p>\n\n\n\n

A regional integration agreement formed in 1957 by six Western European states. EC membership increased to 12 states by 1986, and in 1993 it was superseded by the European Union.\u00a0<\/p>\n\n\n\n

European Free Trade Association (EFTA) <\/strong><\/p>\n\n\n\n

A free trade agreement formed in 1959 by the United Kingdom and six other European states that did not join the EC. Today, the EFTA has four remaining members: Iceland, Liechtenstein, Norway, and Switzerland.\u00a0<\/p>\n\n\n\n

European Union (EU) <\/strong><\/p>\n\n\n\n

The EC became the EU in 1993, with plans to complete the creation of a single market by removing the remaining fiscal, nontariff, and technical trade barriers. The EU currently has 28 members, but the UK is currently negotiating the terms of its departure from the EU as a result of Brexit.\u00a0<\/p>\n\n\n\n

eurozone <\/strong> <\/p>\n\n\n\n

The members of the European Union that have adopted the euro as their common currency. <\/p>\n\n\n\n

exchange rates <\/strong> <\/p>\n\n\n\n

The number of units of one currency that can be exchanged for a unit of another currency. See fixed exchange rates and floating exchange rates. <\/p>\n\n\n\n

exorbitant privilege <\/strong> <\/p>\n\n\n\n

As the effective global currency, the US has been able to run a \u201ctwin deficit\u201d on both the capital and trade accounts. <\/p>\n\n\n\n

export-led growth <\/strong> <\/p>\n\n\n\n

A strategy that emphasizes the production of industrial goods for export. Export-led growth is associated with the economic success of the East Asian NIEs. <\/p>\n\n\n\n

Export-Oriented Industrializaton (EOI) <\/strong> <\/p>\n\n\n\n

Refers to a development strategy oriented towards accumulating surpluses and capacity in new industries through state support of new export industries; according to some authors, is the \u201crecipe\u201d behind East Asian development success. <\/p>\n\n\n\n

external debt <\/strong> <\/p>\n\n\n\n

The total public and private debt owed to nonresidents by residents of an economy. <\/p>\n<\/details>\n\n\n\n

F<\/summary>\n

failed state <\/strong> <\/p>\n\n\n\n

A state with weak or limited support from the population, generally stemming from conflict or economic or political collapse. <\/p>\n\n\n\n

fair trade <\/strong> <\/p>\n\n\n\n

A trading partnership that contributes to greater equity and sustainable development by securing more rights and better conditions for marginalized workers, especially in the South. <\/p>\n\n\n\n

FDI flows <\/strong> <\/p>\n\n\n\n

The value of FDI in a single year. <\/p>\n\n\n\n

FDI stock <\/strong> <\/p>\n\n\n\n

The net accumulated value of FDI resulting from past FDI flows. <\/p>\n\n\n\n

feminist theory <\/strong> <\/p>\n\n\n\n

A wide range of theories that address the problems of patriarchy and the inattention to gender issues in IR and IPE. <\/p>\n\n\n\n

financial account <\/strong> <\/p>\n\n\n\n

A balance-of-payments item that includes all movements of financial capital (foreign direct investment and portfolio investment) into and out of a state. <\/p>\n\n\n\n

financial contagion <\/strong> <\/p>\n\n\n\n

The transmission of a financial shock from one market or country to other interdependent markets or countries. <\/p>\n\n\n\n

financial crisis <\/strong> <\/p>\n\n\n\n

An escalation of financial disturbances, such as a sharp decrease in asset prices, the failure of large financial intermediaries, and disruption in foreign exchange markets. <\/p>\n\n\n\n

financial regulation <\/strong> <\/p>\n\n\n\n

The rules by which finance is guided, for example, financial disclosure requirements or bank reserve ratios. <\/p>\n\n\n\n

financialization <\/strong> <\/p>\n\n\n\n

The rise of global finance from the early 2000s into an industry for investment and speculation not directly tied to investment in other industries. <\/p>\n\n\n\n

fiscal policy<\/strong> <\/p>\n\n\n\n

 <\/strong>Fiscal policy affects the economy through changes in taxes and government spending. For example, a government may deal with a balance-of-payments deficit by lowering government expenditures and raising taxes. <\/p>\n\n\n\n

fixed exchange rates <\/strong> <\/p>\n\n\n\n

In a fixed-exchange-rate regime, currencies are given official exchange rates, and governments regularly take actions to keep the market rates of their currencies close to the official rates. <\/p>\n\n\n\n

flexible specialization <\/strong> <\/p>\n\n\n\n

referring to industries or sectors that still require specialized human skill inputs (craftsmanship), thus allowing for them to earn better incomes. <\/p>\n\n\n\n

floating exchange rates <\/strong> <\/p>\n\n\n\n

There are three types of floating: With free floating, the market alone determines currency valuations; with managed floating, central banks intervene to deal with disruptive conditions; with manipulative floating, a government manipulates exchange rates to give it an unfair competitive advantage. <\/p>\n\n\n\n

Fordism <\/strong> <\/p>\n\n\n\n

Critical approach that sees increasing alienation among workers who are subject to assembly lines in mass production. <\/p>\n\n\n\n

foreign aid <\/strong> <\/p>\n\n\n\n

Grants, loans, or technical assistance that donors provide to recipients on concessional terms (normally with a grant element of at least 25 percent). See concessional loans. <\/p>\n\n\n\n

foreign direct investment (FDI) <\/strong> <\/p>\n\n\n\n

Foreign investment that involves some ownership and\/ or operating control. The foreign residents are usually MNCs. See portfolio investment. <\/p>\n\n\n\n

free trade area (FTA) <\/strong> <\/p>\n\n\n\n

Member states eliminate tariffs on substantially all trade with one another, but each member can follow its own trade policies toward non-members. <\/p>\n<\/details>\n\n\n\n

G<\/summary>\n

GATT Article 24 <\/strong> <\/p>\n\n\n\n

Permits countries to form free trade areas and customs unions as an exception to MFN treatment, but seeks to ensure that they are more trade-creating than trade-diverting. <\/p>\n\n\n\n

gendered division of labor <\/strong><\/p>\n\n\n\n

the restriction of career paths to women; the tendency for women to occupy caregiving and service careers and have less opportunities for other careers, such as manufacturing.\u00a0<\/p>\n\n\n\n

General Agreement on Tariffs and Trade (GATT) <\/strong><\/p>\n\n\n\n

A provisional treaty that became the global trade organization in 1948 when a planned ITO was not formed. When the WTO was formed in 1995, GATT reverted to its original status as a treaty for trade in goods.\u00a0<\/p>\n\n\n\n

General Agreement on Trade in Services (GATS) <\/strong> <\/p>\n\n\n\n

An agreement under the WTO that begins the process of creating principles and rules for policies affecting access to service markets. <\/p>\n\n\n\n

generalized system of preferences (GSP) <\/strong> <\/p>\n\n\n\n

Under the GSP, individual Northern economies can waive MFN treatment and give preferential treatment to specific imports from LDCs. <\/p>\n\n\n\n

gig economy <\/strong> <\/p>\n\n\n\n

Refers to the increasing number of jobs that are casual in nature, related to the ability of the Internet to allocate work that can be done remotely and\/or in an individual, asynchronous manner. <\/p>\n\n\n\n

Gini coefficient <\/strong> <\/p>\n\n\n\n

Measures the deviation of income distribution in a country from an equal distribution. <\/p>\n\n\n\n

Glass\u2013Steagall Act <\/strong> <\/p>\n\n\n\n

Also called the US Banking Act of 1933, it was designed to insulate commercial banks from the risky activities of investment banks. The Act was repealed in 1999. <\/p>\n\n\n\n

Global Compact <\/strong> <\/p>\n\n\n\n

A UN-led voluntary compact with principles on human rights, labor standards, the environment, and anticorruption to promote responsible global capitalism. The UN has invited MNCs to sign the compact. <\/p>\n\n\n\n

global financial crisis of 2008 <\/strong> <\/p>\n\n\n\n

Began as a result of a US subprime mortgage crisis. Subprime mortgages were packaged and sold to investors in many countries and this had serious global repercussions. See financial crisis. <\/p>\n\n\n\n

global governance <\/strong> <\/p>\n\n\n\n

Formal and informal arrangements that provide a degree of order and collective action above the state in the absence of a global government. See governance. <\/p>\n\n\n\n

global minimum tax <\/strong> <\/p>\n\n\n\n

Proposal for a minimum tax on corporations, to avoid tax avoidance, led by the US and agreed upon by a number of Western counterparts, but not yet enacted. <\/p>\n\n\n\n

global political economy <\/strong> <\/p>\n\n\n\n

The study of how global economic issues from the perspective of politics, and the study of global politics from the perspective of economics. Considers multiple actors. <\/p>\n\n\n\n

global value chains <\/strong> <\/p>\n\n\n\n

Theoretical approach that sees global integration of production leading to country specialization in components of final products. Attempts to explain where components are produced based on the nature of the supply chain. <\/p>\n\n\n\n

globalists <\/strong> <\/p>\n\n\n\n

Actors who see increasing global interactions as, on the whole, positive. <\/p>\n\n\n\n

globalization <\/strong> <\/p>\n\n\n\n

Refers to the broadening and deepening of interdependence among people and states throughout the world. <\/p>\n\n\n\n

gold exchange standard <\/strong> <\/p>\n\n\n\n

A monetary system in which central banks fix the value of their currencies and hold international reserves in gold and foreign exchange (e.g., the Bretton Woods regime). <\/p>\n\n\n\n

gold standard <\/strong> <\/p>\n\n\n\n

A monetary system in which central banks fix the value of their currencies in terms of gold and hold international reserves in gold. A gold standard regime existed from the 1870s to 1914. <\/p>\n\n\n\n

governance <\/strong> <\/p>\n\n\n\n

Formal and informal processes and institutions that organize collective action. See global governance. <\/p>\n\n\n\n

government failure <\/strong> <\/p>\n\n\n\n

The failure of a government investment or intervention to reach the expected outcomes. <\/p>\n\n\n\n

gravity model <\/strong> <\/p>\n\n\n\n

Theory about trade flows based on the size of the interacting economies and their geographical distance. <\/p>\n\n\n\n

greenfield investment <\/strong> <\/p>\n\n\n\n

The creation of new facilities and productive assets by foreigners. <\/p>\n\n\n\n

gross domestic product (GDP) <\/strong> <\/p>\n\n\n\n

The total value of goods and services produced within a country\u2019s borders during a given year. GDP counts income in terms of where it is earned rather than who owns the factors of production. <\/p>\n\n\n\n

gross national income (GNI) <\/strong> <\/p>\n\n\n\n

Virtually identical with the GNP. The GNI measures the income produced by the GNP rather than the value of the product itself. <\/p>\n\n\n\n

gross national product (GNP) <\/strong> <\/p>\n\n\n\n

The total value of goods and services produced by domestically owned factors of production during a given year. GNP counts income according to who owns the factors of production rather than where the income is earned. <\/p>\n\n\n\n

Group of Five (G5) <\/strong> <\/p>\n\n\n\n

The G5 includes the finance ministers and central bank governors of the largest Northern economies: the United States, Japan, Germany, France, and the United Kingdom. <\/p>\n\n\n\n

Group of Seven (G7) <\/strong> <\/p>\n\n\n\n

The G5 plus Italy and Canada. <\/p>\n\n\n\n

Group of Eight (G8) <\/strong> <\/p>\n\n\n\n

The G8 included the G7 members plus Russia. <\/p>\n\n\n\n

Group of 10 (G10) <\/strong> <\/p>\n\n\n\n

The G10 includes the Northern economies that established the General Arrangements to Borrow with the IMF in 1962. Eleven countries are now G10 members \u2013 the G7 plus the Netherlands, Belgium, Sweden, and Switzerland. <\/p>\n\n\n\n

Group of 20 (G20) <\/strong> <\/p>\n\n\n\n

The G20 finance ministers and central bank governors hold an annual summit to discuss key issues in the global economy, and also meet on extraordinary occasions such as the 2008 global financial crisis. Includes the G7, Russia, Australia, Turkey, the EU, and nine LDCs. <\/p>\n\n\n\n

Group of 24 (G24) <\/strong> <\/p>\n\n\n\n

Formed in 1972 to represent LDC interests on monetary issues, the G24 includes eight finance ministers or central bank governors from each of the main LDC regions \u2013 Africa, Asia, and Latin America. <\/p>\n\n\n\n

Group of 77 (G77) <\/strong> <\/p>\n\n\n\n

The principal group representing the South\u2019s economic interests in negotiations with the North. The G77 derives its name from the 77 LDCs that formed the group in 1964, but it has now 135 members. <\/p>\n<\/details>\n\n\n\n

H<\/summary>\n

hard power <\/strong> <\/p>\n\n\n\n

Power based on the use of coercion and payments. <\/p>\n\n\n\n

Heavily Indebted Poor Countries (HIPC) Initiative <\/strong> <\/p>\n\n\n\n

A 1996 plan to provide relief for the debt of low-income LDCs to the IMF and World Bank. An enhanced HIPC initiative introduced in 1999 more than doubled the amount of debt relief available. See Multilateral Debt Relief Initiative. <\/p>\n\n\n\n

Heckscher\u2013Ohlin theory <\/strong> <\/p>\n\n\n\n

Postulates that comparative advantage is determined by the relative abundance and scarcity of factors of production (land, labor, and capital). Capital- rich states should specialize in capital-intensive production, and states with an abundance of cheap labor should specialize in labor- intensive production. <\/p>\n\n\n\n

hegemonic stability theory <\/strong> <\/p>\n\n\n\n

Asserts that a relatively open and stable international economic system is more likely to exist when a hegemonic state is willing and able to lead. See hegemony. <\/p>\n\n\n\n

hegemony <\/strong> <\/p>\n\n\n\n

Leadership or dominance in the international system, usually associated with a particular state. Gramscian theorists use the term to connote the \u201cideas\u201d social groups use to legitimize their authority. <\/p>\n\n\n\n

historic bloc <\/strong> <\/p>\n\n\n\n

A Gramscian term referring to the congruence between state power, ideas, and institutions that guide the society and economy. <\/p>\n\n\n\n

historical materialism <\/strong> <\/p>\n\n\n\n

A critical perspective that is \u201chistorical\u201d because it examines structural change over time, and \u201cmaterialist\u201d because it examines the role of material factors in shaping society. <\/p>\n\n\n\n

horizontal integration <\/strong> <\/p>\n\n\n\n

A horizontally integrated MNC produces the same product or product line in affiliates in different countries. Firms often engage in horizontal integration to defend or increase their market share. See vertical integration. <\/p>\n\n\n\n

household division of labor <\/strong> <\/p>\n\n\n\n

Women do most of the work at home including cleaning, cooking and child rearing; this work is largely unrecognized and unrewarded by the formal economy. <\/p>\n\n\n\n

human development index (HDI) <\/strong> <\/p>\n\n\n\n

The UNDP\u2019s measure of human development based on life expectancy at birth, adult literacy rates and school enrollments, and PPP-adjusted per capita GNI. <\/p>\n<\/details>\n\n\n\n

I<\/summary>\n

import substitution industrialization (ISI) <\/strong> <\/p>\n\n\n\n

A strategy to replace industrial imports with domestic production through trade protectionism and government support for domestic firms. Many LDCs adopted ISI policies in the 1950s\u20131960s. <\/p>\n\n\n\n

inequality-adjusted HDI (IHDI) <\/strong> <\/p>\n\n\n\n

Combines a country\u2019s average achievements in health, education, and income with the distribution of these achievements among the country\u2019s population. <\/p>\n\n\n\n

infant industries <\/strong> <\/p>\n\n\n\n

Industries not yet able to compete with established industries in more developed countries. <\/p>\n\n\n\n

infrastructure <\/strong> <\/p>\n\n\n\n

The facilities, equipment, institutions, and installations crucial for the functioning of an economy. Examples include transportation systems, public utilities, law enforcement, education, and research. <\/p>\n\n\n\n

institutional liberals <\/strong> <\/p>\n\n\n\n

Liberals who favor strong international institutions as a supplement to the market. <\/p>\n\n\n\n

Institutions<\/strong> <\/p>\n\n\n\n

Persistent and connected sets of rules that prescribe behavior, constrain activity, and shape expectations. <\/p>\n\n\n\n

instrumental Marxism <\/strong> <\/p>\n\n\n\n

Marxists who view government institutions as responding in a passive manner to the interests and pressures of the capitalist class. See structural Marxism. <\/p>\n\n\n\n

interdependence <\/strong> <\/p>\n\n\n\n

Mutual dependence in which transactions have costly effects that are reciprocal but not necessarily symmetrical. <\/p>\n\n\n\n

International Monetary Fund (IMF) <\/strong> <\/p>\n\n\n\n

An IO formed in 1944 to uphold the system of pegged exchange rates and to provide short-term loans to countries with balance-of-payments problems. The IMF has had a leading role in dealing with financial crises. <\/p>\n\n\n\n

international organizations (IOs) <\/strong> <\/p>\n\n\n\n

Formal institutional arrangements across national boundaries that facilitate cooperation among members. See institutions. <\/p>\n\n\n\n

international political economy <\/strong> <\/p>\n\n\n\n

The study of how global economic issues from the <\/p>\n\n\n\n

perspective of politics, and the study of global politics from the perspective of economics. <\/p>\n\n\n\n

Focuses on states (governments) as key actors. <\/p>\n\n\n\n

international regimes <\/strong> <\/p>\n\n\n\n

Institutions in which actors\u2019 expectations converge around a set of principles, norms, rules, and decision-making procedures. See institutions. <\/p>\n\n\n\n

intersectionality <\/strong> <\/p>\n\n\n\n

The confluence of factors of marginalization, including race, gender, ethnicity, sexuality and class. <\/p>\n\n\n\n

interventionist liberals <\/strong> <\/p>\n\n\n\n

Liberals who support some government involvement to promote more equality and justice in a free market economy. <\/p>\n\n\n\n

intrafirm trade <\/strong> <\/p>\n\n\n\n

Trade within a firm, often between an MNC and its subsidiaries. <\/p>\n\n\n\n

intraindustry trade <\/strong> <\/p>\n\n\n\n

In intraindustry trade, products are traded within the same industry group. <\/p>\n\n\n\n

investor-state dispute settlement (ISDS) provisions <\/strong> <\/p>\n\n\n\n

Give investors access to dispute settlement procedures against a foreign government. <\/p>\n\n\n\n

IPCC (Intergovernmental Panel on Climate Change) <\/strong> <\/p>\n\n\n\n

UN body that includes scientists from around the world (an epistemic community) who report on the threat of climate change. <\/p>\n<\/details>\n\n\n\n

J<\/summary>\n

No entries<\/p>\n<\/details>\n\n\n\n

K<\/summary>\n

Keynesianism<\/strong> <\/p>\n\n\n\n

Economic school of thought deriving from the work of Keynes. Sees the need for state intervention during economic busts (severe downturns) to stimulate demand where confidence lags. <\/p>\n\n\n\n

KIEOs <\/strong> <\/p>\n\n\n\n

Keystone international economic organizations, refers to the main global economic institutions, the World Bank, IMF, and WTO. <\/p>\n<\/details>\n\n\n\n

L<\/summary>\n

least developed countries (LLDCs)<\/strong> <\/p>\n\n\n\n

Have low per capita GNIs, weak human assets, and high economic vulnerability. <\/p>\n\n\n\n

Legitimation<\/strong> <\/p>\n\n\n\n

Gramscian term to describe the ways that dominant classes convince <\/p>\n\n\n\n

subordinate classes to accept the existing order. <\/p>\n\n\n\n

lender of last resort<\/strong> <\/p>\n\n\n\n

An institution willing and able to provide unlimited amounts of short-term credit to those with serious financial problems. <\/p>\n\n\n\n

level of analysis<\/strong> <\/p>\n\n\n\n

The arena of focus for the analyst- from individual leader to organization (ministry, corporation) to domestic politics to interstate or global relations. <\/p>\n\n\n\n

leverage <\/strong> <\/p>\n\n\n\n

The process by which an individual, firm, or bank can use borrowed money to make larger investments than they could with their own financial resources. <\/p>\n\n\n\n

liberal intergovernmentalism <\/strong> <\/p>\n\n\n\n

Describes European integration as resting on a series of bargains among member states, which are self- interested and rational in pursuing outcomes that serve their economic interests. <\/p>\n\n\n\n

liquidity <\/strong> <\/p>\n\n\n\n

The ease with which an asset can be used at a known price in making payments. Cash is the most liquid form of an asset. <\/p>\n\n\n\n

Lom\u00e9 Convention <\/strong> <\/p>\n\n\n\n

Trade and aid agreements between the EU and 71 ACP (African, Caribbean, and Pacific) countries that have associate status in the EU. In 2000, the Lom\u00e9 Convention was replaced by the more WTO- compatible Cotonou Agreement. <\/p>\n\n\n\n

London Clubs <\/strong> <\/p>\n\n\n\n

Informal groups where the largest private creditor banks hold debt rescheduling negotiations with individual LDC debtor countries. They are also called \u201cbank advisory committees\u201d or \u201cprivate creditor committees.\u201d See Paris Club. <\/p>\n<\/details>\n\n\n\n

M<\/summary>\n

Maastricht Treaty <\/strong> <\/p>\n\n\n\n

A 1992 treaty that renamed the EC the EU, and made commitments to form a monetary union, and common foreign, security, and social policies. <\/p>\n\n\n\n

market <\/strong> <\/p>\n\n\n\n

A coordinating mechanism where sellers and buyers exchange goods, services, and factors of production at prices and output levels determined by supply and demand. <\/p>\n\n\n\n

market economy <\/strong> <\/p>\n\n\n\n

An economy in which the market coordinates individual choices to determine the types of goods and services produced, and the methods of production. <\/p>\n\n\n\n

market failure <\/strong> <\/p>\n\n\n\n

Failure of the market to produce an optimal allocation of resources. <\/p>\n\n\n\n

Marshall Plan <\/strong> <\/p>\n\n\n\n

US assistance to Europe after World War II, lasting from 1948 to 1952 for an estimated $13.3 billion. <\/p>\n\n\n\n

mercantilism <\/strong> <\/p>\n\n\n\n

A policy of states from the sixteenth to eighteenth centuries to increase their relative power and wealth largely by maintaining a balance-of-trade surplus. <\/p>\n\n\n\n

Mercosur <\/strong> <\/p>\n\n\n\n

The Common Market of the Southern Cone, formed in March 1991 when Argentina, Brazil, Paraguay, and Uruguay agreed to eventually establish a common market. <\/p>\n\n\n\n

microfinance <\/strong> <\/p>\n\n\n\n

The provision of low-cost, short-term financial services, mainly savings and credit, to poor households that do not have access to traditional financial institutions. <\/p>\n\n\n\n

migration <\/strong> <\/p>\n\n\n\n

Movement of people across borders. An increasing concern in the US and Europe as various global crises push greater movement from the South. <\/p>\n\n\n\n

Millennium Development Goals (MDGs) <\/strong> <\/p>\n\n\n\n

In 2000, the UN established eight MDGs to be achieved by 2015. These have now been superseded by the SDGs. <\/p>\n\n\n\n

mode of production <\/strong> <\/p>\n\n\n\n

Marxist term to describe the class structure of a society, based on the division of labor by economic group. <\/p>\n\n\n\n

Monetarism <\/strong> <\/p>\n\n\n\n

A school of thought deriving from the work of Von Hayek and Milton Friedman that is skeptical about the ability of fiscal policy to guide the economy out of an inflationary cycle and sees monetary policy as the preferred policy tool. <\/p>\n\n\n\n

monetary policy <\/strong> <\/p>\n\n\n\n

Monetary policy influences the economy through changes in the money supply. For example, a central bank may deal with a balance-of-payments deficit by limiting public access to funds for spending purposes. <\/p>\n\n\n\n

moral hazard <\/strong> <\/p>\n\n\n\n

The idea that protection against risk encourages a person, firm, or state to engage in riskier behavior. For example, if a lender of last resort exists, states facing financial crises are more likely to take risks because they can count on the lender to rescue them. <\/p>\n\n\n\n

most-favored-nation (MFN) principle <\/strong> <\/p>\n\n\n\n

Stipulates that every trade advantage or privilege a GATT\/WTO member gives to any state must be extended to all other GATT\/WTO members. A major exception to MFN treatment is provided for preferential trade agreements. <\/p>\n\n\n\n

multilateral aid <\/strong> <\/p>\n\n\n\n

Aid in which donor governments provide funding through international organizations whose policies are collectively determined. <\/p>\n\n\n\n

Multilateral Debt Relief Initiative (MDRI) <\/strong> <\/p>\n\n\n\n

Established by the IMF and World Bank in 2006. Low-income LDCs that have their debts reduced under the enhanced HIPC initiative are eligible to have the rest of their debt to the IMF, World Bank, and African Development Bank canceled under the MDRI. See Heavily Indebted Poor Countries Initiative. <\/p>\n\n\n\n

multinational corporations (MNCs) <\/strong> <\/p>\n\n\n\n

Firms that own and control facilities for production, distribution, and marketing in at least two countries. Also referred to as transnational corporations or multinational enterprises. <\/p>\n\n\n\n

multiplier effect <\/strong> <\/p>\n\n\n\n

Deriving from Keynesian theory, refers to the fact that a fiscal stimulus (government spending) goes not only to the immediate recipient, but spreads through <\/p>\n\n\n\n

the economy as the recipients spend some of the money. <\/p>\n\n\n\n

Mundell\u2019s Trilemma <\/strong> <\/p>\n\n\n\n

See unholy trinity. <\/p>\n<\/details>\n\n\n\n

N<\/summary>\n

national treatment <\/strong> <\/p>\n\n\n\n

A principle that all WTO members should treat foreign products \u2013 after they have been imported \u2013 as favorably as domestic products with regard to internal taxes and regulations. <\/p>\n\n\n\n

neoconservatives (neo-cons) <\/strong> <\/p>\n\n\n\n

Foreign policy movement arising in the aftermath of the end of the Cold War, who saw an opportunity for US global primacy, to reshape the world towards its values. <\/p>\n\n\n\n

neofunctionalism <\/strong> <\/p>\n\n\n\n

Describes economic integration in one sector as creating pressures for spillover into other sectors. Political activism by interest-driven actors is an essential element of spillover. <\/p>\n\n\n\n

neo-Gramscian analysis <\/strong> <\/p>\n\n\n\n

A non-economistic Marxist theory that draws on the ideas of Antonio Gramsci and Robert Cox. <\/p>\n\n\n\n

neoliberalism <\/strong> <\/p>\n\n\n\n

The school of thought that is skeptical about state interference in markets. <\/p>\n\n\n\n

neomercantilism <\/strong> <\/p>\n\n\n\n

Focuses on the struggle among states for economic resources and the economic strategies the great powers use to further their national interests. <\/p>\n\n\n\n

neo-patrimonialism <\/strong> <\/p>\n\n\n\n

Describes a patron-client system of social relations in a society, where the client does work in return for favors from the patron. <\/p>\n\n\n\n

New Development Bank (NDB) <\/strong> <\/p>\n\n\n\n

Formed by the BRICS economies, the NDB will provide an alternative to the IMF and World Bank as a source of development funding. <\/p>\n\n\n\n

New International Economic Order (NIEO) <\/strong> <\/p>\n\n\n\n

LDC demands for extensive international economic reform and DC concessions presented to the UN in the 1970s. The North ultimately rejected most of these demands. <\/p>\n\n\n\n

newly industrializing economies (NIEs) <\/strong> <\/p>\n\n\n\n

A small number of rapidly growing and liberalizing economies in East Asia and Latin America that have presented a growing competitive challenge to the North. <\/p>\n\n\n\n

NIEO (New International Economic Order) <\/strong> <\/p>\n\n\n\n

Proposals by developing countries dating from the 1970s around creating a more equitable international order, including increasing Southern representation in IOs and increased North\u2013South equity, with attention to stabilizing and increasing the returns to commodity production. <\/p>\n\n\n\n

nontariff barriers (NTBs) <\/strong> <\/p>\n\n\n\n

A large array of measures that limit imports, assist domestic production, and promote exports. NTBs are often more restrictive, ill-defined, and inequitable than tariffs. <\/p>\n\n\n\n

North American Free Trade Agreement (NAFTA) <\/strong> <\/p>\n\n\n\n

An FTA formed in 1994 by the United States, Canada, and Mexico. NAFTA\u2019s importance has stemmed from US membership, the comprehensive nature of the agreement, and the fact that it was the first reciprocal FTA among Northern economies and an LDC. See USMCA, which supersedes NAFTA. <\/p>\n<\/details>\n\n\n\n

O<\/summary>\n

obsolescing bargain model (OBM) <\/strong> <\/p>\n\n\n\n

Postulates that an MNC loses some bargaining leverage once it invests in a host state, because it commits itself to some immobile resources in the host state. <\/p>\n\n\n\n

official development assistance (ODA) <\/strong> <\/p>\n\n\n\n

Foreign aid to LDCs and multilateral institutions from official government agencies. See foreign aid. <\/p>\n\n\n\n

official development finance (ODF) <\/strong> <\/p>\n\n\n\n

Official development loans with too low a grant element to qualify as official development assistance (e.g., IBRD loans). <\/p>\n\n\n\n

offshore financial center <\/strong> <\/p>\n\n\n\n

The presence of banking and financial services in a non-major economy, based on laxer regulations. <\/p>\n\n\n\n

OLI (Ownership, Location and Internalization) <\/strong> <\/p>\n\n\n\n

Refers to a common framework for understanding MNC investment location decision-making. Also known as Dunning\u2019s eclectic paradigm, after its originator. <\/p>\n\n\n\n

opportunity cost <\/strong> <\/p>\n\n\n\n

The cost of producing less of one product in order to produce more of another product. <\/p>\n\n\n\n

optimum currency area <\/strong> <\/p>\n\n\n\n

A region that maximizes the benefits of using a common currency. These regions are subject to common economic shocks, have a high degree of labor mobility, and have a tax transfer system that relocates resources to economically weaker areas. <\/p>\n\n\n\n

Organisation for Economic Co-operation and Development (OECD) <\/strong> <\/p>\n\n\n\n

An organization of 36 mainly Northern economies in Paris, France. It does policy studies on economic and social issues, serves as a forum to discuss members\u2019 economic policies, promotes cooperation, and is sometimes a forum for negotiation or pre-negotiation. <\/p>\n\n\n\n

Organisation for European Economic Co-operation (OEEC) <\/strong> <\/p>\n\n\n\n

An organization of Western European states formed in 1948 that distributed US Marshall Plan funds and facilitated moves toward currency convertibility and trade liberalization. In 1960, the OEEC was replaced by the OECD. <\/p>\n\n\n\n

Organization of Petroleum Exporting Countries (OPEC) <\/strong> <\/p>\n\n\n\n

An organization of LDC oil exporters formed in 1960 that acts as a resource cartel to manipulate oil supplies and prices. <\/p>\n\n\n\n

orthodox liberals <\/strong> <\/p>\n\n\n\n

Liberals who promote freedom of the market to function with minimal interference from the state. <\/p>\n<\/details>\n\n\n\n

P<\/summary>\n

Pareto-deficient outcome <\/strong> <\/p>\n\n\n\n

A condition in which all actors would prefer another outcome. See prisoners\u2019 dilemma. <\/p>\n\n\n\n

Pareto-optimal outcome <\/strong> <\/p>\n\n\n\n

A condition in which no actor can become better off without making someone else worse off. See prisoners\u2019 dilemma. <\/p>\n\n\n\n

Paris Club <\/strong> <\/p>\n\n\n\n

An informal group of DC creditor governments that meets with individual LDC debtor governments to negotiate debt- rescheduling agreements. See London Clubs. <\/p>\n\n\n\n

patriarchy <\/strong> <\/p>\n\n\n\n

A system of society or government in which men hold most of the power. <\/p>\n\n\n\n

periphery <\/strong> <\/p>\n\n\n\n

In dependency or world systems theory, the most marginalized countries, involved in primary (raw) materials production. <\/p>\n\n\n\n

plutocracy <\/strong> <\/p>\n\n\n\n

An integration agreement in which smaller members delegate policy-making to the wealthiest member. <\/p>\n\n\n\n

political union <\/strong> <\/p>\n\n\n\n

Has the characteristics of an economic union and also harmonizes members\u2019 foreign and defense policies. A political union is more like a federal political system than an agreement among sovereign states. <\/p>\n\n\n\n

Politicism<\/strong> <\/p>\n\n\n\n

An overemphasis on the importance of politics. <\/p>\n\n\n\n

populism <\/strong> <\/p>\n\n\n\n

The tendency to look to individual political leaders of large semi-organized movements to offer systemic change. Populist waves began to sweep the globe from 2010, in response to a sense of crisis. <\/p>\n\n\n\n

portfolio investment <\/strong> <\/p>\n\n\n\n

The purchase of stocks, bonds, and money-market instruments by foreigners to gain a financial return. It does not involve foreign ownership or operating control. <\/p>\n\n\n\n

positivist <\/strong> <\/p>\n\n\n\n

describes a person who believes that the world is knowable through scientific methods. <\/p>\n\n\n\n

post-Fordism <\/strong> <\/p>\n\n\n\n

The idea that the mode of production is shifting from an industrial one to one that relies on services and specialized knowledge, see flexible specialization. <\/p>\n\n\n\n

postfunctionalism <\/strong> <\/p>\n\n\n\n

Economic integration theory deriving from European Union experience. Focuses on the potentially disintegrating role of populists and interest groups at both the national and supranational levels. <\/p>\n\n\n\n

post-positivist <\/strong> <\/p>\n\n\n\n

Someone who rejects positivism, and believes parts of the world are subjective. <\/p>\n\n\n\n

Poverty Reduction Strategy Papers (PRSPs) <\/strong> <\/p>\n\n\n\n

The IMF and World Bank require PRSPs describing the economic and social policies of an LDC before considering the LDC for debt relief. PRSPs eventually replaced IMF and World Bank structural adjustment programs. <\/p>\n\n\n\n

power <\/strong> <\/p>\n\n\n\n

The ability to influence, act upon, constrain, or decide upon. <\/p>\n\n\n\n

preferential trade agreement <\/p>\n\n\n\n

(PTA) <\/strong> <\/p>\n\n\n\n

Agreement among a limited group of countries that provides trade preferences to the members. <\/p>\n\n\n\n

Principles for Responsible Investment <\/strong> <\/p>\n\n\n\n

UN and Western MNC-led effort to create a voluntary agreement around corporate social responsibility. <\/p>\n\n\n\n

prisoners\u2019 dilemma <\/strong> <\/p>\n\n\n\n

A game that examines situations in which individual rationality induces a state to \u201ccheat\u201d regardless of the actions taken by others. Such actions do not produce the best collective outcome. See Pareto-optimal outcome and Pareto-deficient outcome. <\/p>\n\n\n\n

private goods <\/strong> <\/p>\n\n\n\n

Goods that can be bought and consumed by individuals. <\/p>\n\n\n\n

proletariat <\/strong> <\/p>\n\n\n\n

From Marxist theory, the working class in an industrial society. <\/p>\n\n\n\n

property rights <\/strong> <\/p>\n\n\n\n

The ability to buy, own, and sell goods. Requires enforcement through law and contract enforcement by the state. Essential for markets. <\/p>\n\n\n\n

public choice theory <\/strong> <\/p>\n\n\n\n

Approach to political economy that favors markets because of the high degree of possibility that special interests will tend to capture and distort the regulatory process. <\/p>\n\n\n\n

public goods <\/strong> <\/p>\n\n\n\n

These are nonexcludable (all states have access to them) and nonrival (a state\u2019s use of the good will not decrease the amount available for others); also known as \u201ccollective goods.\u201d <\/p>\n\n\n\n

purchasing power parity (PPP) <\/strong> <\/p>\n\n\n\n

The number of units of a country\u2019s currency needed to buy the same amount of goods and services in the domestic market as a US dollar can buy in the United States. <\/p>\n<\/details>\n\n\n\n

Q<\/summary>\n

No entries<\/p>\n<\/details>\n\n\n\n

R<\/summary>\n

rational choice <\/strong> <\/p>\n\n\n\n

Rational choice analysis assumes that individuals have goals and some freedom of choice and that they take actions they believe will achieve their goals. <\/p>\n\n\n\n

Realism <\/strong> <\/p>\n\n\n\n

A statist IR theoretical perspective that emphasizes power and the national interest. <\/p>\n\n\n\n

Reciprocal Trade Agreements Act (RTAA) <\/strong> <\/p>\n\n\n\n

The 1934 RTAA for the first time linked US tariff levels to international negotiations instead of having Congress set tariffs on a unilateral, statutory basis. <\/p>\n\n\n\n

reciprocity principle <\/strong> <\/p>\n\n\n\n

States that a country benefiting from another country\u2019s trade concessions should provide roughly equal benefits in return. See specific reciprocity, diffuse reciprocity. <\/p>\n\n\n\n

reflexivity <\/strong> <\/p>\n\n\n\n

Constructivist term that suggests that the GPE depends on both objective and subjective elements; beliefs such as identifying a different country as \u201cthe enemy\u201d can define the contours of IR. <\/p>\n\n\n\n

regime theory <\/strong> <\/p>\n\n\n\n

International Relations theory that became popular from the 1990s. Sees global collective action possible through shared principles, norms, rules, and decision- making procedures. <\/p>\n\n\n\n

Regional Comprehensive Economic Partnership<\/strong> <\/p>\n\n\n\n

 <\/strong>Free trade agreement in the Asia Pacific, led by China to counter the TPP (led but abandoned by the US). <\/p>\n\n\n\n

regulatory capture <\/strong> <\/p>\n\n\n\n

The ability of private actors to sway regulations in their favor. <\/p>\n\n\n\n

relative gains <\/strong><\/p>\n\n\n\n

Emphasizes the effects of gains on the relative power positions of states. See absolute gains.\u00a0<\/p>\n\n\n\n

remittances <\/strong> <\/p>\n\n\n\n

The money that migrants earn abroad and send back to their home countries. <\/p>\n\n\n\n

resource curse <\/strong> <\/p>\n\n\n\n

Refers to the fact that many countries with high proportions of commodity (mineral or agricultural) exports tend to be poor. Paradoxical because prices will decline if they produce more. Also known as \u201cthe paradox of plenty.\u201d <\/p>\n\n\n\n

revaluation <\/strong> <\/p>\n\n\n\n

An increase in the official rate or value at which one currency is exchanged for another. See devaluation. <\/p>\n\n\n\n

rules of origin <\/strong> <\/p>\n\n\n\n

Regulations to prevent importers from bringing goods into an FTA through the lowest duty member state, <\/p>\n\n\n\n

and then shipping them duty-free to other members. <\/p>\n<\/details>\n\n\n\n

S<\/summary>\n

safeguards <\/strong> <\/p>\n\n\n\n

The safeguards principle permits WTO members to temporarily raise a duty above the maximum tariff binding to limit imports that may harm domestic producers. <\/p>\n\n\n\n

sanctions <\/strong> <\/p>\n\n\n\n

Using economic tools to try to change other states\u2019 behavior. <\/p>\n\n\n\n

Schengen Agreement <\/strong> <\/p>\n\n\n\n

An agreement to abolish border checks among 26 countries; 22 of the countries are EU members. <\/p>\n\n\n\n

seigniorage <\/strong> <\/p>\n\n\n\n

The profit and advantages a sovereign power gains from issuing money. <\/p>\n\n\n\n

semi-periphery <\/strong> <\/p>\n\n\n\n

In dependency or world systems theory, the countries that provide semi-finished components and\/or labor- intensive inputs in the global economy. <\/p>\n\n\n\n

single undertaking <\/strong> <\/p>\n\n\n\n

A principle that acceptance of an agreement requires acceptance of all its parts. The GATT Uruguay Round Agreement was a single undertaking because it required LDCs to accept all parts of the agreement. <\/p>\n\n\n\n

Smoot-Hawley Tariff <\/strong> <\/p>\n\n\n\n

Enacted in 1930, at the outset of the Great Depression, the US used it to raise tariffs to an average of 20%, setting off a \u201cbeggar-thy-neighbor\u201d reaction with other countries acting similarly. Though rescinded in 1934, the act become symbolic for the negative effects of tariff wars. <\/p>\n\n\n\n

Socially responsible investment (SRI) <\/strong> <\/p>\n\n\n\n

The attempt to insert ethical decision-making into investment choices, such as climate change and labor rights. <\/p>\n\n\n\n

soft power <\/strong> <\/p>\n\n\n\n

Power based on attraction and co-option. <\/p>\n\n\n\n

sovereign wealth funds (SWFs) <\/strong> <\/p>\n\n\n\n

Government investment funds that are managed separately from official currency reserves. SWFs may hold higher risk assets than official reserves. <\/p>\n\n\n\n

special and differential treatment (SDT) <\/strong> <\/p>\n\n\n\n

Special access given to LDCs for exports to DC markets, and LDC exemptions from some WTO rules. <\/p>\n\n\n\n

special drawing rights (SDRs) <\/strong> <\/p>\n\n\n\n

Artificial international reserves created by the IMF and used among central banks. There have been three SDR allocations, the most recent one in 2009. <\/p>\n\n\n\n

specific reciprocity <\/strong> <\/p>\n\n\n\n

A simultaneous exchange of strictly equivalent benefits or obligations. See diffuse reciprocity. <\/p>\n\n\n\n

stagflation <\/strong> <\/p>\n\n\n\n

An economy with inflation, stagnant economic growth, and high unemployment; its appearance during the early 1970s brought into question Keynesian economic theory, as it struggles to explain the appearance of both inflation and unemployment, opening the way for movement. <\/p>\n\n\n\n

state <\/strong> <\/p>\n\n\n\n

A sovereign, territorial political unit. <\/p>\n\n\n\n

state autonomy <\/strong> <\/p>\n\n\n\n

The ability of a government to make decisions free from influence by domestic lobbies. <\/p>\n\n\n\n

state intervention <\/strong> <\/p>\n\n\n\n

Policies that attempt to shape or guide market outcomes. <\/p>\n\n\n\n

state market relations<\/strong> <\/p>\n\n\n\n

The role of the state vis \u00e0 vis markets, for example, interventionist or laissez-faire. <\/p>\n\n\n\n

Stolper\u2013Samuelson theory <\/strong> <\/p>\n\n\n\n

Posits that trade liberalization benefits abundantly endowed factors of production and hurts poorly endowed factors of production in a state. <\/p>\n\n\n\n

strategic trade theory <\/strong> <\/p>\n\n\n\n

A neomercantilist theory focusing on a state\u2019s creation of competitive advantage through industrial targeting. <\/p>\n\n\n\n

structural adjustment loans (SALs) <\/strong> <\/p>\n\n\n\n

Medium- term balance-of-payments financing the World Bank and IMF provided to LDCs after the 1980s foreign debt crisis. LDC recipients had to agree to institute structural reforms. <\/p>\n\n\n\n

structural adjustment program (SAP) <\/strong> <\/p>\n\n\n\n

Conditions given in return for SALs to indebted countries. These are institutional, policy and regulatory reforms that are generally neoliberal-inspired, to reduce state intervention and government deficits. <\/p>\n\n\n\n

structural Marxism <\/strong> <\/p>\n\n\n\n

Marxists who view the state as relatively autonomous from direct pressure from capitalists, but who believe that the state acts in the long-term interests of the capitalist class. <\/p>\n\n\n\n

structures and agents <\/strong> <\/p>\n\n\n\n

Constructivist idea that large powers\u2019 decisions affect the nature of global systems, such as the US\u2013USSR rivalry during the Cold War. <\/p>\n\n\n\n

subprime mortgages <\/strong> <\/p>\n\n\n\n

Mortgages for borrowers who do not qualify for market interest rates because of income level, credit history, size of the downpayment, and\/or employment prospects. <\/p>\n\n\n\n

sustainable development <\/strong> <\/p>\n\n\n\n

A policy focused on environmental conservation that calls for meeting the needs of the present without limiting the ability of future generations to meet their own needs. <\/p>\n\n\n\n

Sustainable Development Goals (SDGs) <\/strong> <\/p>\n\n\n\n

17 global development goals for 2030 measuring quality of life, set up by the UN in 2015 to supersede the MDGs. <\/p>\n<\/details>\n\n\n\n

T<\/summary>\n

tariffs <\/strong> <\/p>\n\n\n\n

Taxes on products that pass through a customs border. Tariffs are usually imposed on imports, but may also apply to exports. <\/p>\n\n\n\n

terms of trade <\/strong> <\/p>\n\n\n\n

The relative prices of a country\u2019s exports and imports. Ra\u00fal Prebisch argued that LDCs in the periphery of the global economy had deteriorating terms of trade with Northern economies in the core. <\/p>\n\n\n\n

tied aid <\/strong> <\/p>\n\n\n\n

Aid that is tied to purchases from the donor country\u2019s producers and employment of its technical experts. <\/p>\n\n\n\n

tipping point <\/strong> <\/p>\n\n\n\n

Identified by the IPCC as global warming above 1.5 degrees Celsius, when the possibility of global climate systems may change irreparably. <\/p>\n\n\n\n

Too Big to Fail <\/strong> <\/p>\n\n\n\n

The concentration of financial services in a few companies, so that the government feels obliged to bail them out in the event of a failure. <\/p>\n\n\n\n

Trade-Related Intellectual Property Rights (TRIPS) <\/strong> <\/p>\n\n\n\n

An agreement under the WTO that establishes minimum standards of protection for copyrights, patents, and other intellectual property, and offers remedies to members to protect these rights. <\/p>\n\n\n\n

Trade-Related Investment Measures (TRIMS) <\/strong> <\/p>\n\n\n\n

A rather weak and narrowly defined agreement under the WTO to impose some discipline over trade-related investment issues. <\/p>\n\n\n\n

tragedy of the commons <\/strong> <\/p>\n\n\n\n

Refers to the tendency to overexploit and under-maintain resources where ownership is poorly defined, such as overfishing in international waters. <\/p>\n\n\n\n

transfer prices <\/strong> <\/p>\n\n\n\n

Prices a business firm uses for the internal sale of goods and services among its affiliates. They help an MNC manage its internal operations, but the MNC may manipulate these prices to shift its reported profits. <\/p>\n\n\n\n

transnational advocacy networks (TANs) <\/strong> <\/p>\n\n\n\n

TANs are actors working internationally on an issue, who are linked by shared values and exchanges of information and services. They may include NGOs, social movements, the media, labor unions, consumer groups, religious institutions, intellectuals, and branches of government. <\/p>\n\n\n\n

transnational historic bloc <\/strong> <\/p>\n\n\n\n

Gramscian term referring to an alliance of global capital interests, including MNCs, banks, and Ios. <\/p>\n\n\n\n

Trans-Pacific Partnership (TPP) <\/strong> <\/p>\n\n\n\n

Trade agreement organized by the US for 12 countries in the Asia-Pacific region, designed to block growing Chinese influence. President Trump withdrew US support in 2018, and it has been replaced by the CPTPP. See Comprehensive and Progressive Trans-Pacific Partnership (CPTPP). <\/p>\n\n\n\n

Triffin dilemma <\/strong> <\/p>\n\n\n\n

The conflict between the \u201cliquidity\u201d and \u201cconfidence\u201d functions of the US dollar as the top currency in the Bretton Woods regime. US balance-of-payments deficits decreased confidence in the US dollar, but there would be a liquidity shortage if the United States reduced its payments deficits. <\/p>\n\n\n\n

two-level game theory <\/strong> <\/p>\n\n\n\n

Views international relations as a two-level game involving a state\u2019s international interactions (level 1) and domestic interactions (level 2). <\/p>\n<\/details>\n\n\n\n

U<\/summary>\n

Unholy Trinity <\/strong>aka Mundell\u2019s Trilemma <\/p>\n\n\n\n

Describes the challenges of simultaneously maintaining exchange rate stability, monetary policy autonomy, and freedom of capital movement. <\/p>\n\n\n\n

United Nations Conference on Trade and Development (UNCTAD) <\/strong> <\/p>\n\n\n\n

A permanent organ of the UN General Assembly, created in 1964 because of the South\u2019s dissatisfaction with GATT. UNCTAD promotes the South\u2019s trade and development interests. <\/p>\n\n\n\n

USMCA <\/strong> <\/p>\n\n\n\n

US\u2013Mexico\u2013Canada Agreement that updates the NAFTA. It was signed in 2018. <\/p>\n<\/details>\n\n\n\n

V<\/summary>\n

variable geometry <\/strong> <\/p>\n\n\n\n

The idea of building larger regional or multilateral trade agreements on top of smaller existing ones. <\/p>\n\n\n\n

variable-sum game <\/strong> <\/p>\n\n\n\n

A relationship in which groups may gain or lose together. See zero- sum game. <\/p>\n\n\n\n

Vernon\u2019s product cycle <\/strong> <\/p>\n\n\n\n

Vernon\u2019s theory about global production going through innovation cycles. As a product or service becomes more standardized, production is likely to move from the West to cheaper labor regions. <\/p>\n\n\n\n

vertical integration <\/strong> <\/p>\n\n\n\n

A vertically integrated MNC controls production of goods and services at different stages of the production process, with some affiliates providing inputs to other affiliates. Firms become vertically integrated to avoid uncertainty, reduce transaction costs, and limit competition. See horizontal integration. <\/p>\n\n\n\n

voluntary export restraints <\/strong> <\/p>\n\n\n\n

To circumvent the GATT Article 11 ban on import quotas, a state may pressure other states to \u201cvoluntarily\u201d decrease their exports of specific products. <\/p>\n<\/details>\n\n\n\n

W<\/summary>\n

Washington Consensus <\/strong> <\/p>\n\n\n\n

Refers to the neoliberal belief that countries can best achieve economic growth through free markets, a dominant private sector, democratic government, and trade liberalization. <\/p>\n\n\n\n

World Bank <\/strong> <\/p>\n\n\n\n

An international organization formed in 1944 to give long-term loans for postwar reconstruction and development. It is also called the International Bank for Reconstruction and Development (IBRD). <\/p>\n\n\n\n

World Bank group <\/strong> <\/p>\n\n\n\n

Includes the International Bank for Reconstruction and Development, International Finance Corporation, International Development Association, International Centre for the Settlement of Investment Disputes, and Multilateral Investment Guarantee Agency. <\/p>\n\n\n\n

World Economic Forum (WEF) <\/strong> <\/p>\n\n\n\n

A private institution where business executives, political leaders, and multilateral institutions discuss global problems. The WEF has an annual meeting and regional summits, and issues publications. <\/p>\n\n\n\n

world-systems theory <\/strong> <\/p>\n\n\n\n

A theory that views problems in the periphery as stemming from the capitalist world-economy. It introduced the \u201csemiperiphery\u201d concept to explain why some states in the periphery are developing. <\/p>\n\n\n\n

World Trade Organization (WTO)<\/strong> <\/p>\n\n\n\n

The global trade organization formed in 1995. WTO agreements include the General Agreement on Tariffs and Trade, General Agreement on Trade in Services, the Agreement on Trade-Related Intellectual Property Rights, and the Agreement on Trade-Related Investment Measures. <\/p>\n<\/details>\n\n\n\n

X<\/summary>\n

No entries<\/p>\n<\/details>\n\n\n\n

Y<\/summary>\n

No entries<\/p>\n<\/details>\n\n\n\n

Z<\/summary>\n

zero-sum game <\/strong> <\/p>\n\n\n\n

A relationship in which one group\u2019s gain equals another group\u2019s loss. See variable-sum game. <\/p>\n<\/details>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

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