All Flashcards
Compare comparative and complementary advantage.
Comparative advantage is about lower opportunity cost; complementary advantage is about combining strengths.
Compare the EU and WTO.
EU is a regional organization for European integration; WTO sets rules for global free trade.
Compare NAFTA and the EU.
NAFTA was a free trade agreement; the EU is a more comprehensive economic and political union.
Compare developed and developing countries in the context of neoliberalism.
Developed countries may experience increased trade and job displacement; developing countries may see growth of maquiladoras and worker exploitation.
Compare the impacts of free trade on consumers and producers.
Consumers benefit from lower prices and greater choice; producers may face increased competition and reduced profits.
Compare the goals of Mercosur and OPEC.
Mercosur aims for economic integration in South America; OPEC coordinates petroleum policies to influence global oil prices.
Compare the roles of the IMF and the World Bank.
IMF provides financial assistance to countries in need; World Bank focuses on long-term development and poverty reduction.
Compare the impacts of deregulation and regulation on businesses.
Deregulation reduces costs and increases flexibility; regulation ensures standards, consumer protection, and fair competition.
Compare the benefits and drawbacks of privatization.
Benefits include increased efficiency and innovation; drawbacks include reduced access and higher costs.
Compare the impacts of free trade on developed vs. developing economies.
Developed economies may see increased specialization and higher value-added production; developing economies may face challenges in competing with established industries.
What is the effect of deregulation on businesses?
Less red tape, more freedom for businesses to operate.
What is the impact of neoliberal policies on the environment?
Often criticized for contributing to environmental degradation due to increased production and consumption.
What is the effect of NAFTA on trade?
Increased trade between the US, Mexico, and Canada.
What is the impact of the EU on member states?
Economic, political, and social integration, with both benefits and challenges to sovereignty.
What is the impact of austerity measures?
Reduced government spending, potentially leading to cuts in public services.
What is the impact of free trade on prices?
Lower prices for consumers due to increased competition and access to cheaper goods.
What is the impact of privatization on efficiency?
Potential for increased efficiency and innovation, but also potential for reduced access and higher costs.
What is the impact of trade agreements on investment?
Increased foreign investment due to reduced barriers and greater market access.
What is the effect of OPEC on global oil prices?
Influences global oil prices through coordinating petroleum policies.
What is the impact of the Eurozone on member countries?
Shared currency promotes economic integration but also limits individual countries' monetary policy control.
What is deregulation?
Removing rules and regulations on businesses.
Define liberalization in trade.
Opening up markets to foreign competition.
What is privatization?
Selling government-owned assets to private companies.
Define austerity.
Cutting government spending to reduce budget deficits.
What is free trade?
Reducing barriers to international trade, such as tariffs.
What is monetary policy?
Using interest rates to manage the economy.
Define supranational organization.
Organizations that operate above individual countries, where member states give up some sovereignty.
What are tariffs?
Taxes on imports.
What is economic integration?
The process of countries reducing trade barriers and coordinating economic policies.
Define maquiladoras.
Factories in Mexico that assemble imported materials and export finished products.