What is the core idea of neoliberalism?
Free markets and less government intervention in the economy.
What is comparative advantage?
A country's ability to produce a good at a lower opportunity cost than another country.
What is complementary advantage?
When two countries benefit from each other's unique production capabilities through trade.
Explain economic interdependence.
Countries relying on each other for economic success.
What is state sovereignty?
The principle that each state has exclusive control over its own territory and domestic affairs.
What is the goal of regional integration?
To promote economic, political, and social integration within a specific geographic area.
What is the purpose of a common market?
To create a single market among member countries with free movement of goods, services, capital, and labor.
What is the role of trade agreements?
To reduce barriers to trade between countries, promoting increased economic activity.
What is the impact of neoliberal policies on inequality?
Often criticized for increasing inequality, as benefits may not be evenly distributed.
What is the effect of free trade on domestic industries?
Can lead to increased competition, potentially harming less efficient domestic industries.
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.
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.
