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Questions and Answers
What is a key principle of neoliberal economics?
What is a key principle of neoliberal economics?
- Increasing government regulations on corporations
- Promoting state ownership of services
- Restriction of capital flow between states
- Dismantling trade barriers (correct)
How does neoliberal economics impact a state's sovereignty?
How does neoliberal economics impact a state's sovereignty?
- It limits a state's ability to safeguard its economic interests. (correct)
- It enhances a state's ability to control its economic policies.
- It allows a state to fully protect its local industries.
- It encourages state intervention in international trade.
Which organization is NOT mentioned as influencing government austerity through global cooperation?
Which organization is NOT mentioned as influencing government austerity through global cooperation?
- World Trade Organization (WTO)
- North American Free Trade Agreement (NAFTA)
- United Nations (UN) (correct)
- European Union (EU)
When did the concept of neoliberal economics begin?
When did the concept of neoliberal economics begin?
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What does neoliberal economics require from states in the global market?
What does neoliberal economics require from states in the global market?
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Study Notes
Global Economics
- One of the major sources of challenge to state sovereignty comes from the global economy
- The global economy demands that states conform to the rules of free-market capitalism
Impact of Global Organizations
- Organizations that cooperate across countries, such as:
- WTO (World Trade Organization)
- Regional agreements, including:
- NAFTA (North American Free Trade Agreement)
- EU (European Union)
- ASEAN (Association of Southeast Asian Nations)
- These organizations promote government austerity
Neoliberal Economics/ Neoliberal Capitalism
Key Characteristics
- Started in the 1980s
- Focuses on:
- Free trade
- Dismantling trade barriers
- Ensures governments do not impose:
- Restrictive regulations on corporate presence
- Restrictions on the free flow of capital and jobs
Requirements
- States must cooperate in the global market through:
- Free flow of capital
- Privatization of services
- Fiscal austerity or constraint
Criticisms
- Neoliberal economics is seen as a threat because it limits a state's ability to:
- Protect its own economic interests
- Act as a sovereign state
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