World Economy 1st Semester Overview

The process of countries in a specific geographic region cooperating and integrating their economies, policies, and institutions. It can involve trade agreements, political alliances, and cultural exchanges.

The interconnectedness of nations through trade, communication, and the flow of people and ideas across borders.

A trade agreement between two or more countries that removes barriers to trade within the region. Examples include the North American Free Trade Agreement (NAFTA) and the European Union (EU).

Regionalization can act as a stepping stone to globalization by fostering stronger ties between countries within a region. This can lead to greater economic integration, opening up markets and promoting international trade.

Regionalization can help to promote security by strengthening cooperation among countries within a region. This can involve addressing shared threats such as terrorism, cybercrime, or illegal immigration.

Regionalization can help to enhance bargaining power in the global economy. By acting collectively, countries within a region can negotiate better terms with other regions or global organizations.

Regionalization can enable countries to implement reforms and policies that may be difficult to achieve on a global scale. This is because regional agreements are easier to negotiate and implement due to a smaller number of parties involved.

Regionalization can be seen as a way to protect specific sectors within a region, such as agriculture. These sectors may struggle to compete in a fully liberalized global market. Regionalization can provide a buffer against global competition.

The US stopped converting dollars into gold in 1971, ending the gold exchange standard.

The IMF Articles of Agreement legalized floating exchange rates in 1978, marking the formal end of the adjustable peg system.

The practice of intentionally undervaluing a country's currency to support export industries, leading to an accumulation of foreign currency reserves.

A situation where a country benefits from cheap imports and foreign funding of its trade and fiscal deficits due to an undervalued currency.

A group of countries, often geographically linked, that collaborate on trade and economic policies.

The principle that WTO members treat all their trading partners with equal conditions, with few exceptions.

A type of regional trade agreement where participating countries offer preferential treatment to each other, like reduced tariffs.

The system of fixed exchange rates among European currencies, established in 1979, that aimed to create greater stability and reduce currency fluctuations.

A theory that criticizes the negative effects of globalization, such as the destruction of local economies due to competition from global corporations.

A school of thought that argues that development is a process of adopting the characteristics of more developed societies, particularly those of the West.

A theory that explains development as a series of stages, from traditional societies to the age of mass consumption.

Theories that challenge the idea that developing countries can achieve progress by following the same path as developed nations. They focus on the constraints imposed by global economic structures on developing countries.

A theory that sees development and underdevelopment as interconnected, with the global system perpetuating underdevelopment in poorer countries.

A period in the 1970s where many developing countries implemented policies to protect their domestic industries from foreign competition by restricting imports and promoting domestic production.

A political and economic ideology that emphasizes free markets, limited government intervention, and individual liberty.

The shift away from neoliberal policies in the early 2000s, driven by concerns about the negative consequences of globalization and the need for more equitable and sustainable development.