Chapter 16/17 Achieving Economic Stability & International Trade
Misery index
Not an official government statistic
Comprehensive measure of consumer suffering during high inflation and unemployment
Relevant only over long periods
Advantages and Disadvantages of International Trade
Advantage- Meeting our needs , job creation, and attracting investment
Disadvantage- Support of Non-Democratic systems, cultural identity issues, and Social Welfare Issues
If we didn't have International Trade bananas wouldn't leave Honduras nor would coffee leave Columbia or Brazil
Globalization
Border less
Mobility
International cooperation
Cultural diversity
Protectionism
Tariffs on imported goods
Restrictive quotas
Variety of other government regulations
Collectivization
In Soviet Union aimed to consolidate landholdings
Consolidate labor into collective farms
Transform traditional agriculture in Soviet Union and reduce power of the prosperous peasants
Privatization
Purchsse of all outstanding shares of a publicly traded company by private investors.
Demutualization of a mutual organization or cooperative to form a joint-stock company
five main methods of privatization;
Share issue privatization.
Asset sale privatization
Voucher privatization
Privatization from below
Management buyout or employee buyout
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NAFTA
Controversial
Proposed by the Bush administration
Concluded by Clinton administration
European Union
The EU budget supports growth and job creation.
Under the cohesion policy, it funds investment to help bridge economic gaps between EU countries and regions. It also helps develop rural areas in Europe.
The budget is decided jointly by the Commission, the Council and Parliament
Comparative Advantage
Lays out the case that all actors, at all times, can mutually benefit from cooperation and voluntary trade. I
Refers to the ability to produce goods and services at a lower opportunity cost, not necessarily at a greater volume.
Foundational principle in the theory of international trade