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11 Cards in this Set
- Front
- Back
Liberal International Economic Order (LIEO)
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The post-WWII international economic order embodying the traditional liberal preference for free and open trade as a means of promoting economic efficiency and prosperity.
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Economic nationalism
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Policies designed to protect domestic industries from foreign competition, usually by using tariffs and quotas as barriers to imports.
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David Ricardo (1772-1823)
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English economist known for his defense of international free trade and theory of comparative advantage.
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Division of labor
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Individuals and/or nations SPECIALIZING in the production of certain commodities.
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Theory of comparative advantage
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The idea that all nations benefit when they produce those commodities each produces most efficiently. David Ricardo argued that free trade allows nations and consumers to benefit from their different comparative advantages.
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Tariffs
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Tax that nation places on imports to promote national economy.
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Quotas
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To forbid or restrict imports from other nations to promote national economy.
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Subsidies
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Money given to producers within one's own country to promote national economy.
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Friedrich List (1789-1846)
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German economist critical of David Ricardo and free trade. Rejected the liberal notion that individuals advancing their own interests inevitably serve the interests of the larger community or nation. Argued that nations need to approach trade from the perspective of the national interest and the interests of the community as a whole.
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Infant industries
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Industries at early stages of their development, particularly when the same industries are already well developed (i.e. mature) in other nations.
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Strategic trade policy
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Policies designed to enhance national power and encourage other nations to become dependent as a means of gaining leverage over them.
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