POL 130 Final Terms: Global Economy

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.

Policies designed to protect domestic industries from foreign competition, usually by using tariffs and quotas as barriers to imports.

English economist known for his defense of international free trade and theory of comparative advantage.

Individuals and/or nations SPECIALIZING in the production of certain commodities.

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.

Tax that nation places on imports to promote national economy.

To forbid or restrict imports from other nations to promote national economy.

Money given to producers within one's own country to promote national economy.

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.

Industries at early stages of their development, particularly when the same industries are already well developed (i.e. mature) in other nations.

Policies designed to enhance national power and encourage other nations to become dependent as a means of gaining leverage over them.