World Politics Final Exam

Collective Goods

(See also "Public Goods"). A good such as clean air or public infrastructure which exists for everyone. Its consumption cannot be easily denied to anyone, thus leading to the problem of how to pay for public goods. Collective goods do not belong to any individual entity.

Montreal Protocol

A 1987 international agreement on the protection of the ozone layer in which states pledged to reduce and then eliminate the use of CFCs.

Black September Organization

A Palestinian terrorist group formed after the Jordanian government crushed a Palestinian uprising there. Staged the Munich Olympic Massacre, killing eleven Israeli athletes in 1972.

Laissez-faire

A concept that governments should leave markets a "free hand" and not interfere. A key concept within classical liberalism, but not synonymous with it.

World Bank

A development bank for poorer countries, originally set up to rebuild Europe after World War II as part of the Bretton Woods institutions. Sponsors infrastructural and other projects. Also known as the International Bank for Reconstruction and Development.

Ozone

A gas made up of three oxygen atoms (O3) which exists naturally in the upper atmosphere and which blocks ultraviolet radiation, and which is broken apart into oxygen (O2 and free oxygen atoms (O) by Chlorofluorocarbons (CFCs), man-made substances used in a variety of consumer and industrial applications

Public goods

A good such as clean air or public infrastructure which exists for everyone. Its consumption cannot be easily denied to anyone, thus leading to the problem of how to pay for public goods. Similar to Collective Goods.

Epistemic Community

A group of experts who hold a scientifically-based consensus on an issue and who urge policy recommendations based upon that consensus.

Sovereign debt

A loan made to a government of a sovereign country and backed by that country's official exchange reserves and good faith. These can be explicit loans or bond offerings, where the government offers interest-bearing bonds for sale, such as US T-Bills.

floating exchange rate

A monetary system in which the ratio of value between different states' currencies is determined by international currency markets, and can fluctuate dramatically. This started around 1973 and continues among most major hard currencies today. (See "Fixed Exchange Rate" and "Pegged Exchange Rate").

Japan

A nation-state in East Asia, one of the largest economies in the world, member of the G-8, G-20, OECD and a stable democratic ally of the United States. Ally of the UK 1902-1922.

Pegged exchange rate

A nationally-backed system to maintain a constant ratio between a state's currency and a target currency (usually the US dollar). The "peg" is backed solely by the central bank of the state and its foreign exchange reserves to maintain the target ratio. Following the end of fixed exchange rates in 1971, some places such as Hong Kong have used this system effectively to encourage foreign direct investment. Others, such as Thailand, failed in 1997.

Quotas

A non-tariff trade barrier in which an importing country imposes a numeric limit to the quantity of an item to be imported, but does not impose a higher tariff on the item.

Bureaucracy

A organization which is composed of experts with a clear and specific structure and defined tasks, usually implemented by Standard Operating Procedures (SOP).

Tragedy of the commons

A phrase in social sciences that alludes to the over-exploitation of a resource which all members of a community have access to, because individuals' self-interest is to maximize their exploitation, but which leads to the collapse of the resource for all in the long term. Often used to describe issues such as the problem of over-fishing on the high seas.

Protectionism

A political and economic strategy that limits foreign imports into a country by tariffs, quotas or other trade barriers. This may be motivated by a desire to protect inefficient industries and their workers, strategic industries, or because of the political power of the affected industry. The cost for the protection is then passed along to the entire nation's consumers.

Neo-functionalism

A set of theories that holds that broader political unions or movements will occur when smaller functional organizations exist previously.

Fixed exchange rate

A system of monetary exchange in which governments collectively pledge to maintain a fixed ratio of one currency's value to another. This system operated in the West guided by the IMF from the end of World War II until the "Nixon Shock" in 1971. See also "Floating Exchange Rate" and "Pegged Exchange Rate."

Tariff

A tax on an imported product, the cost of which is passed along to the customer in the form of higher prices.

Balance of Payments

All of the money that flows into and out of a state. This is the Balance of Trade, plus other items, such as trade in services, remittances, and government and private financial transfers.

Balance of trade

All of the money that flows into and out of a state. This is the Balance of Trade, plus other items, such as trade in services, remittances, and government and private financial transfers.

Bretton Woods Regime

Also called the "Bretton Woods System." A set of institutions and norms set up at the end of World War II including the IMF, World Bank, and GATT. The regime was meant to ensure liberal free trade and investment in the Western world.

Cartel

An association of producers of a product that seek to influence the price of the product by limiting its production or sale.

Mercantilism

An early economic theory and political ideology opposed to free trade, which often practices protectionism in trade policies.

Commodity

An economic good or resource that is usually unprocessed and relatively homogeneous which are often bought and sold on commodity exchange markets. Examples include wheat, corn, cotton, cocoa, coffee, tea, coal, oil, and ores.

Liberalism

An ideology arising in the early 19th century, involving belief in liberty, free trade, individual rights and responsibilities, separation of church and state, and little government interference in the workings of markets. Sometimes called "Classical Liberalism" or "Economic Liberalism" to distinguish it from social liberalism, or "Liberal" in the American political sense of the word.

Universal Postal Union

An international organization headquartered in Bern, Switzerland, and founded in 1874 to establish standards, definitions and coordinate common processes for international mail.

WHO

An international organization headquartered in Bern, Switzerland, and founded in 1874 to establish standards, definitions and coordinate common processes for international mail.

non-governmental organization (NGO)

An international organization in which the members do not represent governments but rather private or non-profit organizations, corporations, or religious movements.

Okinawa

An island chain and prefecture of Japan since 1879. Seized by United States forces in 1945, it was administered by the USA from 1945 until it was returned to Japan in 1972.

International Organization

An organization which is usually composed of countries as members, such as the United Nations. Also "IGO".

multi-national corporations

Businesses that have operations in more than one country. These are Non-Governmental Organizations, and are important actors in world politics, sometimes having assets greater than the countries in which they operate.

Carbon Dioxide

Carbon Dioxide (CO2) is a major greenhouse gas in the earth's atmosphere that comes from both natural and human-made sources, and is a major contributor to global climate change.

devaluation

Changing the rate at which a currency is exchanged for another in official transactions by the government. A devaluation typically makes a country's exports cheaper and its imports more expensive, but also results in inflation.

Chlorofluorocarbons

Chlorofluorocarbons (usually abbreviated CFCs) are gasses formerly used for refrigerants, propellants and other industrial uses, but which have been phased out because of their effect on the ozone layer. The Montreal Protocol eliminated their use.

Textiles

Cloth and fabric which can be either woven or knitted, natural such as cotton, wool, or linen, or man-made such as rayon, nylon or polyester.

Africa

Continent and home to over 50 states, most of which became independent in the 1960s and joined the United Nations that decade, substantially increasing the size of the UN General Assembly.

CITES

Convention on International Trade in Endangered Species of Wild Fauna and Flora, a treaty convention negotiated in 1973 (pronounced SIGHT-ees) that bans the trade of endangered species around the world.

Export-promotion industrialization (EPI)

Export-Promotion Industrialization, sometimes abbreviated EPI, is a government economic strategy of seeking to industrialize by promoting exports from the country, and if necessary importing the raw materials to make them. Most notable in the industrial success of Japan, South Korean, Taiwan, Hong Kong, and Singapore. Also known as "Export-Led Growth" (P&G ch. 13) Cf. Import Substitution Industrialization (ISI).

FDI

Foreign Direct Investment. The ownership of factories, offices, mines and other fixed assets by foreign Multi-National Corporations.

Zaire

Formerly the Republic of the Congo, formerly the Belgian Congo, formerly the Congo Free State, currently the Democratic Republic of the Congo (DRC). Second largest country in Africa by size and former Belgian colony.

Congo

Formerly the Republic of the Congo, formerly the Belgian Congo, formerly the Congo Free State, currently the Democratic Republic of the Congo. Second largest country in Africa by size and former Belgian colony.

Customer Union

Formerly the Republic of the Congo, formerly the Belgian Congo, formerly the Congo Free State, currently the Democratic Republic of the Congo. Second largest country in Africa by size and former Belgian colony.

Greenhouse gases

Gasses in the earth's atmosphere such as carbon dioxide (CO2 and methane (CH4) which are thought to trap solar heat within the atmosphere and cause global warming, much as the panes of glass in a greenhouse trap heat within.

Import Substitution Industrialization (ISI)

Import Substitution Industrialization, often abbreviated as ISI, is a national strategy of industrialization that raises barriers to foreign imports so that domestic consumers must substitute domestic manufacturers, which may be more expensive or of lesser quality. Although the GATT and WTO recognize that developing countries "infant industries" may need short-term protection, these organizations discourage the strategy as a long-term approach to industrialization. Cf. Export Promotion Industrialization.

IMF

International Monetary Fund. The Fund was set up after World War II as part of the Bretton Woods institutions, and designed to keep countries' currencies in line with each other. Subsequently, the IMF has become the lender of last resort, bailing out seriously indebted countries but only after they have adopted harsh austerity measures.

Leopold II

Leopold II (1835-1909) was the second king of Belgium, and the sole owner of the Congo Free State, which was ruthlessly exploited for its ivory, rubber and other natural resources.

Foreign aid

Money or goods granted or loaned to a state by another state or multilateral organization. Also known as Official Development Assistance (ODA), foreign assistance, development assistance.

ideological

Of or relating to ideology. Ideologies are usually expressed as "-isms" such as conservatism, liberalism, socialism, communism, radicalism, anarchism, fascism, and are coherent system of theories and ideas that constitute a socio-political system.

Monetary

Of or relating to money, such as exchange rates, different currency exchanges, and the flow of international capital. Cf. Fiscal.

Domestic

Of or relating to the internal aspects of a state. Cf. foreign/international.

ODA

Official Development Assistance. See "foreign aid."

PLO

Palestinian Liberation Organization. An umbrella group of organizations all dedicated to the re-establishment of a Palestinian state. The leader of the PLO was Yassir Arafat (1929-2004) who has his own organization, Al-Fatah. Some of the organizations under the umbrella of the PLO might be described as non-violent, whereas others are correctly described as "terrorist."

Nixon

Richard M. Nixon (1913-1994) was 37th President of the United States. Under his administration, the United States undertook a wide variety of foreign policy changes, such as the opening to the People's Republic of China in 1972, detente with the Soviet Union from 1972-75, the abrupt floating of the US dollar in 1973 known as the "Nixon Shock."

regime

Set of rules, norms, and institutions involving whole or parts of the world and its interactions. It is possible to talk of a "Bretton Woods" regime, or an international whaling regime. Note that the word "regime" is also used foreign policy officials to describe governments they dislike or oppose.

speculators

Speculators are investors who purchase an asset (a commodity, currency, goods, or real estate) with the hope that it will become more valuable in the near future. Other speculators will borrow an asset in hopes it will go down in value ("short selling") and then return the now much cheaper asset. Speculation is also the practice of engaging in risky financial transactions in an attempt to profit from short term fluctuations in the market value of a tradable financial instrument�rather than attempting to profit from the underlying financial attributes embodied in the instrument such as value addition, return on investment, or dividends.

Earth Summit

The 1992 meeting of the United Nations Conference on Environment and Development (UNCED) in the Brazilian city of Rio de Janeiro, which sought to focus the post-Cold War world on environmental issues.

International Telecommunication Union

The International Telecommunication Union (ITU), originally the International Telegraph Union, coordinates international policies on telegrams, radios, satellites, broadband and wireless technologies by setting standards.

LIBOR

The London Inter-Bank Offering Rate. This is the interest rate at which international banks lend each other money, and is (along with the US Prime Rate) a key index of how expensive it is to get a loan.

OPEC

The Organization of Petroleum Exporting Countries. A primarily Middle Eastern led oil cartel which seeks to increase petroleum prices by restricting output.

Treaty of Rome

The Treaty of Rome, signed in that city in March 1957 by France, West Germany, Italy, the Netherlands, Belgium and Luxembourg, brought about the European Economic Community, now known as the European Union (EU). This is one of the foundational treaties of the EU.

Doha Round

The WTO-sponsored series of meetings and negotiations to expand free trade in a number of areas such as trade facilitation, services, rules of origin, and agriculture. Disputes between the developed and developing nations led to the suspension of talks in July 2008.

Power

The ability to get another actor to do what it would not otherwise have done (or not to do what it would have done).

Collective Action

The action performed by individual and autonomous actors collectively, in which no single actor can compel another to perform, thus leading to problem of coordination and burden-sharing.

Global commons

The concept that some resources and objects represent a good that by rights belongs to all mankind, not just an individual or nation. Examples might include the atmosphere or the oceans.

Baht

The currency of Thailand. Pegged by the Bank of Thailand to the US Dollar until 1997 when it was devalued, triggering the Asian Financial Crisis.

September 11

The date in 2001 when the terrorist organization al Qaeda attacked targets in the USA including the Twin Towers and Pentagon.

comparative advantage

The economic principle that some countries are better able to produce a particular item than others and therefore should specialize in making that particular item and trade for other items. Proposed internationally by British economic David Ricardo in 1817.

European Commission

The executive body of the European Union, headquartered in Brussels, and in charge of the EU bureaucracy.

Free trade

The free flow of goods and services across national boundaries unimpeded by tariffs or other restrictions, a key element of liberalism (classical/economic liberalism) and a core policy of the UK in the 19th century and the USA after World War II.

GATT

The free flow of goods and services across national boundaries unimpeded by tariffs or other restrictions, a key element of liberalism (classical/economic liberalism) and a core policy of the UK in the 19th century and the USA after World War II.

Global warming

The gradual increase in global temperatures beginning in the 20th century, primarily due to man-made greenhouse gas emissions. Also, global climate change.

Hijacking

The illegal seizure of a means of transportation, often associated with hostage-taking and terrorism.

International Whaling Commission

The international organization that is responsible for regulating and maintaining whale stocks around the world. Issued a near-blanket moratorium on whaling in 1986.

European Parliament

The legislature of the European Union, directly elected by the people of the EU since 1979.

Gold standard

The nominal exchange rate system prior to the 20th century in which all currencies are fixed to a quantity of gold. The system largely broke down in the 20th century and instead after World War II major currencies were "fixed" to the US dollar, which was "fixed" to a unrealistic price of gold. That system ended in 1971 and was replaced by a floating exchange rate system.

Biodiversity

The number of different species within an ecosystem divided by the number of individuals within the system. Temperate and sub-arctic climates tend not to be very biodiverse; they have many individuals of a relative few number of species. As one gets closer to the equator, biodiversity increases, as the number of species increases.

Free rider

The phenomenon in a public goods system in which some actors take from the public good without contributing to it, "riding for free" while others pay for it. See also "Burden Sharing".

Imperialism

The principle of creating an empire, which involves the imposition of external rule on a foreign people, usually for economic gain or increasing power. Very similar to colonialism.

Colonialism

The principle of creating colonies, sometimes for economic gain or for resettlement of surplus population. Very similar to imperialism, except that colonialism usually involved population transfers.

Enclosure

The process in 18th century Britain whereby pastures and fields which were formerly considered to be the common property of a village or area were brought under the control of individually-owned estates. More generally, the process whereby a public or collective good is brought under the ownership of an individual entity.

remunerative power

The use of incentives such as foreign aid, bribery, and favorable trade agreements to entice other actors to alter their behavior.

Amazon River

The world's largest river by discharge volume and the watershed of the world's largest tropical rainforest.

Foreign exchange

These are convertible currencies such as the US Dollar,the British Pound, the Japanese Yen, Euro and increasingly the Chinese yuan (RMB). Also abbreviated as "FX". Also known as "hard currency."

Union

This is the condition under which two or more countries have such good strategic and other relations that they join together to form a single political unit.

UNCTAD

United Nations Conference on Trade and Development (pronounced "unk-tad"), a UN body established in 1964 as an intergovernmental organization intended to promote the interests of developing states in world trade. A major platform for the promotion of the New International Economic Order (see NIEO).

Terrorism

Violent actions usually against unarmed civilians which are randomnly or indiscriminately chosen in order to create a sense of insecurity and uncertainty in the greater population. Definitions vary, since one person's "Freedom Fighter" is another person's "terrorist."

WTO

World Trade Organization. Set up as the replacement to the GATT in 1995, it is meant to be more comprehensive, including issues of Intellectual Property Rights, services, textiles, etc.

Euro

� Formerly known as the European Currency Unit (ECU). This is the currency of the European Union, and all former currencies (Marks, Francs, Guilder, Lira) were based upon their set values in Euros after January 1, 1999. Euro notes replaced national currencies on January 1, 2002 in the countries of the "Euro-Zone."