23. Mercosur: Established in 1991 and updated in 1994, it is the free trade
agreement between Uraguay, Paraguay, Brazil, and Argentina and has welcomed
other nations, including Peru, Bolivia, Chile, Columbia, Ecuador, and in 2006,
Venezuela. The trading blocr nations have only partial membership in the trade
agreement. Mercosur has lowered tariffs for all member nations, but most notably
in 2005 for Columbia, which is now able to bring products and services to more than
200 million people who would not have had access previous to Mercosur.
24. MNC’s: Multinational corporations (MNCs) in their most basic sense are firms that
not only export their products to other countries but have also established sourcing
supplies of materials, production, marketing, and managerial operations in countries
other than their home base. The basic idea is not new but in recent years MNCs have
become so big and powerful that authors such as Hertz (2001) argue they may be a
threat to democracy.
25. Multilevel Politics: many authoritary structures at work in the emergent global
political economy, found in the EU with the development of the Maastricht Treaty
26. North Atlantic Treaty Organization / NATO: Head quarters location in Belgium
and Brussels consisting of an organization constituting a system of defense. Increased
ties with the United States.
Sovereignty – The condition of a state being free from any higher legal authority. It is
related to, but distinct from, the condition of a government being free from any external
It involves the entitlement to exclusive, unqualified, and supreme rule within a delimited
It is the founding covenant of world politics. Many argue that contemporary globalization
presents a fundamental challenge to the Westphalian ideal of sovereign statehood and
in so doing is transforming world order. The current notion of state sovereignty is often
traced back to the Treaty of Westphalia (1648), which, in relation to states, codified the
basic principles of territorial integrity, border inviolability, and supremacy of the state
(rather than the Church).
Special Drawing Rights – International foreign exchange reserve assets. It is allocated
to nations by the International Monetary Fund. It represents a claim to foreign
currencies for which it may be exchanged in times of need. The US Dollar is the world’s
primary foreign exchange reserve asset today – therefore Special Drawing Rights are