EXAM TERMS POLA84
*1. Bretton Woods system - The regulatory system introduced at the end of the Second World War
(1944) in an attempt to bring stability to those of the world economy under the US sphere of influence.
The IMF and WBO were established at Bretton Woods. The Bretton Woods system is no longer in effect.
o first example of a fully negotiated monetary order intended to govern monetary
relations among independent nation-states.
o The chief features of the Bretton Woods system were an obligation for each country to
adopt a monetary policy that maintained the exchange rate by tying its currency to the
U.S. dollar and the ability of the IMF to bridge temporary imbalances of payments.
o Globalization: creating relations and becoming in order and becoming one, under US
power, making trade possible
*2. “Emerging Economy” - Nations with social/business activity in the process of rapid growth and
industrialization. They are countries with a GDP per capita inferior to that of a developed nation but the
standard of living and economic growth is beginning to rival that of a developed nation. They promise
huge potential for growth. China and India are considered to be the largest emerging economies.
Globalization aided them to develop, to grow, becoming open markets, a shift from closed
economies to open economies
*3. European Parliament - The directly elected parliamentary institution of the EU. Together with the
Council and Commission, it exercises legislative function of the EU. Composed of 754 Members and
elections are every 5 years. It has control of the EU budget
Powerful legislation in the world, second largest democratic electorate in the world and
the largest trans-nnational democratic electorate in tehw orld
Three main roles: debating the EU laws, scrutinizing the EU institions (particular in the
commission to make sure it works democratically), adopting EU budget
Successful with being democratic
*4. European Union - Economic and political union of various European member states. It has created a
common economic area with European-wide laws allowing people to move and trade in other EU
countries as they would in their own. Objective is to bring its members close together with respect of
human rights and democracy. Most members share the currency of the euro.
Came into action 50 years ago, in first direct elections of the European Parliament
Unify Europe and prevent conflicts and war happening
Held together by an amazing array of treaties, organizations, along with shared values and
Great degree of autonomy
Government revenues are raised and spent within the borders
*5. FAO (Food and Agricultural Organization of the United Nations) - Agency of the UN that leads
international efforts to combat hunger. Member of the United Nations Development Group. Serves as
neutral forum where all nations can converge to negotiate agreements and debate policies. Helps
countries to modernize and improve food processes while ensuring good nutrition and food security for
Helping developing countries, all natiosn to meet as equals, help modernize 6. GATT - (General Agreement on Tariffs and Trade): Multilateral agreement regulating international
trade. Its goal is to substantially reduce tariffs and other trade tariffs on a mutually advantageous basis.
It lowered prices for consumers and allowed for better usage of factors of production. It was the
outcome of the failure of negotiating governments to create the International Trade Organization (IT).
Now known as the World Trade Organization.
7. Global Governance - Political interaction of transnational actors. The aim is to solve problems that
affect more than one state or region. It’s the management of global processes in the absence of a global
government. Global governance designates regulations intended for the global scale.
*8. Gross National Product - Total value of all goods and services produced by a national economy
within a year regardless of where factors of production are located. Unlike GDP which is based on
geographical location, GNP depends on ownership. It’s a measurement used to describe the economic
condition of a country. GNP does not distinguish between qualitative and quantitative improvements
and consider both to be a part of economic growth.
*9. Hyperglobalizers - Individuals who believe globalization is good. They believe that the role of the
government is to act as a facilitator of global capitalism. Hyperglobalizers support economic
liberalization and free trade. They also advocate decreasing the size of the public sector while increasing
the role of the private sector in modern society.
*10. ILO (International Labour Organization) - ILO is a United Nations agency dealing with labour issues,
particularly international labour standards and decent work for all. Almost all (185 out of 193) UN
members are part of the ILO.
*11. Interdependence - A relationship in which each member is mutually dependent on the other. In an
organizational structure, people and departments must rely on each other to share info, share
resources, and communicate in order to have a successful outcome. Without such a thing, failure will
follow as the chain of command will be broken. Although success/failure of each entity doesn’t directly
affect another, it affects overall success so every entity indirectly affects one another.
12. Intergovernmentalism - Stanley Hoffman theory which states that national governments control the
level and speed of European integration. Any increase in power at supranational level results from
governments’ direct decision. Integration, driven by national governments, often flowed from domestic
political and economic issues. This rejects the idea that supranational organisations are on an equal level
to national governments.
*13. Jacques Delors - French economist and politician who served as the 8th President of the European
Commission. During his presidency, he laid the groundwork for the introduction of a single market
within the European community. He played a huge role in the process of European integration. The
Delors administration was responsible for the creation of the Committee of the Regions.
14. John Maynard Keynes - John Maynard Keynes was a British economist whose ideas have profoundly
affected the theory and practice of modern macroeconomics, and informed the economic policies of
governments. His ideas are the basis for the school of thought known as Keynesian economics, as well as
its various offshoots.
15. Kenichi Ohmae -
16. Kenneth Waltz - American political economist who is one of the founders of neorealism, also known
as structural realism. Neorealism seeks to reformulate the traditional realist paradigm. Waltz argued in
favour of a systematic approach in which the international structure acts as a constraint on state
behavior so that only states whose outcomes fall within an expected range survive. This system is similar
to a microeconomic model in which firms set prices and quantity based on the market.
*17. Kyoto Protocol - A United Nations international treaty that sets binding obligations on industrialized
nations to reduce emissions of greenhouse gases. However, UN member’s such as Afghanistan and the US are not parties to the protocol despite being prominent powers. Canada withdrew from this protocol
in 2011. The Kyoto Protocol is widely considered unsuccessful since the targets only apply to a small
amount of annual global emissions.
*18. Laissez-faire Capitalism - “let it be” economic environment in which favours the deregulation of the
free market. This type of Capitalism is against tariffs, government subsidies and enforced monopolies.
There is no such state that has a laissez faire market.
*19. LDCs (Least Developed Countries)