Poli Econ Chapter 2
Terms
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- mercantilism
- A seventeenth-century idea that won't go away, mercantilism was an ideology that put accumulation of national treasure as the main goal of society. Today, it is an economic philosophy and practice of government regulation of a nation's economic life to increase state power and security. Policies of import restriction and export promotion (to accumulate treasure at the expense of other countries)follow from this goal.
- nation
- A social group that shares a common identity, history, language, set of values and beliefs, institutions, and sense of territory. nations do not have to have a homogeneous ethnic culture but usually exhibit a sense of homogeneity. Nations may extend beyond states, be circumscribed by states, or be coterminous with states. Since the seventeenth century, the nation-state has been the major political (sovereign) unit of the international system.
- state
- A legal concept describing a social group that occupies a defined territory and is organized under common political institutions and an effective government. A state has some degree of independence and autonomy. States are the primary units of the international political and legal community. As sovereign entities, states have the right to determine their own national objectives and the techniques (including the use of force) for their achievement.
- sovereignty
- Independence from foreign control.
- colonialism
- The state of being a colony or extension of another government.
- classical mercantilism
- Policies focused on gaining wealth and power through unequal foreign trade; economic nationalism focused on the internal development of the national economy.
- realism
- A theory of state behavior that focuses on national interest as a determinant of state behavior. In the view of realists, states, like individuals, tend to act in their own self-interest.
- economic nationalism
- The ideology of mercantilism. Economic nationalism holds that nations are best off when state and market are joined in a partnership. The state protects domestic business firms, which become richer and more powerful, which in turn increases the power of the state. Alexander Hamilton and Friedrich List are two famous proponents of economic nationalism.
- national interest
- state goals; mercantilist view, best interest of entire nation, government not individuals
- productive power
- A term used by Friedrich List to describe technology, education, and training, especially with respect to the industrial sector of the economy.
- neomercantilism
- A version of mercantilism that evolved in the post-World War II period. Neomercantilism is basically mercantilist policy enacted with a liberal system of international trade.
- strategic resources
- Resources, such as oil and rubber, that have national security value to a nation.
- malevolent mercantilism
- Mercantilist policies that aim to defeat an enemy or potential enemy. Associated with Germany and Japan before World War II.
- benign mercantilism
- A defensive strategy that seeks to protect the domestic economy against damaging political and economic forces. In contrast to malevolent mercantilism, it seeks to expand a nation's political and economic influence intentionally at the expense of other nations, beyond what is needed for protection. But what one nation intends as benign can be interpreted by another as malevolent, as in the case of Unocal's attempted acquisition by China's state-owned oil company.
- industrial policy
- Economic policies designed to guide or direct business investment and development. Such policies often include support for businesses and trade protection.
- strategic trade policy
- Efforts on the part of the state to create comparative advantage in trade by methods such as subsidizing research and development of a product, or providing subsidies to help an industry increase production to the point at which it can move down the "learning curve" to achieve greater production efficiency than foreign competitors. Strategic trade practices are often associated with state industrial policies--that is, intervention in the economy to promote specific patterns of industrial development.
- countermovement
- A conceptual tool devised by Karl Ploanyi to describe the rejection of the market by groups of working people, in response to its negative social effects.
- zero-sum
- Nobody wins worldview; Gains in economic wealth by one state are often perceived as losses by competing states. Dependency on other states would weaken a nation-state if imported provisions were cut off.