AP Comparative Government and Politics Flashcards: Policies And Economic Liberalization

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This deck focuses on Policies And Economic Liberalization, giving you a quick way to review the definitions, rules, and examples that matter most for AP Comparative Government and Politics.

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Work through these flashcards in short sessions. Try to answer each prompt before flipping the card, then revisit any cards you miss until the explanation feels automatic.

Flashcard 1: Identify a common policy used in economic liberalization.

Answer: Privatization of state-owned enterprises. Transfers government assets to private ownership for efficiency.

Flashcard 2: Which institution often requires economic liberalization as loan condition?

Answer: International Monetary Fund (IMF). Conditions loans on implementing free-market reforms.

Flashcard 3: What is the role of the World Trade Organization (WTO)?

Answer: To facilitate international trade agreements and resolve disputes. Promotes global trade through rules and dispute resolution.

Flashcard 4: What is meant by 'trade liberalization'?

Answer: Reduction of trade barriers like tariffs and quotas. Promotes international competition and specialization.

Flashcard 5: What is 'fiscal policy'?

Answer: Government adjustments in spending and taxation to influence the economy. Tools to manage economic cycles and public finances.

Flashcard 6: Which international organization often advocates for economic liberalization?

Answer: International Monetary Fund (IMF). Provides loans conditional on free-market reforms.

Flashcard 7: What is 'exchange rate liberalization'?

Answer: Allowing the currency's value to be determined by the market. Market forces determine currency value instead of government control.

Flashcard 8: What is meant by 'capital market liberalization'?

Answer: Removing restrictions on financial flows in and out of a country. Allows free movement of investment capital across borders.

Flashcard 9: Identify an effect of economic liberalization on labor markets.

Answer: Increased labor mobility. Workers can move more freely between sectors and regions.

Flashcard 10: What is a 'free trade agreement'?

Answer: A pact between countries to reduce or eliminate trade barriers. Reduces costs and increases market access for member countries.

Flashcard 11: Identify a characteristic of neoliberalism.

Answer: Emphasis on free markets and limited government intervention. Core ideology behind most economic liberalization policies.

Flashcard 12: Identify a key feature of economic liberalization in China.

Answer: Special Economic Zones. Designated areas with relaxed regulations to attract investment.

Flashcard 13: What is the role of the World Trade Organization (WTO)?

Answer: To facilitate international trade agreements and resolve disputes. Promotes global trade through rules and dispute resolution.

Flashcard 14: Which policy type encourages foreign competition in local markets?

Answer: Trade liberalization. Removes barriers protecting domestic markets from foreign firms.

Flashcard 15: Identify a potential risk of rapid economic liberalization.

Answer: Economic instability. Sudden changes can disrupt existing economic structures.

Flashcard 16: What is the goal of economic liberalization?

Answer: Increase efficiency and economic growth. Market forces typically allocate resources more efficiently than government.

Flashcard 17: Identify a sector often targeted for deregulation.

Answer: Telecommunications. Often monopolistic and heavily regulated, making it prime for reform.

Flashcard 18: Identify a common criticism of economic liberalization.

Answer: It may lead to exploitation of workers. Reduced regulations may weaken labor protections.

Flashcard 19: What is a 'structural adjustment program'?

Answer: Economic policies imposed by IMF or World Bank on debtor nations. Conditional reforms required for international financial assistance.

Flashcard 20: Identify a sector often targeted for deregulation.

Answer: Telecommunications. Often monopolistic and heavily regulated, making it prime for reform.

Flashcard 21: What is globalization?

Answer: Increased interconnectedness and interdependence of economies. Economic liberalization facilitates this integration process.

Flashcard 22: What is a subsidy?

Answer: Financial aid provided by the government to support an industry. Government support to make domestic products more competitive.

Flashcard 23: What does 'liberalization of services' entail?

Answer: Removing restrictions on foreign service providers. Opens service sectors to international competition.

Flashcard 24: What does 'market liberalization' refer to?

Answer: Opening up markets to competition. Increases choices and efficiency through competitive forces.

Flashcard 25: What is economic liberalization?

Answer: Reduction in state intervention in the economy. Shifting from state-controlled to market-driven economics.

Flashcard 26: Identify a common criticism of economic liberalization.

Answer: It may lead to exploitation of workers. Reduced regulations may weaken labor protections.

Flashcard 27: Identify an effect of economic liberalization on labor markets.

Answer: Increased labor mobility. Workers can move more freely between sectors and regions.

Flashcard 28: Identify a consequence of reducing trade barriers.

Answer: Increased competition. Foreign firms compete with domestic producers.

Flashcard 29: What is deregulation?

Answer: Reduction or elimination of government rules. Allows market forces to operate with fewer constraints.

Flashcard 30: What is a 'structural adjustment program'?

Answer: Economic policies imposed by IMF or World Bank on debtor nations. Conditional reforms required for international financial assistance.

Flashcard 31: What is globalization?

Answer: Increased interconnectedness and interdependence of economies. Economic liberalization facilitates this integration process.

Flashcard 32: What is a non-tariff barrier?

Answer: A restriction other than tariffs that countries use to control imports. Includes quotas, licensing requirements, and technical standards.

Flashcard 33: What is deregulation?

Answer: Reduction or elimination of government rules. Allows market forces to operate with fewer constraints.

Flashcard 34: What is a 'free trade agreement'?

Answer: A pact between countries to reduce or eliminate trade barriers. Reduces costs and increases market access for member countries.

Flashcard 35: Which policy type encourages foreign competition in local markets?

Answer: Trade liberalization. Removes barriers protecting domestic markets from foreign firms.

Flashcard 36: What is a potential disadvantage of economic liberalization?

Answer: Increased income inequality. Market rewards may concentrate wealth among skilled workers and capital owners.

Flashcard 37: What is a subsidy?

Answer: Financial aid provided by the government to support an industry. Government support to make domestic products more competitive.

Flashcard 38: What does 'market liberalization' refer to?

Answer: Opening up markets to competition. Increases choices and efficiency through competitive forces.

Flashcard 39: Identify a benefit of economic liberalization.

Answer: Increased foreign investment. Foreign capital brings new opportunities and technology.

Flashcard 40: Which sector often benefits from trade liberalization?

Answer: Export-oriented industries. Access to larger markets increases competitiveness and growth.

Flashcard 41: What is meant by 'trade liberalization'?

Answer: Reduction of trade barriers like tariffs and quotas. Promotes international competition and specialization.

Flashcard 42: What is the 'Washington Consensus'?

Answer: A set of economic policy prescriptions for developing countries. Promoted privatization, deregulation, and fiscal discipline.

Flashcard 43: What is 'exchange rate liberalization'?

Answer: Allowing the currency's value to be determined by the market. Market forces determine currency value instead of government control.

Flashcard 44: Which policy involves reducing barriers to FDI?

Answer: Investment liberalization. Removes legal obstacles to foreign investment flows.

Flashcard 45: Identify a key feature of economic liberalization in China.

Answer: Special Economic Zones. Designated areas with relaxed regulations to attract investment.

Flashcard 46: What is meant by 'capital market liberalization'?

Answer: Removing restrictions on financial flows in and out of a country. Allows free movement of investment capital across borders.

Flashcard 47: What is economic protectionism?

Answer: Restricting imports to protect domestic industries. Opposite approach that shields domestic industries from foreign competition.

Flashcard 48: Identify a common policy used in economic liberalization.

Answer: Privatization of state-owned enterprises. Transfers government assets to private ownership for efficiency.

Flashcard 49: What is 'monetary policy'?

Answer: Central bank actions to control money supply and interest rates. Central bank tools to influence economic activity.

Flashcard 50: What is 'financial liberalization'?

Answer: Deregulating financial markets and institutions. Reduces government control over banking and investment sectors.

Flashcard 51: What does 'liberalization of services' entail?

Answer: Removing restrictions on foreign service providers. Opens service sectors to international competition.

Flashcard 52: What is the 'Washington Consensus'?

Answer: A set of economic policy prescriptions for developing countries. Promoted privatization, deregulation, and fiscal discipline.

Flashcard 53: What is economic protectionism?

Answer: Restricting imports to protect domestic industries. Opposite approach that shields domestic industries from foreign competition.

Flashcard 54: Which sector often benefits from trade liberalization?

Answer: Export-oriented industries. Access to larger markets increases competitiveness and growth.

Flashcard 55: Identify a characteristic of neoliberalism.

Answer: Emphasis on free markets and limited government intervention. Core ideology behind most economic liberalization policies.

Flashcard 56: Identify a benefit of economic liberalization.

Answer: Increased foreign investment. Foreign capital brings new opportunities and technology.

Flashcard 57: What is a non-tariff barrier?

Answer: A restriction other than tariffs that countries use to control imports. Includes quotas, licensing requirements, and technical standards.

Flashcard 58: What is 'foreign direct investment' (FDI)?

Answer: Investment by a firm in one country into a company in another. Brings capital, technology, and expertise to host countries.

Flashcard 59: What is 'monetary policy'?

Answer: Central bank actions to control money supply and interest rates. Central bank tools to influence economic activity.

Flashcard 60: Which policy involves selling government assets to private entities?

Answer: Privatization. Transfers ownership from public to private sector.

Flashcard 61: Which policy involves selling government assets to private entities?

Answer: Privatization. Transfers ownership from public to private sector.

Flashcard 62: Identify a potential risk of rapid economic liberalization.

Answer: Economic instability. Sudden changes can disrupt existing economic structures.

Flashcard 63: What is the goal of economic liberalization?

Answer: Increase efficiency and economic growth. Market forces typically allocate resources more efficiently than government.

Flashcard 64: What is a quota in terms of international trade?

Answer: A limit on the quantity of a good that can be imported. Limits supply to protect domestic producers from foreign competition.

Flashcard 65: Identify a consequence of reducing trade barriers.

Answer: Increased competition. Foreign firms compete with domestic producers.

Flashcard 66: Which international organization often advocates for economic liberalization?

Answer: International Monetary Fund (IMF). Provides loans conditional on free-market reforms.

Flashcard 67: What is a tariff?

Answer: A tax on imported goods. Protects domestic industries by making imports more expensive.

Flashcard 68: Name a country known for extensive economic liberalization in the 1980s.

Answer: United Kingdom. Thatcher's policies included massive privatization and deregulation.

Flashcard 69: What is economic liberalization?

Answer: Reduction in state intervention in the economy. Shifting from state-controlled to market-driven economics.

Flashcard 70: Which policy involves reducing barriers to FDI?

Answer: Investment liberalization. Removes legal obstacles to foreign investment flows.

Flashcard 71: Which policy might involve reducing corporate tax rates?

Answer: Tax reform. Lower taxes attract investment and stimulate business activity.

Flashcard 72: Which institution often requires economic liberalization as loan condition?

Answer: International Monetary Fund (IMF). Conditions loans on implementing free-market reforms.

Flashcard 73: What is a tariff?

Answer: A tax on imported goods. Protects domestic industries by making imports more expensive.

Flashcard 74: What is 'fiscal policy'?

Answer: Government adjustments in spending and taxation to influence the economy. Tools to manage economic cycles and public finances.

Flashcard 75: What is a potential disadvantage of economic liberalization?

Answer: Increased income inequality. Market rewards may concentrate wealth among skilled workers and capital owners.

Flashcard 76: Which policy might involve reducing corporate tax rates?

Answer: Tax reform. Lower taxes attract investment and stimulate business activity.