Chapter 2: The rise and fall of the first globalization Flashcards
1
Q
When was the first era of globalization?
A
The long century before 1914
2
Q
What enabled the first era of globalization?
A
Technology (ships, boats), shifting economic mindset (Adam smith), and the gold standard.
3
Q
What made the gold standard possible?
A
Shared belief system, third party enforcement.
4
Q
What killed the gold standard?
A
POtential gold outflow (reduction in total supply), socialist movement.
5
Q
What is protectionism?
A
Enacting policies to keep capital inside the nation state. (Tariffs, etc.)
6
Q
What led to the advent of protectionist policies in the 1920s-30s
A
The great depression, weakening currencies, and the demand from a more integrated society for economic safety nets.
