CHAPTER 2- THE STRUCTURE OF GLOBALIZATION- The Global Economy Flashcards
Refers to the increasing interdependence of world
economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies.
Economic globalization
It reflects the continuing expansion and mutual integration of market frontiers, and is an irreversible trend for the economic development in the whole world at the turn of the millennium (17).
Economic globalization
According to International Monetary Fund (IMF) it is a historical process, the result of human innovation and technological progress.
Economic globalization
It refers to the increasing integration of economies around the world, particularly through the movement of _________ , _________ and ______________ across boarder
goods, services, and capital
T OR F
In economic terms, technology is nothing but a process making the world
economy an organic system by extending transnational economic processes and economic relations to more and more countries and by deepening the economic interdependencies among them (19).
FALSE - globalization is
It also refers to the movement of _______________(______________) and _____________(____________) across international borde
people (labor) and knowledge (technology)
Two Major Driving Forces for Economic Globalization
- The rapid growing of information in all types of productive activities
- Marketization
A restructuring process that enables state enterprises to
operate as market-oriented firms by changing the legal environment in which
they operate (20) and can be achieved through reduction of state subsidies, organizational restructuring of management such as corporatization, decentralization, and privatizati
Marketization
Dimensions of Economic Globalization
- The globalization of trade of goods and services
- The globalization of financial and capital markets
- The globalization of technology and communication
- The globalization of production
It is a functional integration between internationally
dispersed activities which means that it is a qualitative transformation rather than a quantitative change
Economic globalization
Economic globalization produces its own major players in the form of _________________
transnational corporations (TNCs),
It is an extension of economic activities
between internationally dispersed activities
internationalization
T OR F
Transnational Corporation is the main driving forces of economic globalization to the last 100 years or roughly two-thirds of world export
(23).
True
It is otherwise known as multi -national corporation is a corporation that has a home base, but is registered, operates and has assets or other facilities in at least one other country at one time
Transnational corporation
Examples are the US-based General Electric (GE), the Coca-Cola
Company of Atlanta, Georgia, US Nike and others
other info
Origin of Economic Globalization
In this period the world system analysts identify the origin of modernity and
globalization through long distance trade.
This best known example of archaic globalization is the Silk Road, which started in western China, reached the boundaries of the Parthian empire, and continued onwards towards Rome . It also connected Asia, Africa, and Europe
16th Century
Origin of Economic Globalization
In this period the Global economy grew by an average of nearly 4 percent per annum, which is roughly twice as high as growth in the national incomes of the developed economies since the late 19th century
in the 19 th and 20th centuries
Origin of Economic Globalization
In this period the global economy exists only in trade and exchange
rather than production as the world export to World GDP did not reached 1 to 2 percent.
17 th and 18th century
Origin of Economic Globalization
In this period the advent of globalization approaching its modern form is
witnessed. A short period before World War I is referred to as golden age of
globalization characterized by relative peace, free trade, financial and economic stability
19th century
Origin of Economic Globalization
In this period the Growth in international exchange of goods accelerated
second quarter of the 19th century
It is the global network of the government and financial institutions that determine the exchange rate of different currencies for international trade.
It is a governing body that sets rules and regulations by which different nations exchange currencies with each other.
International monetary system (IMS)
refers to a system that forms rules and
standards for facilitating international trade among the nations. It helps in reallocating the capital and investment from one nation to another.
International monetary system (IMS)