CONTEMPO WORLD Flashcards
The result of human innovation and technological
process.
- International Monetary Fund (IMF)
Economic Globalization
the increasing integration of economies around the globe through the movement of good, services across
borders
Economic Globalization
When did the FULL International Trading System begin?
OTTOMAN
EMPIRE
CLOSED THE
SILK ROAD
WHO:“all important populated continents began to exchange products continuously”
Dennis O. Flynn & Arturo Giraldez
When did Galeon Trade Start?
1565
When did Galeon Trade End?
Sept. 14, 1815
Galeon Trade is at the age of _______
MERCANTILISM
An economic policy that is designed
to maximize the exports and minimize the imports for
an economy.
MERCANTILISM
What destroyed mercantilism in 1700s?
Democracy and Free Trade
Mercantilism was very dominant in Europe during ____ and ____
1500s; 1800s
TRUE OR FALSE: American and Spanish revolutions formalized large nations ruled by democracy.
FALSE: American and FRENCH
When did gold standard started?
1867
Where did gold standard started?
United States and
other European Nations
Countries established a common basis
for currency price and a fixed exchange
rate system- all based of the value of
gold.
GOLD STANDARD
When did Britain stopped using the gold standard?
1931
When did the US stopped using the gold standard?
1933
When was the remnants of the gold standard system completely abandoned?
1973
Argentina’s Currency
Argentinean Peso
Why did the Great Depression occur?
There were more receipts than gold. people were starting to doubt banks, leading to their bankruptcy.
The only currency that was accepted to change into gold
US Dollars
Mauritius’ Currency
Mauritius Rupee
Russia’s Currency
Ruble
Who said “Economic crises occur not
because a country does not have enough money, but because the money is not being spent or not moving.”
John Maynard Keynes
Established a new global monetary system. at
the UNITED NATIONS MONETARY AND FINANCIAL CONFERENCE at Bretton
Woods, New Hampshire
The Bretton Woods agreement of 1944
Why was Bretton Woods agreement established?
To prevent Catastrophes
It replaced the gold standard with the U.S. dollar as the global currency.
Bretton Woods agreement/ system
When did the Bretton Woods system collapse?
1971
When was General Agreement on Tariff and Trade (GATT) established?
1947
responsible for funding postwar reconstruction projects.
INTERNATIONAL BANK FOR RECONSTRUCTION (IBRD or
WORLD BANK)
the global lender in order to prevent each country from increasing monetary
crisis/economic crisis
INTERNATIONAL MONETARY FUND (IMF)
-As demand increased, so did the prices.
-general economic growth and reduced unemployment.
GLOBAL KEYNESIANISM
The duration of GLOBAL KEYNESIANISM
1940s to early 1970s
His ideas fundamentally changed economic theory and practice
John Maynard Keynes
THEORY: Aggregate demand drives economic growth and employment
Keynesian Theory
THEORY: Government intervention in the economy is necessary
Keynesian Theory
Components of Stagflation
- Inflation
- Low GDP
- Higher Rate of Unemployment
- Recession in most of the Economic Activities
- Poor implementation of Government Policies
WHO: “the gov’t’s practice of pouring money into
their economies had
caused inflation by
increasing demand
for goods without
increasing supply.”
Friedrich Hayek & Milton Friedman
HAYEK vs KEYNES: The economy can be steered
Keynes
HAYEK vs KEYNES: Must avoid boom-bust cycles (long term focus)
Hayek
HAYEK vs KEYNES: Pro-Government
Government acts in best interest of public
Keynes
When did IMF, World Bank, WTO codified strategies
1980s
- minimal gov’t spending
– Privatization
– Shock Therapy
WASHINGTON CONSENSUS
When did Washington Consensus happen?
1980’s to 2000’s
The economic downturn from 2007 – 2009 resulting from
the bursting of the US housing bubble and the global
financial crisis.
The great recession
The Contemporary world =
The Modern World
WHAT: The increasing interaction of people, states, or countries
through the growth of the international flow of money, ideas, and culture.
Globalization
It is the free movement of goods, services, and people across the world in a seamless and integrated manner
Globalization
It is the creation of a successful interconnected marketplace without any limitation of time zone and national boundaries.
Globalization
It is the liberalization of countries of their impact protocols and welcome foreign investment into sectors that are the mainstays of its economy.
Globalization
It refers to countries acting like magnets attracting global capital by opening up their economies to multinational corporations.
Globalization
WHO: People are incorporated into a single world society.
MARTIN ALBROW
WHO: Intensification of the worldwide social relations link distant localities
ANTHONY GIDDENS
WHO: The compression of the world & the intensification of the consciousness of the world as a whole.
ROLAND ROBERTSON
Characteristics of Globalization
- There is a social mobility of movement of people regardless of reason
- There is an intensification of interactions
- It’s an active process
- Borderless Interaction
- Spread of ideas, knowledge, technology. Culture, religion. Et.
Reasons for Globalization
- Rapid shrinking of time and distance across the globe.
- To reduce high transportation costs if one goes globally using the advance tools of communication.
- To be close to raw materials & to markets for their finished products w/c are not available in the country of origin
- Domestic markets are no longer rich as a consequence of many interlocking factors
-To get technological & managerial know-how of other countries due to their advancement in science technology, education, health, etc.
- Companies & institutions go global to find political & economical stability w/c is relatively good in other countries than the countries of origin
- The creation of the World Trade Organization (WTO) had made it possible in stimulating increased across borders trade.
POSITIVE IMPACTS OF GLOBALIZATION
- Improved Technology in Transportation and Telecommunications
- Exports jobs
- Competition
- Cross-Cultural Management
NEGATIVE IMPACTS OF GLOBALIZATION
- Environmental Damage
- Abandonment of Culture
- Illicit Market
- Widening of rich and poor
- Terrorism
