CTWD 2 Prelims Flashcards
Process of making the world
economy an ‘organic system’ by
extending transnational economic
processes and relations to more and
more countries and by deepening
the economic interdependencies
among them (Szentes, 2003)
Economic Globalization
Refers to the expanding
interdependence of world
economies
Economic Globalization
______ and ________ globalization began since Homo sapiens began from migrating from the African continent to populate the rest of the world
Grills and Thompson
_____ and ______ considered the Silk Road or Silk Route (Asia, Europe, Africa) the best example for archaic globalization 5,000 years ago, this route also led the discovery of the Philippine islands when Portuguese and Spaniards were in search of spices, and then laid colonization
Frank and Grills
____ _____considered the discovery of America by Christopher Columbus in 1492 and the
discovery of the direct sea route to India by Vasco de Gama in 1498 as the two (2) greatest
Adam Smith
_______ ___________ ___________spread to Continental Europe and North America
British Industrial Revolution
Globalization began in ____
1571
To ______ _. _____ and ______ ________, globalization began when all important populated continents began to exchange products continuously (directly or indirectly)
Dennis O. Flynn and Arturo Geraldez
_______ _____ (Manila – Acapulco monopolized trade)
Galleon Trade
This was the first time that ________ were directly connected to Asian trading routes
Americas
____________ trade from 16th to 18th century (protectionism/trade restrictions)
Mercantilism
__th – __th century, economic nationalism and monopolized trade such as the British (1600) and the Dutch (1602) East India Companies
17th - 19th
__th century transport revolution is considered the “golden age of globalization” because it promoted relative peace, free-trade, and financial and economic stability.
20th
Four Interconnected Dimensions of Economy
- Globalization of Goods and Services
- Globalization of financial and
capital markets - Globalization of technology and
communication - Globalization of production
Existence of multinational
corporations and transnational
corporations
Globalization of Production
Shows the contribution of different
financial and economic institutions
that facilitated the growth of the
global economy.
Market Integration
Facilitators of Economic Globalization
- Nation-state
- Global Corporations
- International Monetary Systems
- the role of ______-______ as manager
of the national economy is being
redefined by the globalization, but
still act as buffer to globalization’s
negative effects (Boyer & Drache,
1996) - “Midwives of globalization”
Nation-state
- Existed as the primary economic
organization unit in the global
market, meanwhile, nation-state
has ceased
Global Corporations
- A firm that has a
power to coordinate
and control operations
in more than two
countries
Multinational Corporations
- A firm that
operates in one or
more companies
Transnational Corporations
*Importers and
exporters who have
no investment outside
of their homegrown
countries
International Corporations
*Internationally agreed
rules, conventions, and
institutions for facilitating
international trade,
investments and flow of
capital among states
International Monetary
Systems
Three Global International
Monetary Systems
*Gold Standard
*Bretton Woods System
*European Monetary System
- Sees the state as neutral arbiter
among competing interests and
groups in society, a vital guarantee
of social order - Favors openness, debate and selfdetermination
Liberalism
Key Principles
- Individual freedom
*Equality of opportunity
*Government by consent
*States role is to safeguard freedom of the individual
*Commonly associated with Laissez-faire
*Ideology and policy model that emphasizes the value of free market competition.
Neoliberalism
- Counter-reaction of the wealthy class from the post-war economy
- Increase of prices of oil by OPEC, imposed an embargo in response to the US to supply Israeli military during the Yom-Kippur War
Neoliberalism
- Private-ownership
Capitalism
- State should provide the needs of the people
Socialism
*Stagflation occurs
*Washington Consensus
Neoliberalism
