Economic Globalization Flashcards
- is a historical process, the result of human innovation and technological progress
- refers to the increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders
- refers to the movement of people (labor) and knowledge across international borders
economic globalization
economic globalization is the result of what
human innovation and technological progress
Dimensions of Economic Globalization
- globalization of trade of goods and services
- globalization of financial and capital markets
- globalization of technology and communication
- globalization of production
“economic globalization refers to the movement of people (labor) and knowledge (technology) across international borders”
IMF, 2008
“globalization transforms the national economy into a global one where ‘there will be no national products or technologies, no national corporations, no national industries”
Reich as cited by Benczes, 2014
impact of economic globalization
transform the national economy into a global one
- oldest known international trade route
- international, but not truly global
silk road
“globalization began in 1571 with the establishment of Galleon Trade”
Flynn & Giraldez
what was established in 1571
Galleon Trade
“globalization prcesses have been ongoing ever since Homo sapiens began migrating from the African continent ultimately to populate the rest of the world. Minimally, they have been ongoing since the sixteen-century’s connection of the Americas to Afro-Eurasia”
Gills and Thompson
Trace “the origin of globalization in the (very) distant past: ‘the existence of the same world system in which we live stretches back at least 5000 years”
Frank and Gills
economic globalization is an “innovative concept of ‘long furation, i.e. a slow-moving, almost imperceptible”
Fernand Braudel
“identify the origins of modernity and globalization with the birth of sixteenth century long distance trade”
framework for historical analysis and world-system analysts
“the relatively short period before World War I (that is, 1870-1913) is often referred to as the ‘golden age’ of globalization, characterized by relative peace, free trade, and financial and economic stabiltiy”
O’Rourke and Williamson
characteristics of ‘golden age’ of globalization
- relative peace
- free trade
- financial and economic stability
Benefits of globalization and its impact on economic growth
- economies of scale
- technological innovation
- foreign direct investment
Risks of globalization and its impact on economic growth
- interdependence
- threat to sovereignty
- inequitable distribution
is a system of generalized commodity production in which wealth is owned privately and economic life is organized according to market principles
capitalism
“capitalism is a system of generalized commodity production in which wealth is owned privately and economic life is organized according to market principles”
Heywood, 2011
a system of commerical exchange shaped by the forces of demand and supply, and regulated by the price mechanism
market
the process whereby productive tasks become separated and more specialized in order to promote economic efficiency
division of labor
any ‘asset’, financial or otherwise; Marxists used the term to refer to accumulated wealth embodied in the ‘means of production’
capital
moderate or reformist brand of socialism that favors a balance between the market and the state, rather than the abolition of capitalism
social democracy
- is an updated version of classical liberalism and particularly classical political economy
- its central theme is the idea that the economy works best when left alone by government, reflecting a belief in free market economics and atomistic individualism
neoliberalism
