Economic Globalization Flashcards
_ is concerned with transnational trade, th opening of markets, and cutting down on trade restrictions.
Global Economy
_ is being described in the statement: the spread of capitalism across national borders with limited restrictions by the government.
Global Economy
_ is where the prices of the same products in different locations follow a similar pattern over a long period of time.
Market Integration
_ is being shown in the statement: If the prices of the same products will increase or decrease, the often move proportionally in different locations.
Market Integration
_ and _ stated that globalization began when “all-important
populated continents began to exchange products continuously- both with each other directly and indirectly via other continents- and in values sufficient to generate crucial impacts on all trading partners.”
Dennis O. Flynn, Arturo Giraldez
In 16th to 18th century, _ is a form of economic nationalism that sought to increase the power of a nation through restrictive trade practices.
Mercantilism
In _, trade isolationism was prohibited. A common basis for currency prices was developed a rates based on the value of gold was fixed.
1860s
In _, the world experienced a global economic crisis which was known as the “Great Depression”.
1920s to 1930s
In _, the United Nations Monetary and Financial Confederation established the Bretton Woods system.
1944
The Bretton Woods system was established to:
1. establish a global economic system to _;
2. establish binding rules on _,
3. encourage _ among states.
The Bretton Woods system was established to:
1. establish a global economic system to prevent financial crash;
2. establish binding rules on international economic exchange,
3. encourage free trade among states.
There were three institutions under the Bretton Woods system:
- International Monetary Fund (IMF)
- International Bank for Reconstruction and Development- World Bank
- General Agreement on Tariffs and Trade - World Trade Organization
In the _, the Organization of Petroleum Exporting Countries (OPEC) quadrupled the price of oil and OPEC nations deposited their wealth in commercial banks. This shaped the _.
1970s, 1982 International Debt Crisis
In _, developing countries took out large amounts of loans from international banks and Internataional financial institutions. The money was used for the development of social welfare programs and to boost infrastructure development. Developing countries struggled to pay those debts because of changes in currency, increase in prices of oil, high interest rate and declining exports.
1982
In 1982, to help save the economies of countries, the international financial institutions and governments agreed to initiate: _, _, and _.
Debt Forgiveness, Debt Payment Rescheduling, Structural Adjustment Programs
_ was a term coined by John Williamson in 1989.
Washington Consensus
_ is a 10-point policy concerning free market ideas supported by the IMF, World Bank, EU, and the US.
Washington Consensus
In _, the following took place:
Government expenses should be kept at a minimum.
Privatization of government-run services such as water, electricity, transportation.
Governments in developing countries should reduce their tariffs and open their economies.
The free market and private sector can delver the best results for the economy.
Washington Consensus
In _, the East Asian Economic Crisis occured.
1997 - 2001
The Asian financial crisis started in _ in July 1997 and rippled across East Asian countries.
Thailand
In _, the Thai Bajt was unpegged from the US dollar because they lacked reserves to back up their currency.
1997 - 2001 East Asian Economic Crisis
In _, the US government failed to control and regulate bad and risky housing investments. Banks allowed housing loans without serious investigation of the financial capacity of the borrower to pay.
2007 - 2009 Economic Recession
In 2007 - 2009 Economic Recession, the banks assumed that the borrowers would not default and if they defaulted the banks could _. However, this prediction was wrong and in 2007 the prices of houses decreased, and bonds became papers without value.
reclaim the house and resell it for a higher price in the market
In the event of the Economic Recession, year _ was when the Lehman Brothers declared bankcruptcy.
2008
_ developed the world systems theory.
Immanual Wallerstein
