Economic Globalization

Question 1

_ is concerned with transnational trade, th opening of markets, and cutting down on trade restrictions.

Answer 1

Global Economy

Question 2

_ is being described in the statement: the spread of capitalism across national borders with limited restrictions by the government.

Answer 2

Global Economy

Question 3

_ is where the prices of the same products in different locations follow a similar pattern over a long period of time.

Answer 3

Market Integration

Question 4

_ is being shown in the statement: If the prices of the same products will increase or decrease, the often move proportionally in different locations.

Answer 4

Market Integration

Question 5

_ 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.”

Answer 5

Dennis O. Flynn, Arturo Giraldez

Question 6

In 16th to 18th century, _ is a form of economic nationalism that sought to increase the power of a nation through restrictive trade practices.

Answer 6

Mercantilism

Question 7

In _, trade isolationism was prohibited. A common basis for currency prices was developed a rates based on the value of gold was fixed.

Answer 7

1860s

Question 8

In _, the world experienced a global economic crisis which was known as the “Great Depression”.

Answer 8

1920s to 1930s

Question 9

In _, the United Nations Monetary and Financial Confederation established the Bretton Woods system.

Answer 9

1944

Question 10

The Bretton Woods system was established to:
1. establish a global economic system to _;
2. establish binding rules on _,
3. encourage _ among states.

Answer 10

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.

Question 11

There were three institutions under the Bretton Woods system:

Answer 11

1. International Monetary Fund (IMF)
2. International Bank for Reconstruction and Development- World Bank
3. General Agreement on Tariffs and Trade - World Trade Organization

Question 12

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 _.

Answer 12

1970s, 1982 International Debt Crisis

Question 13

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.

Answer 13

1982

Question 14

In 1982, to help save the economies of countries, the international financial institutions and governments agreed to initiate: _, _, and _.

Answer 14

Debt Forgiveness, Debt Payment Rescheduling, Structural Adjustment Programs

Question 15

_ was a term coined by John Williamson in 1989.

Answer 15

Washington Consensus

Question 16

_ is a 10-point policy concerning free market ideas supported by the IMF, World Bank, EU, and the US.

Answer 16

Washington Consensus

Question 17

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.

Answer 17

Washington Consensus

Question 18

In _, the East Asian Economic Crisis occured.

Answer 18

1997 - 2001

Question 19

The Asian financial crisis started in _ in July 1997 and rippled across East Asian countries.

Answer 19

Thailand

Question 20

In _, the Thai Bajt was unpegged from the US dollar because they lacked reserves to back up their currency.

Answer 20

1997 - 2001 East Asian Economic Crisis

Question 21

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.

Answer 21

2007 - 2009 Economic Recession

Question 22

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.

Answer 22

reclaim the house and resell it for a higher price in the market

Question 23

In the event of the Economic Recession, year _ was when the Lehman Brothers declared bankcruptcy.

Answer 23

2008

Question 24

_ developed the world systems theory.

Answer 24

Immanual Wallerstein

Question 25

In the World Systems Theory, countries are divided by _ and _.

Answer 25

Capital inflow and outflow (capital);
Geographical division (division of labor)

Question 26

_ rejects the notion of a third world system and considers capitalism as an endless accumulation of capital.

Answer 26

World Systems Theory

Question 27

According to the World Systems Theory, the world is divided into four:

Answer 27

1. Core
2. Semi-periphery
3. Periphery
4. External

Question 28

_ countries are powerful, wealthy and independent. They are financially dominant and highly industrialized (military).

Answer 28

Core

Question 29

_ countries have economies that may be diverse but they do not have much power in international trade. They have a goal to become a core country (to be industrialized).

Answer 29

Semi-periphery

Question 30

_ countries are dependent on the other countries in terms of military and economy. They have the lease diverse economy and not highly industrialized where workers are exploited and work for other countries.

Answer 30

Perhiphery

Question 31

_ are created by one or more countries subject to international law where its stakeholders are national govenments.

Answer 31

International Financial Instituions

Question 32

The Members of IFIs are:

Answer 32

IMF and Multilateral Development Banks

Question 33

In summary, economic globalization _ and _.

Answer 33

Economic globalization is beneficial for states.
Economic globalization perpetuates global poverty.