Economy and Globalisation

Question 1

Political economy

Answer 1

study of interaction between states and markets

Question 2

Inflation

Answer 2

increase in the general price level of goods and services and resulting loss of value in a country’s currency.

Question 3

Deflation

Answer 3

period of falling prices and values for good, services, investments and wages.

Question 4

Tariffs

Answer 4

taxes on imported goods

Question 5

Quotas

Answer 5

limits on the quantity of good imported

Question 6

Nontariff regulatory barriers

Answer 6

policies and relocations to limit imports

Question 7

Why regulate trade?

Answer 7

• to generate state revenue.
• to keep wealth in the country
• to protect local jobs
• to foster local industry

Question 8

Why not regulate trade?

Answer 8

• to promote competition
• to keep the costs of goods low
• to stimulate domestic innovation in areas of comparative advantage.

Question 9

Political economic system

Answer 9

relationship between political end economic institutions in a particular country and the policies and outcomes they create.

Question 10

Liberalism

Answer 10

high priority on individual, political, and economic freedom over collective equality, and on power of markets over the state.
- faith in the market
- weak state
- limited regulation
- public goods only in critical areas
- lower taxes
- encouraged trade
-laissez-faire

Question 11

Social democracy

Answer 11

balance individual freedom and collective equality; yes to private property and market forces but cautions about their impacts on society
- higher taxes
- higher levels of social expenditures
- trade promoted but balances
- government regulation and ownership of important sectors of the economy.

Question 12

Neo-corporatism

Answer 12

critical decisions are taken by the government with corporations and trade unions.

Question 13

Communism

Answer 13

elimination of individual freedom to achieve collective quality
- private property fully nationalised
- market forces eliminated
- profit goes to the state for public expenditures
- restricted trade
Is democracy possibile??

Question 14

Mercantilism

Answer 14

system in which national economic power is paramount and it serves as an instrument to serve the needs of the state.
- active industrial policy
- economy directed by the state toward certain industries and away from others.
- parastatal industries
- trade regulations
- lower taxes
- lower welfare benefits

Question 15

GDP

Answer 15

total market value of all goods and services produced in a country over a period of one year, divided per capita.

Question 16

PPP

Answer 16

statistical tool that estimates the buying power of income across different countries by using the US as a benchmark.

Question 17

Gini index

Answer 17

statistical formula that measure the amount of inequality in a society.
0 = perfect equality
100 = perfect inequality.

Question 18

HDI

Answer 18

statistical tool that evaluate the overall wealth, health and knowledge of a country’s people.

Question 19

Happy Planet Index

Answer 19

Tool that evaluates the level of happiness in a country, by considering wellbeing, life expectancy, inequality outcomes and ecological footprint.

Question 20

Globalisation

Answer 20

process of expanding and intensifying linkages between states, societies and economies.

Question 21

KOF

Answer 21

index measuring the degree of globalisation considering economic, political and social aspects.

Question 22

DHL

Answer 22

measure cross-border movements in trade, information, people and capital.
- how much activity
- how many borders crossed

Question 23

FDI

Answer 23

investments in foreign economies.

Question 24

Economic globalisation

Answer 24

integration of national economies into the international economy through trade, fyi, capital flows, migration and spread of technologies.

Question 25

Political globalisation

Answer 25

increasing trend toward multilateralism, emerging transitional state apparatus, emergence of a national and international NGOs acting as watchdogs over governments.

Question 26

Political globalisation outcomes

Answer 26

1. State loses: international institutions will take on many of the tasks that states normally conduct.
2. State wins: mange to expand their capacities for regulation and control
3. balance: transformation process.

Question 27

Societal globalisation

Answer 27

impact of globalisation on the life and work of people, on their families and their societies.
- increasing mobility of human
- technical innovations to be interconnected.

Question 28

Negative aspects of globalisation

Answer 28

RISE OF INEQUALITY
- violence will change form
- not more democratic: citizens lack the ability to control indirectly elected bodies.
- loss of jibs
- business lack any sovereign control (avoid taxation, oversights…)
- migration and outsourcing.
- remittences

Question 29

Negative aspects of globalisation

Answer 29

VEHICLE FOR GLOBAL PROSPERITY
- innovation, specialisation and lower costs.
- new jobs
- wealth diffused more effectively

Question 30

Slowbalisation

Answer 30

slowing of globalisation, characterised by the slowing of global trade, investments, loans…