G: Economic Globalisation and its Crises

Question 1

Dicken, 1992

Answer 1

Global Shift

Question 2

Impact of global disruptions

Answer 2

Ever Givern in 2021 stopped 10% of global trade

Question 3

Levinson, 2008

Answer 3

Intermodal containers

Question 4

Katz, 2001 quote

Answer 4

“Glbal trade has been going on for millenia, though what constiutes the globe has dramatically expanded in that time”

Question 5

Herd, 1995

Answer 5

Globalisation definition
- Stretchening and deepening of social relations and instotutions across space and time

Question 6

Allen, 1995

Answer 6

Globalisation undermine the ability of nation-states to manage their own economic affairs

Question 7

Friedman, 2007

Answer 7

The word is flat

Question 8

O Toal, 2006

Answer 8

Globalising politics: the territoriality of global affairs is no longer primarily mastered by nation-states

Question 9

Fukuyama, 1992

Answer 9

End of history

Question 10

What does Harvey argue globalisation has done

Answer 10

changed how people have percievd time

Question 11

Massey, 2007

Answer 11

• World city
• Cities are not static or bounded
• Not isolate entities but nodes in a global network
• Power dynamics shape urban spaces
• Concentrtaion of power
• Cities are dynamic spaces that are shaped by globalisation

Question 12

Impact of interconnectedness

Answer 12

More vulnerable

Question 13

Normative framework of capitalism

Answer 13

Society/Nature dicotomy

Question 14

What is neoliberalism

Answer 14

A set of theories and a political project

Question 15

Harvey definition of neoliberalism (2005)

Answer 15

• a theory of political economic practices that proposes human wellbeing can be advanced by liberating individual entreprenerial frefroms and skills.
• Categorised by strong private property rights, free markets and free trade
• Neoliberalism is a political-economic project that aims to reestablish, renew and expand the conditions for capital accumuation

Question 16

Good Harvey Capitalism quote (2005)

Answer 16

“Neoliberalism is a political-economic project that aims to reestablish, renew, and expand the conditions for capital accumulation

Question 17

How does Harvey divide neoliberalism into theory and practice

Answer 17

Theory - private property rights, free market, free trade
Practice - renew and expand capital domination

Question 18

How is neoliberalism different from classical liberalism (Harvey, 2005)

Answer 18

In classical liberalism, merchants simply asked the state to “leave us alone” – to laissez-nous faire. Neoliberalism recognised that the state must be active in the organisation of a market economy. The conditions allowing for a free market must be won politically, and t

Question 19

Harris, 2024

Answer 19

• Transnational corporations are political and economic actors
• United Fruit company

Question 20

Chomsky, 2023

Answer 20

• Financialisation
• Concentration of wealth and power
• Plutonomy
• Precariat
• Businesses as legal fictions
• Gramsci cultural hegemony

Question 21

Peck, 2002

Answer 21

• Recessions are normal
• 5 recessions in US since 1973

Question 22

Harvey, 2014

Answer 22

• 17 contradictions of capitalism

Question 23

Wade, 1998

Answer 23

• Financial reregulation

Question 24

Klein, 2007

Answer 24

• Disaster capitalism
• Operation Corporate

Question 25

Bowles, 2007

Answer 25

• Keynesian regulation
• State of Confidence
• Crises are crises of capita;ist class
• Neoliberalism

Question 26

Ingham, 2008

Answer 26

• Financialisation
• 2 flaws in capitalism
• Crises of overproduction and underconsumption due to periodic mismatches in supply and demand
• Debt deflation due to financial instability

Question 27

Harvey, 2010

Answer 27

• 2008 wiped out $50trn in assets
• property crises long lasing
• Privatise profit and socialise risks
• Perverse incentives
• Moral hazards
• Financial crises rationalise the irrationalities of capitalism
• Neoliberalism uses draconian policies designed to consolidate and restore capitalismc class power
• Schumpterian creative destruction

Question 28

Wade, 2008

Answer 28

• Low interest rates cause of crash in 2008

Question 29

Economist, 2013

Answer 29

• Multiple causes of 2008 crash
• Central bankers and regulators to blame
• Great moderation of low inflation and stable growth promoted complacency and risk taking
• Subprime mortages repackaged into CDOs
• CDOs given AAA ratings by agnecies like Moody’s and Standard and Poor’s
• Investors bought CDOs
• Banks betting on themselves with borrowed money
• Low interest rates set by the Fed encouraged risky investment
• Trust, the ultimate glue of all financial systems, began to dissolve in 2007—a year before Lehman’s bankruptcy—as banks started questioning the viability of their counterparties.
• The whole system was revealed to have been built on flimsy foundations: banks had allowed their balance-sheets to bloat (see chart 1), but set aside too little capital to absorb losses.
• Lax capital ratios proved the biggest shortcoming. Since 1988 a committee of central bankers and supervisors meeting in Basel has negotiated international rules for the minimum amount of capital banks must hold relative to their assets. But these rules did not define capital strictly enough, which let banks smuggle in forms of debt that did not have the same loss-absorbing capacity as equity.

Question 30

Wade, 2008

Answer 30

• Global price of rice increased 3x after impacting poor
• Maximised product complexity to conceal the risk from rating agencies, buyers and regulator - bank fault not regulators

Question 31

Kenton, 2023

Answer 31

Definition of financial crises
- In a financial crisis, asset prices see a steep decline in value,** businesses and consumers are unable to pay their debts, and financial institutions experience liquidity shortages**.

Question 32

Kenton, 2023 Covid

Answer 32

COVID19 Pandemic. A global stock market crash began in February 2020. From February 20 until March 23, 2020 the S&P 500 lost over 30% of its value. This was a result of the COVID-19 pandemic, which caused widespread panic and uncertainty about the future of the global economy. Despite being severe and with global reach, markets and national economies rebounded quickly and by early April 2020, the S&P 500 had began a decisive rise, surpassing its pre-pandemic high in August 2020

Question 33

Harris, 2024

Answer 33

• Deglobalisation
• Biden quote
• History of humanity is the history of trading
• Borders opened up in 1950s
• Global shift from US to China
• We are all geopolitical actors - our purchases affects lives around the world
• GPNs
• Cooporation between people who do not know each other ir speak same language
• Free trade ended Cold War
• Governments undoing globalisation
  India paying companies to stay within India - industries such as pharmaceuticals and electronics
  South Korea subsidising green energy
  Australia to subsidise mining - process rare earth minerals there
  Nigeria does not want to rely on importing rice or cement
• Nigeria does not want to rely on importing rice or cement
  Trump and Biden turning back free trade
  CHIPS Act - $50bn of gov funding to pay companies to produce microchips in USA
  Biden imposing tariffs - protecting American companies
  NVIDIA banned from exporting certain products to China

Question 34

Biden quote 2024

Answer 34

“There is no reason why American workers cannot lead the world in the production of batteries”

Question 35

Bill Clinton 2000 quote

Answer 35

“The more China liberalises its economy, the more fully it will liberate the potential of its people”

Question 36

A

Amis, 1994

Answer 36

• Age of post-modernity = frontiers of consumerism expanded into all areas of social and private life
• capitalism has regimes of accumulation and modes of regulation
• Changing mode of regulation between Fordism and Neoliberalism
• Regulation approach - emphasies the role of institutuions, norms and regulations in shaping economic structures like the role of the state
• Fordist modes of regulation - mass production, strong labour unions, welfare state
• ## Non-Schumpterian approach - role of institutions, social norms and power relations in shaping economic behvaiour. Top down forcings.

Question 37

Friedman, 2005

Answer 37

• The world is flat
• 10 flatteners: collase of Berlin Wall, rise of internet, open source collaboration, outsourcing, offshoring, supply chain, insourcing, wireless connectivity, digital tech
• 3 stages of globalisation: 1, was globalisation of contries, 2 was globalisation of companies, 3 was individuals and small groups being able to collaborate and compete globally
• Challenges to globalisation - income inequality, cultural homogenisation, environmental degredation, geopolitical tension

Question 38

Peck, 2002

Answer 38

3 stages of neoliberalism
1. Protoneoliberalism beofre the 198-s and the attack on neoliberalism
2. Roll back of the state in the 8-s and 90s (deregulation), privatisation of state industries and sectors, reduction of welfare state
3. Roll out of the state form the 1990s onwatds which has focused on state building and introducting market rules and regulations into new spheres. Rolling back can be seen as the destrucie phases, while rolling out is the constructive phase

Question 39

Sassen, 1991

Answer 39

• The Global City
• hubs for the production and exchange of specialized services, such as finance, law, advertising, and consulting.
• concentration of economic power in global cities, while simultaneously marginalizing other urban areas.
• globalization and economic restructuring have transformed the functions and dynamics of cities. She argues that the rise of information technology, deregulation, and financialization has led to the concentration of economic power in global cities, while simultaneously marginalizing other urban areas.

Question 40

Christopherson et al., 2008

Answer 40

• World is not flat
• oversimplifies the complexities of globalization and fails to account for the persistence of geographical inequalities and uneven development.
• This specialization leads to the concentration of certain economic activities in particular locations, contributing to spatial inequalities.
• Global Production Networks: The authors highlight the role of global production networks in shaping the geography of globalization. They argue that production processes are increasingly fragmented and distributed across multiple locations, with different tasks and activities outsourced to various parts of the world. However, they caution against viewing this fragmentation as a leveling force, as it often reinforces existing geographical disparities and power imbalances.

Question 41

Dicken, 2007

Answer 41

• Dicken examines the strategies employed by TNCs to expand their operations across borders, including foreign direct investment, mergers and acquisitions, and strategic alliances. He discusses the concentration of corporate power in certain industries and regions, as well as the implications of TNC activity for national economies and local communities.
• He discusses the transition from Fordist mass production to post-Fordist flexible specialization, highlighting the implications of this shift for employment, labor relations, and industrial organization. Dicken also examines the role of financialization, deregulation, and neoliberal policies in shaping patterns of economic growth and inequality.
• Globalization and Development: Dicken discusses the uneven impacts of globalization on different regions and countries, particularly in the Global South. He examines the factors contributing to economic disparities, including historical legacies, geopolitical power dynamics, and structural barriers to development. Dicken emphasizes the importance of addressing issues such as poverty, inequality, and environmental degradation in shaping a more equitable and sustainable global economy.