GLOBAL ECONOMY Flashcards
Refers to the expansion and intensification of social relations and consciousness across world time and world space (Steger,2013)
Globalization
One of the many dimension of globalization that is a major driving force
Economic dimension
True or false: Economic globalization is a historical process
TRUE
Increasing ______ around the world through the movement of goods, services, and capital across borders
Integration of economies
Attributes the growing scale of cross-border trade commodities and services, flow of international capital, wide and rapid spread of technology” is said according to who?
(Shangquan, 2000)
A process making the world economy an “organic system” by extending transnational economic processes and relations to more and more countries and by deepening the economic interdependence among them (Szentes, 2003)
Economic globalization
Refers to the increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders. INTERNATIONAL MONETARY FUND (IMF,2008)
Economic globalization
FDI stands for?
Foreign Direct Investment
When did economic globalization start?
Began since homo sapiens began from migrating from the African continent to populate the rest of the world
Frank and Grills considered the ______ the best example for archaic globalization 5,000 years ago
Silk Road (Asia, Europe, Africa)
Two events that Adam Smith considers as the greatest achievements of human history
- Discovery of America by Christopher Columbus in 1492
- Discovery of the direct sea route to India by Vasco de Gama in 1498
___________ spread to Continental Europe and North America
British Industrial Revolution
In terms of history of economic globalization, what happened in the 17th - 19th century?
- British East India Companies (1600)
- Dutch East India Companies (1602)
When was the “golden age of globalization”?
20th century
Why is the 20th century the golden age of globalization?
- relative peace
- free-trade
- financial and economic stability
Attributes of economic globalization
The globalization of…
* trade of goods and services
* technology and communication
* production
* financial and capital market
When was WTO established?
1995
This “ensures that trade flows as smoothly, predictably, and as freely as possible”
World Trade Organization (WTO)
BPO Companies means?
Business Process and Outsourcing companies
3 globalization of trades and goods
- World Trade Organization
- Emergence of China as a major supplier and exporter of manufactured goods
- Increasing number of business process outsourcing (BPO) companies in the Philippines
Emphasizes that various transactions and interactivities that transpire instantly due to the internet and communication technology
Globalization of Technology and Communication
It is illustrated by the existence of multinational corporations (MNCs) and transnational corporations (TNCs)
Globalization of Product
3 Actors of Economic Globalization
- Nation states
- Global corporations
- International financials institutions
For _______, states ceased as primary economic organization
Hyperglobalists
_______ state that the role of nation-states as manager of the national economy is being refined by globalization
Boyer and Brache (1996)
______ claim that nation-states have lost an important element of economic sovereignty
Neo-liberals
“Buy Taiwan, hold Italy, and sell France” is statement comparing countries to stocks. This is said by who?
Thomas Friedman
A company that operates in multiple countries, with each of these operations being relatively independent
Multinational companies
A company that operates across multiple coutnries but unlike in MNCs, it does not a single strong headquarters that controls its global corporations
Transnational companies
_______ are constantly evolving as a result of outsourcing aactivity
Transnational Corporations
We live in an ___of outsourciing
age
Firms are subcontracting an expanding set of activities. Some have become “virtual” manufacturers, owing designs for so many products but making almost known for these
Global corporations
An international monetary system that established rules for commercial and financial relations among the major industrial states after World War II.
The Bretton Woods System
______ was established in 1994 at New Hampshire, USA, where the United Nations Monetary and Financial Conference was held in July 1944.
Bretton Woods Institutions
This adopted the gold-dollar exchange standard. Various currencies were fixed to the US dollar until 1971 (Aka Fixed exchange rate system)
Bretton Woods Conference
The ____ lead to the creation of the IMF
Bretton Woods System
The International Bank for Reconstruction and Development (IBRD, part now of the WBG
Bretton Woods System
The system faced increasing pressure due to imbalances in the global economy, particularly the growing US balance of payments decificits and the accumulation fo the U.S Foreign dollars in central banks
Challenge to Bretton Woods Principle
What occurred in 1971?
END OF THE GOLD STANDARD
WHICH PRESIDENT STATED THAT THE U.S WILL NO LONGER BE EXCHANGING DOLLAR FOR GOLD, EFFECTIVELY ENDING THE BRETTON WOODS SYSTEM
PRES. RICHARD NIXON
THIS MOVE LED TO THE TRANSITION TO A SYSTEM OF FLOATING EXCHANGE RATES, WHERE CURRENCY VALUES ARE DETERMINED BY MARKET FORCES
END OF GOLD STANDARD
Legacy of Bretton Woods System?
- Creation of IMF and the World Bank
- Set the stage for the development of the modern international monetary system and the rise of global financial financial markets
3 impacts of Globalization
- Globalization allows a worldwide distribution of incomes.
- Economic globalization reduces poverty (World Bank, 2002)
- Globalization creates mutual dependence between developing and developed countries (Arrighi, 2005)
2 ways that other people believe globalization divides the world?
- One might observe that the sources of goods and services are exploited
- Economic globalization does not benefit all nations (World Bank, 2002)
There is an uneven experience among nations. Workers in TNCs are paid less compared to their counterparts in the companies’ home countries. This shows how cheap labor is in the Philippines
An example of “Economic globalization does not benefit all nations” (World Bank, 2002)
Capitalism under economic globalization creates ______
Inequality
The competitiveness of an economy and the impact of globalization depend on the _______ in order to regulate TNCs, IGOs, and other market players.
capacity of the nation - state for political intervention
