GLOBAL ECONOMY Flashcards
Many people think there is a separate “___ _____” economy, but according to the World System theory, there is just ___ ____ _____.
Many people think there is a separate “third world” economy, but according to the World System theory, there is just one world economy
This ____ _____ is made up of core, semi-periphery, and periphery economies.
global economy
The global economy is made up of ____, ______, and _______ economies
Core economies
Semi-periphery economies
Periphery economies
are the most advanced and powerful (like the U.S. and Western Europe), with a lot of wealth and influence.
Core economies
are developing nations that are somewhat stable but not as wealthy or powerful as the core (e.g., Brazil, India).
Semi-periphery economies
are the least developed, often exploited for their natural resources and cheap labor (e.g., many African nations).
Periphery economies
Even though core economies are dominant, they still depend heavily on the semi-periphery and periphery economies. They rely on these less developed countries for resources, labor, and markets to maintain their economic strength. This means all parts of the global economy are connected and affect one another.
Interconnectedness
occurs when more goods are produced than can be sold. This leads to excess supply, falling prices, and economic
slowdowns. Businesses struggle to sell products, leading to layoffs, factory closures, and financial losses.
Crisis of overproduction
As people become more aware of the negative impacts of capitalism, such as inequality and environmental degradation, capitalism’s legitimacy is questioned. Many begin to doubt whether this economic system is fair or
sustainable in the long term.
Crisis of legitimacy
refers to the growing dissatisfaction with democratic systems that have supported the stable growth of capitalism, especially in both developed (“North”) and developing (“South”) countries.
Crisis of liberal democracy
refers to the situation where a powerful country extends its influence and resources beyond its capacity to manage effectively, leading to a potential decline in its overall power and effectiveness.
Overextension (Imperial overstretch)
occurs when a country’s aggressive expansion leads to more challenges than benefits, as seen in the US’s difficulty in achieving lasting results despite its broad military engagement.
Overextension (Imperial overstretch)
This movement criticizes the power of multinational corporations and seeks to challenge the exploitation and inequalities caused by global capitalism.
Anti-corporate Globalization Movement
it emerged in response to the negative effects of unchecked global capitalism, advocating for fairer, more sustainable, and just alternatives.
Anti-corporate Globalization Movement
- calls for more equitable global economic policies that benefit all nations and people, not just a select few.
Economic Fairness
– emphasizes the need to protect the environment from corporate practices that harm natural resources.
Environmental Protection
- it advocates for policies that prioritize the rights and well-being of workers, indigenous communities, and marginalized groups.
Social Justice
created as a platform for activists, social movements, and non-governmental organizations to discuss alternatives to
global capitalism. It aims to build a more inclusive and fair global community that prioritizes social justice, environmental sustainability, and equality.
World Social Forum and Construction of a Global Community
aims to address and challenge the failures of the current global system by fostering dialogue and solidarity among
diverse groups working towards a more just and equitable world.
World Social Forum and Construction of a Global Community
is a tax or duty imposed by a government on imported goods.
tariff
Opposes of anti-corporate globalization movement
Corporate globalization
Neo-liberalism
Free trade
Advocates of anti-corporate globalization movement
Economic fairness
Environmental protection
Social justice
Key issues addressed in world social forum and construction of global community
Systemic failures
Opposing interests
Common interests
Goals in World social forum and construction of a global community
Global solidarity
Alternative models
The primary purpose of tariffs are to;
Protect domestic industries
Generate revenue
Regulate trade
- refers to a tax system that is applied across multiple countries or globally to address issues that transcend national
borders, such as climate change, wealth inequality, or digital economy regulation.
Global Tax
A global ____ ____ might be proposed to reduce carbon emissions worldwide by taxing carbon-intensive
activities.
carbon tax
Some countries have proposed or implemented _____ _____ on revenues generated by large tech companies operating across borders, ensuring that they contribute to the economies where they make profits.
digital taxes
The idea behind ____ ____ is to create a fair and unified system that can address global challenges and ensure equitable contributions from all participants.
global taxes
are those that release a significant amount of carbon dioxide (CO₂) or other greenhouse gases into the atmosphere, contributing to climate change.
Carbon-intensive activities
Examples of carbon-extensive activities
Fossil fuel combustion
Deforestation
Agriculture
Cement production
Oil and gas extraction
Waste management
Residential heating and cooking
Aviation and maritime transport
- occurs when a company or individual from one country invests in a business or establishes operations in another
country.
Foreign Direct Investment (FDI)
this investment benefits the host country (the U.S.) by creating jobs, boosting local economies, and potentially bringing in new technologies and expertise.
Foreign Direct Investment (FDI)
is increasingly seen as serving the interests of the wealthy elite, rather than the broader population, leading to widespread frustration.
liberal democracy
Capitalism can become _______ when corporations and governments expand too far or too fast.
overextended
