Globalization (Ch. 12) Flashcards
1
Q
crisis of capitalism
A
internal contradictions of capitalism (monopolization, financialization, anarchy of production, crisis of overproduction)
2
Q
fundamentals of globilaization
A
- capitalism is global
- owning class moves capital around the globe to maximize profits (seek out cheap labour and cheap means of production)
- most dominant nation states gain control over economies of other nation states (imperialism)
- key functions of the state become global (ie. accumulation [global orgs. advance economic needs], coercion [US military = world’s police])
3
Q
new world order
A
- 70’s - present
- global capital’s goal: create single-world economy of competing corporations
- corps reached accord w/ each other
- US represented capital as a whole (US = global superpower)
4
Q
USA as a global superpower
A
- USA in middle, branching out to…
- Politics (UN)
- Economy (banks)
- Military (NATO)
5
Q
free trade
A
- World Bank and IMF (both in US, part of UN)
- political power = economic strength (voting strength tied to size of country’s economy -> US has veto power)
6
Q
World Bank
A
- objective: help countries industrialize (extend neoliberalism globally)
- makes loans to 3rd world countries -> signals to private investors that it is safe to invest in this country
7
Q
International Monetary Fund (IMF)
A
- objective: global financial stability
- to solve a country’s debt problem, IMF loan is given
- structural adjustment programs/austerity measures (privatizing commons, downsizing gov, promotion of exports, reducing subsidies for agri, food, health, edu, etc.)
8
Q
globilization = global inequality
A
- world bank
- IMF
- World Trade Organization (promotes neoliberal economic policies to “solve world poverty”
- free market supposed to increase wealth of those who participate, yet 1st world countries still exert tons of political and economic power over 3rd world countries
9
Q
World Trade Organization
A
- only global orgs deal with trade btwn nations
- trade agreements (NAFTA, TPP)
- set up garment factories in Free Trade Zones outside jurisdiction of city limits (no tariffs paid, labour-intensive manufacturing centers)
10
Q
Trans Pacific Partnership (TPP)
A
- multilateral free-trade agreement
- 8 years of negociations
- 12 countries in Asia and the Americas
- 2 of the world’s most dynamic regional markets will be integrated to establish a huge free-trade area
11
Q
global supply chain and labour
A
- WTO global organization trade
- free-trade organizations paved the way for cheap labour (increased profits) for 1st world corporations
- corps don’t have to adhere to western labour or environmental standards
- consumers get low price clothes
12
Q
cost of cheap products
A
invisible labour: people working in bad conditions in order to produce cheap products
13
Q
hidden faces of globalization
A
all the elements of capitalism on a global scale come together -> labour, gender, race, class
