Lec 1 & 2 Flashcards
What are some economic concerns raised by anti-globalists?
the impact of globalization on wages, working conditions, job outsourcing, increased housing prices, debt levels, and overall standards of living.
They argue that globalization can lead to the exploitation of workers and create instability and inequality.
What were the goals of the Bretton Woods System?
Foster world trade and democracy.
What are the Bretton Woods organizations?
United Nations, International Monetary Fund (IMF), World Bank, General Agreement on Tariffs and Trade (GATT)/World Trade Organization (WTO), and the Organization for Economic Cooperation and Development (OECD)
What was the main idea behind the push for a new international order based on trade?
Replace the zero-sum game mentality of competing for colonies and captive markets with a system based on trade, comparative advantage, and mutual enrichment.
What was the economic model that fueled colonialism?
Mercantilism.
Aimed to accumulate wealth and power by establishing colonies to secure raw materials at monopolistic prices and create captive markets for manufactured goods.
When did globalization begin, and what were its early phases?
Often assoicated with 1990s
But, actually started in the late 19th century until the outbreak of World War I. (first golden age of international capital) –> dominance of the British empire and the establishment of the gold standard.
How does international development relate to global political economy?
International development examines how capital flows impact economic development, particularly in developing countries. It explores the relationship between economic growth, poverty reduction, and global economic dynamics.
What is meant by international financial systems in the context of global political economy?
International financial systems encompass foreign exchange, credit, and foreign direct investment (FDI). They involve risks associated with currency fluctuations, credit availability, and the impact of capital flows on economies.
What is international production?
International production involves the production of goods and services across borders, often utilizing highly international networks.
What are the reasons why countries might want to limit trade?
Countries might want to limit trade due to cultural opposition or sector/factor opposition.
What are the two main ways countries regulate international trade?
through tariffs and quotas.
What is absolute advantage in the context of trade?
a situation where a country can produce goods more cheaply and efficiently compared to another country.
How do tariffs affect the price and quantity of imports?
Tariffs increase the price of imports and decrease the quantity of imports.
What is a Tarrif?
a tax on imported goods and services.
What is a quota
limit on the quantity of the goods or services that may be exported or imported over a specified period of time.
