Lec 1: Geographies of Global Change

Question 1

What is economic internationalization?

Answer 1

The extent to which national economies interact, through EXCHANGES of goods and services.

Question 2

Can economic internationalization be measured?

Answer 2

Yes, the value of transactions can be measured.

Question 3

What is an indicator of economic internationalization?
What does a higher indicator signify?

Answer 3

The trade to GDP ratio (trade/GDP).
Trade = exports + imports

A higher ratio indicates a country depends more on trade.

Question 4

Why does economic internationalization focus on what is called “arm’s length trade”?

Answer 4

Because it focuses on an extension of economic activities across nations’ borders. It is the exchange of FINISHED goods, thus there is a certain level of independence.

Question 5

Is economic internationalization a qualitative or quantitative approach to global integration? How so?

Answer 5

Quantitative. It is shallow integration.

Question 6

How is economic globalization different from economic internationalization?

Answer 6

It includes more than just increased international trade.

Question 7

What is economic globalization?

Answer 7

The set of processes by which economic activities are increasingly interconnected.

Question 8

What is functional integration?

Answer 8

It is a global assembly line

Question 9

What is the aim of functional integration?

Answer 9

To more efficiently link elements of the supply chain.

Question 10

What are the 3 competing explanations for global change?

Answer 10

• hyperglobalizers
• skeptics
• transformationalists

Question 11

What do hyperglobalizers argue?

Answer 11

• the emergence of a new world order where:
• the role of the nation state has been eclipsed
• there is a borderless economy

Question 12

What do skeptics argue?

Answer 12

• skeptics believe that the nation state is still a primary actor
• they believe that globalization is overblown and is simply a mislabeling of internationalization

Question 13

What do transformationalists argue?

Answer 13

• believe that globalization is on-going, but that the role of the nation state as the container of economic activity has changes
• tensions produces geographies of inequality & uneven patters of development

Question 14

What is the relationship between trade and empire expansion?

Answer 14

• they go hand in hand
• trade leads and expands with empire expansion

Question 15

Give 3 examples of empires that expanded with increased trade.

Answer 15

1) The Roman empire expanded with the Silk Road during Antiquity.
2) New empires during the Middle Ages with the rise of Islam and trade
3) The fall of Constantinople and the Rise of Europe

Question 16

What was the first key phase of international trade?

Answer 16

1500-1800 Early commercial expansion in Europe

• it’s about exploration and the trade of luxury goods
• mercantilism and protectionism

Question 17

What was the 2nd key phase of international trade? What were the 3 drivers of this 2nd phase?

Answer 17

1800 - WW1 rise of colonial economy

• boom in the trade of bulk staples
• drivers: free trade (fall of protectionism), innovation, migration

Question 18

What are the 2 main differences between our global economy and the 19th century economy?

Answer 18

1) The type of trade and capital flows
- Increased trade in services
- Rise of multinational corporations
- Change in forms of investment

2) Market integration - breadth and depth 
- Convergence in price of goods
- Convergence in interest rates (meaning integration in financial markets)
- Markets are interlinked

Question 19

What are the 4 20th century drivers of commercial integration?

Answer 19

• Trade (re)liberalization: move away from over protectionism to a decrease in trade barriers
  • Liberalization of capital markets
    ○ Capital moves quickly across borders
  • International governance
    ○ IMF/GATT
    ○ Multilateral world
  • Increased connectedness
    ○ Pillars of interconnectedness: trade flows, capital flows, information flows

Question 20

What are the consequences of a global economy?

Answer 20

1) Loss of domestic control over nation’s own economy
- ‘race to the bottom’: e.g of cities competing to attract amazon headquarters

2) Increased intra-firm trade
- How do we tax international transactions when they're within the firm?

3) Job opportunities vs losses
- Results in inequalities

Question 21

What are the 3 key elements in the definition of economic globalization?

Answer 21

1) It’s a set of ongoing processes

2) Both spatial and temporal dimensions
- Stretching of economic activities
- Intensification of transactions/interconnectedness
- Speeding up of transactions
Basically: economic activities are extending, intensifying, becoming more connected, and speeding up

3) Magnified local-global impacts 
	- i.e. what happens in one place can unfold simultaneously in multiple places