Lecture 14 Concepts/Definitions Flashcards
Sassen
Global cities
Combination of geographic dispersal of economic activities with simultaneous system integration that gave cities a strategic role in current phase of the world economy
Global economy 1800s (-1950s) vs today
Natural resource based vs. manufacturing & finance (knowledge based economy, FDI, TNCs, Triad)
Pax Americana
Period of US political, economic, and military dominance (starts to decline-rebuilt economies of Western Europe and Japan)
Increase in FDI services
Shift in 1970s (mid) from North-South to East-West
Breakdown of B.W. agreement= Japan and European multinational firms= competition
Japan and China help US out from debt
Offshore banking
Hide wealth-circumvent the law Don't have to pay taxes Greater profit Less $ back into system ***Security and secrecy***
FDI
Foreign direct investment
(1990 filtered billions)
(US trillions in 2000s in diff. countries)
The Triad
Western Europe, US, and Japan (70% of global economy)
TNCs
Transnational corporations
Firm that operates in more than one country through affiliates
Subsidizes (ex Apple>wealth than certain countries
Third World Banking Crisis 1982
New era of financial speculation, innovation, and profitability
Increase of financial transactions taking place
Changes face of financial sector
WTO
World Trade Organization
1993
Set up to oversee cross-border trade
Transnational trading blocks
EU, NAFTA, ASEAN
Enhanced capability for capital to move across borders
Shift in emphasis from production to securing good stock market valuations of a manufacturer’s publicly listed shares (stock for company to be high) branding idea not just product (ex Loke)
Knowledge economy
Global cities- uni degree ex) finance
Relocated and replaced not lost jobs
Sassen
Global cities
Shift in production to stock market of value in company
Bretton Woods Agreement
Set up a legal framework for the regulation of international transactions, such as foreign currency operations (for countries) or banks wanting to operate internationally
Reading: Sassen (2006) “The Urban Impact of Economic Globalization”
Author's main argument: 1800s vs. today ----------------- resource-based Pax Americana Banks= greatest influence
FDI services-finance
TNCs growing (+affiliates)
X.P.A.= Japan and Western Europe, China helped out US debt (offshore banking)
X banks to firms= (government less influence), cross-border, merger+transnational corporations (outsourcing)
Manufacturing+finance
Two types of strategic places for international financial and service transactions
1) Global cities: govt to firms (role in economy) (Friedmann+Wolf 1982) ex) Detroit
2) Offshore banking: not meaning overseas but where there is less regulation (secrecy, security, less tax paymentization)
Ex) Cayman Islands, Switzerland, Hong Kong, Australia, New Zealand, Malaysia, Bermuda
-The Bretton Woods Agreement
