Lesson 2: Economic Globalization and the World Economy Flashcards
It refers to the system of production, distribution, and consumption of goods and services within a society, region, or country.
It encompasses all the activities and interactions related to the creation and allocation of resources to meet the needs and wants of individuals and organizations.
It refers to the management of SCARCE resources to meet the UNLIMITED needs and wants of the society.
Economy
It is the social science that studies how societies manage their limited resources to produce, distribute, and consume goods and services.
It explores the behavior of individuals, businesses, and governments in making choices to satisfy their needs and wants within a context of scarcity.
It is often divided into two main branches
Economics
examines the behavior of individuals and firms,
Microeconomics
studies the overall performance and behavior of the entire economy.
Macroeconomics
It is the process of increasing interconnectedness and interdependence of economies across national borders.
It involves the integration of markets, trade, investment, finance, and production on a global scale
Economic Globalization
It refers to the process by which separate and distinct markets, often in different geographic regions or economic sectors, become more closely connected and interdependent.
It involves the removal or reduction of barriers to trade, investment, and competition, allowing goods, services, capital, and information to flow more freely between these markets.
It can occur at various levels, including local, national, regional, and global.
Market Integration
It was an international monetary system established during a conference held in Bretton Woods, New Hampshire, in July 1944, towards the end of World War II. This system laid the foundation for the post-war international financial order and the creation of key international financial institutions.
Bretton Woods System
It plays a central role in the global financial system. Its mission has evolved to include providing financial assistance to countries in need, conducting economic surveillance, offering policy advice, and promoting international monetary cooperation.
International Monetary Fund (IMF)
It has expanded its focus to address a wide range of development challenges, including poverty reduction, infrastructure development, healthcare, and education. It consists of multiple institutions, including the
World Bank Group
It is also known as a World City;
These are dynamic and ever-evolving entities that serve as both engines of economic growth and hubs of innovation;
It is a major urban center that plays a critical role in the global economy and is characterized by its significant influence on international business, culture, politics, and finance.
These cities are hubs for economic activities, innovation, and connectivity, often serving as key nodes in global networks.
Global Cities
