MIDTERMS Flashcards
________ is also known as the world economy
Global economy
Defines economic globalization as “the process of making the
world economy an “organic system” by extending transnational
economic processes and economic relations to more and more
countries and by deepening the economic interdependencies
among them
Szentes (2003)
Emphasizes that interpretation of the current trends in the
world economy must be understood in the global context of an
integrated world economy
Benczes (2014)
In the context of the global economy, we are referring to
globalization which has 3 sub-categories
economic,
cultural, and political globalization
E, C, P
____________ also known as
the golden age of capitalism and the postwar economic boom
or simply the long boom, was a broad period of worldwide
economic expansion beginning after World War II and ending
with the 1973-75 recessio
The post-World War II economic expansion
Start date POST-WORLD WAR II ECONOMIC SYSTEM
1950
End date THE POST-WORLD WAR II ECONOMIC SYSTEM
1973
POST-WORLD WAR II ECONOMIC SYSTEM Location:
United States, World, Europe, Japan, Western
Europe
-UWWEJ
Officially known as the United Nations Monetary and Financial
Conference,
Bretton Woods Conference
A set of unified rules and policies that provided the framework
necessary to create fixed international currency exchange
rates
Bretton Woods System
Known as the keystone international economic
organizations (KIEO’s) due to their central role in trade,
development, and monetary relations
The Bretton Woods Institutions
They provide short-term loans to prevent devaluation and
retain the state’s fixed exchange rate in instances of the
temporary balance of payment deficits
IMF
is an institution based on quotas which determine the
maximum amount of financial resources that a state is obliged
to provide to the fund.
IMF
It was an agreement particularly between the BRIC grouping
among ______, _______, ______, ______ to contribute to the
Fund’s resources in exchange to quota and governance
reforms about redistribution of the quota and Executive Board
seats from the West to the South.
Brazil, Russia, India, and China
BRIC
____________ a supplementary source of funding from
countries that are not tied to voting-rights, there are still doubts
on the capacity of the Fund to bailout larger countries
New Arrangements to
Borrow(NAB
___________ was created to grant
long-term loans for the economic development of less
developed countries and the reconstruction of war-torn
countries in Europe
International Bank
___________ provides lending to middle-income
and creditworthy low-income countries
International Bank for Reconstruction and
Development (IBRD
____________grants
credits and loans to lowest income countries
International Development Association
The World Bank is only a component of the World Bank Group
which is comprised of three (3) institutions
- International Finance Corporation (IFC)
- Multilateral Investment Guarantee Agency (MIGA)
- International Center for Settlement of Investment
Disputes
finds severe macroeconomic distortions
suffered by loan recipients and no statistical evidence of per
capita growth improving from increased structural adjustment
lending.
Easterly (2005)
__________ malnutrition affects both children
and expectant mothers. Due to the fact that loans come
with interest, they question the whereabouts of the
borrowers and whether or not a country can afford to pay
Sub-Saharan Africa
The purpose of the GATT was to avoid trade wars by
raising protectionist barriers as witnessed during the
interwar period.
GATT
_____________ was also incapable of providing a strong and
efficient system for dispute settlement, it was eventually
superseded by a more formal World Trade Organization
in 1995 that managed to address these issues
GATT
___________ adopted by England in 1816, being the
first country to industrialize, was the first international
monetary system (Mikita, 2015).
Gold Standard
