Module 2 : The Global Economy Flashcards
is a multi-dimensional process although it has always been thought as an economic phenomenon.
Globalization
For anthropologist Arjun Appadurai, different kinds of globalization occur on multiple and intersecting dimensions of intersections which he calls
Scapes
is a historic process, the result of human innovation and technological progress.
Global Economy
It refers to the increasing integration of economies around the world through the movement of goods, services, and capital across borders.
Global Economy
For Benczes (2014), economic globalization can thus have several interconnected dimensions such as the following:
- The globalization of trade of goods and services;
- The globalization of financial and capital markets;
- The globalization of technology and communication; and
- The globalization of production
According to Szentes (2003), it is a process 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 interdependence among them.
Global Economy
According to them, globalization began since homo sapiens began from migrating from the African continent to populate the rest of the world.
Grills and Thompson
According to them, Globalization considered the Silk Road (Asia, Europe, Africa) the best example for archaic globalization 5,000 years ago.
Frank and Grills
He considered the discovery of America by Christopher Columbus in 1492 and the discovery of the direct sea route to India by Vasco de Gama in 1498 as the two (2) greatest achievements of human history.
Adam Smith
According to him, if global economy did exist during 1500 to 1800, it was only in the sense of trade and exchange rather than production. Countries were mostly self-sufficient and autarkic, the UK and the Netherlands being the only exceptions.
Gereffi
According to him, the real breakthrough came only in the 19th century. The annual average compound growth rate of world trade saw a dramatic increase 4.2 per cent between 1820 to 1870, and was relatively high, at 3.4 per cent between 1870 and 1913.
Maddison
is often referred to as the “golden age” of globalization, characterized by relative peace, free trade and financial and economic stability
World War I
According to them, the age of globalization began when “all important populated continents began to exchange products continuously and its values sufficient to generate crucial impacts on all trading partners.”
Dennis Flynn and Arturo Giraldez
connected Manila in the Philippines and Acapulco in Mexico.
Galleon trade
his was the first time the Americas were directly connected to Asian trading routes
Galleon trade
According to Salvatore (2007), ________________ refers to rules, customs, instruments, facilities, and organizations for effecting international payments.
international monetary system
In the liberal tradition, the main task of ________is to facilitate cross-border transactions involving trade and investment.
international monetary system
According to Cohen (2000), is more than just money or currencies; it also reflects economic power and interests as money is inherently political, an integral part of high politics of diplomacy.
international monetary system
was believed to guarantee a non-inflationary, stable, economic environment, a means for accelerating international trade.
Gold
According to ________, Germany joined the IMS in 1872, France in 1878, United States in 1879, Italy in 1884, Russia in 1897 and roughly 70 per cent of the nations participated in the gold standard just before the outbreak of World War I.
Meisser
During ______________, when countries depleted their gold reserves to fund their armies, many were forced to abandon the gold standard. Since Europeans have low gold reserves, they adopted floating currencies that were no longer redeemable in gold
World War I
The US dollar was the only convertible currency of the time, so the US committed itself to sell and purchase gold without restrictions at US$35 an ounce. All other participating but not convertible currencies were fixed to the US dollar
Gold Exchange Standard
became responsible for post-war reconstruction, while the explicit mandate of International Monetary Fund (IMF) was to promote international financial cooperation and buttress international trade
The International Banks Reconstruction and Development (IBRD or World Bank)
was largely influenced by the ideas of British economist John Maynard Keynes who believed that economic crisis occurs not when a country does not have enough money, but when money is not being spent and, thereby, not moving.
Bretton Woods system
When economies slow down, according to Keynes, governments have to reinvigorate markets with infusions of capital.
global Keynesianism
It’s’ main purpose was to reduce tariffs and other hindrance to free trade
General Agreement on Tariffs and Trade (GATT)
They argued that the governments’ practice of pouring money into their economies had caused inflation by increasing demand for goods without necessarily increasing supply.
Friedrich Hayek and Milton Friedman
Friedrich Hayek and Milton Friedman believed that government intervention in economies distort the proper functioning of the market. Critics labelled this thinking as?
neo-liberalism
is a set of 10 economic policy reform package set by Washington-based institutions such as the International Monetary Fund (IMF), World Bank (WB), United States Department of the Treasury and eventually by the World Trade Organization (WTO).
The Washington Consensus
Rules under Washington Consensus (list 5):
- Fiscal policy discipline
- Effective public spending
- Tax reform
- Competitive exchange rates
- Trade liberalization
After the signing of the _____________, the European Economic Community was established by Germany, France, Italy, Netherlands, Belgium and Luxembourg. The original six (6) founding members created a common market where goods and services, capital and labor moved freely
Rome Treaty
European Economic Community was established by? The original six (6) founding members created a common market where goods and services, capital and labor moved freely.
Germany, France, Italy, Netherlands, Belgium and Luxembourg.
was formally established when the Maastricht Treaty came into force in 1993.
European Union (EU)
_______ became the second most widely used reserve currency
Euro
