(P) L2: The Global Economy (Book-based) Flashcards
Defined as the historical process, result of human innovation
Economic globalization
Other names for economic globalization
Global economy/World economy
Shangquan (2000) attributes this to cross-border trades, flow of capital, and wide/rapid spread of technology
Economic globalization
Definition of Economic globalization as the historic process, result of human innovation is given by whom?
International Monetary Fund (2008)
Cross-border trading can be best illustrated by partnership with which countries?
China, Australia, US
The flow of international capital can be observed in what?
Foreign direct investment (FDI)
Defined as the type of investment in which a company establishes a business in another country
FDI
The corporation as good example of having FDI stated in the book?
Toyota Motor Philippines
It refers to the increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders
Economic Globalization
Economic Globalization refers to the increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders
This definition is given by whom/which organization?
International Monetary Fund (2008)
Econ globalization can be traced from the time when there was economic movement in Asia, Africa, and Europe through what?
Silk road
Silk Road connected which places?
East (particularly China) and the West
Who identifies four interconnected dimensions of the `economy?
Benczes (2014)
What are the four dimensions of the economy?
- Globalization of trade of goods and services
- Globalization of financial and capital markets
- Globalization of technology and communication
- Globalization of products
The globalization of trade of goods and services is demonstrated in the establishment of which organization?
World Trade Organization (1995)
Which country emerged as the major supplier and exporter of manufactured goods in the context of globalization of trade of goods and services?
China
Increasing number of business process outsourcing refers` to which dimension of economy?
Trade of good and services
Cross-listing of shares on one or more foreign stock exchange, cross heading and diversification of portfolio, round the clock trading worldwide refer to which dimension of economy?
Financial and capital markets
Various transactions and interactivities that transpire due to the internet and communication technology refer to which dimension of the economy?
Technology and communication
Existence of MNCs and TNCs are manifestation of which dimension of the economy?
Product
Whose definition of economic globalization is the most fitting?
Szentes’
T or F: The world economy is no longer controlled by the nation-states but must be seen from a global context
True
Refers to making the world economy an organic system by extending transnational economic processes and relations to more and more countries
Economic globalization
T or F: Price movement is only affected by the Tax Reform for Acceleration and Inclusions
False (also affected by the peso-US dollar exchange which is affected by the global market)
What are the two international economy’s interest rate that affect the global market?
European Union (EU) and United States Federal Government’s interest rate
What are the two actors that facilitate economic globalization?
Nation-states and Global corporations
T or F: Globalization does not have any effect on the nation-states’ role as managers of the national economy
False (it redefines it)
Which acts as a buffer to the negative effects of globalization?
Nation-states
Who describes the government as the midwives?
Brodie, 1996
T or F: Nation-states are still relevant in assuming a global perspective and act as mediators between the effects of globalization and national economy
True
According to this person, nation-states ceased to exist as the primary economic organization unit in the global market
Ohmae, 1995
Because of this, national products, technology, and corporations become obsolete
Global corporations
Example of MNCs in context of globalization of product
Coca-Cola Company and Toyota Motor Corporation
These corporations have expanded outside their home country and become the main driving force of economic globalization accounting for 2/3rds of the world exports (Gereffi, 2005)
San Miguel Corp and Jollibee Foods Corp
This corporation only manufactures syrup concentrates and sells them to different countries
Coca-Cola company
This corporation has subsidiaries in Japan and other parts of the world
Toyota Motor Corp
When did Toyota started selling millions of vehicles?
1998
This is one of the actors that facilitate economic globalization; internationally agrees rules, conventions, and institutions for facilitating international trade, investments, and flow of capital
International Monetary System (IMS)
What are the three global IMS?
- Gold standard
- Bretton Woods System
- European Monetary System (EMS)
This IMS functions as a fixed exchange rate regime with gold as the only reserve
Gold standard
This IMS has US dollar as the only convertible currency
Bretton Woods System
T or F: The countries agreed to adopt the dollar-exchange standard
False (gold-exchange)
International Bank for Reconstruction and Development is now known as what?
World Bank
This bank is responsible for post-war reconstruction
World Bank
This aims to promote international financial cooperation and strengthen international trade
IMF
This IMS came about after the collapse of the Bretton Wood System
European Monetary System (EMS)
This IMS was successful in stabilization process of exchange rate
European Monetary System
This IMS promoted the establishment of European Economic and Monetary Union (EMU)
EMS
T or F: Restricting flow of goods might affect the relationship between states
True
T or F: According to WB, economic globalization does not have any effect to poverty
False (it reduces it)
T or F: Econ globalization allows only local distribution of incomes
False (worldwide distribution)
T or F: Economic globalization creates mutual independence between developing an developed countries
False (mutual dependence)
T or F: Econ globalization unites the world as the sources of goods and services are exploited
False teh
T or F: Econ globalization benefits all nation
False
T or F: Economic globalization creates inequality according to expertise, experience, and skills
True
When was WTO established?
1995
