(P) L2: The Global Economy (Transes-based) Flashcards
defined as a historical process representing the result of human innovation and technological progress (according to IMF)
Economic Globalization
also known as world economy or global economy
Economic Globalization
refers to the expanding interdependence of world economies
Economic Globalization
Characterized by integration of economies through the movement of goods, services, and capital which are products of people, organizations, institution, and technologies
Economic globalization
refers to those which are made and sold
Goods
refers to jobs offered by other people
Services
It is the market value of all finished goods and services produced within a country in a year.
Gross Domestic Product
A network of pathways in the ancient world that spanned from China to what is now the Middle East and to Europe
Silk Road
Connected Manila and Acapulco in 1571; The first time that the Americans were directly connected to Asian trading routes
Galleon Trade
Galleon trade was part of this; a system of global trade with multiple restrictions; mainly imposed by monarchies
Age of Mercantilism
Before, this means the power of one the nation depends on its quantities of gold and silver; it is better to have gold and silver
Mercantilism
refers to taxes or duties to be paid on a particular class of imports and exports
Tarrifs
refers to more than just money or currencies; it also reflects economic power and interests, as money is inherently political, and integral part of “high politics” of ‘diplomacy
International Monetary System
IMS means it needs to provide assistance to how many countries?
190
one of the least reactive chemical elements and is solid under standard conditions
Gold
What year did Britain abandon Gold Standard?
1931
What year did US abandon Gold Standard?
1971`
currencies that are not backed by precious metals and whose value is determined by their cost relative to other currencies
Fiat currencies
This is when countries were forced to abandon the gold standard after depleting their gold reserves to fund their enemies
World World I (1914 - 1918)
Happened after WWI; everything was high and global economic crisis during the 1920s to 1930s
The Great Depression
refers to price increase
Inflation
refers to inflation lasted for 6 months
Recession
refers to recession which lasted for more than 9 months
Depression
A global economic system that would ensure a longer-lasting global peace; a network of global financial institutions that would promote economic interdependence and prosperity
The Bretton Woods System
During the Bretton Woods System, the only currency that can be converted to gold is _____ so it was later on abandoned (ended in 1973)
USD
When was Bretton Woods System inaugurated?
1944 during UN Monetary and Financial Conference
British economist who believed that economic crises occur not when a
country does not have enough money, but when money is not being spent and, thereby not moving
John Maynard Keynes
believes that as prices increase, companies would earn more and hire workers; applied by different nations as strategy to make their GDP or economy profitable
Keynes
High point came in the mid-1940s to the early 1970s
Global Keynesianism
This organization imposed an embargo in response to the decision of the United States and other countries to resupply the Israeli military with the needed arms during the Yom Kippur War/ October War/ Ramadan War
Organization of Arab Petroleum Exporting Countries (OAPEC)
A new form of economic thinking started from 1980s onwards
Neoliberalism
Became the codified strategy of the United States Treasury Department, World Bank, IMF, and eventually the World Trade Organization
Neoliberalism
refers to high inflations (lasts for a long period and causes recession) results to low GDP
Stagnation
refers to combination of inflation and stagnation
Stagflation
Came out also during the era of neoliberalism; this follows the neoliberalism ideology. Minimal gov’t spending to reduce gov’t spending.
Washington Consensus
Called for the privatization of gov’t-controlled services
Washington Consensus
Consensus known to pressure the developing countries to reduce its tariff but there were those who disagree leading to the creation of local policies
Washington Consensus
Theorizes that sudden, dramatic changes in nat’l economic policy can turn a state-controlled economy into a free market economy
Shock Therapy
Intended to cure economic maladies such as hyperinflation, shortages, and other effects of market controls to jumpstart economic production, reduce unemployment, and improve living standards
Shock Therapy
Happened due to the United States’ systematic decision to remove various banking and investment
restrictions on 2008 to 2009
The Global Financial Crisis
Who discovered America and when?
Christopher Columbus in 1942
oh Mickey you’re
supine
Who discovered the direct sea route to India and when?
Vasco De Gama, 1498
refers to a 30-year long process that began at the end of the 1960s as a form of monetary cooperation; intended to reduce the excessive influence of the US dollar
European Monetary Integration
This organization was launched in 1995 and has became an official forum for trade negotiations
World Trade Organization
This aims to promofe trade and cooperation between the developing and developed nations
United Nations Conference on Trade and Development
The central tenet of glovalization
International economic integration
