SOCSCI 032 (Global Economy) Flashcards
It is the economy of all humans of the world, considered as the international exchange of goods and services that is expressed in
monetary units of account.
Global Economy
The global economy is ___
World Economy, it is one big entity
Is about the extension of economic activities of nation states across borders.
Internationalization
Is functional integration between internationally dispersed
activities.
Economic globalization
What type of transformation is Economic Globalization?
A qualitative transformation, not a quantitative change
What continents does the silk road connect?
Asia, Africa, Europe
When did Christopher Columbus discover America?
1492
Who discovered the direct sea route to India?
Vasco de Gama
What were the first MNC’s?
British and Dutch East India Companies.
What does MNC’s mean?
Multinational Corporation
What was the worst economic downturn in the history of the industrialized world?
Great Depression from 1929-39
What is (economic) Depression?
Is a sustained, a long-term downturn in economic activity in on or .more economies.
What do economists consider Depression to be?
A rare and extreme form of recession
By 1933 how many of the nation’s banks have failed?
11,000 out of 25,000
What is buying on margin?
Paying a small % of a stock’s price and borrowing the rest.
What caused the Great Depression?
- Over Production
- Decrease in Customer Spending
- Overspeculation
When did WW2 occur?
1939-1945
What is the formal name of the Bretton Woods Conference?
United Nations Monetary and Financial Conference
It was the gathering of delegates from all Allied nations to regulate the international monetary and financial order after the conclusion of World War II.
Bretton Woods Conference
How many delegates appeared and how many Allied nations were there?
730 delegates from all 44 Allied Nations
Where did the Bretton woods conference take place?
New Hampshire, USA
When did the US send invitations to the Allied Countries?
May 25, 1944
What does the following acronyms mean?
IMF
IBRD
GATT
WTO
International Monetary Fund
International Bank for Reconstruction and Development
General Agreement on Tariffs and Trade
World Trade Organization
When was “A Joint Statement by Experts on the Establishment of an International Monetary Fund” Published?
April 21, 1944
The 2 VIP’s in the Bretton Woods Conference
John Maynard Keynes
Harry Dexter White
What is the IMF?
is an organization of 189 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable
economic growth, and reduce poverty around the world.
When was the IMF conceived and formally introduced?
Conceived on July 1944 and came into formal existence on December 27 1945
How many members did the IMF have by the end of 1946?
39
When did the IMF begin operations?
March 1, 1947
Who was the first borrower of the IMF?
France on May 8, 1947
He foresaw an IMF that functioned more like a bank, making sure that borrowing states could repay their debts on time.
Harry Dexter White
He imagined that the IMF would be a cooperative fund upon which member states could draw to maintain economic activity and employment through periodic crises.
John Maynard Keynes
How does the IMF get its resources?
Member Quotas
IMF’s Fundamental Mission
- Economic Surveillance
- Lending
- Capacity Development
What is a Member Quota?
It broadly reflects the size and position in the world economy.
A members country’s quota determines its maximum financial commitment to IMF, voting power, and access to IMF financing.
This was designed to finance projects that enhance the
economic development of member states.
World Bank
When was GATT signed?
1947
When was WTO created?
1994
Examples of Neo Liberalism
Liberalization
Deregulation
Privatization
What is Neo-liberalism?
Free market policies
What is Neo-mercantilism?
Interventionist, protectionist policies
Examples of Neo-mercantilism?
Subsidies
Tariffs
Import Quotas
Reduction of restrictions or barriers on the free exchange of goods between nations.
Liberalization
Reduction and elimination of government power in a particular industry, usually enacted to create more competition within the industry.
Deregulation
The transfer of ownership, property or business from the government to the private sector.
Privatization
These are restrictions imposed on movement of goods between
countries.
Tariff and Non-tariff Barrier Imposition
What’s the difference between Tariff and Non-tariff Barrier Imposition?
Tariff Barrier is a barrier to international trade.
Non-tariff Barrier includes quotas, embargoes, sanctions, levies, and other restrictions.
Refers to rules that limit who can enter a business and what prices they may charge
Economic Regulation
Refers to the abroad category of rules governing how any business or individual carries out its activities, with a view to correcting one or more “market failures”.
Social Regulations
Funds provided by a government to enable firms to reduce prices and encourage an increase price and demand.
Subsidies
These are “non-tariff barriers” used to limit imports of a particular products.
Import Quotas
This is the branch of public health concerned with all aspects of the natural and build environment affecting human health.
Health and Environment Standardization
A trade and economic policy which advocates replacing foreign imports with domestic production.
Import Substitution
