The Global Economy Flashcards
According to the International Monetary it is the increasing integration of economies around the world through the movement of goods, services and capital across borders
Economic Globalization
42.1% in 1980s and 62.1% in 2007
World GDP
A type of investment in which a company established a business in another country for the production of goods and services and still takes part of managing of that business
Foreign Direct Investment
International Trading Systems
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A network of trade routes connecting China and the Far East with the Middle East and Europe
Silk Road
“All important populated continents began to exchange
products continuously- both with each other directly and
indirectly via other continents – and in values sufficient to
generate crucial impacts on all trading partners.”
Dennis Flynn and Arturo Giraldez
Connected Manila and Mexico; the first time that Americas were directly connected to Asian trading routes
Galleon Trade
The Actors that facilitate Economic Globalization
- International Monetary System
- Nation-State
- Global Corporations
Under IMS, European nations and US shifted to gold at the
international monetary conference in Paris
The Gold Standard
Countries promised that their central banks would maintain fixed exchange rates between their currencies and the dollar
The Bretton Woods System
Two Financial Institution of BWS
a. International Bank for Reconstruction and
Development (IBRD) or now known as World
Bank
b. International Monetary Fund (IMF)
Acts as a mediator between the effects of globalization and the national economy
Nation- State
- These companies work to have a foothold in a large number of countries.
- A global company is generally referred to as a multinational corporation (MNC)
Global Corporations
