The Global Economy Flashcards
Is the increasing integration of economies around the world through the movement of goods, services and capital across borders.
Economic Globalization
What defined the term Economic Globalization?
International Monetary Fund (IMF)
Value of trade as percentage of world GDP from 1980 and 2007
42.1% and 62.1%, respectively
A type of investment in which a company establishes a business in another country for the production of goods and services
They still take part in the managing of said business
Foreign Direct Investment
International Trading Systems found in the past (2)
Silk Road
Galleon Trade
A network od trade routes connecting China and the Far East with the Middle East and Europe
Silk Road
When did full economic globalization begin?
It began when 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.
___ and ___ defined when the age of globalization started
Dennis Flynn
Arturo Giraldez
Connected Manila and Mexico; the first time that Americas were directly connected to Asian trading routes
Galleon Trade
Factors that facilitate Economic Globalization (3)
International Monetary System
Nation-State
Global Corporations
Types of International Monetary Systems (2)
The Gold Standard
The Bretton Woods System
Believed to guarantee a non-inflationary, stable economic environment, a means for accelerating international trade
The Gold Standard
European Nations and US shifted to gold at ___ in paris
International monetary conference
Established a new global monetary system.
Countries promised that their central banks would maintain fixed exchange rates between their currencies and the dollar
The bretton woods system
The Two Financial Institutions created for The Bretton Woods system
a. International Bank for Reconstruction and Development (IBRD) — World Bank
b. International Monetary Fund (IMF)
