The Global Economy Flashcards
- Movement of international groups, capital, services, technology, and information
- Increase the interdependence of world economies
Economic Globalization
A process making the world economy an
“organic system”
Economic Globalization
Who
Globalization processes have been going ever since Homo Sapiens began migrating
Gills and Thompson
Frank and Gills
- Best-known example of archaic globalization?
Silk Road
Wallerstein
- Multicultural territorial division of labor
- Production and exchange of basic goods and raw materials are essential
World Systems Theory
World Systems Theory
Power hierarchy between ___ and ___
Core; periphery
State’s economic development in terms of external influences on national development policies
Dependency
Dependency Theory
Dependent states rely heavily on the?
Export of a single commodity
Dependency Theory
___ forces play a crucial role in the economic activities of dependent states
External
Dependency Theory
The relationship between dominant and dependent states is ___
Dynamic
Purpose of colonialism is to establish?
Economic colonies
A cycle of poverty perpetuating from one generation to the next
Culture of poverty
States that:
Completely liberalized global market is the most efficient way to foster growth
Capitalist economic theory
States that:
International trade is crucial for the development and integration of poor countries into the global economy
Neoliberal ideology
- Sought to establish a new body of universal investment laws
- Unrestricted rights for global buying, selling, and financial operations
- Disregards national laws and citizens’ rights
Multilateral Agreement on Investment (MAI)
Exert a great deal of power in the globalized
world economy
Transnational Corporations
Many corporations are ___ (2) than the
states that seek to regulate them
More powerful
Organization that owns or controls production of goods and servicess other than their home country
Multinational Corporation
A commercial enterprise operating in multiple countries without a specific home country
Transnational Corporation
Brings private overseas funds into a country for investments in manufacturing or services
Foreign Direct Investment (FDI)
Institution
Aims to lower tariffs and non-tariff barriers to increase international trade
World Trade Organization
The WTO has how many member states?
146
Institution
- Washington
- Lends money to governments for development projects
World Bank
The World Bank has imposed strict conditions, known as?
Structural Adjustment Programs
Institution
Lends money to governments to stabilize currencies and maintain order in global financial markets
International Monetary Fund
- US dollar is the only currency to be convertible to gold
- Other currencies would set their exchange rates relative to the dollar
Bretton Woods Agreement
- Paper currency can be exchanged for gold at a fixed rate
- Historically rooted in the use of gold coins as a medium of exchange
Gold standard
Strength of the Gold Standard
Balance-of-trade
The Bretton Woods System ended in the 1970s, when President ___ dissolved the U.S. gold standard
Nixon
Who
Stresses that the countries that industrialized first got the jump on the rest of the world
Henslin
Beginning in ___ about 1750, industrialization spread throughout ___ Europe
Great Britain; western
One exception for Colonialism
U.S. army’s conquest of the Philippines
Who
Argued that some nations are crippled by a culture of poverty
John Galbraith
Cutting trade barriers and opening markets do not necessarily generate ___
Development
- WTO negotiations favor the interests of ___
- Neglect agricultural protectionism and trade subsidies by rich countries
Corporate investors
According to critics:
WTO can harm the interest of the ___
Poor
Ex. of high-handed approach of IMF to poor countries
Asian Crisis
Much trade is now ___
Dollar-based
What caused the collapse of the Bretton Woods system?
- Too much money printed
- High trade deficits
- High inflation
When was the Bretton Woods System established?
1944
