the globalization of world economics Flashcards
historical process representing the result of human innovation and technological progress
economic globalization by International Monetary Fund
international development organization owned by 189 countries
World bank
According to IMF, the value of trade increased from
42.1% in 1980 to 62.1 % in 2007
the oldest know international trade route
Silk road
Silk road continued until
Ottoman empire in 1453 BCE
Silk road was consiedered international but it did not include routes to the American continents.
true
According to Dennis O. Flynn and Arturo Giraldez, globalization began when
all important populated continents began to exchange products continuously.
Galleon trade 1571
Manila to Acapulco in Mexico
When did galleon trade started
Age of mercantilism (16th to 18th century) – monetary reserves
First world war forced coutntries to use their
gold reserves to support their armies
What did the european countries had did to limit gold reserves
they adopted floating currencies
this depleted government resources which led the difficulty of going back to a pure standard
great depression 1920-1930 by the west
currencies that are not backed by precious metals and whose values are determined by their cost relative to other currencies
fiat currencies
allows governments to freely and actively manage their economies by increasing or decreasing the amount of money in circulation as they see fit.
fiat currencies
has the goal of preventing past catastrophes from happening again and impacting international connections
Bretton Woods System
