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- it regards “economic globalization” as a historical process representing the result of human innovation and technological progress
- characterized by the increasing integration of economies around the world through the movement of goods, services, and capital across borders
International Monetary Fund (IMF)
- An international development organization owned by 189 countries
- its role: reduce poverty by lending money to the governments of its poorer members so that they can improve their economies and the standard of living of their people
World Bank
In _____, the world bank has funded over ______ development projects via traditional loans, interest-free credits, and grants.
1947; 12,000
Increased trade means?
Investments are moving all over the world at faster speeds
Meaning of UNCTAD
United Nations Conference on Trade and Development
Process wherein supercomputers can execute millions of stock purchases and sales between different cities in a matter of seconds
High-frequency trading
- oldest known international trading route
- not global; does not connect to america
- connected different parts of ancient world»_space;> china - middle east - europe
- most profitable products traded through this network was silk
Silk road
“When did full economic globalization start?” – who were the historians that addressed this
1571
Dennis O. Flynn
Arturo Giraldez
Started during mecantilism
Galleon trade
Global trading system that had multiple restrictions — bc of high tariffs
Mercantilism
New system in 1867 with fixed exchange rate system
Gold standard
When was countries forced to use their gold reserves to support their armies thus, abandoning the gold standard?
WORLD WAR 1
Global economic crisis during 1920s - 1930s in the west (europe)
Great depression
The economic historian that stated that the US began to recover when it abandoned the gold standard
Barry Eichengreen
What kind of currency we have today?
Fiat currencies
This system allows governments to freely and actively manage their economies by increasing or decreasing the amount of money in circulation as they see fit.
Fiat currency
- it was inaugurated during the 1944 united nations monetary and financial conference
- its goal is to prevent past catastrophes from happening again and impacting international connections
Bretton Woods System
- He stated that when money is not spent, economic crises happens because economies slow down
- He is the one who influenced Bretton Woods system
John Maynard Keynes
The system that’s been created due to the foundation of the active participation of governments in managing economic crises
Global Keynesianism
The two financial institutions that the delegates at bretton woods created
1.) world bank or international bank for reconstruction and development (IBRD)
2.) international monetary fund (IMF)
Other term for world bank (IBRD)
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
- Financial institution that is responsible for funding postwar reconstruction projects
- it was a critical institution at the time when many of the world’s cities had been destroyed by the war
World bank OR International Bank for Reconstruction And Development (IBRD)
- Financial institution that is the global lender of last resort to prevent individual countries from spiraling into credit crises
- it will step in if economic growth in a country slowed down bc there was not enough money to stimulate the economy
International Monetary Fund (IMF)
In 1947, its main goal was to reduce tariffs and other hindrances to free trade
General Agreement on Tariffs and Trade (GATT)
What year is the global Keynesianism’s pinnacle?
Mid-1940s - early 1970s
What year did the price of oil rise?
Early 1970s
OAPEC
Organization of Arab Petroleum Exporting Countries
OPEC
Organization of Petroleum Exporting Countries
The reason why Oil Price rose is because OAPEC imposed to resupply the Israeli Military with the needed arms during ________
Yom Kippur War
It affected the Western economies that were reliant on oil
“Oil Embargo”
Why did the Bretton Woods System end in 1973-1974?
The US stopped linking the dollar to gold
Decline in economic growth and employment
Stagnation
Sharp increase in prices
Inflation
Decline in economic growth and employment that takes place alongside a sharp increase in prices
Stagflation
They argued that the way the government is pouring money in economics distorts the proper functioning of the market
Friedrich Hayek & Milton Friedman
How did the US relatively recovered quickly from the housing loan debt?
President Barack Obama pushed for a large Keynesian-style stimulus package
Political upheaval in France wherein they unjustly blame immigrants for their troubles
Marine Le Pen’s Front National
The WTO-led reduction of trade barriers that altered the dynamics of the global economy
Trade liberalization
Economic globalization is an ______ process
Uneven
Protectionists
Countries does not let imports from developing countries in
TNC
Transnational corporations
