unit 3 - foundations of economic globalization

Question 1

Joseph Stiglitz perspective

Answer 1

• countries and peoples are more economically integrated today than ever before
• interdependence has happened because of communication and transportation barriers have been reduced.

Question 2

Naomi Klein’s perspective

Answer 2

• economic globalization builds fences between people

- shits people out from meeting basic needs

Question 3

Some factors affecting the global economy (7)

Answer 3

• war
• natural disasters
• changes in investors’ confidence (which can affect share prices on local and global stock exchanges)
• price changes for non-renewable energy (oil and natural gas)
• government economic policies (tariffs, trade regulations, foreign aid, interest rates)
• economic uncertainty (depletion of natural resources)
• famine

Question 4

Cost of WW1

Answer 4

• about 15 million solider and civilians dead
• high economic costs (cities, roads, factories, ports, ships destroyed)
• many Europe counties borrowed money from the USA
• in 1919, world production of manufactured goods was more than 25% lower than I had been in 1913

Question 5

Treaty of Versailles

Answer 5

• it was supposed to ensure peace and prevent another global war
• reparation: paying to rebuild the damage from WW1
• John Maynard Keynes, a member of the British delegation said that crippling Germany and Austria with war debts would starve the people and guarantee another war.

Question 6

WW1 effects on Canadian economy

Answer 6

• taxes increased dramatically (income tax becomes permanent)
• after the war weapon manufacturing stopped leading to unemployment

Question 7

The great depression

Answer 7

• stock market crash
• people lost jobs and could no longer pay bills
• ## exports % fell

Question 8

Communism

Answer 8

an economic and political model that was supposed to get rid of class distinction, and opposes capitalism

Question 9

WWII

Answer 9

• Germany hit hard by the depression
• Adolf Hitler promised to “fix things”
• Hitler convinced people there was a superior race

Question 10

how did WWII start?

Answer 10

• invaded Poland which started WWII

- more than 50 countries were drawn into the war

Question 11

WWII in Canada

Answer 11

• about 42 000 Canadian died
• government spending increased and manufacture of arms, airplanes and ships rose, farming became more mechanized
• unemployment fell, women started working

Question 12

Bretton woods

Answer 12

representative from 44 counties met for a conference sponsored by the newly founded UN. They tried to see what could prevent another war.

Question 13

John Maynard Keynes

Answer 13

• beloved that unrestricted capitalism - governments playing a very limited role in the economy was wrong.
• he wanted government intervention to create economy stability

Question 14

Friedrich Hayek

Answer 14

• disagreed with Keynes’s view
• mistrusted the government control
• believed gov’t should stay out of the way

Question 15

World Bank and IMF

Answer 15

• were both mapped out of the Bretton Woods meetings

- both supported by the UN

Question 16

GATT - General Agreements on Tariffs and Trade

Answer 16

• At Bretton Woods, some countries worked together to establish trade rules.
• GATT members agreed to eliminate tariffs and other trade barriers
• The WTO emerged from the GATT in 1995 by 2007 the WTO was regulating trade in services such as telecommunications and banking as well as goods

Question 17

Cold War

Answer 17

• The US had a capitalist economic system and the Soviet Union had a communist economic system
• This caused friction between the two and resulted in the Cold War
• this interfered with global trade but the IMF, World Bank, and GATT could not resolve the conflict.