Unit 3: To what extent does globalization contribute to sustainable prosperity for all? Flashcards
1
Q
Sustainable
A
- Able to be maintained at a certain rate or level
2
Q
Prosperous
A
- Wealth and success
3
Q
Sustainable Prosperity
A
- Continued good fortune
- Continued wealth and success
4
Q
Contemporary Globalization
A
- Period of globalization beginning in 1945 to present day
5
Q
Bretton Woods Agreement
A
- Meeting of 44 nations to discuss post WW11 international monetary systems
6
Q
Gold Standard
A
- All standard money would be convertible into gold and could be traded at any point for gold
7
Q
What was the disadvantage to the gold standard?
A
- Countries could only print as much money as they held in their gold reserves
- Can cause inflation
Ex. a country with a billion dollar worth of gold could only print a billion dollars worth in currency
8
Q
Inflation
A
- Where a country ends up with more currency but each unit of currency is worth less
9
Q
Fixed Exchange Rate
A
- Currency value is set by its government
10
Q
Floating Exchange Rate
A
- Currencies value is decided by supply and demand
11
Q
World Bank
A
Intergovernmental organization
- Provides long term loans to developing countries
- Founded by John-Maynard Keynes
12
Q
What are developing countries required to do in order to receive loans from the World Bank?
A
- Countries are required to meet certain political and economical conditions such as increasing democracy or adopting western free market conditions
13
Q
International Monetary Fund
A
- International Agency
- Works to bring stability to international monetary affairs and help expand world trade
- Short term financial assistance
- Founder is John Maynard Keynes
14
Q
Recession
A
- A period of reduced economic activity lasting longer than six months
15
Q
General Agreement on Tariffs and Trade (GATT)
A
- International agreement meant to regulate trade
- Aimed to reduce trade barriers, and eliminate preferences
- Turned into World Trade Organization
16
Q
World Trade Organization (WTO)
A
- International organization
- Aims to improve trade relations among world countries, especially by removing trade barriers
17
Q
Centrally Planned Economy
A
- System where government planners decide what goods to produce and how many
- Past
18
Q
Free Market Economy
A
- System in which government does not intervene in the production and control of goods and services
- Present
19
Q
Trade Liberalization
A
- Process of reducing barriers to foster trade
20
Q
Milton Freedman
A
- American economist
- Supported economic liberalization, capitalism, and free trade
21
Q
Fredrick Hayek
A
- Supported economic liberalization, capitalism, and free trade
- Influenced British economic system
22
Q
Margaret Thatcher
A
- Prime Minister of Britain 1979
- Influenced by Fredrick Hayek to insert capitalist policies into society
23
Q
Fair Trade
A
- Trade in which fair prices are paid to producers in developing countries
24
Q
Free Trade
A
- International trade left to its natural course without trade barriers such as tariffs
25
Monopoly
- The exclusive possession or control of supply or trade in commodity or service
26
Organization of Petroleum Exporting Countries
- Formed to regulate oil production and markets
- Have monopoly on oil
27
