WEEK 5

Question 1

This means that economies around the world are becoming more interconnected. We’re talking about how countries trade with each other, invest in each other, and share technology and ideas.​ It’s the process of the world becoming more interconnected due to technological innovations. We can now buy products made in different countries, watch movies from other cultures, and work for companies based in distant lands.

Answer 1

Economic Globalization​

Question 2

The earliest example of an international trade system is the

Answer 2

“Silk Road”.

Question 3

According to ? ?. ? and ? ? it began when “…populated continents began to exchange products continuously… and in values sufficient to generate crucial impacts on all trading partners.” ​​They also state that the better example would be the establishment of the Galleon Trade.

Answer 3

Dennis O. Flynn and Arturo Giraldez

Question 4

was part of the age of mercantilism​

Answer 4

The Galleon trade

Question 5

was an economic system dominant in Europe from the 16th to the 18th centuries. It was essentially a form of economic nationalism, where a country’s wealth was measured by its gold and silver reserves. It was also a system of global trade with multiple restrictions A more open trade system appeared during 1867​

Answer 5

​Mercantilism

Question 6

Mercantilism was later called

Answer 6

monetary reserves

Question 7

It was also a system of global trade with multiple restrictions A more open trade system appeared in 1867​ called the

Answer 7

gold standard

Question 8

because of the ? ?, a severe worldwide economic downturn that lasted from 1929 to the late 1930s, they had a harder time.

Answer 8

Great Depression

Question 9

a government-issued currency that is not backed by a physical commodity like gold or silver. Its value is derived from the trust and confidence people have in the issuing government.

Answer 9

fiat currencies

Question 10

​Because of the still restrictive patterns of the gold standard, with countries running out of gold reserves, they adopted a different approach.

Answer 10

International Trading systems​

Question 11

was an international monetary system established in 1944 at the Bretton Woods Conference in New Hampshire, USA. It was designed to prevent the economic catastrophes that occurred during the interwar period, such as the Great Depression.

Answer 11

​The Bretton Woods system

Question 12

The 4 main features of the Bretton Woods Systems are:​

Answer 12

Fixed Exchange
Rate International
Monetary Fund​
World Bank

Question 13

The Bretton Woods System was influenced by the ideas of who. One of his ideas was that when economies slow down, governments have to reinvigorate markets with infusions of capital. In other words “When the economy starts to do poorly, the government needs to give it a boost by spending money.”​ As demands increased for certain goods, so did the prices

Answer 13

John Maynard Keynes.

Question 14

This role of governments would later on be called ?? .​ The idea was that a prices increased companies would likely​ earn more and thus have more money to hire workers and thus would have more spenders.

Answer 14

Global Keynesianism

Question 15

?? and ?? argued that the idea of Keynes had caused inflation by increasing demand for goods without increasing supply.

Answer 15

​Friedrich Hayek and Milton Friedman

Question 16

Friedrich Hayek and Milton Friedman argued that the idea of Keynes had caused inflation by increasing demand for goods without increasing supply.​ From this ? started

Answer 16

Neoliberalism

Question 17

Neoliberalism is an economic and political ideology that emphasizes 4

Answer 17

free-market capitalism,
deregulation,
privatization,
and individual liberty.

Question 18

The belief that markets should be self-regulating with minimal government intervention.

Answer 18

​Free Markets:

Question 19

Reducing government regulations on businesses to promote competition and economic growth.

Answer 19

​Deregulation:

Question 20

Transferring ownership and control of public assets and services to the private sector.

Answer 20

​Privatization:

Question 21

Emphasizing personal responsibility over collective action and social welfare programs.

Answer 21

Individual Responsibility:

Question 22

​Countries are becoming increasingly interconnected, through (4)

Answer 22

trade, investments, technological advances, and the people itself.

Question 23

Economic globalization has led to the formation of trade agreements and the reduction of tariffs, resulting in increased international trade and economic interdependence.

Answer 23

Trade agreements and tariffs​

Question 24

Economic globalization has facilitated cultural exchange and diversity as products, ideas, and values from different parts of the world interact and influence each other.

Answer 24

Cultural exchange and diversity​

Question 25

The term ?? refers to the gap between the rich and the poor. This gap is often measured by income inequality, which is the​ unequal distribution of wealth within a society.​

Answer 25

“Great Divide”

Question 26

2 Negative consequences of the​ Great Divide​:

Answer 26

Increased poverty:
Weakened democracy:

Question 27

The causes of the Great Divide​

Answer 27

Economic policies
technological change
Globalization