Карточки Lecture 6- Great Divergence | Quizlet

How other countries developed after the industrial revolution is the?

Great Divergence

Winners of the great divergence are?

-Northern Europe

-United States

Loser of the great divergence are?

-India

-China

-Africa

The gape between rich and poor countries grew or shrunk?

Grew

What is the capital theory of Britains slowdown after the industrial revolution?

Too much capital investment in foreign lands because of chasing higher growth there

Explain Britains educational system after industrial revolution

Poor formal education, high technical training. Iss not the main reason for slowdown.

What were the main factors in why the US outgrew Britain?

-Vast Natural Resources

-Large Unified Market

-Technology and Automation

What are the five lessons from US growth?

-Resource Abundance fuels growth

-Large Markets drive innovation

-Automation solves labor constraints

-Tariffs and trade access matters

-Technological leadership is market driven

What are the key components of the 19th century economic developement model?

-Reduce Internal Tariffs

-Develope Transport

-Abolish Internal Trade Barriers

-Investment Banks Channel Capital to Industry

-Mass Education

Pattern whereby countries dominated by Imperial powers failed to industrialize in the nineteenth-century

19th Century Convergence

Key issue with developemental states failures depite applying the "standard model" is?

Lack of market size, cannot reach efficient capacity

What are some examples of countries that were developmental state "successes"?

-Japan

-Korea

-Taiwan

-China

What is the common variable in most developmental state sucesses?

High investment in education, technology, and industry

The theoretical problems for state owned enterprises are?

-Soft budget constraints

-Poor incentives for managers

Where are state owned enterprises beneficial?

-Overcome capital market difficulties

-Chance of natural monopoly

What are the main reasons Africa hasn't industrialized?

-Specialization in agriculture where prices are very low

-Extremely low wages

-Lack of foreign investment due to corrupt governments and warfare

growing interconnections between the economies of different countries

Globalization

growing movement of goods between countries or growth of imports and exports

Globalization of Trade

growing movements of factors of production across international borders. • Migration (i.e. movement of labor) • International capital flows

Globalization of Factors of Production

One way to examine the extent of globalization is to examine the magnitude of the flow of _______?

goods or factors over time

For globalization in trade, we measure the __________. As the economy grows we might get more trade volume, but a smaller percentage.

share as a percentage of GDP

• the "_____ _________": the expansion of trading routes in the 15th-17th centuries (often dated as starting with Columbus)

First Globalization

What are the three waves of globalization?

-Mid 19th century to WWI

-WWII to 1970s

-Post 1970-present

What affects the extent of globalization?

-Travel costs

-Political factors (Tariffs, colonialism, exchange rates, etc.)

When were the three periods of great travel cost reduction?

-17th century

-19th century

-20th century

What inventions contributed to the 17th century travel cost reduction?

-Roads

-Railways

-Most importantly steam ships

19th century globalization marked by trade boom and price gap redution in ____?

Asia

During 19th century globalization many asian countries fored to open up to free trade through "_______ diplomacy".

gunboat

The gold standard relied on what two things?

-Credibility

-Cooperation

Why did the gold standard fail?

-Higher demand for fiscal and monetary policy flexibility to protect unemployment

-Less reliability for cooperation

Exchange rate system where US Dollar fixed to gold and other currencies fixed to dollar

Bretton Woods System

The Bretton Woods system formed the international insitutions; ___________ to provide financial support to countries and the ____________ to focus on reconstruction and econ development of poor countries

-IMF

-World Bank

When did the Golden Age of globalization and bretton woods system die?

1970s

Why did the bretton woods system die?

-High US inflation decreasing calue foreign countries dollars resulting in mass cash in for gold

-Unwillingness to raise interest rates in US

-More dollars than could be backed with gold