GEd 104 Quiz Reviewer

Individualism and consumerism

the dominant cultural characteristic of our age and the drive for economic success stimulated by the internet and other technological devices circulate much more easily than they did in earlier periods

Hybridization

constructive interaction process between global and local characteristics which is often visible in food, music, dance, film, fashion, and language

Religious Dimension

Religion is a personal or institutionalized set of attitudes, beliefs, and practices relating to or manifesting faithful devotion to an acknowledged ultimate reality or deity

Jihadist globalism

a religious response to the materialist assault by the ungodly West in the rest of the world

Ideological Dimensions

Ideology is a system of widely shared ideas, beliefs, norms, and values of a group of people.

Globalization

a process in which people, ideas, and goods spread throughout the world, spurring more interaction and integration between cultures, governments, and economies

Globalization

This process has effects on the environment, culture, political systems, economic development and prosperity, and on human physical well-being in societies around the world

Globalization

about growing worldwide connectivity

Technology

One principal driver of globalization

International Monetary Fund (IMF)

States that globalization is the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions goods and services and international capital flows and also through the rapid wide diffusion of technology

1. It involves both the creation of new social networks and the multiplication of existing connections that cut across traditional, political, economic, cultural, and geographical boundaries.
2. Globalization is reflected in the expansion and the stretching of social relations, activities, and connections.
3. Globalization involves the intensification and acceleration of social exchanges and activities.
4. Globalization processes do not occur merely or an objective, material level but they also involve the subjective plane of human consciousness. Without erasing local and national attachments, the compression of the world into a single place has increasingly made global the frame of reference for human thought and action.

Attributes, Qualities or Characteristics of Globalization

The Prehistoric Period (10000 BCE-3500 BCE)

In this earliest phase of globalization, contacts among hunters and gatherers-who were spread around the world - were geographically limited. In this period due to absence of advanced forms of technology, globalization was severely limited.

The Pre-modern Period (3500 BCE- 1500 CE)

In this period the invention of writing and the wheel were great social and technological boosts that moved globalization to a new level. The invention of wheel in addition to roads made the transportation of people and goods more efficient. On the other hand writing facilitated the spread of ideas and inventions.

The Early Modern Period (1500-1750)

It is the period between the Enlightenment and the Renaissance. In this period, European Enlightenment project tried to achieve a universal form of morality and law. This with the emergence of European metropolitan centers and unlimited material accumulation which led to the capitalist world system helped to strengthen globalization.

The Modern Period (1750-1970)

Innovations in transportation and communication technology, population explosion, and increase in migration led to more cultural exchanges and transformation in traditional social patterns. Process of industrialization also accelerated.

The Contemporary Period (from 1970 to present)

The creation, expansion, and acceleration of worldwide interdependencies occurred in a dramatic way and it was a kind of leap in the history of globalization.

Economic Dimension

This refers to the extensive development of economic relations across the globe as a result of technology and the enormous flow of capital that has stimulated trade in both sources and goods

Political Dimension

This refers to the enlargement and strengthening of political interrelations across the globe

Cultural Dimension

This refers to the increase in the amount of cultural flows across the globe. Cultural interconnections are at the foundations of contemporary globalization

Cultural Diversity

This results of hybridization- constructive interaction process between global and local characteristics which is often visible in food, music, dance, film, fashion, and language

1. Globalization is about the liberalization and global integration of markets.
2. Globalization is inevitable and irreversible.
3. Nobody is in charge of globalization.
4. Globalization benefits everyone.
5. Globalization furthers the spread of democracy in the world.

Major Ideological Claims of Advocates of Globalism

Ideological Dimensions

It is often used to legitimize certain political interests or to defend dominant power structures.

Economic globalization

refers to the increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital and wide and rapid spread of technologies.

International Monetary Fund

states that, economic globalization is a historical process, the result of human innovation and technological progress

economic terms

in what term is globalization a nothing but a process making the world economy an organic system by extending transnational economic processes and economic relations to more and more countries and by deepening the economic interdependencies among them

Internationalization

is an extension of economic activities between internationally dispersed activities

1. The rapid growing of information in all types of productive activities
2. Marketization

Two Major Driving Forces for Economic Globalization

1. The globalization of trade of goods and services
2. The globalization of financial and capital markets
3. The globalization of technology and communication
4. The globalization of production

Dimensions of Economic Globalization

Economic globalization

a functional integration between internationally dispersed activities which means that it is a qualitative transformation rather than a quantitative change while internationalization is an extension of economic activities between internationally dispersed activities

transnational corporations (TNCs)

major player of economic globalization

transnational corporations (TNCs)

the main driving forces of economic globalization of the last 100 years or roughly two-thirds of world exports.

Transnational corporation / multi-national corporation

a corporation that has a homebase, but is registered, operates and has assets or other facilities in at least one other country at one time

Economic globalization

a process that creates an organic system of the world economy.

16th Century

in what century does world system analysts identified the origin of modernity and globalization through long-distance trade in the 16 th century

Silk Road

best-known example of archaic globalization

17th-18th Century

in what century does the global economy exists only in trade and exchange rather than production as the world export to World GDP did not reach 1 to 2 percent.

19th Century

in what century is the advent of globalization approaching its modern form is witnessed

Golden Age of Globalization

referred to a short period before World War 1, which characterized by relative peace, free trade, financial and economic stability

4 percent per annum

An average of what percent does Global Economy in the 19th and 20th centuries grew by?

International monetary system (IMS)

refers to a system that forms rules and standards for facilitating international trade among the nations.

International monetary system (IMS)

It helps in reallocating the capital and investment from one nation to another. It is the global network of the government and financial institutions that determine the exchange rate of different currencies for international trade.

1870-1914

during what time does with the help of gold and silver, trade was carried without any institutional support. Monetary system during this time was decentralized while market based and money played a minor role in international trade in contrast to gold.

Gold

was believed to guarantee a non-inflationary, stable economic environment, a means for accelerating international trade

Gold Standard

a system of backing a country's currency with its gold reserves. Such currencies are freely convertible into gold at a fixed price, and the country settles all its international trade transactions in gold

After World War 1

after what time that the use of gold declined due to increased expenditure and inflation which were caused by war. Major economic powers were on gold standards but could not maintain it and failed because of the Great depression in 1931.

United States

held most of the world's gold

European monetary integration

refers to a 30-year long process that began at the end of the 1960s as a form of monetary cooperation intended to reduce the excessive influence of the US dollar on domestic exchange rates, and led, through various attempts, to the creation of a Monetary Union and a common currency.

1870-1914

during what time does with the help of gold and silver, trade was carried without any institutional support. Monetary system during that time was decentralized while market based and money played a minor role in international trade in contrast to gold

The European Monetary System (EMS)

a 1979 arrangement between several European countries which links their currencies in an attempt to stabilize the exchange rate.

euro

European Union established this common currency

The European Financial Stability Mechanism (EFSM)

a permanent fund created by the European Union (EU) to provide emergency assistance to member states within the Union.

International trade

the exchange of goods, services and capital across national borders. It is a multi-million dollar activity, central to the Gross Domestic Product (GDP) of many countries, and it is the only way for many people in many countries to acquire resources

specialization and comparative advantage

The two key concepts in the economics of international trade are

comparative advantage

as long as the two countries have different relative efficiencies, the two countries can benefit from trade - the country with absolute advantage will still benefit by directing its resources to those goods where it is most productive and trading for the others.

Specialization

countries, as well as individual businesses, can maximize their welfare by specializing in the production of those goods where they are most efficient and enjoy the largest advantages over rivals

Trade policies

the regulations and agreement of foreign countries. It defines standards, goals, rules, and regulations that pertain to trade relation between countries.

tariffs

taxes or duties paid for a particular class of imports or exports

trade barriers

measures that governments or public authorities introduce to make imported goods or services less competitive than locally produced goods and services.

Tariffs, duties, subsidies, embargoes, and qoutas

Most Common Trade Barriers

safety

ensures that imported products in the country are of high quality. Inspection regulations laid down by public officials ensure the safety and quality standards of imported products.

National Trade Policy

This safeguards the best interest of its trade and citizen.

Bilateral Trade Policy

Under the trade agreement the national trade policies of both the nations and their negotiations are considered while bilateral trade policy is being formulated.

International Trade Policy

defines the international trade policy under their charter like the International economic organizations, such as Organization for Economic Co-operation and Development (OECD), World Trade Organization (WTO) and International Monetary Fund (IMF).

World Trade Organization (WTO)

deals with the global rules of trade between nations with the main function of ensuring that trade flows smoothly, predictably and freely.

Outsourcing

activity that requires search for a partner and relation-specific investments that are governed by incomplete contracts and the extent of international outsourcing depends on the thickness of the domestic and foreign market for input suppliers, the relative cost of searching in each market, the relative cost of customizing inputs and the nature of the contracting environment in each country.

Subcontracting

-a central element of the new economy
-It is the practice of assigning part of the obligations and tasks under a contract to another party known as a subcontractor and especially prevalent in areas where complex projects are the norm like construction and information technology

bilateral relationship

governed by a contract, but even in those cases the legal document does not ensure that the partners will conduct the promised activities with the same care that the firm would use itself if it were to perform the tasks

Market Integration

-refers to how easily two or more markets can trade with each other
-It may also refer to the movement of prices of related goods and services sold in a defined geographical location in similar patterns.

Stock Market Integration

This is a condition in which stock markets in different countries trend together and depict same expected risk adjusted returns

Financial Market Integration

It is an open market economy between countries facilitated by a common currency and the elimination of technical, regulatory and tax differences to encourage free flow of capital and investment across borders.

global corporation

is a business that operates in two or more countries. It also goes by the name "multinational company"

Foreign Direct Investment (FDI)

-It is a major driver of extended global corporate development.
-Foreign direct investment is made open to economies; frequently involves more than just a capital investment and includes provision of management or technology as well.

Brazil, Russia, India, China and South Africa (BRICS)

-These five countries were among the fastest growing emerging markets as of 2011.
-Due to lower labor and production costs in these countries now including a fifth nation, South Africa, many companies have also cited BRIC as a source of foreign expansion opportunity i.e. promising economies in which to invest

The General Agreement on Trade in Services (GATS)

the first multilateral agreement covering trade in services which was negotiated during the last round of multilateral trade negotiations, called the Uruguay Round, and came into force in 1995

The Global Interstate System

it is the system of human interaction which it is focused on the modern world system where the competing and allying nations are structured

"Golden Straitjacket" by Thomas Friedman

The belief that globalization imposes a forced choice upon states either to conform to free market principles or run the risk of being left behind

Thomas Friedman

a neoliberalism journalist and advocate, to illustrate the forcing of states into policies that suit the preferences of investment houses and corporate executives (Electronic Herd) who swiftly move money and resources into countries favored as adaptable to the demands of international business and withdraw even more rapidly from countries deemed uncompetitive

Neoliberalism

-the intensification of the influence and dominance of capital.
-It is the elevation of capitalism as a mode of production into an ethic, a set of political imperatives, and a cultural logic

Economic sovereignty

s the power or national governments to make decisions independently of those made by other governments

Economic integration

-Process and a means by which a group of countries strives to increase their level of welfare
-It is an arrangement between different regions that often includes the reduction or elimination of trade barriers, and the coordination of monetary and fiscal policies

European integration

the process of industrial, political, legal, economic, social and cultural integration of states wholly or partially in Europe.

European Union (EU)

an international organization comprising 28 European countries and governing common economic, social, and security policies

1. Preferential trading area (PTA)
2. Free trade area
3. Customs union
4. Common market
5. Economic union
6. Economic and monetary union
7. Complete economic integration

Seven Stages of Economic Integration