Module 2 - Globalization of World Economies

Economic globalization according to the International Monetary Fund

It is a historic process representing the result of human innovation and technological process. What is this? This statement what made by who/what?

Economic Globalization according to Manfred Steger

Refers to the intensification and stretching of economic interrelations across the globe. What is this? This statement what made by who/what?

Silk Road

Known as the oldest international trade route

Linked China to the West

The silk road is known as the oldest international trade route. Aside from trade, what is the purpose of the Silk road?

130 BCE under the Han Dynasty

When was the SIlk Road formally established? And under what dynasty?

1453 CE under the Ottoman Empire

When was the Silk road formally closed? and under what Empire?

Exchange products continuously

According to historians Flynn and Giraldez, blobalization began when all important populated continents began to?

Flynn and Giraldez

According to historians ______ and ______, blobalization began when all important populated continents began to exchange products continuously

1571 from the Galleon Trade

According to historians Flynn and Giraldez, the earliest traces of globalization started when and from what?

16th century to 18th century

The Galleon trade is one of the earliest traces of globalization, what was the lifetime of this trade?

Mercantilism

The galleon trade was part of what age?

Common system for more efficient trade and to prevent isolationism

What were the two main goals of establishing the gold trade?

The Great Depression

Happened during the 1920s to 1930s, this was considered as the worst and longest recession ever experienced by the Western World

1920s to 1930s

The Great Depression was the worst and longest recession ever experienced by the Western World, when did this occur?

Fiat Currencies

Classified as Currencies that are not backed up by precious metals and whose value is determined by their cost relative to other currencies.

Floating system

Allows government to freely and actively manage their economies by increasing or decreasing the amount of money in circulation as they see fit.

Bretton Woods System

After two world wars, world leader sough to create a global economic system. They believe that one of the ways to achieve this goal was to set up a network of global financial institution that would promote economic interdependence and prosperity. The result of this conference was the?

1944 during the UN monetary and financial conference

The Bretton Woods system is a global economic system that resulted in the likemindedness of nations across the globe after the events of World War I and II. When and During what did this system come into fruition?

John Maynard Keynes

The Bretton Woods system, which was introduced in 1944 during the UN monetary and financial conference was the idea largely introduced by which British Economist?

The International Bank for Reconstruction and Development(World Bank) and the International Monetary Fund

What two financial institutions were created at Bretton Woods?

GATT or General Agreements on Tariffs and Trade

•Shortly after Bretton Woods, various countries also committed themselves to further global economic integration through the creation of?

World Trade Organization or WTO

GATT or the General Agreements on Tariffs and Trade was later renamed to _____ in 1995

OAPEC or Organization of Arab Petroleum Exporting Countries

In the 1970s, the price of oil rose sharply as a result of the creation of what organization?

Friedrich Hayek and Milton Friedman

Argued about the government practice about pouring money into their economies, also they argued about government intervention in economies distort the proper functioning in the market. Who were these economists

Neoliberalism

Friedman used the economic  turmoil to challenge the consensus around Keynes‘s ideas. What emerged was a new form of economic thinking called?

The Washington Consensus

a set of economic policy recommendations for developing countries, primarily promoted by Washington, D.C.-based institutions like the IMF, World Bank, and U.S. Treasury, during the 1980s and 1990s.

The Washington Consensus

Its advocates pushed for minimal government spending to reduce  government debt. They also called for the privatization of government-controlled service like water, power, communications, and transport, believing that the free market can be produce best result.

Shock therapy

Advocates of the Washington Consensus conceded that, along the way, certain industries would be affected and die, but the considered this “_____ _______’ necessary for long term economic growth.

Ronald Regan and Margaret Thatcher

Neoliberal politician advocator like US President ____ _____and British Prime Minister ______ _______- justified their reduction in government spending by comparing national economies to households.

Russia

______’s case was just one example of how the “SHOCK THERAPY” of neoliberalism did not lead to the ideal outcome predicted by the economist who believed in perfectly free market.

65 and 29

The European union was responsible for __ percent of global exports, while the developing countries only accounted _ percent.

Transnational Corporations

Are concerned more with profits than with assisting the social programs of the governments hosting them