GED 4

Contemporary World

Capitalism

Economic theory by Adam Smith advocating free market with minimal government control.

Adam Smith

Father of Capitalism; author of "The Wealth of Nations".

Laissez-Faire Economic Theory

Also called "Let Alone Policy"; advocates minimal gov't intervention.

Invisible Hand

Concept by Adam Smith explaining the self-regulating nature of the marketplace.

Communism

Ideology by Karl Marx aiming for a classless society; critiques capitalism.

Das Kapital

Work by Karl Marx outlining the flaws of capitalism.

Bourgeoisie

Wealthy capitalist class in Marxist theory.

Proletariat

Working class in Marxist theory.

Communist Manifesto

Karl Marx's publication outlining principles of communism.

Socialism

Economic system where major industries are state-owned and minor ones are privately owned (e.g. China).

Globalization

Intensification of global interactions (economic, political, social) across nations.

Internationalization

Making something international in scope.

McDonaldization

Concept by George Ritzer (1993); society adopts traits of fast-food chains.

Efficiency (McDonaldization)

Division of labor; focus on what is needed.

Calculability (McDonaldization)

Preference for quantity over quality.

Predictability (McDonaldization)

Uniform services across locations.

Control (McDonaldization)

Standardization of taste and worker behavior.

Interdependence

Mutual dependence between two or more parties.

Global Institutions

Multilateral entities operating universally (e.g. UN, IMF, World Bank).

Hyperglobalist

Perspective that views globalization as positive and economically driven.

Skeptics

Believe globalization is Westernization; criticize its negative effects.

Transformationalist

See both positive and negative impacts of globalization.

Liberalization of Trading Policies

Includes quota (limit) and tariff (import tax).

Foreign Direct Investments

Investment by foreign entities in local businesses.

Privatization

Sale of government assets to private entities.

Contractualization

Hiring workers on short-term (6 months) contracts.

Multinational Companies

Firms with branches in multiple countries.

Economic Process

Involves trade, financial flows, and foreign direct investment.

BRICS

Group of emerging economies: Brazil, Russia, India, China, South Africa.

Political Process

Includes peace resolution and regional economic cooperation.

Cultural Process

Involves migration, acculturation, and other sociocultural changes.

WWI

Began July 28, 1914; sparked by assassination of Franz Ferdinand.

Treaty of Versailles

Ended WWI; blamed and penalized Germany.

League of Nations

Failed international peacekeeping organization post-WWI.

WWII

Began September 1, 1939; Germany led by Hitler started the war.

Pearl Harbor

Attacked by Japan on Dec. 7, 1941; led to US joining WWII.

Potsdam Conference

Meeting of Allied leaders to end WWII and force Japan's surrender.

Hiroshima Bombing

August 6, 1945; atomic bomb "Little Boy".

Nagasaki Bombing

August 9, 1945; atomic bomb "Fat Man".

Treaty of Potsdam

Ended WWII.

United Nations

Formed Oct. 24, 1945; promotes international peace and cooperation.

Bretton Woods Conference

Held in 1944; established post-war financial order.

Gold Standard

Currency backed by gold; abandoned in 1971.

World Bank

Provides long-term loans to developing countries; aims to eradicate poverty.

International Monetary Fund (IMF)

Offers short/medium-term loans; headquartered in Washington.

International Trade Organization (ITO)

Vetoed organization aimed at global trade regulation.

General Agreement on Tariffs and Trade (GATT)

Result of ITO veto; precursor to WTO.

World Trade Organization (WTO)

Formed 1995; regulates international trade.

Export

Goods sold abroad.

Import

Goods bought from other countries.

Trade Surplus

Exports > Imports.

Trade Deficit

Exports < Imports.

Triffin Dilemma

Tension between liquidity and gold convertibility.

1971

Abandonment of the Gold Standard.

1973

Collapse of adjustable-peg exchange rate; adoption of floating exchange rate.

Cold War

USA vs USSR ideological conflict post-WWII.

Bolshevik

Member of the Russian Social Democratic/Communist Party.

USSR

Union of Soviet Socialist Republics; communist state.

Vladimir Lenin

First leader of USSR; Bolshevik leader.

Josef Stalin

USSR dictator (1929-1953); started Cold War.

Iron Curtain

Stalin's policy of isolating USSR from the West.

Nikita Khrushchev

Cold War-era USSR leader (1958-1964).

Leonid Brezhnev

Fourth USSR president.

Mikhail Gorbachev

Introduced reforms: perestroika (restructuring), glasnost (openness).

Berlin Wall

Divided East and West Berlin (1961-1989); symbol of Cold War.

Perestroika

Soviet economic restructuring.

Glasnost

Soviet political openness.

Chinese Civil War

Chiang Kai Shek (Taiwan) vs Mao Zedong (Mainland China).

Red Guard

Teenage soldiers under Mao Zedong.

Long March

Mao Zedong's strategic retreat.

Vietnam War

Conflict between communist North (Ho Chi Minh) and democratic South.

Ho Chi Minh

Leader of North Vietnam; 'He who enlightens'.

Geneva Conference (Vietnam)

Divided Vietnam at the 17th parallel.

Korean War

North (communist) vs South (democracy).

Treaty of Panmunjom

Divided Korea at the 38th parallel.

1980 Debt Crisis

Global debt problem; USA denied Mexico financial help.

Washington Consensus

Set of neoliberal economic policies for debt-ridden nations.

Neoliberal Economics

Market-oriented reform policies: privatization, contractualization.

WTO

World Trade Organization

GATT

General Agreement on Tariffs and Trade

IMF

International Monetary Fund

UN

United Nations

ITO

International Trade Organization

IBRD

International Bank for Reconstruction and Development

Factors of Globalization

Internationalization, McDonaldization, Interdependence, Existence of Global Institutions

Principles of McDonaldization

Efficiency, Calculability, Predictability, Control

Perspectives on Globalization

Hyperglobalist, Skeptics, Transformationalist

Means to Achieve Globalization

Liberalization of trading policies, Foreign direct investments, Privatization, Contractualization, Multinational companies

Processes of Globalization

Economic, Political, Cultural

Allied Powers (WWI)

Great Britain, France, Russia

Central Powers (WWI)

Germany, Austria-Hungary, Bulgaria, Ottoman Empire

Allied Powers (WWII)

UK, France, USSR, USA

Axis Powers (WWII)

Germany, Italy, Japan

The Big 3 (Potsdam)

Churchill (UK), Stalin (USSR), Truman (USA)

USSR Presidents (Chronological)

Lenin, Stalin, Khrushchev, Brezhnev, Gorbachev

USA Conditions in Lending (Washington Consensus)

Privatization, Contractualization, Neoliberalism

July 28, 1914

Start of World War I

September 1, 1939

Start of World War II

December 7, 1941

Attack on Pearl Harbor

December 8, 1941

Japanese invasion of the Philippines