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Polycrisis

• Happens when multiple problems like financial crashes, pandemic, climate change and political conflicts happen at the same time and make each other worse.

Global finance trinity (cant happen at the same time)

• Free capital flow ( money move in and out of country easily)

• Fixed exchange rate ( Value of country currency kept stable)

• Independent monetary policy ( government set interest rates and control money supply)

Internationalization

• this means countries are becoming more connected by trading, working together and relying to each other It focuses on how governments and nations interact

Liberalization

• This is about making it easier for people, money and goods to move across borders by reducing restriction like tariffs and trade barriers

Recapitalization

• This refers to big changes in how societies and economies are organized including how people work, trade and interact financially

Universalization/ modernization

• This means culture, ideas and lifestyles are becoming more similar across the world, with things like fast food chains, social media and technology creating shared experiences

Neoliberal policies technology

• Since the 1970s governments have removed restriction on trade and finance making it easier for businesses to operate globally aided by advancements in technology

Onshoring

• Onshoring is when a company brings its business operations (like manufacturing or services) back to its home country after having moved them overseas

Outsourcing

• Outsourcing is when a company hires another company (often in different country) to do part of the work for them

Foreign direct investment

• happens when a company moves part of its operations (like a factory) to another country. This can help a company reduce costs or access new markets

How COVID-19 disrupted global supply chains

• Lockdowns hurt economies everywhere. When people has to stay home, businesses closed or slowed down, causing major disruption

• Worker shortages created problems some industries didn't have enough workers availability uneven across sectors 

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  Product demand shifted dramatically People stopped buying certain things like cars, while demand for electronics like computers skyrocketed as more people worked and studied from home

Functions of money:

• Medium of exchange

  • money allows people to trade good and services without needing products

• Unit of account

  • Money provides a common measure of value so we can compare prices and keep track of profits, debts and expenses

• Store of value

  • Money can be saved or used later without losing its worth

Monetary sovereignty

• With more people using crypto and private digital payment systems central banks fear losing control over their money. CBDCs ( central bank digital currencies) help regain influence over the financial system

Scholte (2008)

• Globalization isn't just about countries interacting more its about how the world is becoming more interconnected in ways that challenge old ways of thinking about borders and nations

   

Birch (2023)

• The belief that globalization is inevitable and inherently beneficial needs to be challenges its not one-size-fits-all process and its outcomes depend on the context and policies shaping it

Fraser Nancy (2014)

• Fraser says we need a new way of thinking that:

  • Examines how labor, nature and money are tied together in todays globalized world

  • Recognized that power domination are central to how society and the economy function

  • Supports modern social movements, such as feminism, post-colonialism, and anti-globalization which focus on achieving justice and equality

   

Paul TV (2023)

• Globalization is here to stay, but its changing. While earlier ideas of globalization focused on free trade and spreading democracy, new forms of globalization are emerging due to political and economic shifts

Ian Bremmer (2022)

• Globalization isn't ending, but its changing. Instead of being led by a single power like the U.S global trade is becoming  more fragmented and regionalized. Despite this global interdependence, especially in production remains essential because it lowers costs and drivers economic efficiency

Eric thun

• Thun argues that globalization has restructured they way goods are produced. The rise of global value chains allows different parts of production such as design, manufacturing, and assembly to be carried out in different locations. This shift has profound implication for economies, workers, and industries worldwide

Hopewell (2021)

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  • The WTO is struggling because of US-China rivalry: The WTO was designed to promote free trade and resolve disputes fairly, but it is now facing a crisis. The US feels that the WTO cannot adequately address the challenge's posed by Chinas economic practices such as:

    • State-owned enterprises (SOEs): Chinas government supports key industries through subsidies, giving them an advantage over private companies

    • Forces technology transfer: foreign companies often must share their technology to do business in China

    • Intellectual property issues: The US accuses China of not respecting patents and copyrights, which affects American businesses

Linsis (2021)

• Because of these challenges, global production is starting to split into two competing systems one centered around the US and the other around China

Thun (2021)

• To truly see how global supply chains work, we need to study the factors that influence these companies decision on governance (how they control operations) and localization (where they set up factories) This will help us understand how they stay competitive and lower costs

Mcdowell (2021)

• In summary, while US financial sanctions could push some countries to explore other currencies, the dollar remains the worlds preferred currency because of its reliability and global acceptance

Gordan (2019)

• While economic sanctions are widely used, especially by the Us and its allies, not enough attention is given to their impact on the general population of the affected countries

Bull and rosales (2023)

• The authors argue that economic sanctions can have serious unintended effects, often harming ordinary people more than targeted government. In the case of Venezuela sanctions have not successfully brought about the political change that the US intended

Rosales (2023)

• He argues that using bitcoin to help poor countries gain financial independence from powerful nations and institutions like the U.S and the international monetary fund (IMF) hasn't worked a promised. Instead of helping ordinary people, these cryptocurrency programs mainly benefit corrupt governments and the rich elites who support them

Guest (2023)

• Instead of helping the local economy, bitcoin mining mainly benefits foreign investors who make money by using Kazakhstan's resources without giving much back. The situation is similar to silver and gold mining in past centuries, where outsiders profited while local people saw little benefit. Even though bitcoin mining is often advertised as open to everyone, in. reality, it mostly helps wealthy investors while offering no lasting improvements for the communities affected by it