Globalization & Sustainability Study Guide Notes

Bretton Woods Agreement

  • Goal: Create a stable post-WWII financial system and promote international trade.

World Trade Organization (WTO)

  • Promotes global trade liberalization by reducing trade barriers.

Ideologies

  • Capitalism: Supports minimal government regulation and a free market.

  • Environmentalism: Focuses on protecting the environment and promoting sustainability.

  • Localism: Supports local economies and businesses over global ones.

  • Globalism: Supports global cooperation and interdependence between nations.

Trade Liberalization

  • Removal or reduction of trade barriers to encourage free trade.

Transnational Corporations (TNCs)

  • Large companies that operate in multiple countries.

  • Concern: They can exploit cheap labor in developing countries

Sustainable Prosperity

  • Economic growth that includes environmental and social well-being.

Environmental Stewardship

  • Responsible management and protection of natural resources; supports sustainability.

Knowledge Economy vs. Industrial Economy

  • Knowledge Economy: Focuses on technology/services.

  • Industrial Economy: Focuses on manufacturing/natural resources.

Key People

  • Milton Friedman: Supported free-market capitalism and opposed government regulation.

    • Advocated for policies that promote individual freedom and economic efficiency.

    • Believed that competitive markets allocate resources efficiently.

  • F.A. Hayek: Criticized government control in markets and supported individual freedom.

    • Argued that central planning leads to economic inefficiency and loss of liberty.

    • Emphasized the importance of spontaneous order and decentralized decision-making.

  • John Maynard Keynes: Believed government should intervene during economic recessions.

    • Advocated for fiscal policy (government spending and taxation) to stabilize the economy.

    • His ideas influenced the New Deal policies during the Great Depression.

Mnemonics

  • Ideologies: CATS EAT LITTLE GOLDFISH = Capitalism, Environmentalism, Localism, Globalism

  • Key People: FEK = Friedman (Free Market), Hayek (No gov’t control), Keynes (Gov’t spending)

  • Economies: K.E.G. Model: K = Knowledge Economy (tech, innovation), E = Environmental Stewardship (protect Earth), G = Growth with sustainability (Sustainable Prosperity)