The World Economy: Part 1 Flashcards
1
Q
World Economy
A
- autocatalytic
- global femenism
- confrontation of religion
- impacts of humans on society
- evolves due to new technologies (containerize shipping, huge oil tankers, air express services, fiber-optic cables, internet)
2
Q
economic globalization
A
- Columbian exchange is when the world truly became global
- began to accelerate quickly following WWII
- 1944 = Bretton Woods Conference
- held by the capitalist victors 9led by the US)
- goal = to avoid a worldwide depression like the one following WWI
- created many international agreements and institutions to maintain a strong global economy
- World Bank
- International Monetary Fund
3
Q
Bretton Woods system
A
- negotiated the rules for commercial and financial dealings among the major capitalist countries
- promoted free trade
- stabilized currency values and linked them to the US dollar
- promoted high levels of capital investment
- USSR not invited
4
Q
entire world
A
- increasingly seen as one single market
- neo-liberalism = an approach to the world economy that favors: (laissez-faire economic liberalism)
- reduction of tariffs
- free global movement of capital
- a mobile and temporary workforce
- privatization of state-run enterprises
- stopping government efforts to regulate the economy
- cuts in taxes and government spending
5
Q
reglobalization
A
- after WWII, following the contractions of the 1930s
- involved the accelerating circulation of:
- goods
- capital
- people
- as world trade skyrocketed, an increased number of goods began to circulate around the globe
- supermarkets, stores, and so on now stock their shelves with products from every part of the globe
6
Q
foreign direct investment
A
- when a company or firm in one country opens a factory in another country
- rich countries and companies are always after: cheap labor, tax breaks, and looser environmental regulations
7
Q
short-term movement of capital
A
- when investors buy foreign currencies or stocks likely to increase in value and sell them quickly thereafter
8
Q
personal funds of individuals
A
- international credit cards, transfer of money across international borders, etc.
9
Q
Transnational corporations (TNCs)
A
- global businesses that produce goods or deliver services simultaneously in many countries
- example: Mattel Corporation’s barbie doll made in factories in Indonesia and China, using molds from the US, plastic and hair form Taiwan and Japan, and cotton cloth from China
- increasing numbers of people continue migrate seeking work, a better life, or refuge from political oppression or civil war at home
- example 1: Mexicans, Cubans, and Haitians in the US
- example 2: highly educated professionals leaving the Global South for more developed countries
10
Q
which events do not demonstrate a laissez faire market
A
- state-run companies
11
Q
how do stores change in a global market
A
- international products appear in stores
12
Q
what is reglobalization
A
- people move to other countries
- citizens with education take their training to other countries
- people leave for more developed countries
13
Q
how are lower taxes presumed to affect commerce
A
- less taxes means more spending which contributes to the economy
14
Q
which best describes foreign-direct invesment
A
- a company looks for a cheaper labor production in other countries
- a company may look for countries with lower regulations
15
Q
which best describes a trans-national corporation
A
- a company with multiple companies invested
