Basta Flashcards
(19 cards)
What is economic globalization?
A comprehensive process that entails the increasing integration of economies worldwide, facilitated by the movement of goods, services, capital, labor, and technology across borders.
How is economic globalization defined?
A historical process driven by human innovation and technological progress, resulting in the interconnectedness of global economies.
What are the interconnected dimensions of economic globalization?
- Globalization of trade of goods and services
- Globalization of financial and capital markets
- Globalization of technology and communication
- Globalization of production
How does globalization differ from internationalization?
Globalization signifies a qualitative transformation characterized by functional integration of dispersed activities, while internationalization involves extending a nation-state’s economic activities across borders.
What historical evidence traces the origins of globalization?
Evidence can be found in trade routes like the Silk Road and significant events like the discovery of the Americas.
What marked the 19th century in the context of globalization?
The 19th century was known as the ‘golden age’ of globalization, noted for peace, free trade, and economic stability, aided by industrial revolutions and advancements in transportation.
What is the theory of Comparative Advantage?
David Ricardo’s theory posits that nations benefit from trade by specializing in goods they produce most efficiently.
What does Protectionism advocate?
Temporary trade restrictions can foster domestic industries.
What is Structuralism in economic theories?
A cluster of theories that emerged in the 1950s, 1960s, and 1970s, sharing the idea that North and South are in a structural relationship.
According to Wallerstein, what is Capitalism?
A historical social system that created dramatically diverging historical levels of wages in the world system.
How did Hobson view imperialism?
As a kind of ‘conscious policy’ adopted by leading capitalist nations.
What is the Gold Standard?
An international monetary system where nations fixed their exchange rates through gold, ensuring a fixed exchange rate regime.
What was the significance of the Gold Standard in the mid-19th century?
It promised a non-inflationary and stable economic environment while facilitating international trade.
What mechanism did the Gold Standard rely on to maintain trade balance?
The automatic price-specie flow mechanism.
What characterized Unilateral Trade Orders in the 17th and 18th centuries?
A mercantilist approach focused on accumulating gold through export and import restrictions.
What led to the shift from unilateral to multilateral trade policies after World War II?
The General Agreement on Tariffs and Trade (GATT) and the establishment of the World Trade Organization (WTO) in 1995.
What challenges have arisen in multilateral trade agreements post-Uruguay Round?
Subsequent trade rounds faced challenges and criticisms, leading to the formation of the Group of 20 (G20).
True or False: Critics argue that economic globalization has universally reduced poverty.
False; many developing countries have been marginalized and failed to fully capitalize on global trade opportunities.
What criticism has been directed at free-market policies in relation to economic globalization?
Concerns about the sustainability of development, particularly amid crises like the 2008 financial downturn.
