CONTEMPO WORLD

Question 1

The result of human innovation and technological
process.

• International Monetary Fund (IMF)

Answer 1

Economic Globalization

Question 2

the increasing integration of economies around the globe through the movement of good, services across
borders

Answer 2

Economic Globalization

Question 3

When did the FULL International Trading System begin?

Answer 3

OTTOMAN
EMPIRE
CLOSED THE
SILK ROAD

Question 4

WHO:“all important populated continents began to exchange products continuously”

Answer 4

Dennis O. Flynn & Arturo Giraldez

Question 5

When did Galeon Trade Start?

Answer 5

1565

Question 6

When did Galeon Trade End?

Answer 6

Sept. 14, 1815

Question 7

Galeon Trade is at the age of _______

Answer 7

MERCANTILISM

Question 8

An economic policy that is designed
to maximize the exports and minimize the imports for
an economy.

Answer 8

MERCANTILISM

Question 9

What destroyed mercantilism in 1700s?

Answer 9

Democracy and Free Trade

Question 10

Mercantilism was very dominant in Europe during ____ and ____

Answer 10

1500s; 1800s

Question 11

TRUE OR FALSE: American and Spanish revolutions formalized large nations ruled by democracy.

Answer 11

FALSE: American and FRENCH

Question 12

When did gold standard started?

Answer 12

1867

Question 13

Where did gold standard started?

Answer 13

United States and
other European Nations

Question 13

Countries established a common basis
for currency price and a fixed exchange
rate system- all based of the value of
gold.

Answer 13

GOLD STANDARD

Question 14

When did Britain stopped using the gold standard?

Answer 14

1931

Question 15

When did the US stopped using the gold standard?

Answer 15

1933

Question 16

When was the remnants of the gold standard system completely abandoned?

Answer 16

1973

Question 17

Argentina’s Currency

Answer 17

Argentinean Peso

Question 18

Why did the Great Depression occur?

Answer 18

There were more receipts than gold. people were starting to doubt banks, leading to their bankruptcy.

Question 19

The only currency that was accepted to change into gold

Answer 19

US Dollars

Question 20

Mauritius’ Currency

Answer 20

Mauritius Rupee

Question 21

Russia’s Currency

Answer 21

Ruble

Question 22

Who said “Economic crises occur not
because a country does not have enough money, but because the money is not being spent or not moving.”

Answer 22

John Maynard Keynes

Question 23

Established a new global monetary system. at
the UNITED NATIONS MONETARY AND FINANCIAL CONFERENCE at Bretton
Woods, New Hampshire

Answer 23

The Bretton Woods agreement of 1944

Question 24

Why was Bretton Woods agreement established?

Answer 24

To prevent Catastrophes

Question 25

It replaced the gold standard with the U.S. dollar as the global currency.

Answer 25

Bretton Woods agreement/ system

Question 26

When did the Bretton Woods system collapse?

Answer 26

1971

Question 27

When was General Agreement on Tariff and Trade (GATT) established?

Answer 27

1947

Question 28

responsible for funding postwar reconstruction projects.

Answer 28

INTERNATIONAL BANK FOR RECONSTRUCTION (IBRD or WORLD BANK)

Question 29

the global lender in order to prevent each country from increasing monetary crisis/economic crisis

Answer 29

INTERNATIONAL MONETARY FUND (IMF)

Question 30

-As demand increased, so did the prices. -general economic growth and reduced unemployment.

Answer 30

GLOBAL KEYNESIANISM

Question 31

The duration of GLOBAL KEYNESIANISM

Answer 31

1940s to early 1970s

Question 32

His ideas fundamentally changed economic theory and practice

Answer 32

John Maynard Keynes

Question 33

THEORY: Aggregate demand drives economic growth and employment

Answer 33

Keynesian Theory

Question 34

THEORY: Government intervention in the economy is necessary

Answer 34

Keynesian Theory

Question 35

Components of Stagflation

Answer 35

1. Inflation 2. Low GDP 3. Higher Rate of Unemployment 4. Recession in most of the Economic Activities 5. Poor implementation of Government Policies

Question 36

WHO: “the gov’t’s practice of pouring money into their economies had caused inflation by increasing demand for goods without increasing supply.”

Answer 36

Friedrich Hayek & Milton Friedman

Question 37

HAYEK vs KEYNES: The economy can be steered

Answer 37

Keynes

Question 38

HAYEK vs KEYNES: Must avoid boom-bust cycles (long term focus)

Answer 38

Hayek

Question 39

HAYEK vs KEYNES: Pro-Government Government acts in best interest of public

Answer 39

Keynes

Question 40

When did IMF, World Bank, WTO codified strategies

Answer 40

1980s

Question 41

- minimal gov’t spending – Privatization – Shock Therapy

Answer 41

WASHINGTON CONSENSUS

Question 42

When did Washington Consensus happen?

Answer 42

1980’s to 2000’s

Question 43

The economic downturn from 2007 – 2009 resulting from the bursting of the US housing bubble and the global financial crisis.

Answer 43

The great recession

Question 44

The Contemporary world =

Answer 44

The Modern World

Question 45

WHAT: The increasing interaction of people, states, or countries through the growth of the international flow of money, ideas, and culture.

Answer 45

Globalization

Question 46

It is the free movement of goods, services, and people across the world in a seamless and integrated manner

Answer 46

Globalization

Question 47

It is the creation of a successful interconnected marketplace without any limitation of time zone and national boundaries.

Answer 47

Globalization

Question 48

It is the liberalization of countries of their impact protocols and welcome foreign investment into sectors that are the mainstays of its economy.

Answer 48

Globalization

Question 49

It refers to countries acting like magnets attracting global capital by opening up their economies to multinational corporations.

Answer 49

Globalization

Question 50

WHO: People are incorporated into a single world society.

Answer 50

MARTIN ALBROW

Question 51

WHO: Intensification of the worldwide social relations link distant localities

Answer 51

ANTHONY GIDDENS

Question 52

WHO: The compression of the world & the intensification of the consciousness of the world as a whole.

Answer 52

ROLAND ROBERTSON

Question 53

Characteristics of Globalization

Answer 53

- There is a social mobility of movement of people regardless of reason - There is an intensification of interactions - It’s an active process - Borderless Interaction - Spread of ideas, knowledge, technology. Culture, religion. Et.

Question 54

Reasons for Globalization

Answer 54

- Rapid shrinking of time and distance across the globe. - To reduce high transportation costs if one goes globally using the advance tools of communication. - To be close to raw materials & to markets for their finished products w/c are not available in the country of origin - Domestic markets are no longer rich as a consequence of many interlocking factors -To get technological & managerial know-how of other countries due to their advancement in science technology, education, health, etc. - Companies & institutions go global to find political & economical stability w/c is relatively good in other countries than the countries of origin - The creation of the World Trade Organization (WTO) had made it possible in stimulating increased across borders trade.

Question 55

POSITIVE IMPACTS OF GLOBALIZATION

Answer 55

- Improved Technology in Transportation and Telecommunications - Exports jobs - Competition - Cross-Cultural Management

Question 56

NEGATIVE IMPACTS OF GLOBALIZATION

Answer 56

- Environmental Damage - Abandonment of Culture - Illicit Market - Widening of rich and poor - Terrorism