Economic Globalisation

Question 1

Katz 2001

Answer 1

‘Global trade has been going on for millenia, though what constitutes as the “globe” has expanded dramatically during that time

Question 2

Global factory

Answer 2

transfer of labour to south, neolib expanded labour pools
multinationals in favour of deterritorialisation (Amin, 2002), dsidtance is no longer a deterrent for cheap labour
ADB GMS economic cooperation programme, weakening concept of nation state
some nations have maintained specialisaton

Question 3

mercantilism

Answer 3

maximise exports and limit imports (16th-18th century)

Question 4

neoliberal beginnings

Answer 4

1973, US backed chilean coup killing democratically elected president
feared he would not implement neoliberal policies
US needed access and to create hegemony
‘lost decade’

Question 5

Iraq

Answer 5

‘freedom’ impsed upon iraq, opening of banks to foreign control, free markets.
protests surrounding condition of welfare state, lack of economic opportunity (Harvey 2005)

Question 6

thatcher

Answer 6

abolition of corporatist institutions, market orientated policy
privitisation and deregualtion (LSE 1987)
erosion of social entitlements and workplace protections to increase competion in labour market
righ to buy

Question 7

SAPs

Answer 7

Not supported economic growth
generated debt cyces
destruction of welfare systems
increased power of multinationals

Question 8

fordism characteristics

Answer 8

mass production
highly structured labour relations
mass consumption
oligopoly
state regulation

post WWII shift to global capitalism accompanied by tech improvements, mechanisation and consumption

Question 9

economies of scale

Answer 9

average car cost decreases as production rises. early multinational (UK production in 1911, Japan 1926, Germany 1930s)

Question 10

Taylorism

Answer 10

severe technical and social division to increase worker productivity. moving assemply line. dehumanisation of the line, anti-union.

Question 11

Increases in rights

Answer 11

1933 roosevelts national recovery act, right to unionise
Lead to virtuous cycle (wage inc, purchasing power inc, consumerism, mass prod, lowers costs, more affordability) - companies profit, can reinvest, hire more, improve wages.
social stability, more people acheive middle class lifestyles `

Question 12

what was fordism dependent on

Answer 12

continual, stable demand
economy insulation from global competition

Question 13

weakening of fordism

Answer 13

int. competition - asian tigers
growing unemployment, therefore falling consumer demand
rigidity, liable in period of flux
stagflation
oil crisis 1973

Question 14

1973 oil crisis

Answer 14

4x oil prices, energy intensive
shift in consuer preferences
accleerated move to globalisation, exposed vulnerabilities in national-prod models
decline in welfare state

Question 15

US rust belt

Answer 15

1970-1990 manurfacturing employment declined by 13%
declines of communities around these industries

Question 16

reasons for post war fordism decline

Answer 16

Exogenous shocks (oil crisis)
Foreign competition
Rigidity prevented adaptation
Increased non-standard consumption
Technological change
Crisis theory - periodic phases where the economy over-produces

Question 17

regulation theory (aglietta et al., 1979)

Answer 17

regime of accumulation crisis
mode of regulation cannot support
different policies and strategies
new mode of regulation
new regime of accumulation

Question 18

regime of accumulation

Answer 18

way of organising production, distribution and consumption in an economy

e.g fordism

Question 19

mode of regulation

Answer 19

social, institutional and cultural norms which stabalise a regime of accumulation

e.g keynesianism, neoliberalism

Question 20

Polanyis double movement

Answer 20

expansion of market forces (commodification of land, labour etc, deregulation)
social protection (societies reaction to market expansion. demand for welfare systems, unions)

Climate Crisis: Efforts to commodify natural resources (carbon markets, water privatization) and the pushback through environmental movements.

contradictory

Question 21

criticisms of regulation theory

Answer 21

eurocentrism, determinism (underplays role of agency and class struggle)

Question 22

what is the great moderation

Answer 22

period of relative economic stability from mid 1880’s until 2008 crisis. mainstream economics claimed, fewer and milder recessions, tamed inflation, end of booms and busts (experience by individual and families differed from claims)

Question 23

UK ‘new economy’

Answer 23

aligned with latter stages of great moderation. rapid tech change, globalisation, financialization, deregulation, new labour government.

Question 24

Bifurcated economy

Answer 24

two distinct sectors, high tech, well paid vs low income, precarious conditions
income inequality
UK north south divide

Question 25

UK and US housing boom

Answer 25

2000's low interest rates led to surge in household borrowing (mortages) consumers use credit to spend more, fuels econ growth reliance on debt is unsustainabe, housing prices collapsed

Question 26

2008 crisis

Answer 26

Bubble Formation: Easy credit, low interest rates, and lax regulation led to a surge in subprime mortgage lending in the early 2000s. Trigger: Interest rates rose, and many subprime borrowers defaulted. This caused foreclosures to spike, flooding the market with excess homes. Collapse: Housing prices plummeted, financial institutions holding mortgage-backed securities suffered huge losses, and a global financial crisis ensued.

Question 27

financialisation

Answer 27

increasing dominance of financial motives, markets, actors and institutions 1970 - collapse of bretton woods system 80 - deregulation, neoliberal promotion greater volatility in employment and living standards due to financial crisis financial instiutions have influence over govs

Question 28

Bretton woods system

Answer 28

created after WWII to help rebuild global econ countries pegged currencies to dollar (to gold) IMF and world bank set up collapsed due to too many dollars in circulation, vietnam war, stagflation, low reserves of gold shift to system determined by market forces

Question 29

Power of TNCs

Answer 29

GPN coordinate individual production chains take advantage of geographical differences in distribution of labour and state policy varitations global flexibility more power than state?

Question 30

UK restructuring post 2008

Answer 30

Low unemployment (UK definition, only one hour to be classified as employed) zero hours contracts, self emploment falling real wages

Question 31

role of unions

Answer 31

women are more highly unionised than men, public sector female women of colour

Question 32

Platform technology

Answer 32

Uber disrupts olf models convienience for consumer legal challenges, regulatory system challenges automated managemnt money out of local system

Question 33

Detroit

Answer 33

declared bankruptcy in 2013 police cuts, parks and pensions Flint - emergency manager, lay off council disporportionatley affected black communities, strucural racism water infrastructure collapsed social justice issue

Question 34

How have some nations mainatined specialisation

Answer 34

Lee 1977 High Levels of Technological Innovation: Both nations invest heavily in research and development. Skilled Labour Forces: Their education and training systems produce workers specialised in high-value industries (e.g., automotive, machinery). Territorial Embeddedness: These nations maintain a distinctive territorial focus, preserving industries tied to their national identity.

Question 35

global factory

Answer 35

Opening of chinas economy, large capital investments flowed - continual labour supply needed, reliant on mobilisation of young workers from the rural areas (primarily female) - Subsidies to expand industries to northern and western provinces where workers traditionally migrate from (go west) Low wage work outsourced to centres in SE asia (go-out) Chinese manufacturer being encouraged to upgrade production and working conditions (go-up) responding to what harvey calls - surpluses of labour, capital

Question 36

GMS

Answer 36

1992, ADB GMS economic cooperation programme Free trade and investment in region Myanmar, thailand, cambodia, china, laos Lift barriers at boarders, facilitate production networks, sustain growth Occurred in time with re-territorialisation of nation state

Question 37

Konzelmann et al 2016

Answer 37

Crisis originated in sub-prime mortgage debacle - rebranded as a public sovereign-debt crisis (governments being in debt, rather than banks being irresponsible) Govs bailed out banks, transferred financial burden to public sector - framed as due to overspending - implementation of austerity measures After WWII, govs adapted keynesian economics - emphasising state intervention Welfare state was established Austerity temporarily used to stabilise the economy (not long term) Progressive taxation ensured economic burden was fairly distributed - resulted in economic growth, equality, rising living standards

Question 38

Kalecki 1943

Answer 38

- predicted cap would struggle to sustain high employment (not in powerful business interests) - 70s crises, stagflation, challenged keynesian policoes - blamed on trade unions and protections -80s shift to neoliberalism (, inflation caused by too much money, unemployment wass natural, gov intervention was problem) austerity became a LT policy Govs stopped aiming for full employment, left job creation to market forces shifting responsibility for unemployment from the system to the individual.

Question 39

Reinhart & Rogoff 2009

Answer 39

austerity is required to reduce public debt-toGDP ratios to growth-permitting levels, a public debt “threshold” – 90 percent of GDP – at which economic growth contracts findings discredited McCausland and Theodossiou (2016) - found austerity has damagin effect on recovery and growth, during periods of recession, policies aimed at reducing deficits worsen debt to GDP ratio, also increase unemployment

Question 40

Christopherson et al 2008

Answer 40

Is globalisation rendering the significance of location and place redundant? Friedman 2006 - world is flat - ICT revolution, deregulation, inc economic integration = time space compression, no longer any ‘friction of distance’ not all people have = acces. = access doesnt mean = opportunity and outcome Globalisation is spatially uneaven with respect to its causes and motive forces and implications for places regions and countries (Harvey 2006) Increasing economic integration can lead to spatial agglomeration of economic activity rather than disperse (leamer)

Question 41

prewar fordism

Answer 41

1890s-1945 laissex-fiare capitalism limited welfare protections mass production 1913-1914 time to produce model T automobile went from 12.5hrs to 93 minutes (cost of worker satisfaction) - ‘five dollar day’ (Anderson, 2014)

Question 42

prewar fordism collapse

Answer 42

1929 great depression - high unemployment and poverty - demand fell and system collapsed

Question 43

Umlauft 2015

Answer 43

comparibility of 1929 great depression and 2008 1933 unemployment reached 25%, 9000 banks suspended operation gov intervention prevented worsening of 2008 crisis Uncertain weather government actions - bank bailouts - prevented that crises at the expense of future financial stability

Question 44

Logan 1990

Answer 44

fordism collapse - Economic restructuring was used to remedy the problem created by geographically redistributing production (globalisation made capital much more mobile)

Question 45

liberalism breakdown

Answer 45

2008 crisis revealed some flaws in deregulation, some return of state intervention - e.g Biden Administration CHIPS Act 2022, funding to boost domestic manufacturing of semiconductors. China's rise disproved the idea that free markets and democracy go hand in hand Political liberalism under pressure - populism and authoritarianism challenging

Question 46

Duménil & Lévy 2005

Answer 46

neoliberalism as a new social order sucessful restoration of income of the wealthiest post 1970s crisis

Question 47

Palley (2005)

Answer 47

neolibaralism taking advantage of crises - vietnam and oil shocks offered a clear alternative to seemingly failing keynsianism USA and individualism, idea promoted by cold war, antipathy to notions of collective economic system

Question 48

Munck 2005

Answer 48

Polanyi 2001 - no such thing as a purely economic process can markets be disembedded from social relations and political order rules of market applying to political process - money is key to political influence, marketed as another commodity change in discourse - civil society reshaped to mean space where NGOs take over role of government rather than a space to demand democratic change - social capital, originally meant value of social networks and community - turned into measurable thing like infrastructure

Question 49

Colás 2005

Answer 49

appropriation of 'globalisation' neoliberalism shows it as inevitable and apolitical - harder to question hides the fact that governements and institutions are behind and regulating globalisation reproduces social hierarches not even

Question 50

Petras 2005

Answer 50

Overseas Development Aid as an imperial policy new form of missionary work catalyst of regression

Question 51

Klein 2007

Answer 51

Intentional destruction of Iraqi business, infrastructure and sites of culture, allows 'creation' of a new nation = US hegemony coorperate tax 45% -> 15% allowing foreign companies to own 100% of iraqi assets disaster capitalism - using chaos and disorder to push through radical market changes that would normally be impossible

Question 52

Azzouz 2023

Answer 52

shift of conflict to everyday spaces soft targets erradication of existence of personal identity