Economic Globalization

Question 1

• is a historical process, the result of human innovation and technological progress
• refers to the increasing integration of economies around the world, particularly through the movement of goods, services, and capital across borders
• refers to the movement of people (labor) and knowledge across international borders

Answer 1

economic globalization

Question 2

economic globalization is the result of what

Answer 2

human innovation and technological progress

Question 3

Dimensions of Economic Globalization

Answer 3

1. globalization of trade of goods and services
2. globalization of financial and capital markets
3. globalization of technology and communication
4. globalization of production

Question 4

“economic globalization refers to the movement of people (labor) and knowledge (technology) across international borders”

Answer 4

IMF, 2008

Question 5

“globalization transforms the national economy into a global one where ‘there will be no national products or technologies, no national corporations, no national industries”

Answer 5

Reich as cited by Benczes, 2014

Question 6

impact of economic globalization

Answer 6

transform the national economy into a global one

Question 7

• oldest known international trade route
• international, but not truly global

Answer 7

silk road

Question 8

“globalization began in 1571 with the establishment of Galleon Trade”

Answer 8

Flynn & Giraldez

Question 9

what was established in 1571

Answer 9

Galleon Trade

Question 10

“globalization prcesses have been ongoing ever since Homo sapiens began migrating from the African continent ultimately to populate the rest of the world. Minimally, they have been ongoing since the sixteen-century’s connection of the Americas to Afro-Eurasia”

Answer 10

Gills and Thompson

Question 11

Trace “the origin of globalization in the (very) distant past: ‘the existence of the same world system in which we live stretches back at least 5000 years”

Answer 11

Frank and Gills

Question 12

economic globalization is an “innovative concept of ‘long furation, i.e. a slow-moving, almost imperceptible”

Answer 12

Fernand Braudel

Question 13

“identify the origins of modernity and globalization with the birth of sixteenth century long distance trade”

Answer 13

framework for historical analysis and world-system analysts

Question 14

“the relatively short period before World War I (that is, 1870-1913) is often referred to as the ‘golden age’ of globalization, characterized by relative peace, free trade, and financial and economic stabiltiy”

Answer 14

O’Rourke and Williamson

Question 15

characteristics of ‘golden age’ of globalization

Answer 15

• relative peace
• free trade
• financial and economic stability

Question 16

Benefits of globalization and its impact on economic growth

Answer 16

1. economies of scale
2. technological innovation
3. foreign direct investment

Question 17

Risks of globalization and its impact on economic growth

Answer 17

1. interdependence
2. threat to sovereignty
3. inequitable distribution

Question 18

is a system of generalized commodity production in which wealth is owned privately and economic life is organized according to market principles

Answer 18

capitalism

Question 19

“capitalism is a system of generalized commodity production in which wealth is owned privately and economic life is organized according to market principles”

Answer 19

Heywood, 2011

Question 20

a system of commerical exchange shaped by the forces of demand and supply, and regulated by the price mechanism

Answer 20

market

Question 21

the process whereby productive tasks become separated and more specialized in order to promote economic efficiency

Answer 21

division of labor

Question 22

any ‘asset’, financial or otherwise; Marxists used the term to refer to accumulated wealth embodied in the ‘means of production’

Answer 22

capital

Question 23

moderate or reformist brand of socialism that favors a balance between the market and the state, rather than the abolition of capitalism

Answer 23

social democracy

Question 24

• is an updated version of classical liberalism and particularly classical political economy
• its central theme is the idea that the economy works best when left alone by government, reflecting a belief in free market economics and atomistic individualism

Answer 24

neoliberalism

Question 25

an absolute faith in the market, reflected in the belief that the market mechanism offers solutions to all economic and social problems

Answer 25

market fundamentalism

Question 26

economy that is structured by market principles and largely free from government interference, operating in a society in which cohesion is maintained through a comprehensive welfare system and effective welfare services

Answer 26

social market

Question 27

economic philosophy, most influential in Europe from the 15th century to the late 17th century, which emphasizes the state’s role in managing international trade and guaranteeing prosperity

Answer 27

Mercantilism

Question 28

growth of relations and movements (for instance, of goods, money, people, messages and ideas) across borders and between states, creating higher levels of interdependence

Answer 28

internationalization

Question 29

• principle of non-intervention in economic affairs. it is the heart of the doctrine that the economy works best when left alone by government
• (in French meaning literally ‘leave to do’)

Answer 29

Laissez-faire

Question 30

Laissez-faire meaning

Answer 30

leave to do

Question 31

where did the phrase Laissez-faire originate

Answer 31

Physiocrats of 18th century

Question 32

what did the Physiocrats of 18th century say

Answer 32

laissez faire est. laissez passer

Question 33

central assumption of laissez faire

Answer 33

unregulated market tends naturally towards equilibrium

Question 34

laissez faire is usually explained by what theory

Answer 34

theory of ‘perfect competition’