Economic Globalization

Question 1

Regards “economic globalization” as a historical process representing the result of human innovation and technological progress.

Answer 1

International Monetary Fund

Question 2

oldest known international trade route

Answer 2

Silk Route

Question 3

A network of pathways in the ancient world that spanned from China to what is now the Middle East and to Europe.

Answer 3

Silk Route

Question 4

was one of the most profitable products traded

Answer 4

Silk

Question 5

Even if it was international, it was not truly “global” because no ocean route could reach the American continent.

Answer 5

Silk Road

Question 6

They said that economic globalization began when “all important populated continents began to exchange products continuously- both with each other directly and indirectly via other continents”

Answer 6

Dennis O. Flynn and Arturo Giraldez

Question 7

Connected Manila in the Philippines and Acapulco in Mexico

Answer 7

Galleon Trade

Question 8

Was part of the age of mercantilism

Answer 8

Galleon Trade

Question 9

Countries competed with one another to sell more goods to boost their country’s income (monetary reserves)

Answer 9

Mercantilism

Question 10

System of global trade with multiple restrictions

Answer 10

Mercantilism

Question 11

Goal: to create a common system that would allow more efficient trade and prevent isolationism of the mercantilist era.

Answer 11

Gold Standard

Question 12

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

Answer 12

Gold Standard

Question 13

Countries depleted their gold reserves to fund their armies causing the abandonment of gold standard

Answer 13

WW1

Question 14

Economists argued that it was largely caused by the gold standard since it limited the amount of circulating money which reduced demand and consumption.

Answer 14

Great Depression

Question 15

World economy operates based on fiat currencies

Answer 15

WW2

Question 16

A global economic system that would ensure a longer–lasting global peace.

Answer 16

The Bretton Woods System

Question 17

Who influenced the bretton woods system?

Answer 17

John Maynard Keynes

Question 18

active role of governments in managing spending

Answer 18

Global Keynesianism

Question 19

Responsible for funding postwar reconstruction projects.

Answer 19

International Bank for Reconstruction and Development (IBRD, or World Bank)

Question 20

The global lender of last resort to prevent individual countries from spiraling into credit crises and If a country slowed down due to insufficient money to stimulate the economy, the IMF would step in.

Answer 20

International Monetary Fund

Question 21

What is GATT?

Answer 21

General Agreement on Tariffs and Trade

Question 22

A result of ending the Bretton Woods System and a phenomenon that Keynesian economics could not have predicted

Answer 22

Stagflation

Question 23

Is a decline in economic growth and employment

Answer 23

Stagflation

Question 24

Argued that:

pouring money into their economies had caused inflation by increasing demand for goods without necessarily increasing supply.

govt. intervention in economies distorts the proper functioning of the market.

Answer 24

Friedrich Hayek and Milton Friedman

Question 25

founded in 1955 to continue the tariff reduction under the GATT.

Answer 25

World Trade Organization

Question 26

Promoted an image of herself as a mother who reined in overspending to reduce national debt.

Answer 26

British Prime Minister Margaret Thatcher

Question 27

provide a steady flow of income that allows them to pay and refinance debts steadily.

Answer 27

Taxation System

Question 28

is the idea that markets work best when governments don’t interfere much.

Answer 28

Neoliberalism

Question 29

Countries lower labor and environmental standards to attract foreign investors, causing ecological harm and resource depletion.

Answer 29

Race to the Bottom

Question 30

is an economic policy where a country protects its domestic industries by restricting imports from other countries.

Answer 30

Protectionism

Question 31

refers to a situation where countries compete to attract businesses or foreign investors by lowering their standards.

Answer 31

Race to the Bottom

Question 32

Is when skilled, educated, or talented people leave their home country to work or live in another country, often for better opportunities, higher salaries, or improved living conditions. This can leave the home country with fewer skilled workers.

Answer 32

Brain Drain