Lesson 2 Flashcards
(16 cards)
Refers to the growing interconnectedness of economies worldwide.
Global Market Integration
Organizations that provide financial and technical assistance to countries around the world.
International Financial Institutions
Large companies that operate globally. It may be transnational corporations or multinational corporations.
Global Corporations
decisions are typically made centrally, meaning key choices come from a central headquarters
multinational corporations (MNCs)
invest in foreign markets through their operations and systems in each country they operate in.
transnational corporations (TNCs)
UK, US, other European countries adopted the gold standard to establish a common system that would enable more efficient trade.
1867
forced countries to use their gold reserves.
WWI - 1914 to 1918
Great Depression: global economic crisis; considered the worst & longest experienced by the West.
1920 – 1930s
reatly influenced by the ideas of John Maynard Keynes
Bretton Woods
This phase, called ‘neoliberal’ globalization, gained momentum in the
1960s and 1970s
organization of Arab Petroleum Exporting Countries
OPEC
argued that the government practice of pouring money into the economy caused inflation, & government intervention in the economy distorts proper functioning of the market.
Friedrich Hayek & Milton Friedman
a cornerstone of neoliberal globalization, aimed to remove barriers to market entry and stimulate competition.
Deregulation
became the codified strategy from the 1980s onward in the US Treasury, World Bank, IMF, & the World Trade Organization (WTO).
Neoliberalism
This landmark decision eliminated the long-standing separation between commercial and investment banking, allowing financial institutions to engage in various activities.
repealing the Glass-Steagall Act in the United States in 1999.
severe contraction of liquidity in global financial markets that originated in the United States as a result of the collapse of the U.S. housing market.
Financial crisis of 2007–08
