The Global Economy

Question 1

• Movement of international groups, capital, services, technology, and information
• Increase the interdependence of world economies

Answer 1

Economic Globalization

Question 2

A process making the world economy an
“organic system”

Answer 2

Economic Globalization

Question 3

Who

Globalization processes have been going ever since Homo Sapiens began migrating

Answer 3

Gills and Thompson

Question 4

Frank and Gills
- Best-known example of archaic globalization?

Answer 4

Silk Road

Question 5

Wallerstein
- Multicultural territorial division of labor
- Production and exchange of basic goods and raw materials are essential

Answer 5

World Systems Theory

Question 6

World Systems Theory

Power hierarchy between ___ and ___

Answer 6

Core; periphery

Question 7

State’s economic development in terms of external influences on national development policies

Answer 7

Dependency

Question 8

Dependency Theory

Dependent states rely heavily on the?

Answer 8

Export of a single commodity

Question 9

Dependency Theory

___ forces play a crucial role in the economic activities of dependent states

Answer 9

External

Question 10

Dependency Theory

The relationship between dominant and dependent states is ___

Answer 10

Dynamic

Question 11

Purpose of colonialism is to establish?

Answer 11

Economic colonies

Question 12

A cycle of poverty perpetuating from one generation to the next

Answer 12

Culture of poverty

Question 13

States that:

Completely liberalized global market is the most efficient way to foster growth

Answer 13

Capitalist economic theory

Question 14

States that:

International trade is crucial for the development and integration of poor countries into the global economy

Answer 14

Neoliberal ideology

Question 15

• Sought to establish a new body of universal investment laws
• Unrestricted rights for global buying, selling, and financial operations
• Disregards national laws and citizens’ rights

Answer 15

Multilateral Agreement on Investment (MAI)

Question 16

Exert a great deal of power in the globalized
world economy

Answer 16

Transnational Corporations

Question 17

Many corporations are ___ (2) than the
states that seek to regulate them

Answer 17

More powerful

Question 18

Organization that owns or controls production of goods and servicess other than their home country

Answer 18

Multinational Corporation

Question 19

A commercial enterprise operating in multiple countries without a specific home country

Answer 19

Transnational Corporation

Question 20

Brings private overseas funds into a country for investments in manufacturing or services

Answer 20

Foreign Direct Investment (FDI)

Question 21

Institution

Aims to lower tariffs and non-tariff barriers to increase international trade

Answer 21

World Trade Organization

Question 22

The WTO has how many member states?

Answer 22

146

Question 23

Institution

• Washington
• Lends money to governments for development projects

Answer 23

World Bank

Question 24

The World Bank has imposed strict conditions, known as?

Answer 24

Structural Adjustment Programs

Question 25

# Institution **Lends money** to governments to **stabilize currencies** and maintain order in global financial markets

Answer 25

International Monetary Fund

Question 26

* US dollar is the only currency to be convertible to gold * Other currencies would set their exchange rates relative to the dollar

Answer 26

Bretton Woods Agreement

Question 27

* Paper currency can be exchanged for gold at a fixed rate * Historically rooted in the use of gold coins as a medium of exchange

Answer 27

Gold standard

Question 28

Strength of the Gold Standard

Answer 28

Balance-of-trade

Question 29

The Bretton Woods System ended in the 1970s, when President ___ dissolved the U.S. gold standard

Answer 29

Nixon

Question 30

# Who Stresses that the countries that **industrialized first** got the jump on the rest of the world

Answer 30

Henslin

Question 31

Beginning in ___ about 1750, industrialization spread throughout ___ Europe

Answer 31

Great Britain; western

Question 32

One exception for Colonialism

Answer 32

U.S. army’s conquest of the Philippines

Question 33

# Who Argued that some nations are crippled by a **culture of poverty**

Answer 33

John Galbraith

Question 34

**Cutting trade barriers and opening markets** do not necessarily generate ___

Answer 34

Development

Question 35

* WTO negotiations favor the interests of ___ * Neglect agricultural protectionism and trade subsidies by rich countries

Answer 35

Corporate investors

Question 36

# According to critics: WTO can harm the interest of the ___

Answer 36

Poor

Question 37

Ex. of high-handed approach of IMF to poor countries

Answer 37

Asian Crisis

Question 38

Much trade is now ___

Answer 38

Dollar-based

Question 39

What caused the collapse of the Bretton Woods system?

Answer 39

1. Too much money printed 2. High trade deficits 3. High inflation

Question 40

When was the Bretton Woods System established?

Answer 40

1944