The Globalization of Economy Pt.2 Flashcards
(25 cards)
People lived for 250,000 years in?
hunter-gatherer bands
What led to rising of empires and nation-states 10,000 years ago?
Rise of agriculture
What did science and ‘enlightenment’ produce after 1600?
global trade and empires
After 1945, what does present-day globalization produce?
Free trade and tech
3 Early capitalist ideas:
- “Free Market Economy”
- Division of Labor
- Competition
Market is “free” from State control, according to Adam Smith, Wealth of Nations, 1776.
“Free Market Economy”
In the present Economic Globalization, it is the only global international organization dealing with the rules of trade between nations.
World Trade Organization (WTO)
Their goal is to help producers of goods and services, exporters, and importers conduct their business.
WTO
Old Multi-national corporations
1602 company of Dutch merchants & independent trading companies
Dutch East India Company
Spice trade monopoly in?
East Asia
Has the power to colonize territories & enslave indigenous people?
And what are these colonized territories and indigenous people?
Dutch East India Company
Indonesia & South Africa
A global group of energy and petrochemical companies, operating in more than 140 countries and territories, employing more than 112,000 people
Royal/Dutch Shell
These are companies that are importers and exporters, typically without investment outside of their home country/
International Companies
These are companies that have investment in other countries, but do not have coordinated product offerings in each country. They are more focused on adapting their products and services to each individual local market.
Multinational Companies
These are companies that have invested in and are present in many countries. They typically market their products and services to each individual local market.
Global Companies
These are companies that are more complex organizations that have invested in foreign operations, have a central corporate facility but give decision-making, research and development, and marketing powers to each individual foreign market.
Transnational Companies
Growth of Regional Trading Alliances (Shared political and economic interests to promote trade)
ASEAN EC EU NAFTA AEC
APEC
AU
EAEU
Association of Southeast Asian Nations 1967
European Community 1967
European Union 1967
North American Free Trade Agreement 1994
African Economic Community 1991
Asia Pacific Economic Cooperation 1989
African Union 2002
Eurasian Economic Union 2015
Began in 1957 with six nations; now 27
Intended to integrate the European economy
Common currency - the Euro
European Union
United Kingdom of Great Britain and Northern Ireland (UK) formally withdrew from the EU in March 2017
Its currency Sterling Pound now has a higher value than the Euro and US Dollar in terms of peso exchange
Pound - 66
Euro - 56
USD - 51
BREXIT
Economic Globalization in what country?
- Little industry and Technology
- can economic globalization help reduce poverty?
- “brain drain”
- debt (IMF loans) AF countries cant even pay back interest
- 300 million people live on less than $1/day
- 48% people in sub-saharan AF in extreme poverty (less than 750 calories/day)
- 2001 Index for Foreign Investment in Africa was “0)
- Gap between rich and poor increasing
AFRICA
Global Problems:
Economic Inequities and Labor Servitude
Causes of poverty
- resource distribution and access
- income opportunities limited
- education opportunities limited
Forced Labor
- slavery still exists
- child labor still common
Wallerstein has argued that international trade has led to the creation of a capitalist world economy in which a social system based on wealth and power differentials extends beyond individual states.
Wallerstein’s World System Theory
It consists of the strongest and most powerful nations in which technologically advanced, capital-intensive products are produced and exported to the semi-periphery and the periphery.
CORE
It consists of nations whose economic activities are less mechanized and are primarily concerned with exporting raw materials and agricultural goods to the core and semi-periphery.
PERIPHERY
