The Globalization of Economy Pt.2

Question 1

People lived for 250,000 years in?

Answer 1

hunter-gatherer bands

Question 2

What led to rising of empires and nation-states 10,000 years ago?

Answer 2

Rise of agriculture

Question 3

What did science and ‘enlightenment’ produce after 1600?

Answer 3

global trade and empires

Question 4

After 1945, what does present-day globalization produce?

Answer 4

Free trade and tech

Question 5

3 Early capitalist ideas:

Answer 5

1. “Free Market Economy”
2. Division of Labor
3. Competition

Question 6

Market is “free” from State control, according to Adam Smith, Wealth of Nations, 1776.

Answer 6

“Free Market Economy”

Question 7

In the present Economic Globalization, it is the only global international organization dealing with the rules of trade between nations.

Answer 7

World Trade Organization (WTO)

Question 8

Their goal is to help producers of goods and services, exporters, and importers conduct their business.

Answer 8

WTO

Question 9

Old Multi-national corporations

1602 company of Dutch merchants & independent trading companies

Answer 9

Dutch East India Company

Question 10

Spice trade monopoly in?

Answer 10

East Asia

Question 11

Has the power to colonize territories & enslave indigenous people?

And what are these colonized territories and indigenous people?

Answer 11

Dutch East India Company

Indonesia & South Africa

Question 12

A global group of energy and petrochemical companies, operating in more than 140 countries and territories, employing more than 112,000 people

Answer 12

Royal/Dutch Shell

Question 13

These are companies that are importers and exporters, typically without investment outside of their home country/

Answer 13

International Companies

Question 14

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.

Answer 14

Multinational Companies

Question 15

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.

Answer 15

Global Companies

Question 16

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.

Answer 16

Transnational Companies

Question 17

Growth of Regional Trading Alliances (Shared political and economic interests to promote trade)

ASEAN
EC
EU
NAFTA
AEC

APEC
AU
EAEU

Answer 17

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

Question 18

Began in 1957 with six nations; now 27

Intended to integrate the European economy

Common currency - the Euro

Answer 18

European Union

Question 19

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

Answer 19

BREXIT

Question 20

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

Answer 20

AFRICA

Question 21

Global Problems:

Economic Inequities and Labor Servitude

Answer 21

Causes of poverty

• resource distribution and access
• income opportunities limited
• education opportunities limited

Forced Labor

• slavery still exists
• child labor still common

Question 22

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.

Answer 22

Wallerstein’s World System Theory

Question 23

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.

Answer 23

CORE

Question 24

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.

Answer 24

PERIPHERY

Question 25

It consists of industrialized Third World nations that lack the power and economic dominance of the core nations, such as Brazil.

Answer 25

SEMI-PERIPHERY