The Globalization of World Economics

48問 • 1年前

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It regards "economic globalization" as a historical process representing the result of human innovation an technological progress.

International Monetary Fund (IMF)

It is characterized by the increasing integration of economies around the world through the movement of goods, services, and capital across borders.

International Monetary Fund (IMF)

It is not a bank and does not intermediate between investors and recipients. These resources come from quota subscriptions, or membership fees, paid in by the IMF's 189 member countries.

International Monetary Fund (IMF)

Its primary mission to ensure monetary stability around the world.

International Monetary Fund

IT is an investment bank, intermediating between investors and recipients, borrowing from the one and lending to the other.

World Bank

It refers to the increasing interdependence of world economies as a result of the growing scale of cross- border trade of commodities and services, flow of international capital and wide and rapid spread of technologies.

Economic Globalization

The conclusion of World War II signaled the beginning of trade facilitation around the globe.

TRUE

Economies set rules and guidelines for international trade which led to the formation of General Agreement on Tariffs and Trade (GATT). These trade rules were developed through series of rounds or meetings of member 'economies.

TRUE

It is the process and system when goods, commodities, services cross national economy, and boundaries in exchange for money or goods of another country (Balaam and Veseth, 2008).

International Trade (IT)

Global trade has grown dramatically since the post-cold war era as a result of increasing demand of goods and services of countries. This global norm is a reflection of growing practice of internationalizing and globalizing local products and services.

TRUE

-exchange of goods, services, and capital across national borders.

International Trade

-exchange of goods and services along international borders. This type of trade allows for a greater competition and more competitive pricing in the market

International Trade

It is the value of the finished domestic goods and services produced within a nation's borders.

Gross Domestic Product (GDP)

it is the value of all finished goods and services produced by a country's citizens, both domestically and abroad

Gross National Product (GNP)

Trade Theories

Descriptive theory, Prescriptive theory

It deals with the natural order and movement of trade. it describes the pattern of trade under the idea of laissez faire. It refers to the notion that individuals are the best economic agents to solve the problems through invisible hand rather than the government 'policies.

Descriptive Theory

Descriptive theory addresses the questions of which product to trade, how much product to offer and produce, and which country to trade in the absence of government restrictions.

TRUE

This prescribes whether government, an important economic institution, should interfere and restrict with the movement of goods and services.

Prescriptive Theory

Prescriptive theory views government to have participation in deciding which countries to alter the amount, composition and direction of goods.

TRUE

The pressing question describing descriptive theory is?

"Should the government control trade?"

the oldest known international trade route but it is not truly "global".

Silk Road

The age of globalization began when "all important populated continents began to exchange products continuously- both with each other directly and indirectly via other continents- and in values sufficient to generate crucial impact on all trading partner."

TRUE

When galleon trade happens and this is the first time that Americas were directly connected to Asian trading routes.

1571

It happens 1571 and this is the first time that Americas were directly connected to Asian trading routes.

Galleon trade

The galleon trade was part of the edge of mercantilism.

TRUE

an economic practice by which governments used their economies to increase state power at the expense of other countries. It is also a system of global trade with multiple restrictions.

Mercantilism

Countries, primarily in Europe, competed with one another to sell more goods as a means to boost their country's income (called monetary reserves later on).

TRUE

Focuses of Trade Policy in International Trade

Tarrif, Trade Barrier, Safety

a tax imposed by the government of a country or by a supranational union on imports or exports of goods

Tarrif

refers to any regulation or policy that restricts international trade, especially tariffs, quotas, licenses etc.

Trade Barrier

Ensure that imported products in the country are of high quality. Inspection regulations laid down by public officials ensure the safety and quality standards of imported products.

Safety

Open trade system emerged during this time, when, following the lead of the United Kingdom, the United States and other European nations adopted the gold standard at an international monetary conference in Paris.

1867

Open trade system emerged during this 1867, when, following the lead of the United Kingdom, the United States and other European nations_________at an international monetary conference in Paris.

adopted the gold standard

Countries depleted their gold reserves to fund their armies, many were forced to abandon the gold standards. Since European countries had low gold reserves, they adopted floating currencies that were no longer redeemable in gold.

TRUE

Since gold reserves, they _________ that were no longer redeemable in gold.

adopted floating currencies

Since European countries had low gold reserves, when did they adopted floating currencies that were no longer redeemable in gold.

World War 1

refers to global economic crisis which started during 1920s and extended up to the 1930s.

Great Depression

End of using gold standards were until?

as late as the 1970.

The world economy today us/uses?

Fiat Currencies

During what time, did the stock market crashed. U.S. stopped linking dollars to gold. This resulted on Keynesian economics could not have predicted- a phenomenon called stagflation.

1973-1974

During this time, the stock market crashed. U.S. stopped linking dollars to gold. This resulted on Keynesian economics could not have predicted- a phenomenon called_______

stagflation

decline in economic growth and employment (stagnation) takes place alongside a sharp increase in prices (inflation).

Stagnation

Stagflation decline in economic growth and employment______takes place alongside a sharp increase in prices________

stagnation and inflation

They argued that the governments' practice of pouring money into their economies had caused inflation by increasing demand for goods without necessarily increasingly supply.

Friedrich Hayek and Milton Friedman

they argued that government intervention in economies distort the proper functioning of the market.

Friedrich Hayek and Milton Friedman

It emphasizes free markets (1980s onwards).

Neoliberalism

He dominated global economic policies from the 1980s until early 2000s, it advocates pushed for minimal government spending to reduce government debt.

Washington Consensus

Washington Consensus they also called for the privatization of government-controlled services like water, power, communications, and transport, believing that the free market can produce the best results.

TRUE

Module 6 UTS

Angel Holivelle Carasco · 32問 · 1年前

Module 6 UTS