Economic Globalization III
What are the main components of the institutional framework of globalization?
-1944 Bretton Wood conference established the IMF and the WB -1947 the General Agreement on Tariffs and Trade (GATT) -1995 the establishment of the World Trade Organization (WTO)
What was the role of Reagan and Thatcher with respect towards neoliberal policies?
-Both favored limited government intervention
What are the tenants of the Neoliberal Economic Theory?
-Free Market -Privatization -Deregulation -Against Labor Unions -Reduce Social Spending -
what are the benefits of neoliberal economic globalization according to its proponents ?
-access to capital -managerial and technological knowledge at a discounted price "the latecomer advantage" -National producers get access to international markets -Consumers get access to new good/service -policy markets get tools to liberalize their economies -globalization becomes a catalyst for economic and social change -economic growth and property for the whole society
what are the main ideas associated with the keynesian economic theory?
-challenged economic orthodoxy of how best to describe and deal with boom and slumps characteristics of capitalism -challenged the ideas of neoclassical economics -advocated the use of The General Theory of Employment, Interest, and Money
What are the main characteristics of BWS?
-fixed exchange rates -balance of payment difficulty -firmly rooted within national boarders.
What is the Washington Consensus?
A set of policies advocated by developed countries that are intended to help less developed countries grow their economies
What is BWS?
Bretton Woods System
Which economic system (slavery, feudalism, capitalism, socialism) is most often associated with globalization?
Capitalism
What is contemporary financial globalization?
Expansion of private international finance began in the 1960s following the creation of the Eurocurrency Market
What is the FDI
Foreign direct investment - ownership or investment in foreign enterprises in which the investors play a managerial role
Who was involved with the Bretton Woods Conference?
John Maynard Keynes (British Chief Negotiator ) Harry Dexter White (assistant to the secretary of the U.S. treasury and the chief American Negotiator)
When was the Bretton Woods Conference Established?
July 1944 Bretton Woods, New Hampshire
What is Embedded Liberalism?
Liberalism of trade "while ensuring, through capital controls and fixed exchange rate, that government did not have to sacrifice system of social protection and Marcoeconomic Policy geared to the achievement of domestic objectives, such full employment and growth"
What were the consequences of the Bretton Woods Conference?
The U.S. decision to suspend gold convertibility.
What was the main objective of BWS?
designed to ensure that domestic economic objectives were not suborienated to global financial discipline but, on the contrary, took precedence over them.
What is the classical economic theory?
the economy is self regulating.
What is the origin of the Keynesian economic theory?
western government/1930s and 1940s
