The Structure of Globalization
Seleucia
A Mesopotamian city
20 units per year and trade equal proportion
Each country can now create a specialized output of these of both products.
Adam Smith
Father of Economics
Great Depression
Global economic crisis. The worst economic downturn in the history of the industrialized world, lasting from 1929 to 1939.
Whether labor, technology or capital
Global trade allows wealthy countries to use their resources
Liberism
The 18th century saw the shift in this
International Monetary Fund
It was founded in 1945 which was designed to monitor exchange rates and lend reserve money to nations that needed it to support their currencies and settle their debts.
Hesiod
One of the earliest recorded economic thinkers was the 8th-century BC Greek farmer/poet who wrote that labor, materials, and time needed to be allocated efficiently to overcome scarcity.
Gold Standard
A common bases for currency prices and a fixed exchanged rate system based on the value of gold.
Shock Therapy
Advocates of the Washington Consensus of Neoliberalism conceded that, along the way, certain industries would be affected and die
Comparative Advantage
But these two countries realize that they could produce more by focusing on those products which they have this
Exchange Rate
Floating currencies which changes based on the demand and supply mechanisms of the foreign exchange market.
Microeconomics
Focuses on how individual consumers and firm make decisions; these individuals can be a single person, a household, a business/organization or a government agency.
Monetary reserves
From the 16th century to 18th century, countries, primarily in Europe, competed with one another to sell more goods as a means to boost their country's income which are now called
To create a common system that would allow for more efficient trade and prevent the isolationism of the mercantilist era
Goal of Gold Standard
Barry Eichengreen
He argues that the recovery of the United States really began when, having abandoned the gold standard, the US government was also able to free up money to spend on reviving the economy.
David Ricardo
He developed the Comparative advantage principle, which stands true even today.
Specialization
If a country cannot efficiently produce an item, it can obtain the it by trading with another country that can.
Current Account
Imports and exports are accounted for in a country's kind of account in the balance of payments.
Mercantilism
International trade has a rich history starting from barter system being replaced by this during the 16th and 17th centuries.
Macroeconomics
Its focus can include a distinct geographical region, a country, a continent, or even the whole world. Topics include foreign trade, government fiscal and monetary policy, unemployment rates, the level of inflation and interest rates, the growth of total production output as reflected by changes in the Gross Domestic Product (GDP), and business cycles that result in expansions, booms, recessions, and depressions.
The rapid development of science and technologies
The fast globalization of the world's economies in recent years is largely based on _______ that has resulted from the environment in which market economic system has been fast spreading throughout the world, and has developed on the basis of increasing cross-border division of labor that has been penetrating down to the level of production chains within enterprises of different countries.
An Inquiry Into the Nature and Causes of the Wealth of Nations
The founding of modern Western economics occurred much later, generally credited to the publication of Scottish philosopher Adam Smith's 1776 book
The Age of Mercantilism
The galleon trade was part of this age
Inflation
The governments' practice of pouring money into their economies had caused
Brexit
The implication of this for the global economy are considered powerful multinationals
Economic Globalization
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
Neoliberalism
The key neoliberal policies were comprised of privatization, deregulation, lesser public & gov't spending, and reduced corporate taxes.
Galleon Trade
The longest running shipping line of its time
Silk Road
The oldest known international trade route
Human beings have unlimited wants and occupy a world of limited means
The principle (and problem) of economics is that
The networking-based economy
The development of the economy has given birth to a large group of shadow enterprises, making the concept of national boundaries and distance for certain economic activities meaningless.
General Agreement on Tariff and Trade
It was formed in 1948 was intended to boots economic recovery after the world wars. Its main objective is to expand international trade by eliminating quotas, tariffs, and subsidies while preserving significant regulations.
Bretton Woods System
It was inaugurated in 1944 during the United Nations Monetary and Financial Conference to prevent the catastrophes or the great depression.
International trade
It was key to the rise of the global economy where supply and demand, and therefore prices, both affect and are affected by global events.
Neoliberalism
A free market economic system" or unregulated market with little government intervention.
Gold Standard
A more open trade emerged in 1867 when, following the lead of the United Kingdom, the United States and other European nations adopted this standard at an international monetary conference in Paris.
Import
A product that is bought from the global market
Export
A product that is sold to the global market
Mercantilism
A system of global trade with multiple restrictions.
The Global Keynesianism
A system which came from the idea of John Maynard Keynes who believe that economic crisis occur not when a country does not have enough money, but when money is not being spent and, thereby, not moving. According to Keynes, when economies slow down, governments have to reinvigorate markets with infusions of capital.
Andres de Urdaneta
A well-known circumnavigator before his stint as an Augustinian priest, the galleons, (one galleon at a time) plied the trans-pacific from the Philippines to Mexico.
Dennis Flynn and Arturo Giraldez
According to these historians, the age of globalization began when "all important populated continents began to exchange product continuously - both with each other directly and indirectly via other continents - and in values sufficient to generate crucial impacts on all trading partners."
Wealth of Nations
Adam Smith wrote this book where in he defined the importance of specialization in production and brought International trade under the said scope
Mercantilism
An economic system of trade that spanned from the 16th century to the 18th century
Washington Consensus
Are set of economic principles and policy prescriptions for the recovering and crisis-ridden countries implemented by Washington based institutions, namely the World Bank, International Monetary Fund, and the US Treasury Department to be able to align their policies to the new global economic system, the neoliberalism.
Galleon Trade
Countries primarily in Europe competed with one another to sell more goods as a means to boost their country's income and to defend their products from competitors they imposed high tariffs.
Absolute Advantage
Country B could produce both wine and cotton more efficiently than Country A (less time) and Country B may have it because of a higher level of technology
1. Increase export of developing countries make national economies grow today. 2. the global per capita GDP rose over five-fold in the 2nd half of the 20th century 3. economic globalization today shows uneven process, with some countries, corporations, and individuals benefiting a lot more than the others. 4. Developed countries are often protectionists, as they repeatedly refuse to lift policies that safeguard their primary products that could otherwise be overwhelmed by imports from the developing countries. 5. Trade imbalances, characterized economic relations between developed and developing countries.
Economic Globalization Today
Economics
Is the study on how individuals, businesses, government, and nations make choices in allocating resources to satisfy their wants and needs, trying to determine how these groups should organize and coordinate efforts to achieve maximum output.
The International Trading System
It allows countries to expand their markets for both goods and services that otherwise may not have been available domestically.
Globalization
It enabled powerful multinationals to avoid taxes by employing complex tax systems
Neoliberalism
It involves allowing the market take over the tasks and services that ought to be provided by the government.
Stagflation
It is a decline in economic growth and employment alongside with a sharp increase in prices or inflation.
Fiat Money
It is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.
World Bank
It is also known as the International Bank for Reconstruction and Development (IBRD) founded in 1944 was responsible for funding postwar reconstruction project by granting long-term loans for the economic development of less developed countries.
Economic Globalization
It is an irreversible trend for the economic development in the world at the turn of the millennium
International trade
It is the exchange of goods and services between countries. Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries, or which would be more expensive domestically.
Economic Globalization
It is the increasing economic integration and interdependence of national, regional, and local economies across the world through an intensification of cross-border movement of goods, services, technologies and capital.
Economics
It is the study of the production, allocation, distribution and consumption of goods and services.
Floating Rate
It is usually determined by the open market through the level of supply and demand.
Global Economics
It looks at how trade has shaped the global economy and considers the costs and benefits of free trade
The Global Keynesianism
It means the active role of governments in managing spending.
Global Economy
It provides an analysis of the financial crisis and the rise of powerful trading blocs
Global Economics
It provides an analysis of the major problems facing the global economy in the 21st Century
Specialization
It reduces their opportunity cost and therefore maximizes their efficiency in acquiring the goods they need. With the greater supply, the price of each product would decrease, thus giving an advantage to the end consumer as well.
Economic Globalization
It refers to the widespread international movement of goods, capital, services, technology and information.
Economic Globalization
It reflects the continuing expansion and mutual integration of market frontiers
Microeconomics
It tries to explain how they respond to changes in price and why they demand what they do at particular price levels.
Gold Standard
It was a system by which the rate of a currency is defined in terms of the value of gold, for which the currency could be exchanged.
International Monetary Fund
It was designed to prevent trade wars due to competitive devaluations of states of their currencies. When states suffer from balance-of-payments deficits, they reduce the value of their currencies to boost exports with cheaper products and decrease imports. A balance-of-payment deficit occurs when a country spends more than it takes in.
Persian Gulf
Silk Road routes also led to ports on this place, where goods were then transported up the Tigris and Euphrates rivers.
Mediterranean Sea
Routes from these cities also connected to ports along this sea, from which goods were shipped to cities throughout the Roman Empire and into Europe.
Macroeconomic
Studies the overall economy on both the national and international level.
Palymra
Syrian Desert
Transportation and Communication
The advancement of science and technologies has greatly reduced the cost of this process, making economic globalization possible.
Economists
The concepts of efficiency and productivity are held paramount by
Monarchies
These regimes which are mainly them imposed high tariffs, forbade colonies to trade with other countries, restricted trade routes, and subsidized its exports.
Political Economists
They recognized the importance of international trade
'Time and space compression effect'
This kind of '___' of technological advancement greatly reduced the cost of international trade and investment, thus making it possible to organize and coordinate global production.
World Bank
To grant long-term loans for the economic development of less developed countries and the reconstruction of war-torn countries. Today, its role is to reduce extreme poverty while addressing the imperfections of global capital markets.
International Monetary Fund
To provide short-term loans to prevent devaluation, and aid countries facing balance-of-payment deficits.
World Bank
Today it is made up of two institutions, the IBRD and the International Development Associations (IDA).
Opportunity Cost
We can see then that for both countries, the cost of producing both products is greater than the cost of specializing.
Mercantilism
a national economic policy that is designed to maximize the exports of a nation.
Mercantilism
based on the idea that a nation's wealth and power were best served by increasing exports, in an effort to collect precious metals like gold and silver.
It had no ocean routes that could reach the American continent.
it had no ocean routes that could reach the American continent because of this reason