glo bal eco n so csc Study this set o nline at: https://www.cram.co m/flashcards/glo bal-eco n-so csc138 6 8 76 2 hi stori cal process representi ng resul t of human i nnov n tech progress; characteri z ed by i ncreasi ng i ntegrati on of econ around the worl d dev org wned by 189 countri es; reduce poverty bu l endi ng money to i mprove ppl 's econ n standard of l i vi ng val ue of trade i ncreased f rom 42.12 to (I M F ) acc to UN CT AD , f orei gn di rect i nvestor i nc f rr 57B to ol dest i nt'l trade route, bl ank dynasty, bl ank BCE , bl ank empi re cl osed i t 1453 BCE gl obal i z ati on began when ALL i mportant conti nents began to exchange products conti nuousl y econ gl obal i z ati on began i n PH 's shores hi ghtari f f s, prohi bi ted col oni es f r tradi g w others, l i mi ted trade channel s, subsi di z ed exports economi c gl obal i z ati on WOrl d Bank 62.12 1.76T , UN Conf erence on T rade n D ev si l k road, han dynasty, opened trade to west 130 BCE , ottoman D enni s O. F l ynn n Arturo Gi ral dez Gal l eon T rade (1571) mercanti l i sm glo bal eco n so csc Study this set o nline at: https://www.cram.co m/flashcards/glo bal-eco n-so csc138 6 8 76 2 i nt'l monetary conf erence i n Pari s, 1867 uk n us, enabl e more ef f i ci ent trade, prohi bi t i sol ati oni sm of mercanti l i st era gol d standardsl i mi ti ng system as i t requi red govts to back currenci es w bl ank worst nl ongest experi enced by West, caused buy gol d standard, l i mi ted amt of ci rcul ati ng money gol d standard gol d reserves T he Great D epressi on 1920s-1930s US began to recover af ter i t abandoned gol dd standard Barry E i chengreen today worl d econ operate on f i at currenci es not backed by metal s, val ues determi ned by cost rel ati ve to other countri es f i at currenci es 1944 UN monetary f i n conf erence; oal : prevent past catastrophes f r happeni ng agai n n i mpacti ng i ntl connecti on country experi ences econ cri si s when money i s not spsent Bretton Woods System John M aynard KE ynes glo bal eco n so csc Study this set o nline at: https://www.cram.co m/flashcards/glo bal-eco n-so csc138 6 8 76 2 when econ sl ow down, govts have to rei nvi gorate w i nf usi ons of capi tal gl obal keynesi ani sm f undi ng postwar reconstructi ons i ntl bank f or reconstructi on n dev (I BRD ) or Worl d Bank gl obal l ender f or l ast resort to prevent countri es f r spi ral i ng i nto credi t cri si s I nternati onal M onetary F und (I M F ) reduce tari f f s and other hi ndrances to f ree trade General Agreement on T ari f f s and T rade (GAT T ) 1947 Govtpumped money to econ, i nc demand, i nc ppi rces, gen econ expansi on n l owerunempl oyment, more money n more empl oyement pri ce of oi l rose bcos BLAN K i mposed BLAN K respondi ng to US resuppl y I srael i mi l i tary duri ng BLAN K stock markets crashed WH E N af ter US stopped l i nki ng dol l ar to gol d; endi ng BW system resul t of stock market crash; decl i ne i n econ growth w sharp i nc i n pri ces neol i beral i sm Org of Arab Petrol eum E xporti ng Countri es, embargo, Y om Ki ppur War 1973-1974 ST AGF LAT I ON glo bal eco n so csc Study this set o nline at: https://www.cram.co m/flashcards/glo bal-eco n-so csc138 6 8 76 2 govt putti ng money w/o suppl y i ncrease coused i nf l ati on F ri edri ch H ayel & M i l ton F ri edman became codi f i ed strat of US treasury D ept; WB and WT O neol i beral i sm govt expendi ture shoul d be kept to bare mi ni mum, mi ni mi z e debt, pri vati sz ati on of govt run servi ces, reduced tari f f s and open up the economy neol i beral i sm atttracti on was i n i ts si mpl i cty neol i b proponents ronal reagan US, margaret thatcher UK onl y thos who accumul ated weal th had capabi l i ty to purchase i ndustri es w.c started gl obal f i nanci al cri si s of WH E N i n 2007 BLAN K stopped i ncreasi ng, f ami l i es coul dn't BLAN K, many i nvestment banks went BLAN K Washi ngton Consensus ol i garchy 2008-2009 home pri ces, pay thei r l oans, bankrupt glo bal eco n so csc Study this set o nline at: https://www.cram.co m/flashcards/glo bal-eco n-so csc138 6 8 76 2 BLAN K make economi es grow at present, decl i ned due to COVI D exports econ gl ob ushered unpeceddented spi ke i n gl obal growth rates gorowth created l arge Asi an economi es Jaoan, Chi na, Korea, H K, Si ngapore econ gl ovbal i z ati on remai ns unf ai r devel oped countri es: protecti oni st protecti oni st meani ng ref usi ng to l i f t pol i ci es that saf eguard thei r products j apan ref use i mports ri ce us protect sugar i ndustry benef i ci ari s of gl ob commerce mai nl y transnati onal corp (T N C) not govt glo bal eco n so csc Study this set o nline at: https://www.cram.co m/flashcards/glo bal-eco n-so csc138 6 8 76 2 race to the bottom dec l abor standard to gai n pori f t at l owest possi bl e cost; govt weaken envi and l abor l aws to attract i nvestors, f atal consequence
