Cworld [Module 3]: Global Economics Test and Flashcards

What characterizes globalization in the context of global economics, and how have digital technologies contributed to this phenomenon?

Characterized by increased economic interconnections among states and societies. Digital technologies have played a crucial role in facilitating international transactions and intensifying economic connectivity.

What are the core aspects of global economics, and what questions does it address?

Production, exchange, distribution, and consumption of scarce goods and services. Economic questions include what to produce, how to produce, how to value and exchange goods, how to distribute resources, and how to use them.

How does capitalism function, and what motivates capitalists in a competitive market?

It involves rational wealth accumulation and reinvestment for profit. Competition among capitalists motivates them to seek market dominance to maximize profits.

Explain the evolution of global trade and labor, highlighting key phases such as mercantilism and liberal capitalism.

It has evolved from limited trade in ancient civilizations to mercantilism, liberal capitalism, and global interdependence. Capitalist competition and economic ideologies like Marxism critique capitalism, emphasizing exploitation and automation.

How have technological advancements contributed to globalization, and what role has digital technology played in transforming various aspects of the global economy?

From the wheel to modern digital technology, have played a significant role in globalization. Digital technology has transformed communication, transportation, and manufacturing processes.

What are some concerns associated with automation and digitalization in the global economy?

Automation and digitalization have increased productivity but raised concerns about job displacement, misinformation, privacy, and bias.

Describe the Bretton Woods regime and its impact on the international economic system.

It established institutions like the IMF, World Bank, and GATT/WTO to regulate the international economic system. These institutions facilitate global economic cooperation, enforce trade agreements, and provide loans to countries in need.

How have global economic crises, such as the 1997 Asian Economic Crisis and the 2008 Global Financial Crisis, highlighted the interconnectedness of the global economy?

Global economic crises have underscored the interconnectedness of the global economy, impacting various aspects such as trade, employment, and capital flows.

What was the impact of the COVID-19 pandemic on global trade, employment, and capital flows?

Global trade, employment, and capital flows, leading to economic disruptions and inflation.

Which institutions were established by the Bretton Woods regime, and what roles do they play in the international economic system?

Established institutions such as the IMF, World Bank, and GATT/WTO. These institutions facilitate global economic cooperation, enforce trade agreements, and provide financial assistance to countries in need.

How do transnational corporations (TNCs) like Apple, Meta, and Google influence the global economy?

Controls vast resources, technology, and international markets. They contribute to global economic integration through global value chains and algorithmic management.

What is the significance of algorithmic management and the gig economy in transforming labor markets?

Algorithmic management and the gig economy have transformed labor markets by emphasizing short-term contractual work, altering traditional employment structures.

Why are developing countries vulnerable to economic shocks, and how can economic disruptions in one country affect global economic variables?

Due to limited resources and systems to withstand disruptions. Economic shocks in one country can spread regionally or globally, affecting exchange rates, interest rates, asset prices, and employment.

How do international institutions and TNCs influence national economic policies, especially concerning national debt and global value chains?

International institutions and TNCs influence national economic policies, particularly regarding national debt and global value chains. Their actions can have far-reaching effects on a country's economic development.

In what ways are national development policies interconnected, and how do neighboring countries' economies affect one another?

National development policies are interconnected, and neighboring countries' economies can impact each other. Economic variables such as exchange rates, interest rates, asset prices, and employment are influenced by regional and global economic dynamics.

Flashcards: Cworld [Module 3]: Global Economics