Professional Documents
Culture Documents
Structures of Globalization: and The Global Economy
Structures of Globalization: and The Global Economy
GLOBALIZATION
AL
AND THE GLOB
ECONOMY
GROUP 1
ES
OBJECTIV
e e c o n omic
● Defin z a tion
gl o b al i
t h e a c t o r s that
● Identif y
ic
define econom
globalization
● Give advantages and
disadvantages
WHAT IS ECONOMIC GLOBALIZATION?
● a historical process
representing the result of
1980
human innovation and
technological progress
42.1 %
● characterized by the
increasing integration
2007
of economies around
the world through the
62.1%
movement of goods,
services and capital
across borders
INTERNATIONAL TRADING SYSTEMS
IN
T
SILK ROAD L
E WHEN DID IT REALLY BEGAN?
R N A
● used Nregularly from
A IO
130 BCE Tuntil 1453
A IO 1571:
BCE R N N
A
T
E L Establishment of the
IN *galleon trade that
connected Manila and
Acapulco
*mercantilism/commercialism
- a system in which a country attempts
to amass wealth through trade with
other countries, exporting more than
it imports and increasing stores of
gold and precious metals.
THE GOLD
STANDARD HOWEVER!
● emerged in 1867
adapted by US and
other European
nations
Reason? TH
HA IS
PP
● to create a common EN
ED!
system that would allow !!
more efficient trade !!
and prevent the
isolationism of the
mercantilist era
THE GREAT DEPRESSION
● global economic
crisis in 1920s LED TO ADAPTING
FIAT
until 1930s CURRENCIES
● allows governments to
freely and actively
manage their
economics
BRETTON WOODS SYSTEM
● created in 1944, in
Bretton Woods, New
Hampshire Goal
● to create an efficient
foreign exchange system,
prevent competitive
devaluations of
currencies, and promote
international economic
● replaced the gold growth.
standard with the
US dollar as the
global currency
INTERNATIONAL WORLD BANK
MONETARY FUND (IMF)
STAGFLATION
● decline in economic
growth and employment
takes place alongside a
sharp increase in prices
NEOLIBERALISM
WASHIN
GT
● An economy where the CONSEN ON
SUS
government has few, or if
any, controls on economic
factors
● A policy model bridging
politics, social studies, ● 1980s onward -- became the
and economics that seeks to codified strategy of the
transfer control of US Treasury Department,
economic factors to the World Bank, IMF, and World
private sector from the Trade Organization to
public sector continue reduction under
the GATT
WASHINGTON CONSENSUS
Dominated global
● a set of free-market economic economic policies
policies intended to help from 1980s until
developing countries that early 2000s
faced economic crises