After Tamerlane: Asia and Europe

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Questions and Answers

It is ______ that there are similarities between European and Asian development.

false

______'s pre-industrial economy was at least as dynamic as contemporary Europe's.

China

Medieval Europeans were dazzled by the fabulous wealth and intellectual sophistication of the ______ World.

Islamic

______ served as the basis of state-formation across northern and eastern Europe following AD 1000.

<p>Christianization</p> Signup and view all the answers

______ were the real pioneers of early maritime commerce.

<p>Asian Merchants</p> Signup and view all the answers

Edward Said denounced the classics of European writing on the history, ethnography, and culture of Asia as ______.

<p>Orientalist fantasy</p> Signup and view all the answers

______, involving taking land for plantation and mine and displacing native people, is a defining characteristic of European imperialism.

<p>Expropriation</p> Signup and view all the answers

Adam Smith advocated for ______ in the 1830s and 1840s.

<p>Worldwide free trade</p> Signup and view all the answers

______, as identified by Max Weber, was the essential factor that enabled Europe to transition to modern industrial capitalism.

<p>Activist rationalizing mentality</p> Signup and view all the answers

The rapid dissolution of Europe's colonial empire began in ______.

<p>1945</p> Signup and view all the answers

The making of world economy and the extension of European rule across the non-European world were the two great transformations that the ______ states were chiefly responsible for.

<p>European</p> Signup and view all the answers

______ and free markets are two key principles that form the foundation of neoliberalism.

<p>Individual liberty</p> Signup and view all the answers

______ are primary drivers of economic growth, as highlighted by the Washington Consensus.

<p>Unimpeded private markets</p> Signup and view all the answers

______ involves the conditions of economic restructuring imposed by organizations like the World Bank and IMF.

<p>Structural adjustments</p> Signup and view all the answers

______ is an economic theory developed by Joseph Schumpeter, referring to the transformation that accompanies radical innovation.

<p>Creative destruction</p> Signup and view all the answers

Liberal economic policies and tax cuts are associated with ______ in operations and infrastructure.

<p>Increased investment</p> Signup and view all the answers

______ are a measure to reduce government expenditures and tax.

<p>Cuts in welfare</p> Signup and view all the answers

Privatization of industry, deregulation of the economy, and reductions in a nation's spending on social welfare programs are the three ______ premises.

<p>free market</p> Signup and view all the answers

______ are a special economy policy in China.

<p>Special Economic Zones</p> Signup and view all the answers

The ______ utilizes export processing zones.

<p>Philippines</p> Signup and view all the answers

______'s economic approach can be described as laissez-faire.

<p>Hong Kong</p> Signup and view all the answers

______ relied least on foreign direct investment.

<p>South Korea</p> Signup and view all the answers

______ strategically used foreign direct investment to attract high-value industries.

<p>Singapore</p> Signup and view all the answers

______ encouraged the development of backward linkages and technology transfer.

<p>Taiwan</p> Signup and view all the answers

______ served as a gateway for trade and business with China.

<p>Hong Kong</p> Signup and view all the answers

______ played a strong role in industrial policy as a measure of success.

<p>South Korea</p> Signup and view all the answers

______ refers to China's policy in the 1970s.

<p>Four Modernization</p> Signup and view all the answers

Copying and reverse engineering is a strategy used by China and ______ to acquire foreign technology.

<p>South Korea</p> Signup and view all the answers

______ and FDI (Foreign Direct Investment) is one way China taps into foreign knowledge.

<p>Trade</p> Signup and view all the answers

Importing turnkey plants, reverse engineering foreign technology, disseminating knowledge internally, tapping into global knowledge through trade and FDI, and increasing investment in R&D are the 5 key pillars of ______.

<p>China's</p> Signup and view all the answers

______ is an economic strategy that most high-performing Asian economies followed.

<p>Outward Orientation</p> Signup and view all the answers

______ and Good Governance are essential for a country to successfully use knowledge for development.

<p>Macroeconomic Stability</p> Signup and view all the answers

______ is the reduction in transportation and communication costs combined with digitalization of information.

<p>Physical disintegration of production</p> Signup and view all the answers

______ involves producing goods close to consumers.

<p>First Unbundling</p> Signup and view all the answers

______ involves performing most manufacturing stages near each other.

<p>Second Unbundling</p> Signup and view all the answers

The global context changes rapidly and the speed, scale, and scope of China's entry onto the global economy, this is why traditional ______ export strategies are no longer as effective for developing countries.

<p>labor-intensive</p> Signup and view all the answers

The need to demonstrate high standards of quality and timeliness in delivery are some of the challenges for developing countries in entering ______ supply chains.

<p>global</p> Signup and view all the answers

European states were chiefly responsible for the making of ______ and the extension of European rule across the non-European world.

<p>world economy</p> Signup and view all the answers

______ are designed to attract foreign investment and promote economic growth through special regulations and incentives.

<p>Special Economic Zones</p> Signup and view all the answers

The reduction in transportation and communication costs combined with digitalization of information results in the ______ of production.

<p>physical disintegration</p> Signup and view all the answers

Flashcards

After Tamerlane: True or False?

There are similarities in development between Europe and Asia.

China's pre-industrial economy

Pre-industrial economy at least as dynamic as contemporary Europe's.

Islamic World & Medieval Europeans

Medieval Europeans were amazed by its wealth and sophistication.

Christianization's Role

Basis of state-formation all over northern and eastern Europe after AD 1000.

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Asian Merchants

Real pioneers of early maritime commerce.

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Orientalist fantasy

Edward Said denounced the classics of European writing on the history, ethnography and culture of Asia.

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Expropriation

Taking land for plantation and mine, displacing native people.

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Worldwide Free Trade

Adam Smith's concept during the 1830s and 40s.

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Activist Rationalizing Mentality

Max Weber's idea; the essential factor that enabled Europe to transition to modern industrial capitalism.

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Year 1945

Rapid dissolution of Europe's colonial empire began.

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Individual Liberty and Free Market

Two key principles that form the foundation of neoliberalism.

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Unimpeded Private Markets

Primary drivers of economic Growth.

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Structural Adjustments

Involves the conditions of economic "restructuring" that are imposed by organizations.

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Creative Destruction

Economic theory by Joseph Schumpeter in 1976.

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Increased Investment Requires

Liberal economic policies, tax cuts.

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Cuts in Welfare

Aim to reduce government expenditures and tax.

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Three Free Market Premises

Privatization, deregulation, and reduced social spending.

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Special Economic Zones

Special economic areas in China.

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Hong Kong - Laissez-faire

Hong Kong economic approach.

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South Korea

Relied least on foreign direct investment

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Singapore

Strategically used FDI to attract high value industries

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Taiwan

Encourages development of backward linkage and technology transfer.

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Hong Kong

Gateway for trade and business with china

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South Korea

Strong role in industrial policy, measure of success

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Four Modernization

China, policy in 1970's

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Special Economic Zones

Special economy policy of China

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China/South Korea Strategy

Copying and reverse engineering

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Trade and FDI

One way China tap into foreign knowledge

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5 key pillars of China's

Importing turney plants, copying, disseminating.

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Outward Orientation

Economic strategy did most high performing Asian economies follow

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Macroeconomic Stability and Good Governance

Essential for country to successfully use knowledge for development

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Physical disintegration of production

Reduction in transportation and communication cost combined with digitalization of information.

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First Unbundling

Produce goods close to consumers

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Second Unbundling

Perform most manufacturing stages near each other.

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Labor intensive strategies

Global changes are too fast.

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Entering global supply chains

The need to demonstrate high standards of quality and timeliness in delivery

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Study Notes

After Tamerlane

  • There are similarities between Europe and Asia development
  • China's pre-industrial economy was as dynamic as Europe's at the time
  • Medieval Europeans were impressed by the wealth and knowledge of the Islamic world
  • Christianization served as the foundation for state formation in northern and eastern Europe after 1000 AD
  • Asian merchants were pioneers in early maritime commerce
  • Edward Said criticized European writings on Asian history, ethnography, and culture as "Orientalist fantasy"
  • Expropriation, or taking land for plantations and mines and displacing native populations, characterized European imperialism
  • Adam Smith promoted worldwide free trade in the 1830s and 1840s
  • Max Weber considered the activist rationalizing mentality essential for Europe's transition to modern industrial capitalism
  • The dissolution of Europe’s colonial empire began in 1945
  • The European states were responsible for the making of the world economy and the extension of European rule

Neoliberalism

  • Individual liberty and free markets are key principles
  • Unimpeded private markets are a primary driver of economic growth
  • Structural adjustments involve economic restructuring conditions imposed on borrowing nations
  • Joseph Schumpter's economic theory of creative destruction appeared in 1976
  • Liberal economic policies and tax cuts lead to increased investment in operations and infrastructures
  • Cutting welfare programs reduces government expenditures and taxes
  • Key components of free market
    • Privatization of industry
    • Deregulation of the economy
    • Reduction of spending on social welfare

Globalization

  • Laissez-faire economic approach of Hong Kong
  • South Korea relied the least on foreign direct investment
  • Singapore attracted high value industries by strategically using FDI
  • Taiwan encouraged backward linkage and technology transfer
  • Hong Kong served as a gateway for trade and business with china
  • South Korea had a strong role in industrial policy
  • China's Four Modernizations policy began in the 1970s
  • Special Economic Zones are a special economy policy of China
  • China and South Korea used strategies to copying and reverse engineering to acquire foreign technology
  • China taps into foreign knowledge through trade and FDI
  • China's key pillars:
    • Importing turney plants
    • Copying and reverse engineering foreign
    • Disseminating knowledge internally
    • Tapping into global knowledge through trade and FDI
    • Increasing investment in R&D
  • An outward orientation was an economic strategy followed by high-performing Asian economies
  • Macroeconomic stability and good governance are essential for successful development

Production, Unbundling, and Global Supply Chains

  • Physical disintegration of production involves reduced transportation/communication costs and digitalization
  • First Unbundling: producing goods close to consumers
  • Second Unbundling: performing most manufacturing stages near each other
  • Traditional labor-intensive export strategies are becoming less effective because of the speed of China’s entry onto the global economy
  • Developing countries face the challenge of demonstrating high standards of quality and timeliness when entering global supply chains

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