Dimensions of Globalization (Faucher 2003)

Questions and Answers

What characterizes a world-economy as defined in Braudel's concept?

It is limited to one culture and language.

It consists of diverse political units with no central authority. (correct)

It is governed by a single political structure.

It prioritizes localized trade over global exchange.

In a capitalist system, what is the primary goal of individuals and firms?

To focus solely on community-based production.

To establish a cooperative marketplace.

To achieve endless accumulation of capital. (correct)

To maintain stability and avoid competition.

Which statement best describes the nature of markets in a capitalist economy?

Markets only exist physically and do not have a virtual counterpart.

Capital accumulation is prohibited in market transactions.

Markets are essential for buying and selling goods in both physical and virtual contexts. (correct)

Firms have no rivalry in the market.

What describes the relationship between firms in a capitalist market?

Firms engage in intense rivalry and competition. Signup and view all the answers

What is a common outcome for firms operating in a capitalist system?

Absorption by larger firms or bankruptcy. Signup and view all the answers

What is a primary driver of economic globalization?

Advancement of science and technologies Signup and view all the answers

What effect does technological advancement have on globalization?

It facilitates organized global production through reduced costs. Signup and view all the answers

What does 'globalization of production' entail?

Sourcing goods from varied international locations for efficiency. Signup and view all the answers

According to Wallerstein, what historical context shapes the modern world-system?

The origins of the world-system in the sixteenth century. Signup and view all the answers

What role does outsourcing play in economic globalization?

It enables companies to access global service providers for efficiency. Signup and view all the answers

Which statement best describes economic globalization?

It refers to the increasing interdependence of world economies. Signup and view all the answers

What is a characteristic of the 'time and space compression effect'?

Reduction in costs leading to more efficient global production. Signup and view all the answers

What is a significant consequence of reduced policy barriers in globalization?

Broader opportunities for international trade investment. Signup and view all the answers

Study Notes

Economic Globalization

Refers to the increasing interdependence of world economies due to cross-border trade, capital flow, and technology spread.
Described as an irreversible trend influencing global economic development, especially at the turn of the millennium.
Major driving forces include:
- Rapid scientific and technological advancements, reducing transportation and communication costs.
- Expansion of market economic systems with diminished policy barriers to trade and investment.

Globalization of Production

Involves sourcing goods and services globally to capitalize on national differences in production costs (land, labor, capital).
Outsourcing: Obtaining goods or services from foreign suppliers instead of internal sources.
Business Process Outsourcing (BPO): Specifically refers to services like call centers being outsourced.

Globalization of Technology

Encompasses the worldwide exploitation of technologies through patents and licenses.
Patents grant exclusive rights to inventors, allowing them to control the use of their inventions.

Historical Perspective

The modern world-system emerged in the sixteenth century, mainly in Europe and the Americas, and gradually expanded globally.
Defined as a capitalist world-economy characterized by a division of labor and significant internal exchange of goods, capital, and labor.
Comprised of numerous political units connected in a loose interstate system, featuring diverse cultures and languages.

Capitalism Explained

Capitalism prioritizes endless capital accumulation, differentiating the modern world-system from mere existence of market transactions.
Markets serve as both physical and virtual spaces for buyers and sellers of goods.
Firms act as primary market players; their success depends on competitiveness within the market.
Intercapitalist rivalry drives innovation and efficiency, with survival of the fittest leading to frequent bankruptcies and consolidation of capital.

Description

Explore the critical aspects of globalization through this quiz, focusing on economic, political, and cultural dimensions. Understand the irreversible trends that define economic globalization and the increasing interdependence of world economies. Test your knowledge on how trade, capital flow, and technology shape our global economy.