Economic Globalization and Global Trade
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Questions and Answers

What is the primary distinction between the Global North and the Global South?

  • Racial inequality (correct)
  • Cultural differences
  • Economic inequality
  • Geographical location

    • What is a result of the rise of global agribusiness and factory farms in agriculture?

  • Increased global food security
  • Increased independence of local farmers
  • Increased production of staple diets
  • Dependence of the South on industrialized food exports from the North (correct)

    • What are the three urban centers described by Sassen as economic centers that exert control over the world's political economy?

  • Berlin, Rome, and Sydney
  • New York, London, and Tokyo (correct)
  • Los Angeles, Chicago, and Miami
  • New York, Paris, and Beijing

    • What is the primary reason for the South's increasing dependence on industrialized food exports from the North?

    <p>Production of non-traditional products for export in the South</p> Signup and view all the answers

    What is the term used to describe the relationship between the rural and urban areas in the context of globalization?

    <p>Rural-urban differentiation</p> Signup and view all the answers

    What is the primary characteristic of a World City?

    <p>Global reach of organizations found in them</p> Signup and view all the answers

    What is economic globalization, according to the United Nations?

    <p>The increasing interdependence of world economies as a result of the growing scale of cross-border trade of commodities and services, flow of international capital, and wide and rapid spread of technologies</p> Signup and view all the answers

    What is the main objective of protectionism?

    <p>To give preferential treatment to domestic producers and discriminating against foreign competitors</p> Signup and view all the answers

    What is trade liberalization?

    <p>The removal or reduction of restrictions or barriers on the free exchange of goods between nations</p> Signup and view all the answers

    What is the purpose of tariffs?

    <p>To require fees on imports and exports</p> Signup and view all the answers

    What is a result of globalization, especially for developing countries?

    <p>An increase in their participation in the global economy</p> Signup and view all the answers

    What can countries do to make trade easier with other countries while lessening inequities in the global world?

    <p>Implement trade liberalization policies</p> Signup and view all the answers

    What are some characteristics of secondary labor market jobs?

    <p>They provide fewer benefits and have lower-skilled jobs</p> Signup and view all the answers

    What is a key characteristic of corporations?

    <p>They exist as separate legal entities</p> Signup and view all the answers

    What is the purpose of international regulatory groups?

    <p>To regulate the flow of goods and services between countries</p> Signup and view all the answers

    Why are international regulatory groups necessary?

    <p>Because international trade would be impractical without them</p> Signup and view all the answers

    What is a result of international trade agreements?

    <p>Lower tariffs and easier customs procedures</p> Signup and view all the answers

    Why is international trade important for countries' prosperity?

    <p>Because countries are dependent on international trade for their prosperity</p> Signup and view all the answers

    What is a result of innovation and technological growth?

    <p>All nations' well-being improves</p> Signup and view all the answers

    What is the main function of the tertiary sector?

    <p>Providing services rather than goods</p> Signup and view all the answers

    What was the main concern after WW I and II that led to the establishment of the Bretton Wood System?

    <p>Lack of cooperation among nation-states</p> Signup and view all the answers

    How many elements does the Bretton Wood System have?

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

    What is the main goal of International Financial Institutions?

    <p>To reduce barriers to trade and promote free flow of money</p> Signup and view all the answers

    What is the primary sector responsible for?

    <p>Extracting raw materials from natural environments</p> Signup and view all the answers

    According to Cardoso and Felato, what was the primary influence on Latin American economies?

    <p>The expansion of capitalist economies in the US and Europe</p> Signup and view all the answers

    What does the concept of dependence refer to?

    <p>The conditions under which economic and political systems exist and function in the global economy</p> Signup and view all the answers

    What is the 'core' in Immanuel Wallerstein's Modern World System?

    <p>High-income countries that drive the global economy</p> Signup and view all the answers

    What is neocolonialism in the context of Wallerstein's model?

    <p>The economic dependence of periphery countries on the core</p> Signup and view all the answers

    What do critics of Wallerstein's theory argue?

    <p>That the world economy is not a zero-sum game</p> Signup and view all the answers

    What is the 'periphery' in Wallerstein's Modern World System?

    <p>Low-income countries that support the wealthier countries</p> Signup and view all the answers

    Study Notes

    Global North and Global South

    • The Global North includes the United States, Canada, Western Europe, and developed parts of Asia
    • The Global South includes the Caribbean, Latin America, South America, Africa, and parts of Asia
    • These distinctions relate largely to racial inequality, specifically between Black and White populations
    • Whites are disproportionately in the dominant North, while Blacks are primarily in the South, although this is changing with South-to-North migration

    The Global City and Globalization

    • Globalization has deeply altered North-South relations in agriculture
    • The rise of global agribusiness and factory farms has changed agricultural production relations between the North and South
    • The South produces non-traditional products for export and becomes increasingly dependent on industrialized food exports from the North
    • This leads to the replacement of staple diets and the displacement of local farmers
    • Sassen's concept of global cities describes urban centers that exert control over the world's political economy
    • Global cities are categorized based on the global reach of organizations found in them

    Economic Globalization and Global Trade

    • Economic globalization refers to the increasing interdependence of world economies due to cross-border trade, flow of international capital, and spread of technologies
    • There are two types of economies associated with economic globalization: protectionism and trade liberalization
    • Protectionism involves government intervention in foreign trade to encourage domestic production and discriminate against foreign competitors
    • Trade liberalization involves the removal or reduction of restrictions on the free exchange of goods between nations
    • Globalization has led to some countries gaining more in the global economy at the expense of others
    • Secondary labor market jobs provide fewer benefits and include lower-skilled jobs and lower-level service sector jobs

    Global Corporations

    • Corporations are defined as organizations that exist as legal entities with liabilities separate from their members
    • Corporations operate across national boundaries, and their future is tied to global economic developments
    • International trade has created and been supported by international regulatory groups and transnational trade agreements

    International Financial Institutions and Economic Organizations

    • International regulatory groups and agreements regulate the flow of goods and services between countries
    • These groups reduce tariffs and make customs procedures easier, facilitating international trade
    • Market integration is an economic system that organizes production, consumption, and trade in society
    • The economy can be divided into three sectors: primary (extracting raw materials), secondary (manufacturing), and tertiary (services)
    • International Financial Institutions, such as the Bretton Woods System, aim to restructure the world economy and ensure global financial stability

    Dependence Theory and Modern World System

    • Dependence theory suggests that less developed countries primarily serve the interests of wealthier countries
    • The Modern World System model by Immanuel Wallerstein describes high-income nations as the "core" of the world economy and low-income countries as the "periphery"
    • The periphery remains economically dependent on the core in various ways, which tend to reinforce each other (also called neocolonialism)

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    Description

    Learn about economic globalization, its effects on world economies, and the two types of economies associated with it. Understand the concept of protectionism and its implications on global trade.

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