Economic Globalization and Indicators Quiz

Economic Globalization

• Economic globalization is the increasing integration of economies worldwide through trade, investments, and capital flows, according to the International Monetary Fund (IMF).
• An example indicator of economic globalization is the rising flow of goods, services, and ideas across national borders.

International Trade

• The oldest known international trade route is the Silk Road.
• Full economic globalization began in the late 19th century.

Multinational Corporations (MNCs)

• MNCs play a crucial role in economic globalization by investing, producing, and selling goods and services across national borders.

Characteristics of Economic Globalization

• Economic globalization is characterized by the increasing integration of economies worldwide through trade, investments, and capital flows.
• In the late 1800s, economic globalization was characterized by the growth of international trade, investment, and migration, which reached its peak in 1914.

Influential Figures

• John Maynard Keynes largely influenced the Bretton Woods System, believing that economic crises occur when money is not being spent.

Economic Systems and Strategies

• The Washington Consensus advocates for minimal government spending to reduce government debt and privatization of government-controlled services.
• The Bretton Woods System created the International Monetary Fund (IMF) and the World Bank.
• The General Agreement on Tariffs and Trade (GATT) aimed to reduce tariffs and other hindrances to free trade.
• Neoliberalism advocates for minimal government intervention in economic matters and privatization of government-controlled services.
• Mercantilism is an economic system characterized by a more open trade system with multiple restrictions such as high tariffs.

Global Value Chains

• A key component in the global value chain for T-shirts is the outsourcing of textile production to countries like Bangladesh.
• The country devouring huge quantities of many commodities, especially in the context of economic globalization, is China.
• The industry experiencing increasing competition for commodities is the technology industry.

Actors in Economic Globalization

• Major players in economic globalization, aside from governments, are multinational corporations (MNCs), international organizations, and civil society.
• International organizations, such as the IMF and the World Bank, provide tools and resources for countries to advance their interests in world politics and economy.
• Civil society serves as a platform for non-governmental organizations (NGOs) and other groups to express their interests and opinions.

Key Concepts

• A nation-state refers to a country and its government.
• A nation refers to a social group linked through common descent, culture, language, or territorial contiguity.
• A multinational corporation (MNC) is a firm that has the power to coordinate and control operations in more than two countries.
• The market is a structure that allows buyers and sellers to exchange any type of goods, services, and information, comprising different economic systems.