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What is the definition of Economic Globalization?
What is the definition of Economic Globalization?
The augmented amalgamation of economies through cross-border movements of people and things for the accumulation of goods and labor export and import.
What does Internationalization refer to?
What does Internationalization refer to?
The addition and stretching of commercial activities of nation-states across borders.
What is the role of the International Monetary System (IMS)?
What is the role of the International Monetary System (IMS)?
To expedite international business dealings, especially trade and investment.
The gold standard guaranteed a non-inflationary, stable economic environment.
The gold standard guaranteed a non-inflationary, stable economic environment.
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When was the gold standard first adopted by the UK?
When was the gold standard first adopted by the UK?
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What major event in the 1930s affected the gold standard?
What major event in the 1930s affected the gold standard?
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What did the value of money in the 1930s signify?
What did the value of money in the 1930s signify?
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The International Monetary System facilitates international ______.
The International Monetary System facilitates international ______.
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Study Notes
Economic Globalization
- Economic globalization is the amalgamation of economies through cross-border movements of people and things for the accumulation of goods and labor export and import.
- Economic globalization can be distinguished from internationalization in terms of extension of services.
- Internationalization refers to the addition and stretching of commercial activities of nation-states across borders, while in contrast, economic globalization is effective incorporation among different dispersed activities across the world.
- Globalization targets to minimize trade obstacles across boundaries.
International Monetary Systems
- The International Monetary System (IMS) refers to the guidelines, practices, implements, amenities, and establishments for facilitating international payments.
- The role of the IMS is to expedite international business dealings, especially trade and investment.
- An IMS reflects economic power and interests because capital is inherently political.
The Gold Standard
- The gold standard operated as a fixed exchange rate regime, with gold as the only international reserve.
- Participating countries in international exchanges determined the gold content of national currencies, which in turn defined exchange rates.
- The 1930s was considered the darkest period of the modern economic era, with competitive devaluations culminating in the devastating drop of international transactions.
- The original gold standard was later abandoned with its pegging system, which only allowed deflationary policies.
- The value of money was equivalent to the availability of gold in a government's treasury.
- Governments printing more cash, resulting in devaluation of currencies, made international trade difficult.
- One reason the gold standard was abandoned entirely by the international community.
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Description
Explore the concepts of economic globalization and the international monetary system in this comprehensive quiz. Understand the differences between globalization and internationalization, and learn how the IMS facilitates international trade and investment. Test your knowledge on the principles that govern global economic interactions.
