Economic Globalization Overview
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Questions and Answers

What was a significant economic change initiated after 1945 that contributed to higher productivity?

  • The implementation of Fordism (correct)
  • A reduction in workforce participation
  • A shift to agricultural production
  • The introduction of trickle-down economics

    • What event marked the halt of progress in the Welfare State after 1980?

  • Declining state revenue (correct)
  • Expansion of de-industrialization
  • Increased social spending
  • Rising employment rates

    • What economic condition contributed to increased intra-national inequality after the 1980s?

  • Rising wages for all income brackets
  • Impacts of Fordism on labor productivity
  • High levels of social spending
  • De-industrialization and lower wages (correct)

    • What was a characteristic of the economic relationships during the era of imperialism?

    <p>Colonial economies were often dependent on colonial states</p> Signup and view all the answers

    Which event forced China to accept the importation of opium?

    <p>The Opium Wars</p> Signup and view all the answers

    What was a consequence of de-industrialization in the developing world?

    <p>An increase in primary agricultural exports</p> Signup and view all the answers

    Which region was primarily characterized as industrial core in the context of global labor division?

    <p>Canada, Europe, Russia/USSR, and Japan</p> Signup and view all the answers

    What economic theory suggests that benefits for lower-income individuals will trickle down from the upper-income brackets?

    <p>Trickle-down economics</p> Signup and view all the answers

    What significant reform occurred in Japan in 1868?

    <p>End of the caste system</p> Signup and view all the answers

    Which method did Japan use to adapt Western technology to fit its local conditions?

    <p>Suwa method</p> Signup and view all the answers

    What was one of the outcomes of Japan's state investments in businesses?

    <p>Creation of Zaibatsu</p> Signup and view all the answers

    What major challenge did Japan face as a latecomer in industrialization?

    <p>Adapting to expensive Western technology</p> Signup and view all the answers

    How did the Meiji reforms impact Japan's ability to protect its business?

    <p>Limited by trade treaties</p> Signup and view all the answers

    What was the primary social structure in pre-industrial Europe?

    <p>Birthrank hierarchy</p> Signup and view all the answers

    In the context of intra-national inequality, what two classes emerged in industrial societies?

    <p>Bourgeoisie and proletariat</p> Signup and view all the answers

    What is the connection between CO2 emissions and inequality?

    <p>Links established through various measures of inequality</p> Signup and view all the answers

    What is a characteristic of the Malthusian growth model?

    <p>Food supply must keep pace with population growth to prevent increased mortality.</p> Signup and view all the answers

    How did the Black Death pandemic affect real wages?

    <p>It caused labor shortages, which increased real wages.</p> Signup and view all the answers

    Which statement reflects the concept of 'Little Divergence'?

    <p>Northern Europe experienced urbanization while Southern Europe did not.</p> Signup and view all the answers

    What is one of the internal explanations for greater economic growth in Europe?

    <p>The influence of cultural, demographic, and political factors.</p> Signup and view all the answers

    What role did the Calvinist doctrine of predestination play in economic behavior?

    <p>It encouraged individuals to work harder and save more.</p> Signup and view all the answers

    Which of the following is an external explanation for the economic divergence in Europe?

    <p>Geopolitical factors impacting trade routes.</p> Signup and view all the answers

    Which of the following statements about Neo-Malthusians is true?

    <p>They argue that population growth cannot be continuously supported.</p> Signup and view all the answers

    What is a commonly noted characteristic of institutions in successful economies?

    <p>They provide a framework for economic freedom and rule of law.</p> Signup and view all the answers

    Which factor contributed to the industrialization of Belgium?

    <p>Government investments in infrastructure</p> Signup and view all the answers

    What was a characteristic of the economic landscape in early 20th century America?

    <p>An enormous domestic market driven by industrial corporations</p> Signup and view all the answers

    What role did mass education play in the industrialization of the United States?

    <p>Creating a productive workforce primarily in the North</p> Signup and view all the answers

    What was a substitute factor for innovation during Belgium's industrialization?

    <p>Government support and investments in industrialization</p> Signup and view all the answers

    Which of the following was NOT a component of the U.S. standard model for industrialization?

    <p>Expansion of transport monopolies</p> Signup and view all the answers

    What was a key aspect of the labor market growth in the United States during industrialization?

    <p>A larger labor market driven by immigration</p> Signup and view all the answers

    How did the United States manage interstate trade during industrialization?

    <p>With no laws against interstate trade</p> Signup and view all the answers

    Which industry experienced significant mechanization leading to the growth of large machine and steel industries in Belgium?

    <p>Wool industry</p> Signup and view all the answers

    What does international inequality primarily refer to?

    <p>The distribution of wealth between countries based on GDP per capita</p> Signup and view all the answers

    How is the Gini-coefficient calculated from the Lorenz curve?

    <p>G = A/(B+A)</p> Signup and view all the answers

    What does the maximum Gini coefficient indicate?

    <p>The maximum level of inequality that can be sustained by a society</p> Signup and view all the answers

    What is the relationship described by the Kuznets curve?

    <p>Increased industrialization leads to rising inequality followed by a decline</p> Signup and view all the answers

    What is the International Poverty Line (IPV)?

    <p>The monetary value of a person's daily consumption set extremely low at $1.9</p> Signup and view all the answers

    Which factor is primarily responsible for the initial rise in income inequality during industrialization according to the Kuznets curve?

    <p>Sectorial shifts from agriculture to industry</p> Signup and view all the answers

    What happens to intra-national inequality from 1900 to 1980, according to historical trends?

    <p>It declines due to social spending initiatives</p> Signup and view all the answers

    What does the inequality extraction ratio measure?

    <p>Gini measured as a percentage of the maximum Gini</p> Signup and view all the answers

    What is the primary purpose of financial deregulation in the context of the content provided?

    <p>To encourage competition and innovation in financial services.</p> Signup and view all the answers

    What distinguishes foreign direct investment (FDI) from portfolio investment?

    <p>FDI allows ownership and control of assets in foreign countries.</p> Signup and view all the answers

    In which scenario would a multinational corporation (MNC) likely opt for foreign direct investment (FDI) over exporting goods?

    <p>When the host market requires adaptation of products.</p> Signup and view all the answers

    What is one of the key roles of the World Trade Organization (WTO) as highlighted in the content?

    <p>To provide a framework for global commercial integration.</p> Signup and view all the answers

    Which of the following factors is NOT a component of the eclectic paradigm (OLI model)?

    <p>Export tariffs.</p> Signup and view all the answers

    What effect did the transition towards market economies in Eastern Europe have on multinational corporations?

    <p>Increase in FDI due to new market opportunities.</p> Signup and view all the answers

    What was the primary reason for the 'resume migration' in the context given?

    <p>Economic opportunities in destination countries.</p> Signup and view all the answers

    What does TRIPS stand for in the context provided?

    <p>Trade-Related Aspects of Intellectual Property Rights.</p> Signup and view all the answers

    Study Notes

    Economic Globalization

    • Economic globalization is the increasing interconnectedness of world economies due to cross-border trade of goods and services, international capital flows, and rapid technology diffusion.
    • Stages of economic globalization include:
      • Pre-1500: limited trade networks, no significant impact on growth
      • 1500-1800: Early modern globalization, marked by trade in luxury goods, colonialism, and the transatlantic slave trade.
      • 1850-1914: The first global economy characterized by widespread industrialization, large-scale migration, and significant trade expansion.
      • 1918-1945: De-globalization during World Wars and the Great Depression, marked by protectionism and economic instability.
      • 1980-present: Neoliberal globalization, emphasizing deregulation, lowered trade barriers, and expanding trade.

    Methods in Globalization Studies

    • Quantitative methods: use data and statistics (e.g., GDP, GDP per capita, Gini coefficient) to analyze economic patterns. However, data limitations exist for earlier periods.
    • Qualitative methods: analyze cultural factors, laws, and historical documents to understand different factors behind economic growth patterns.

    Human Development Index

    • The Human Development Index (HDI) measures social and economic progress. It takes into account life expectancy at birth, education, and GDP per capita.

    Time-line

    • 1500-1800: Early modern period marked by colonialism and the beginning of new global trade networks. Triangular trade started.
    • 1750: Industrial Revolution begins in England
    • 19th century: New era of globalization, increased trade costs. Imperialism in Africa and Asia
    • 1917 and 1949: Russia and China revolutions
    • 20th and 21st century: Modern Economic globalization

    World Trade

    • Trade is a complex process. Benefits are created from comparative advantages, resulting in higher overall productivity.
    • Globalization of trade led to interconnectedness and specialisation.
    • Trade barriers and disputes can reduce overall economic output.

    Industrial Revolution

    • The Industrial Revolution involved the widespread use of new technologies, like steam power and electricity.
    • This led to major changes in production methods, shifting economies from agricultural to industrial.
    • It involved transformations in energy, sectors, and production. This led to changes in societies worldwide.

    Economic Crises

    • A recession occurs when economic activity declines and GDP falls.
    • Financial crises involve a drop in the value of financial assets. Debt crises occur when countries struggle to repay their loans.
    • There are several factors behind these crises. Historical examples include the Great Depression and the 2008 financial crisis.

    Globalization and International Cooperation

    • International institutions like the UN, WTO, and IMF play important roles in governing and managing the world economy.
    • These institutions have varying degrees of clout and success in managing global issues.
    • Cooperation among countries is crucial, but disagreements frequently arise over trade agreements, global regulations, and global economic governance.
    • The interplay between the state, the market and civil society is very important for successful management of global economic issues.

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    Description

    This quiz explores the concept of economic globalization, focusing on its historical stages and significant methods used in globalization studies. Participants will learn about the evolution from limited trade networks to contemporary neoliberal globalization. Analyze quantitative methods used to evaluate global economic changes.

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