Economics - Demand and Supply Concepts

The transatlantic trade of enslaved Africans, raw materials, and manufactured goods between Europe, Africa, and the Americas profoundly impacted African societies.

The economic system prioritizing the colonizer's needs, mainly extracting resources from colonized lands.

Early European attempts in Asia were often confined to coastal areas due to powerful empires, established trade networks, and initial lack of desired luxury goods.

Organizations enabling long-distance trade by pooling investments (tradable shares) and sharing risks through limited liability.

Machines and new energy sources in factories boosted European productivity and power, driving renewed colonialism.

Balancing trade, Britain sold opium to China, leading to the Opium Wars.

The need for labor on plantations in the Americas intensified the demand for enslaved Africans.

Various factors contributed to Britain's early lead in the Industrial Revolution, including resources, technology, and favorable economic conditions.

A system where the state plays a significant role in regulating businesses and providing social programs to improve people's well-being, while still maintaining a capitalist system.

A way of looking at society and the global economy where challenges such as exploitation and dominance are seen as key drivers of events.

Groups like classes, genders, and ethnicities, which are either in power or are exploited by powerful groups.

The study of the relationships between politics and economics on a global scale.

IPE emerged in the US and UK in the 1970s, driven by economic events like the oil crisis.

A school of thought that questions the existing structure of society by looking at inequalities and conflicts between groups.

Modern interpretations of Karl Marx's ideas, often focusing on capitalism's flaws and unequal power.

IPE draws from Economics (scarce resources), Political Science (power), and Political Economy (politics and economics interplay).

The major powers realized the need for stability in the international financial system, avoiding protectionism, providing social safety nets for workers, maintaining peace through arrangements like NATO, and US leadership to maintain the system.

The Cold War was marked by intense economic competition between the United States and the Soviet Union on all levels, including military, political, and economic.

During the Cold War, numerous developing nations became battlegrounds for proxy wars between the US and USSR.

The US used its dominance to establish institutions to manage the global economy. Key institutions include the IMF, GATT/WTO, and the Marshall Plan to reconstruct Europe.

The Western economic system is based on these principles, emphasizing open markets, international law, and cooperation among nations.

This system relies on central planning to control economic activity, opposed to private property and market forces.

Countries like China, Cuba, Vietnam, and North Korea implemented central planning, often leading to industrialization and social progress.

While central planning achieved progress in industrialization, women's rights, and literacy, it often came with significant social costs.

The end of the Cold War brought about three key global trends: competition between capitalist models, the impact of the information revolution, and developments in international organizations.

These two models of capitalism differ in their financial institutions, welfare systems, and labor relations.

This model is characterized by an authoritarian state, tight control over labor, and a focus on exports.

The information revolution, similar in scale to the Industrial Revolution, has significantly impacted technology, economics, social life, and military power.

Organizations like the UN, IMF, World Bank, and WTO play a crucial role in global governance and cooperation.

The decolonization period, from the 1950s to the 1970s, saw dozens of countries gain independence, shifting the balance of power and leading to a surge in new sovereign states.

Regions like tax havens and export processing zones provide incentives for businesses and investments, sometimes at the cost of local economies and transparency.

The rise of new powers and potential conflict raises questions about the future of international organizations and the balance between global and regional cooperation.

Agreements between countries to lower trade barriers among themselves, like eliminating tariffs or quotas.

Reasons include: 1. Access to markets, like Canada joining NAFTA, 2. Signaling reform commitment, like Mexico joining NAFTA, 3. Gaining bargaining power in organizations like the WTO, and 4. Addressing deadlock in global negotiations.

RTAs eventually lead to a more global free trade environment, complementing the WTO.

The creation of three large trading blocs in the Americas, Europe, and Asia, potentially leading to greater competition and protectionism, making WTO rules less relevant.

The WTO significantly shaped globalization over the past 30 years, promoting free trade and international cooperation.

Globalization and the multilateral trade system are facing challenges from various sources, including political movements like 'America First,' rogue states, and countries withdrawing from regional agreements.

During the 1990s, globalization was largely unchallenged, with the WTO and free markets seen as the dominant force.

Many tensions surrounding globalization are manifested in the trade regime of the WTO.

Development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs. This concept was introduced by the Brundtland Commission.

Remittances, money sent back from migrant workers, are playing an increasingly important role in global development.

The World Bank is a major international development agency that provides loans to countries, sets global development standards, and helps resolve investment disputes.

The International Development Association (IDA) offers long-term, interest-free loans to the world's poorest countries, primarily in Africa and South Asia.

The International Bank for Reconstruction and Development (IBRD) provides market-rate loans to middle-income countries, primarily in Europe, East Asia, and Latin America.

The World Bank has been criticized for its structural adjustment programs (SAPs), its focus on market-oriented solutions, and its governance structure dominated by wealthy nations.

The Highly Indebted Poor Country (HIPC) and Multilateral Debt Relief Initiative (MDRI) have been implemented to provide debt relief to heavily indebted developing nations.

Environmentalism focuses on human interests and the environment, while ecologism emphasizes the interconnectedness of humans and nature in a non-hierarchical way.