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Questions and Answers
What is the name of a Spanish sailing vessel that made annual round trips across the Pacific to trade between Manila and Acapulco?
What is the name of a Spanish sailing vessel that made annual round trips across the Pacific to trade between Manila and Acapulco?
Galleon
Which of these is a defining feature of globalization?
Which of these is a defining feature of globalization?
The Bretton Woods Agreement established a floating exchange rate system.
The Bretton Woods Agreement established a floating exchange rate system.
False
What is the term used to describe a government-issued currency that is not backed by a physical commodity like gold or silver?
What is the term used to describe a government-issued currency that is not backed by a physical commodity like gold or silver?
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Which of these is NOT an aspect of globalization?
Which of these is NOT an aspect of globalization?
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What is the name of the political theory that conceptualizes the global system as a network of states, societies, and international governmental organizations?
What is the name of the political theory that conceptualizes the global system as a network of states, societies, and international governmental organizations?
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Which of these is considered a major disadvantage of fiat money?
Which of these is considered a major disadvantage of fiat money?
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What is the name of the theory that argues economic development is not equal?
What is the name of the theory that argues economic development is not equal?
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The Silk Road was the first global trade route in history.
The Silk Road was the first global trade route in history.
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What does the word 'fiat' mean when used in the context of 'fiat money'?
What does the word 'fiat' mean when used in the context of 'fiat money'?
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What are the four main elements of a state?
What are the four main elements of a state?
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Realism in international relations emphasizes the importance of cooperation and the pursuit of common interests between states.
Realism in international relations emphasizes the importance of cooperation and the pursuit of common interests between states.
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According to realism, what is the primary actor in international relations?
According to realism, what is the primary actor in international relations?
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In international relations, which theory emphasizes the role of institutions and international organizations?
In international relations, which theory emphasizes the role of institutions and international organizations?
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What is the main theme of 'World Culture Theory'?
What is the main theme of 'World Culture Theory'?
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Study Notes
Economics
- Economics is a social science focusing on production, distribution, and consumption of goods and services. It analyzes choices made by individuals, businesses, governments, and nations to allocate resources.
- Economists analyze how resources are allocated given unlimited wants and limited means.
Globalization
- Globalization is the result of human innovation and technological progress.
- It is characterized by the increasing integration of economies around the world through the movement of goods, services, and capital across borders.
- Key elements include trade in goods and services, financial markets, technology, and communications.
Silk Road
- The Silk Road was the first global trade route in history.
- It lasted approximately 1,500 years, from 130 BCE to 1453 CE.
- The Silk Road was roughly 6,437 kilometers (4,000 miles) long.
- Religion and ideas spread along the Silk Road as fluidly as goods.
- Towns along the route became multicultural cities.
- The exchange of information led to new technologies and innovations.
Galleon Trade
- Galleon trade took place during the age of mercantilism (16th-18th century).
- Spanish sailing vessels made an annual round trip across the Pacific Ocean between Manila (Philippines) and Acapulco (Mexico).
- This trade occurred from 1565 to 1815.
- Galleons were the sole method of communication between Spain and its Philippine colony and were vital to the Spanish economy in Manila.
International Monetary System
- The International Monetary System provides the institutional framework for determining rules and procedures for international payments, exchange rates, and capital movements.
Era of Bimetallism
- Up to 1870, both gold and silver coins were used for international payments.
- Exchange rates were determined by the gold or silver content of the currencies.
- Some countries used either a gold or silver standard.
Gold Standard
- The gold standard lasted from 1875 to 1914.
- It involved unrestricted gold coinage.
- There was a two-way convertibility between gold and national currencies at a stable ratio.
- Paper money was freely convertible into a fixed amount of gold. It stabilized prices and foreign exchange rates.
- Disadvantages include inflexibility during economic downturns, as gold supply couldn't always meet demand, and high mining costs.
Bretton Woods System
- Negotiated in 1944 by delegates from 44 countries.
- This system established the United States dollar as the basis for the value of other currencies (pegged).
- It aimed to create an efficient foreign exchange system, prevent currency devaluations, and promote international economic growth.
- The US dollar was pegged at $35 per ounce of gold.
Fiat Monetary System
- Fiat money isn't backed by physical commodities (like gold).
- Its value comes from the government issuing it and the relationship between supply and demand.
- Central banks have greater control over the economy.
- It's cost-efficient to produce.
- Advantages include flexibility and control for governments.
- Disadvantages include risk of inflation and loss of economic stability.
Floating Rate System
- A floating exchange rate is a regime where a nation's currency is set by the forex market based on supply and demand relative to other currencies.
- The system became popular after the failure of the gold standard and the Bretton Woods agreement.
State
- A state is a politically organized sovereign community, independent of outside control, bound by penalties of nationhood, and legally supreme within its territory.
- It's a body that provides for policies, governing state affairs, and acts as an agent through a regime of law.
- The Doctrine of Parens Patriae is a guardian of the people.
Four Elements of State
- People
- Territory
- Government
- Sovereignty
Inherent Power of the State
- Police Power: The state's pervasive and limitable power.
- Eminent Domain: The state's right to take private property for public welfare, with just compensation.
- Power of Taxation: The state's power to collect taxes (proportional contribution).
International Organizations
- Global/Universal: World Bank, United Nations, UNESCO
- Regional: United Nations, APEC, European Union
- Purposive: General or multipurpose (EU, UN), specific (WHO)
International Non-Governmental Organizations (NGOs)
- Independent of governments, can be of two types:
- Advocacy NGOs — aim to influence governments.
- Operational NGOs — provide services.
Multinational Corporations (MNCs)
- Companies with business operations in multiple countries.
- They usually have centralized headquarters to coordinate global management, with offices/factories globally.
Religious Organizations
- Data on religious denominations are presented in a chart form.
Private Individuals
- A list of notable figures across time.
Theories in International Relations
- Realism: This assumes that the nation-state is the primary actor in international relations and those actors compete with each other, driven by their interests/power.
- Liberalism: This emphasizes cooperation and interdependence among nations, as well as the positive aspects of humans.
Interdependence
- Importance of International Organizations & NGOs
- Multinational Corporations (MNCs),
- Religious Organizations
- Cooperation/Interdependence
Dependence
- Based on Karl Marx's philosophy.
- World Systems Theory
- Capitalist System
Globalization
- Refers to the process by which more people across large distances become connected in different ways.
- Global communication, trade, technology, and cultural exchange are increasingly interconnected.
Timeline of Globalization
- Periods:
- Ancient
- Medieval
- Renaissance
- Modern
Concepts of Globalization
- Transferrence — exchange of elements.
- Transformation — changes in systems/structures.
- Transcendence — exchange across existing boundaries.
Aspects of Globalization
- Political — global policy, cooperation
- Cultural — unification of values, principles
- Social — standards of living
- Economic — interdependencies
- Ecological — degradation of the environment
- Technological — cross-cultural technology exchanges
Theories of Globalization
- World System Theory — examines economic development inequalities
- World Polity Theory — importance of global organizations in international interaction.
- World Culture Theory—analyzing shared global values, principles impacting state actions.
Issues impacting globalization
- The challenges of the changes brought about by globalization are presented as an issue
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