Globalization and Economic Theories Quiz

Globalization

• Refers to the increasing integration of economies around the world.
• Involves the movement of goods, services, capital, people, knowledge, and ideas across borders.
• Is driven by technological advancements and innovation.

Economic Globalization

• Refers to the establishment of a global common market based on free exchange of goods and capital.
• Has led to unprecedented reductions in tariffs and trade barriers through the World Trade Organization (WTO)
• Can be unequal with some countries, corporations, and individuals benefiting more than others.

Theories of Global Stratification

• Modernization Theory: Wealthy nations became wealthy due to developing the right beliefs, values, and practices early on.
• Dependency Theory: Poor nations were unable to pursue economic growth due to being conquered and colonized by European nations.
• World System Theory: Some nations become modernized by exploiting others.

Types of Global Poverty

• Relative Poverty: Lacking the minimum income needed to maintain the average standard of living in a society.
• Absolute Poverty: Lacking the minimum income needed to meet basic living needs over an extended period of time.
• Subjective Poverty: Income does not meet personal expectations and perceptions.

Typology for Global Stratification

• First Typology:
  • First World: Western capitalist democracies of North America and Europe, and other nations like Australia, New Zealand, and Japan.
  • Second World: Nations belonging to the Soviet Union.
  • Third World: Remaining nations, mostly from Central and South America, Africa, and Asia.
• Replacement Typology:
  • Developed: High-income nations.
  • Developing: Middle-income nations.
  • Undeveloped: Low-income nations.
• Popular Typology:
  • Wealthy (or high income):
  • Middle-income:
  • Poor or low-income:

Global Economy

• Refers to the system of trade and industry across the world that emerged due to globalization.
• Its origins can be traced back to the expansion of long-distance trade during the "long sixteenth century" (1450-1640).

Elements of Globalization

• Trade Agreements: Bilateral, regional, or multilateral economic arrangements designed to reduce or eliminate trade barriers.
• Capital Flow: Measurement of increases or decreases in a nation's domestic or foreign assets.
• Information Transfer: Communication trends help mitigate asymmetric functioning of markets and economies.
• Migration Patterns: Impact of labor market fluidity on production costs through emigration or immigration of skilled workers.
• Spread of Technology: Rapid diversion of means and methods for producing goods and services.

Labor Market

• Refers to the supply and demand for labor, where employees provide supply and employers provide demand.

Aspects of Globalization

• Industrial Globalization: Development of worldwide production markets and broader access to foreign products for companies and consumers.
• Financial Globalization: Development of worldwide financial markets and better access to external financing.
• Economic Globalization: Establishment of a global common market.
• Political Globalization: Creation of international organizations to regulate relationships among governments and guarantee rights stemming from social and economic globalization.
• Informational Globalization: Increase in information flows between geographically remote locations.
• Cultural Globalization: Sharing ideas, attitudes, and values across national borders.

"Scapes" of Globalization (Arjun Appadurai)

• Ethnoscapes: Global movement of people, e.g., migration, studying abroad.
• Mediascapes: Flow of culture, e.g., print media, magazines.
• Technoscapes: Circulation of mechanical goods and software, e.g., television, mobile phones.
• Financescapes: Global circulation of money, e.g., through banks.
• Ideoscapes: Realm where political ideas move around.

Explore the concepts of globalization, economic integration, and the theories behind global stratification. This quiz will test your understanding of modern economic dynamics and the impact of globalization on different nations. Assess your knowledge on capitalism, poverty, and international trade.