Globalization and Its Economic Impact Quiz

Economic Globalization

• Globalization involves the movement of goods and services internationally.
• Oil is traded on international markets.
• Transnational corporations operate in multiple countries.
• Globalization's impact on prosperity is uneven.

Aspects of Economic Globalization

• William Tabb argues global interdependence negatively affects some.
• Joseph Stiglitz believes interdependence promotes conflict resolution.
• Naomi Klein points out that interdependence creates divisions.

Multinational Corporations

• Multinational corporations are often larger than national governments.
• They operate in more than two countries.
• Shifting production for profit.
• Impacts on workers and local economies.

World War I

• Major European empires were at their height in 1914.
• The overriding concern was to expand and protect empires.
• World War I involved major empires pitted against each other, including the Triple Alliance and Triple Entente.
• War to "end all wars".
• It resulted in high casualty and financial costs.
• The conflict significantly impacted European economies and transformed the global landscape.

The Treaty of Versailles

• The treaty aimed to fix post-war problems.
• Woodrow Wilson proposed the Fourteen Points for Peace.
• The treaty led to self-determination for ethnic groups to decide their own fate.
• Germany was penalized with territorial losses.
• Italy felt they were not adequately compensated for switching sides.
• The Austro-Hungarian Empire collapsed.
• The treaty profoundly shaped the 20th century's political geography.
• The treaty affected Canada's economy.

The Russian Revolution

• The Russian Empire ruled diverse ethnic groups.
• The Russian economy was underdeveloped compared to other European powers.
• The war strained Russian resources, causing significant losses and revolution.
• The Tsar was overturned.
• Communists took power and initiated a civil war.

The Union of Soviet Socialist Republics (USSR)

• Communism removed the capitalist class.
• It faced opposition from Western European and North American capitalist systems.
• The USSR was a one-party state.

Joseph Stalin

• Stalin secured power in 1929.
• He modernized the USSR to create an industrial power.
• He collectivized farms to create large state-owned facilities.
• His policies led to industrialization, requiring the relocation of populations from rural to urban areas.
• His policies involved substantial capital investment.

The Great Depression (1929-1939)

• The 1920s witnessed rapid economic growth.
• The New York Stock Market crashed in 1929.
• This caused financial panic, led to a market crash, and triggered a global economic downturn.
• Governments responded by implementing trade tariffs to foster local industries.
• International trade declined.
• Canada's economy suffered heavily.

World War II

• The Great Depression allowed for extremist leaders to ascend in Europe.
• Hitler's Germany began expanding.
• Britain and France followed policies of appeasement.
• Germany invaded Poland, and World War II began.
• A global conflict involving many countries.
• Massive deaths occurred.

Bretton Woods Agreement

• The Bretton Woods Agreement aimed to establish guidelines, organizations, and procedures for the postwar global economy.
• It led to the formation of the International Monetary Fund and the World Bank.
• This agreement created a framework to promote international trade and regulate currency among Western nations.

Organizations Influencing Globalization

• World Bank - global financial institution that provides loans and support to countries in financial difficulty.
• IMF - international financial institution that promotes stability in the global monetary system.
• GATT/WTO - international trade agreements that remove trade barriers.
• NAFTA - North American free trade agreement, promoted trade between Canada, U.S. and Mexico.
• G8 - informal group of eight industrialized countries that influenced global politics and economics.

Transnational Corporations

• Transnational corporations (TNCs) significantly expanded post-World War II.
• TNCs often relocated operations.
• They influenced national policies and economics due to their size, economic influence, and profit motives.
• Benefits like economic growth and job creation.
• Drawbacks possibly include exploitation of labor and environmental harm, as well as control over key industries and profits leaving the country.

Anti-Globalization Movement

• Critics of economic globalization voiced concerns about job losses, labor exploitation, and environmental damage.
• Supporters argue that multinational corporations have excessive influence affecting wages and the environment.

Role of Communication Technologies

• Communication technologies made globalization possible.
• E-commerce allowed for global trade.

Globalization and Sustainability

• Globalization's impact on environmental issues.
• Challenges concerning resource consumption vs. sustainability.
• Global efforts in addressing resources, climate change, and sustainable development.

Economic Growth, Sustainability & Prosperity

• Economic competition and economic growth measured by GDP.
• Privatization- trends in government's selling of publicly owned sectors.
• Knowledge economy - investment in knowledge, research, education, and related activities as a means to achieve economic growth and prosperity.
• Globalization and its relationship to access - development of resources and economic well-being.

Measures of Prosperity

• Gross Domestic Product (GDP) versus genuine well-being.
• Concerns and implications of increasing global GDP.
• Alternative measures of prosperity, like the Human Development Index (HDI), often measure well-being beyond economic indicators.

Other Measures of Sustainability

• Gross National Happiness is Bhutan's unique approach to prosperity, focused on Buddhist values.
• Genuine Progress Index (GPI) seeks to balance economic progress against sustainability and well-being.

Millennium Development Goals

• Millennium Development Goals aim to eradicate extreme poverty and hunger.
• Progress toward these goals includes global attempts to improve the well-being of the world's poorest populations.

Climate Change & Sustainability

• Climate change is related to the use of fossil fuels.
• Developing nations’ industrialization intensifies concerns about climate change.
• The Paris Agreement tries to limit global warming.
• Efforts to promote sustainability often face challenges with economic development priorities.

Changing Government Policies

• Governments implement policies to address sustainability.
• Policies on climate change and fossil fuel use can evolve over time.

Summary: What Organizations Influence Globalization

• Various organizations have varying degrees of influence on global economies, businesses and trade.
• Understanding the roles of these organizations gives insights into economic and political issues.

Summary: Is Globalization Sustainable

• Globalization presents both opportunities and challenges.
• Sustainability, resource management, and equitable distribution of resources are crucial considerations.

Summary: What is the environmental impact of globalization?

• Globalization affects the environment through resource use and trade.
• Environmental concerns regarding production processes, transportation, and waste management need to be considered.

Summary: Perspectives on Sustainability and Prosperity in a Globalized World

• Assessing the perspectives and measures of sustainability.
• Various indexes and measurements illustrate different approaches to measuring prosperity.

Summary: How can sustainable prosperity be achieved?

• Sustainability requires thoughtful consideration of economic development, environmental impact, and human well-being.

Test your knowledge on key concepts of globalization, including its benefits, limitations, and the role of national governments. This quiz covers essential economic terms like GDP and the effects of privatization in a globalized world. Challenge yourself to understand the dynamics of global communication and competition.