18 Questions
What are the three roots of the emergence of international trade and production networks?
Technological roots with improvements in communication and transportation, political roots with the removal of protectionist barriers, and ideological roots with the free market ideology
What are the two components of competition advantages in global value chains?
Low cost advantages and differentiation advantages
What is the primary benefit of slicing the value chain in global production networks?
It allows producers to concentrate resources on specific steps in the production process and directly connect with consumers
What is the characteristic of market linkage in global value chains?
It is a temporary or persistent connection between producers and consumers, with low costs of switching partners
What is the key feature of relational value chains in global production networks?
Complex interactions between buyers and sellers, creating mutual dependence and high asset specificity
What is the primary consequence of the emergence of international trade and production networks on governance structures?
Alteration of governance structures and redistribution of gains in the global economy
What is the main difference between internationalization and globalization in the context of economic activities?
Internationalization refers to the geographic spread of economic activities across national boundaries, while globalization refers to the functioning integration of internationally dispersed activities.
How has the globalization of the economy impacted the division of labor?
It has given the division of labor geographical dimensions, with different areas specializing in different types of activity.
What is the classic international division of labor, and why is it no longer accurate?
It is the notion that industrialized countries produce manufactured goods and non-industrialized countries supply raw materials and become markets; however, it is no longer accurate due to increased complexity.
What was the outcome of the Bretton Woods conference, and what led to the collapse of the system in 1970?
The conference created a system of embedded liberalism, fostering free trade and state action for full employment; the system collapsed in 1970 due to the balance of payment crises and the inability of the system to adapt to changing economic conditions.
What are the two key elements that characterize the contemporary global economic order?
The deepening of liberalism of the postwar regime and the deepening of economic integration.
What role has the IMF played in shaping the contemporary global economic order, particularly in response to balance of payment crises?
The IMF has intervened in national economies to address balance of payment crises, promoting market-oriented reforms and stabilization policies.
What is the primary difference between external markets and internal markets, and how did the latter evolve to require political regulation?
External markets involved trade with people outside the community, whereas internal markets involved trade with people inside the community, and items came from immediate surroundings. Internal markets evolved to require political regulation with the use of money.
How did the emergence of national markets overcome market fragmentation, and what role did political forces play in this process?
The emergence of national markets overcame market fragmentation by breaking with medieval interests, and political forces played a key role in this process through the role of revolution.
What are the key characteristics of international markets, and how do they reflect the social structure of societies?
International markets are characterized by interconnectedness, trans-border trade, currencies, and transnational cooperation, and they reflect the social structure of societies as a result of political design.
How did the industrial revolution contribute to the development of modern mass markets, and what were the prerequisites for this development?
The industrial revolution contributed to the development of modern mass markets by allowing for the production of new products, the creation of new systems of distribution, and the emergence of new institutions, and the prerequisites for this development were stability and order in society.
What is the relationship between the economy and society, according to economic sociology?
The economy is embedded in society, and analyzing it in terms of societal conditions makes economic processes unified and produces structure.
How did the evolution of markets influence the development of social structure and political institutions?
The evolution of markets influenced the development of social structure and political institutions by determining social structure and being influenced by social and political institutions, and their evolution was influenced by the evolution of society and political forces.
This quiz explores the emergence of international trade and production networks, their impact on governance structures, and the redistribution of gains in the global economy. It covers the technological, political, and ideological roots of global trade and production.
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