30 Questions
What international fixed exchange rate system was established by the Bretton Woods Conference of 1944?
Gold standard
What event led to the suspension of the convertibility of US dollars into gold by US President Richard Nixon in 1971?
Growing public debt incurred by the Vietnam War and Great Society programs, and monetary inflation by the Federal Reserve
What did the US Treasury deliberately offer in 1944 that was suspended by Nixon's action in 1971?
Convertibility of US dollars into gold
What strategy involved building domestic industries in the 50s and 60s to replace imported products and promote industrial development?
Import Substitution Industrialization
What factor played a key role in the success of countries adopting import substitution industrialization and export promotion?
Availability of financial capital
Which group of countries saw success by aggressively building local industries and promoting exports, as mentioned in the text?
Asian Tiger neighbors
What is one example of a developed country being protectionist?
Japan's refusal to allow rice imports into the country.
Who are the main beneficiaries of global commerce according to the text?
Transnational corporations (TNCs).
What is the 'race to bottom' referred to in the text?
Lowering labor standards to attract foreign investors seeking high profits.
How do host countries attract foreign investors according to the text?
By loosening tax laws and sacrificing social and environmental programs.
What characterizes economic relations between developed and developing countries?
Trade imbalances.
What do transnational corporations prioritize over government social programs according to the text?
Profits.
What has led to the growth of national economies today?
Exports
Who were the primary beneficiaries of free trade in the past?
Advanced nations producing and selling industrial and agricultural goods
What has profoundly altered the dynamics of the global economy?
WTO-led reduction of trade barriers (trade liberalization)
What has economic globalization ushered in recent decades?
Unprecedented spike in global growth rates
According to the IMF, how much did the global per capita GDP rise in the second half of the 20th century?
Over five-fold
What has been an outcome of the increased exports due to economic globalization?
Creation of large Asian economies like Japan, China, Korea, Hong Kong, and Singapore
What was the pivotal era that 'changed the shape of the world and the course of history'?
The Age of Exploration
Which trade route connected Manila in the Philippines and Acapulco in Mexico?
The galleon trade
When did the new age of global commercial capitalism begin?
During the Age of Exploration
In what year did the countries establish a common basis for currency prices and a fixed exchange rate system?
1867
What important event in economics occurred during the last phase of the Second World War?
Bretton Woods Conference
Where did the delegates from different states assemble for the Bretton Woods Conference?
United States
What is one way governments were pressured by neo-liberal policies?
To reduce tariffs and open up their economies
Why did heavy debtor countries struggle to make significant improvements under mandated cut on public spending?
Decrease in social programs like education, health care, infrastructures, security, and environment preservation
According to the hegemonic stability theory, what enabled the establishment of a liberal global economy?
Preponderance of power and willingness of the United States to act as a hegemon
What interesting and important questions does the globalization of the world economy raise?
What causes the global economic interconnectedness in the contemporary world? Why the economic institutions established by the US in the 1970s continued to function?
What were the negative consequences heavy debtor countries faced due to mandated cuts in public spending?
Decrease in social programs like education, health care, infrastructures, security, and environment preservation, leading to greater poverty
Why did the US emerge as a superpower willing to shape the global economy according to its preferences?
Due to the preponderance of power and its willingness to act as a hegemon
Test your knowledge of the impact of neo-liberal policies on developing countries, including the effects of reducing tariffs and opening up economies. Explore how policies recommended by international financial institutions may have varying results when implemented in different countries.
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