SOCSCI 1105 The Contemporary World

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Questions and Answers

What is the primary characteristic of Multinational Corporations (MNCs)?

They operate in more than one country with centralized management. (correct)

They operate in multiple countries without centralized management.

They are limited to the online retail sector.

They solely focus on domestic markets.

Which factor is NOT associated with Slowbalization?

Changing consumer demands

Increasing tariffs

High global unemployment (correct)

Rapid technological advancements

Which of the following best describes Deglobalization?

A reduction in interdependence and integration among countries. (correct)

An increase in international trade and investments.

A complete abandonment of global economic practices.

An endorsement of free markets worldwide.

What phenomenon does the term 'Slowbalization' refer to?

A slowing down of global integration. Signup and view all the answers

Which event is considered a factor that contributed to the emergence of modern globalization?

The fall of the Soviet Union. Signup and view all the answers

What is a primary impact of technological advancements on global trade?

They facilitate faster communication and transportation. Signup and view all the answers

Which of the following was identified as a contributor to deglobalization?

Income inequality issues. Signup and view all the answers

What role do Transnational Corporations (TNCs) generally play in the global economy?

They operate in multiple countries with decentralized management. Signup and view all the answers

What is the primary function of the International Monetary Fund (IMF)?

To promote international financial cooperation Signup and view all the answers

Which organization replaced the General Agreement on Tariffs and Trade (GATT)?

World Trade Organization (WTO) Signup and view all the answers

What characterizes a Multilateral Development Bank (MDB)?

They provide long-term financing at reduced interest rates to developing countries Signup and view all the answers

What was the primary goal of the General Agreement on Tariffs and Trade (GATT)?

To facilitate liberalization of trade by reducing tariff barriers Signup and view all the answers

Which of the following is NOT a concern of the World Trade Organization (WTO)?

Direct control over member states' macroeconomic policies Signup and view all the answers

Who typically holds shares in an International Financial Institution (IFI)?

National governments and international organizations Signup and view all the answers

Which aspect does the WTO focus on that GATT did not?

Trade in services Signup and view all the answers

What principle underlies the operations of the World Trade Organization (WTO)?

Neoliberalism promoting free and open trade Signup and view all the answers

What does the term 'globalization' refer to according to Thomas Larsson?

The process of world shrinkage Signup and view all the answers

What is the focus of the second stage of Thomas Friedman's globalization?

Companies seeking markets and labor Signup and view all the answers

Which phrase is associated with Marshall McLuhan regarding globalization?

Global village Signup and view all the answers

What characterized the first stage of globalization (1.0) according to Friedman?

Colonization and the energy revolution Signup and view all the answers

Which of these concepts was identified by the IMF in the late 2000s as part of globalization?

Trade and transaction Signup and view all the answers

During which phase of globalization does Proto-globalization occur?

The era of early civilizations Signup and view all the answers

Which term was first used as a noun in a publication in 1930?

Globalization Signup and view all the answers

What does 'Archaic globalization' primarily refer to?

Globalizing events from early civilizations Signup and view all the answers

What was the primary currency basis for the Bretton Woods System established in July 1944?

Gold Signup and view all the answers

How did Nicaragua's currency exchange rate relate to the US dollar according to the Bretton Woods System?

5 cordobas equals 1 dollar Signup and view all the answers

What role did the International Monetary Fund (IMF) serve within the Bretton Woods System?

To oversee and stabilize exchange rates between currencies Signup and view all the answers

Which of the following was a stipulation for member states regarding their currencies for international trade?

Eliminate restrictions on currency use for international trade Signup and view all the answers

What was the agreed par value of the US dollar in relation to gold at the establishment of the Bretton Woods System?

$35 per ounce Signup and view all the answers

What was one of the key outcomes of the Bretton Woods meeting?

Creation of the International Monetary Fund Signup and view all the answers

What was stipulated regarding the convertibility of the US dollar within the Bretton Woods System?

The dollar was convertible into other currencies or gold at a fixed par value Signup and view all the answers

What was a primary objective of the Bretton Woods meeting for major economies?

To establish rules for international financial stability Signup and view all the answers

What does true internationalism reject according to the beliefs outlined?

Nationalism Signup and view all the answers

What concept did Marxists divide the world into?

Bourgeoisie and Proletariat Signup and view all the answers

What significant international event was established on May 1?

Labor Day Signup and view all the answers

Which of the following best describes 'governance'?

The exercise of authority for public benefit Signup and view all the answers

What is a primary source of global governance?

International NGOs Signup and view all the answers

Which organization aimed to prevent another world war following WWI?

The League of Nations Signup and view all the answers

Which of the following is NOT one of the main organs of the United Nations?

World Trade Organization Signup and view all the answers

How many member states does the United Nations currently have?

193 Signup and view all the answers

Study Notes

Globalization

Globalization involves increased connection and the commodification of social relations, leading to contradictory consequences.
Thomas Larsson describes globalization as a process of world shrinkage, while Manfred Steger views it as an expansion of social relations.
Marshall McLuhan coined the term "global village" in 1961.

Stages of Globalization by Thomas Friedman

Globalization 1.0 (1492-1800s): Centered on countries, driven by colonization and energy transitions; notable for the Treaty of Tordesillas dividing the new world.
Globalization 2.0 (1800-2000s): Focused on companies seeking new markets, representing a shift from medium to small world.
Globalization 3.0 (2000-present): A flattened global playing field for individuals to connect and compete, reducing distances to a tiny scale.

Historical Foundations of Globalization

"Corporate Giants" was the term used in 1897 by Charles Taze Russell for large enterprises.
The term "globalize" first appeared in 1930, and "globalization" was coined in the 1970s.
The concept became popular in the late 1980s, popularized by Theodore Levitt.
The IMF identified four basic concepts of globalization by the late 2000s: trade, migration, investment, and technology.

Phases of Globalization

Archaic Globalization: Events from the dawn of civilization, characterized by universalizing kingship, religious expansion, and medicinal understanding.
Proto-globalization: Increasing trade links exemplified by the Manila Galleon Trade and the Columbian Exchange.
Modern Globalization: Linked to industrialization, this phase saw economies of scale create high demand for commodities.

Multinational vs Transnational Corporations

Multinational Corporations (MNCs): Centralized management operating in multiple countries (e.g., Microsoft, Coca-Cola).
Transnational Corporations (TNCs): Decentralized management operating across several countries (e.g., Nike, Amazon).

Slowbalization

Coined by Adjiedj Bakas, this term describes a slowdown in global integration.
Factors include technological advances, shifting consumer preferences, higher tariffs, environmental concerns, and carbon taxes.

Deglobalization

Defined as decreasing international trade and investment, leading to reduced interdependence.
Contributing factors include persistent low unemployment, income inequality, global risks like pandemics, trade tensions, and the rise of populism.

Global Economy

Involves the free movement of goods and services and increasing interdependence through cross-border trade.
Key facilitators include outsourcing, which involves transferring activities to third-party entities for payment.

Role of International Financial Institutions (IFIs)

IFIs are chartered by multiple countries, with governments as primary shareholders.
International Monetary Fund (IMF): Established in 1945 to promote financial cooperation through convertible currencies, assisting with macroeconomic stability.
Multilateral Development Banks (MDBs): Like the World Bank, they provide low-interest loans to developing countries.

Trade Agreements

GATT: A system for trade liberalization initiated in 1947, focused on goods, and replaced by the WTO in 1995.
WTO: Focuses on reducing trade barriers including services, intellectual property, and foreign investment through various agreements.

Bretton Woods System

Established in July 1944 with 44 countries agreeing to a new monetary system based on gold and the US Dollar.
Set five foundational elements for currency exchange and the creation of the IMF and World Bank to promote stability.

Global Governance

Represents intersecting processes aimed at establishing world order through institutions and norms.
Sources of global governance include treaties, international NGOs, and influential multinational corporations.

United Nations

Founded on October 24, 1945, to promote international cooperation and prevent conflict.
Currently comprises 193 member states and operates through six main organs, with the General Assembly serving as its main policy-making body.

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Description

This quiz covers the key concepts of globalization as discussed in SOCSCI 1105, focusing on the ideas presented by Thomas Larsson and Manfred Steger. Explore how globalization impacts social relationships and institutions in contemporary society. Test your understanding of these complex processes and their contradictory effects.