Understanding Globalization Processes Quiz

Periods of Globalization

• Modern Period (1750-1970): innovations in transportation and communication technology, population explosion, and increased migration led to cultural exchanges and transformation in traditional social patterns.
• Contemporary Period (1970-Present): creation, expansion, and acceleration of worldwide interdependencies occurred in a dramatic way, marking a significant leap in the history of globalization.

Dimensions of Globalization

• Economic Dimension: refers to the extensive development of economic relations across the globe as a result of technology and the enormous flow of capital, stimulating trade in both sources and goods.

Major Players in Global Economic Order

• Huge international corporations (e.g. General Motors, Walmart, Mitsubishi)
• International Economic Institutions (e.g. IMF, World Bank, World Trade Organization)
• Trading System

Sources of Economic Growth across Countries

• Property rights
• Regulatory institutions
• Institutions for macroeconomic stabilization
• Institutions for social influence
• Institutions for conflict management

Economic Institutions

• Have decisive influence on investment in physical and human capital, technology, and industrial productions
• Important for resource distribution

Social Relations

• The intensification of worldwide social relations means that local happenings are shaped by events occurring far away, and vice versa
• Intermingling of local and global, with the national and regional in overlapping horizontal scale

Historical Periods of Globalization

• Prehistoric Period (10000 BCE-3500 BCE): earliest phase of globalization, with geographically limited contacts among hunters and gatherers due to lack of advanced technology
• Pre-modern Period (3500 BCE-1500 CE): invention of writing and the wheel boosted globalization, facilitating the spread of ideas and inventions and increasing the efficiency of transportation
• Early Modern Period (1500-1750): European Enlightenment project attempted to achieve a universal form of morality and law, strengthening globalization through the emergence of European metropolitan centers and unlimited material accumulation

Origin of Economic Globalization

• 16th century: increasing long-distance trade, marking the origin of modern economic globalization
• Silk Road: a historical example of archaic globalization, connecting western China, the Parthian empire, Rome, Asia, Africa, and Europe

International Monetary System

• Refers to a system that forms rules and standards for facilitating international trade among nations
• Helps in allocating capital and investment from one nation to another
• Gold Standard: an international monetary system that facilitated international trade and investment