World Economy 1st Semester Overview

Regionalization focuses on cooperation among nearby countries, while globalization involves integration on a global scale.

Regionalization enhances security by addressing internal and external threats, such as illegal immigration and environmental damage.

A government might support regionalization to improve inter-state relations and build confidence among neighboring countries.

<p>RTAs are generally easier to implement than global agreements due to fewer participants and more aligned interests.</p> Signup and view all the answers

<p>Spain had to implement significant reforms to meet EU standards, facilitating international trade.</p> Signup and view all the answers

<p>RTAs provide protection to vulnerable sectors and offer opportunities for deeper economic integration.</p> Signup and view all the answers

<p>Challenges include participating countries not being significant economic partners and inequalities affecting less developed nations.</p> Signup and view all the answers

<p>The establishment of the European Economic Community in 1957 was a significant factor that spurred regionalism.</p> Signup and view all the answers

<p>Critics argue that globalization leads to the destruction of local production and imposes neo-liberal policies that ignore the complexities of the global political economy.</p> Signup and view all the answers

<p>Westernization in modernization theory refers to the process by which less developed societies acquire traits common to more developed, Western societies.</p> Signup and view all the answers

<p>The stages of economic growth include traditional society, preconditions for take-off, take-off, the road to maturity, and the age of mass consumption.</p> Signup and view all the answers

<p>Dependency theory posits that development and underdevelopment are structurally symbiotic, with the global system perpetuating underdevelopment.</p> Signup and view all the answers

<p>In the 1970s, some countries implemented import substitution policies, aiming to produce goods locally rather than relying on imports.</p> Signup and view all the answers

<p>Neo-liberalism is characterized by the belief in the freedom of the market and minimal governmental intervention in the economy.</p> Signup and view all the answers

<p>Neo-liberalism has faced criticism due to its inadequacy in addressing economic crises and the growing inequalities it has created.</p> Signup and view all the answers

<p>Modernization theory also emphasizes social and cultural changes as essential components of development alongside economic growth.</p> Signup and view all the answers

<p>Regionalism refers to the formal process of intergovernmental collaboration between two or more states.</p> Signup and view all the answers

<p>The Maastricht Treaty committed member countries to a full monetary union by 1999, promoting economic and political integration.</p> Signup and view all the answers

<p>The Most Favoured Nation principle ensures that any favorable trading conditions granted by one WTO member must be extended to all other members.</p> Signup and view all the answers

<p>Global imbalances raise concerns about sustainability and the need for greater macroeconomic coordination between nations.</p> Signup and view all the answers

<p>The WTO requires all regional trade agreements to be registered, ensuring transparency and compliance with international trade rules.</p> Signup and view all the answers

<p>A PTA is an agreement between countries that grants each other reduced tariffs and improved trade conditions, but it does not cover all aspects of trade like comprehensive free trade agreements.</p> Signup and view all the answers

<p>Regionalization focuses on increasing economic interdependence within specific regions rather than on the global scale.</p> Signup and view all the answers

<p>The Euro-Crisis revealed intra-regional imbalances and a lack of flexibility in wages and prices among member states.</p> Signup and view all the answers

<p>Exceptions include special relationships between countries, such as the US-Mexico trade scenario, and better conditions offered to very low developed countries.</p> Signup and view all the answers

<p>Countries pursue regional trade agreements to enhance trade relationships and facilitate economic cooperation, even when cultural or developmental differences exist.</p> Signup and view all the answers