TOPIC 2 - STRUCTURES OF GLOBALIZATION.pptx
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STRUCTURES OF GLOBALIZATI ON TOPIC 2 ECONOMIC GLOBALIZATION Historicalprocess Result of human innovation and technological progress ECONOMIC GLOBALIZATION Increasing integration of economies around the world Movement of goods, services, and capital Movement of people (labor)...
STRUCTURES OF GLOBALIZATI ON TOPIC 2 ECONOMIC GLOBALIZATION Historicalprocess Result of human innovation and technological progress ECONOMIC GLOBALIZATION Increasing integration of economies around the world Movement of goods, services, and capital Movement of people (labor) and knowledge (technology) across international borders. INTERNATIONAL MONETARY SYSTEMS ‘Refers to rules, customs, instruments, facilities, and organizations for effecting international payments’ (Salvatore, 2007:764) THE GOLD STANDARD The origin of the first modern-day International Monetary System (IMS) dates back to the early nineteenth century, when UK adopted gold mono- metallism in 1821. THE GOLD STANDARD One of the main strengths of the gold standard system was the tendency for trade balance to be in THE GOLD STANDARD The outbreak of WORLD WAR 1 brought an end to the classical gold standard. THE GOLD STANDARD a monetary system in which the value of a country's currency is directly linked to gold. With the gold standard, countries agree to convert paper money into a fixed amount of gold. A country that uses the gold standard sets a price for gold, and it buys and sells gold at that price. EUROPEAN MONETARY INTEGRATION The collapse of the Bretton Woods System, however, placed the European Economic Community (EEC) under pressure, and member countries eventually agreed on setting up a regional monetary regime, the EUROPEAN MONETARY SYSTEM in 1979. EUROPEAN MONETARY INTEGRATION The first ten years of the European Economic and Monetary Union (EMU) were an evident success for participating countries: trade and capital transactions increased; economies became more integrated; macroeconomic stability was restored and the euro became the second most widely used reserve currency (European Commission, MULTILATERALISM: FROM THE GATT TO THE WTO After almost 50 years of rules- based trade negotiations, the Uruguay Round gave birth to a ‘real’ international trade institution, the WORLD TRADE ORGANIZATION. DEVELOPING COUNTRIES AND INTERNATIONAL TRADE The aim of United Nations Conference on Trade and Development (UNCTAD) was to promote trade and cooperation between the developing and the developed nations. THANK YOU CLASS!
