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28 Cards in this Set
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A type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market.
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Floating Exchange Rates
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An example would be in 1997, Thailand decided to use floating exchange rates which matched to the USD. This backfired and they experienced a severe financial overextension.In turn they acquired a burden of foreign debt.
This is important because a fixed exchange rate is usually used to stabilize the value of a currency against the currency it is pegged to. This makes trade and investments between the two countries easier and more predictable, and is especially useful for small economies where external trade forms a large part of their GDP. |
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A unique economic and political partnership between 27 democratic European countries. It ensures the free movement of people, goods, services, and capital enacts legislation in justice and home affairs, and maintains common policies on trade, agriculture, fisheries and regional development
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EU (European Union)
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An example of the EU would be a policy they implemented called the Common Agriculture Policy; the policy has the objectives of increasing agricultural production, providing certainty in food supplies, ensuring a high quality of life for farmers, stabilising markets, and ensuring reasonable prices for consumers
This is important because the EU brings economic prosperity and stability to its members. The European Union is the world’s biggest trading power and a major donor of financial and technical assistance to poorer countries. |
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A transplanetary process or set of processes involving increasing liquidity and growing multidirectional flows of people, objects, places, and information as well as the structures they encounter and create that are barriers to, or expedite, these flows
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Globalization
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An example would be American companies have customer service call centers located in India. This is important because Globalization allows nations to interact and share resources and information. This communication leads to economic growth, stronger alliances between nations, and an overall stronger global economy
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Processes that interconnect individuals and social groups across specific geo-political borders
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Transnationalism
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An example would be b. In the book “Factory Girls,” women leave their small villages to go to the big cities in order to find jobs at factories. They money they make is then sent back home to their families in the villages. The process of the factory jobs interconnects the cities with the rural farming villages.
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Rise of new communities and formation of new social identities and relations that cannot be defined as nation-states.
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Transnationality
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Examples of transnationality include NGOs such as Greenpeace which focuses on world wide environmental issues
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What are some barriers to global flows?
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Tarrifs, subsidies, licences, embargo
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Barriers to flow are significant because they make global trade harder.
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These people take the position that there is such a thing as globalization and it encompasses virtually the entirety of the globe
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Globalists
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B. Britain’s Prime Minister Gordon Brown is an example of a globalist; he made speeches about globalization and “new world order."
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The ideological fighting and physical boundary dividing Europe into two separate areas from the end of World War II in 1945 until the end of the Cold War in 1989.
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Iron Curtain
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This is important because it drastically affected immigration as well as restricting the flow of information
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The creation and maintenance of an unequal economic, cultural and territorial relationship, usually between states and often in the form of an empire, based on domination and subordination
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Imperialism
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An example of imperialism is the nation of Germany before WWII. Germany extended its territory by taking over other countries.
Imperialism is significant because it fosters the spread of certain political ideologies and economic systems - whether bad or good. |
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Interdisciplinary studies drawing upon economies, law, and political science in explaining how political institutions, the political environment, and the economic system -capatalist/socialist/mixed influence each other. Refers to production and markets with respect to the political system.
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Political Economy
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The US is set up to have a capitalist economy, which may reflect the democratic nature where some matters are left in the hands of the public, with little gov involvement. China, on the other hand, once had a communist government in which the political system had total control over economies, production and trade.
This is important because it means nations will have to work on similar terms despite different economic political beliefs. |
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A philosophy that assumes: the int'l system is anarchic, people act on rational choice or human nature, states seek national-interest first, and there are no universal morals/norms.
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Classic Realism
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Collateral damage caused by dropping the a-bomb on Japan in WWII has no moral implication and is acceptable because it declared the sovereignty of the US...we are simply powered by national interest and not moral code.
This view would look at globalization negatively because int'l interest will never become more important than national interest as that follows human nature. Even when nations do interact, it is motivated by egoism. |
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An element of realism that claims the international system to have no authority over regulating interactions between states, as no true authoritative world government exists. Instead, states are sovereign in pursuit of individual interests.
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Anarchical International System
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Example: The UN cannot enforce any of its international law, such as the declaration of human rights, because it has no authority that is supreme over state authority.
This is important because no national interests can come together because they are self-seeking. This implies no multi-national organizations, and that definition by nation instead of world is superior. |
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The idea that borders are becoming less closed and more "porous." People, ideas and goods can flow in and out of nations easier
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Porosity of borders
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The Red Light District in Amsterdam is an example of porous borders. Americans are able to be customers (flow in)to an industry that is illlegal in America but legal in Holland.
This is significant because a porous borders allows trade to happen easier, which increases international interdependence boosting globalization. |
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A system of intermodal freight transport using standard intermodal containers as prescribed by the International Organization for Standardization (ISO). These can be loaded and sealed intact onto container ships, railroad cars, cargo planes, and semi-trailer trucks.
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Standard Containerization
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An example of standard containerization would be how cars can be loaded into 20 or 40 foot containers, loaded onto container ships, and shipped to most countries. Japan to America
This is important because it increases flows and makes trade available overseas and not just through the airs |
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Indicates that one or more cultures impose themselves on other cultures thereby destroying local culture.
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Cultural Imperialism
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For example, old American television scripts are exported at different times to different parts of the world and tehy are adapted to the needs and interests of locals...thus some very early American tv shows are still broadcasted in other countries.
This is significant because it spreads one culture to other countries which in turn destroys the traditional local culture. |
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The economic, political, and cultural influence of the West on the rest of the world.
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Westernization
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Example: Asian cultures that have traditionally existed on a primarily plant-based diet might lose this healthy lifestyle as more people in Asia switch to a Western-style diet that is rich in animal-based foods.
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A body of work critical to the development project. It emphasizes that the development project contributed not to the development of the nation-states of the south but more to a decline in their independence and to an increase in their dependence on the countries of the north, especially the US.
Essentially this theory states that the poverty of the countries in the periphery is not because they are not integrated into the world system, or not 'fully' integrated as is often argued by free market economists, but because of how they are integrated into the system. |
Dependency theory
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an example : Poor nations provide natural resources, cheap labour, a destination for obsolete technology, and markets for developed nations, without which the latter could not have the standard of living they enjoy.
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Theory that envisions a world divided mainly between the core and the periphery with the nation-states associated with the latter being dependent on, and exploited by, the core nation states
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World system theory
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An example is The most well-known version of the world-system approach has been developed by Immanuel Wallerstein in 1970s and 1980s. Wallerstein traces the rise of the world system to 15th century, when European feudal economy suffered a crisis and was transformed into a capitalist one. Europe (the West) utilized its advantages and gained control over most of the world economy, presiding over the development and spread of industrialization and capitalism economy, indirectly resulting in unequal development.Significant work by many other scholars has been done since then.[
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This term describes an environment in which transactions between private parties are free from state intervention, including restrictive regulations, taxes, tariffs and enforced monopolies.
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Laissez-Faire
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A good example is the Danish government, the Danish can smoke marijuana and are allowed open prostitution and other things that other democratic and autocratic governments could no do.
This is significant because it allows trade to happen more freeely |
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An association including most countries in the western hemisphere; created in 1948 to promote military and economic and social and cultural cooperation
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OAS
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An example would be in 2009 when the OAS suspends Honduras due to the coup which ousted president Manuel Zelaya
The OAS is significant because it is an organization that strives to achieve an order of peace and justice, to promote their solidarity, to strengthen their collaboration, and to defend their sovereignty, their territorial integrity, and their independence |
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The commitment by nation-states to limit or eliminate restraints on the free market and free trade
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Deregulation
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A more modern example of the benefits of deregulation is computer software. This industry has escaped regulation by evolving quickly and changing rapidly. Anyone can write computer programs and sell them without a license and without government certification of the programs
This is important because it levels the playing field for trade and makes it more accessible, opportune, and easy. |
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The idea that the market will take care of all of our needs.
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Market Fundamentalism
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Example: when we were going thru the "great recession" we decided to go against "market fundamentalism" and bail out our banks.
This is significant because it outlines the idea raised by Adam Smith: that the market will care of itself and we need not interfere. This is not always true. |
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A market in which there is no economic intervention and regulation by the state, except to enforce private contracts and the ownership of property.
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Free Market
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An example of a free market would be cars: prices are set by supply and demand
Free markets are significant because they allow for prices to be set by supply/demand and is free of government interference which keeps prices low |
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A system of widely shared ideas, patterned beliefs, guiding norms and values, and ideals accepted as truth by some group.
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Ideology
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Marxism is an example of a social ideology.
Ideology is significant because ideologies define a nation; if a nation is dissatisfied, their ideologies should reflect that and become a basis for change |
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The political interaction of transnational actors aimed at solving problems that affect more than one state or region when there is no power of enforcing compliance.
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Global Governance
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For example, resources for peace could be obtained by regulating, or even reducing military budgets. This would be considered Global Governance
GG is important because there has been an acceleration of interdependences on a worldwide scale and there needs to be a world governance that regulates things on a global scale. |
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Exporting more than is imported.
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Trade surplus
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For example, Hong Kong has a trade surplus with the US because they give more to us than we give to them, thus them making more money.
Trade surpluses are significant because they lead to economic prosperity for some. |
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Importing more than is exported.
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Trade deficits
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For example, the US has a trade deficit with China because they are funding our war.
Trade deficits are significant because they show relationships between nations and now one nation can owe money to another. |
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The phenomenon whereby countries are involved in a downward spiral of competitiveness as a result of undercutting prices, lowering wages making working conditions poorer, lengthening hours of work, and increasing pressure on and demands of workers.
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"Race to the bottom"
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An example of "race to the bottom" would be how American companies outsource their labor to China. Labor is cheap there so workers' wages are low and demand is high.
This is significant because although it increases revenue, it decreases quality of life for the workers. "Somethings gotta give." |
