Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
24 Cards in this Set
- Front
- Back
|
Pre-19th Century International Trade
|
- mercantilist trade
- high value-to-volume goods - small relative to national economies |
|
|
- Relationship between international trade and industrialization
- Engine of industrial capitalism in England - Application of new technology and power to production - English cotton textiles: spurred industrial revolution and globalization |
Industrial Revolution
|
|
|
- geopolitical effects of end of Napoleonic Wars
- British hegemony |
Post-1814 Pax Britannica (Latin for the “British Peace”)
|
|
|
- steamships
- Suez Canal (completed 1869) - international submarine telegraph - railroads - mass trade in basic commodities - mass migration of people - greatest benefits, initially, accrued to Great Britain |
The Transportation and Communications Revolution
|
|
|
- Repeal of the Corn Laws
- Movement against mercantilism in England - Theory of Comparative Advantage - Principle of “Most Favored Nation” - Role of colonies |
Free Trade
|
|
|
- Financial innovation
- New forms of equity |
Growth of Foreighn Investment
|
|
|
- designed to facilitate international transactions
- reduced financial risks - stimulated foreign investment |
The Gold Standard System
|
|
|
- excluded nations not on gold
- subjected primary commodity exporters to economic shocks - vicious cycles of boom and bust - burden adjustment on poor countries and labor |
Economic consequences of Gold Standard
|
|
|
- growth in U.S. military and economic power (1870-1914) and
gradual replacement of British hegemony by U.S. hegemony (1914-1945) - protracted end of the First Era of Globalization, 1914-1940 |
General Themes (from week 5)
|
|
|
- industrial competition from Europe, Japan, USA
- overproduction - effects: protectionism; race for colonies; restrictions on immigration |
Erosion of British Hegemony
|
|
|
- Allies vs. Central Powers
- relative decline of Great Britain/rise of the United States - Wilsonian internationalism |
World War I (“The Great War”)
|
|
|
- finance and portfolio investment
- FDI – market-oriented and supply-oriented |
U.S. Economic Expansion in the 1920s
|
|
|
- internationalism vs. nationalism
- economic - political - cultural |
Contradictions of the 1920s
|
|
|
- international imbalances
- failed European economic recovery - abandonment of the gold standard - division of the world economy into competing blocs/autarky and fascism |
Final Collapse – 1930s
|
|
|
standoff between isolationism and internationalism in U.S.A.
|
The 1930s Reversal of Globalization
|
|
|
- oil resources shaped the origin, conduct, and outcome of the war
- development of technologies vital to late-20th century globalization - Henry Luce declaration of “American Centur |
The Second World War
|
|
|
Bretton Woods System (BWS)
Four pillars: 1) Gold-dollar system; 2) IMF; 3) World Bank; 4) GATT |
New World Financial Order
|
|
|
- liberalization of trade, but not finance
- nationally based economic growth - regional economic integration - key trade links established between raw material producers and consumers - late 1940s, BWS poorly equipped to rebuild world economy, but long term importance as shaper of international trends in production and trade |
Keynesian compromise between economic nationalism and internationalism
|
|
|
- Post-WWII crisis
* traditional narrative – Cold War instigated by global threat of communism * Economic interpretation - secondary cause of crisis - Soviet expansion - primary cause of crisis - “Dollar Gap” (struggling European and Japanese recovery) and U.S. isolationism |
The Cold War: Post WWII Crisis
|
|
|
- Truman Doctrine (1947) and Marshall Plan (1948)
- exaggeration of Soviet threat - importance of Middle East oil - partial success and failure of these solutions - renewed crisis in the system in 1949 |
The Cold War: Attempted Solutions to Dollar Gap
|
|
|
- “military Keynesianism”
- jump-started the reconstruction and reintegration of the global economy |
The Cold War: Korean War
|
|
|
a. Currency Convertibility in Europe
- European Economic Community (EEC) - Growth in U.S. FDI in Europe b. Trade Liberalization under GATT c. Transportation and Communication technologies d. Redirection of Foreign Investment Flows |
Prefiguring the Second Global Economy
|
|
|
a. End of the Long Boom and Bretton-Woods System – 1969-1971
b. Oil Shocks – First (1973-1974) and Second (1979) c. “Reaganomics” and “Volcker Shock” |
Launching the Second Global Economy
|
|
|
A. Process 1
- Third World debt crisis and structural adjustment - Neo-liberal reform forced open highly regulated economies B. Process 2 - oil price collapse, or “Third” Oil Shock (1985-1986), and end of Cold War (1989) - elimination of alternative development models |
The New Era of Globalization
|
