Review For Intb_Test2_Priest[1]

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Second Industrial Revolution

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the industry was factory based (technology: cars, oil) unlike the first industrial revolution (coal, textiles, etc.)

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Economies of Scale

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when more units of a good or a service can be produced on a larger scale, yet with less input costs, economies of scale are achieved (each extra unit produced is cheaper)

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McKinley Tariff (1890)

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Republican Party's leading spokesman for protectionism in foreign trade, McKinley established substantially higher tariff rates on imported goods in order to protect U.S. business and manufacturing, average rate of 48% (that was the highest in US history up to that point)

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Immigration Law (National Origins Act) of 1924

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limited immigration from any nation to 2% of its representation in the 1890 census, the bill’s sponsors made no attempt to conceal its discriminatory intent at restricting “less desirable” immigration from southern and eastern Europe, quotas were based on the presumed desirability of various nationalities; aliens from northern and Western Europe were considered more desirable than those from southern and Eastern Europe (WHO’S THE PRESIDENT?)

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“As-is” Agreement (1928)

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sell any surplus oil that might develop to one another at a price agreed upon at Achnacarry, to refuse to buy oil from anyone outside of the Achnacarry agreement regardless of how cheap it was, to share tankers and refineries, and that all European oil would be sold at a cost equivalent to the cost of shipping it from Gulf of Mexico

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Charles Lindbergh

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admired Hitler, wanted the US to be in isolation during the World War II, flew across the Atlantic and first solo non-stop flight across the Atlantic Ocean in 1927

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Liberal Internationalism (‘Wilsonian Internationalism’)

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open trade, League of Nations & Fourteen Points: freedom of seas, removal of trade barriers, disposition of colonial issues, an end to secret diplomacy and alliances, and restrain on wasteful arms spending – majority of Americans didn’t agree with his views [France and Britain wanted Germany to pay reparations so didn’t work out how Wilson wanted it to and Germany felt betrayed because they felt they were going to be treated equally] [pg 55]

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Dawes Plan (1924)

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lowered German reparations installments and extended American loan to Germany through investments bank JP Morgan; to stabilize Germany, it improved the private investment climate in Germany after the hyperflation of 1923, and US private capital poured in, [American money paid to Germany was handed over as reparations payments to the Allies, who sent it back to the US as war debt] [pg 63]

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Juan Trippe

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had formed several air transport companies to break into the shipping business, had a dream of dominating Latin American routes and also envisioned an “air bridge” from Alaska across the Bering Strait to Russia and Asia, through investments Trippe was partnered up with Bill Rockerfeller and formed Pan Am to accomplish his missions, got contract for mail service between Key West and Havana, from then on began expanding Pan Am by discovering new routes, US government favored Pan Am [pg 67-68]

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Smoot-Hawley Tariff (1930)

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overseas mkts for US exporters constricted as other countries pursued similar policies (“beggar thy neighbor policies”); raised U.S. tariffs to historically high levels, the original intention behind the legislation was to increase the protection afforded domestic farmers against foreign agricultural imports, [while the tariff might not have caused the Depression, it certainly did not make it any better]

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Cordell Hull

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campaigned to open foreign markets to American exporters in exchange for improved foreign access to the US market, focused on international cooperation in trade, insisted on restating the case for globalization despite the isolationist mood of the times, limit trade barriers [pg 85,86,88]

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Harry Dexter White

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American economist and senior U.S. Department of Treasury official, involved in the formation of the International Monetary Fund and the World Bank and was a Soviet secret agent, wanted to make the dollar supreme (pg 107)

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International Monetary Fund (IMF)

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providing short-term assistance to members to finance pymts deficits and ease the pain of adjusting exchange rates; the global financial system by monitoring exchange rates and balance of payments, as well as offering technical and financial assistance when asked, did not achieve its promise till the 1950s (pg 126), created after WW2, [giving advice and loaning money (like a bank)]

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World Bank

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long-terms loans that has the authority to underwrite loans and issue securities; responsible for providing finance to countries for purposes of development and poverty reduction, and for encouraging and safeguarding international investment, created after WW2, [help poor countries grow and develop by spreading knowledge and technology]

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General Agreement on Tariffs and Trade (GATT)

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multilateral treaty served as a tariff-negotiating forum and offered a basic set of rules to guide the world trading system (pg 128)

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Dean Acheson

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was a United States Secretary of State under President Harry S. Truman. It has often been said that Acheson was more responsible for the Truman Doctrine than Harry Truman and the Marshall Plan than George Marshall. Although he developed anti-Communist views early in his political career, Acheson defended State Department employees accused during Senator Joseph McCarthy's anti-Communist investigations. (pg 132)

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ARAMCO

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national oil company of Saudi Arabia is the largest oil corporation in the world and the world's largest in terms of proven crude oil reserves and production, petroleum issue provides a good example of how resourse-supply needs intersected with Cold War security concerns – Departments of State and Navy concluded that it was in the highest American interest to retain access to Saudi Arabian oil and to develop it rapidly so as to conserve domestic petroleum, a coaliation of US government agencies and private companies worked to support ARAMCO and to promote 50-50 profit sharing with the Saudia Arabian government (pg 142)

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Robert Taft

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condemned internationalism of the Bretton Woods System; when Luce( American century) spoke about his ideas of US being a constructive leadership in the postwar world, Senator Taft warned that to accomplish such global reach the US would have to construct a huge and expensive peacetime military establishment (pg 119)

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Truman Doctrine

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political response to Soviet aggression in Europe, illustrated through the communist movements in Iran, Turkey and Greece. Under the Truman Doctrine, the United States was prepared to send any money, equipment or military force to countries which were threatened by the communist government. The doctrine was specifically aimed at assisting governments resisting communism. Truman insisted that if Greece and Turkey did not receive the aid that they needed, they would inevitably fall to communism with the result being a domino effect of acceptance of communism throughout the region. (pg 137)

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Marshall Plan

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was the main plan of the United States for the reconstruction of Europe following World War II, $17 billion in aid to European nations for postwar recovery and reconstruction, gave American officials say in European domestic policies, undercut appeal of leftists parties and sustain Western alliance

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NSC-68

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report argued that the Soviet Union had a systematic strategy aimed at the spread of Communism across the entire world, and it recommended that the United States government adopt a policy of containment to stop the further spread of Communism, written by Paul Nitze and issued by the United States National Security Council during the presidency of Harry Truman

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European Economic Community (ECC or Common Market)

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[had as its aim the eventual economic union of its member nations, ultimately leading to political union. It worked for the free movement of labor and capital, the abolition of trusts and cartels, and the development of joint and reciprocal policies on labor, social welfare, agriculture, transport, and foreign trade, treaty between Belgium, France, Italy, Luxembourg, the Netherlands, and West Germany, known informally as the Common Market] (pg 145)

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Suez Crisis

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[the European nations had economic and trading interests in the Suez Canal, while Israel wanted to open the canal for Israeli shipping. When the USSR threatened to intervene on behalf of Egypt, the United States feared a larger war, and forced the British and French to withdraw. The Crisis resulted in the resignation of the British Conservative Prime Minister, Anthony Eden, and marked the completion of the shift in the global balance of power from European powers to the US and the Soviet Union]

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INTELSAT

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is the world’s largest commercial satellite communications services provider

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Containerization

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a system of intermodal cargo transport using standard ISO containers that can be loaded on container ships, railroad cars, and trucks – makes loading and unloading easier

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George Ball

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thought to advocate a treaty of international corporate law administered by a supranational body composed of citizens from a range of nations, without such a body, he warned that “conflict will increase between the world corporation, which is a modern concept evolved to meet the requirements of the modern age, and the nation-state, which is still rooted in archaic concepts unsympathetic to the needs of our complex world”, was enthusiastic for trade liberalism (pg 173)

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Henry Ford II

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grandson of Henry Ford, reorganized and capitalized the company, expanded it in to Europe, hired Wiz Kids that were Air Force officers that helped reorganized the company

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“Long Boom”

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economy boomed, Gross World Product grew 5% annually during 1945 to 1968

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Transfer Pricing

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[refers to the pricing of goods and services within a multi-divisional organization. Goods from the production division may be sold to the marketing division, or goods from a parent company may be sold to a foreign subsidiary]; MNC trade practice

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Import-Substitution Industrialization

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trade and economic policy based on the premise that a developing country should attempt to substitute products which it imports (mostly finished goods) with locally produced substitutes; Prebisch’s thinking about developing countries to escape the dependency of reliance on primary products w/ declining terms of trade b/c third world thought in UN systems

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Raul Prebisch

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1st secretary general of UN conference on trade and development (UNCTAD); Argentine economist who issued a report criticizing GATT and asserting that the structure of the international economy of raw materials to declining incomes and challenged neoclassical free trade theories of GATT and rallying the Third World

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Ahmed Zaki Yamani

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Saudi Arabian oil minister; greatly shaped oil policy; Arab’s leading and most visible spokesman on oil

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Washington Consensus

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stressed an active and expansive role for federal govt; reaction to perceived mistakes of the laissez faire 1920s and the collapse of Great Depression; emerged during the Reagan years and emphasized entrepreneurship, reliance on Federal Reserve and monetary policy to manage economy, tax relief, labor mkt competition, deregulation, fluctuating exchange rates, and free trade in goods

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Brady bonds

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dollar-denominated bonds, issued mostly by Latin American countries in the 1980s] it eliminated the debt overhang and created a more favorable climate for direct investment flows (pg 197)

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Plaza Accord

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[agreement signed by the then G-5 nations (France, West Germany, Japan, the United States and the United Kingdom) to devalue the US dollar in relation to the Japanese yen and German Deutsche Mark by intervening in currency markets]

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Trilateral Commission

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Under the leadership of Chase Manhattan’s David Rockerfeller it was formed, with members from business, politics, law, and academia in America, Western Europe, and Japan – the idea was to ease cooperation with resource-rich nations, but outside of government supervision (pg 204)

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“Asian Tigers”

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refers to the economies of Hong Kong, Singapore, South Korea and Taiwan; impressive figure by high saving rates and low population growth rates as well as efficient use of capital; also drew on substantial foreign direct investment; borrowing to supplement domestic savings, to relax foreign exchange constraints (promote industrialization), to integrate their economies into world economy

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Petrodollars

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a dollar earned by a country through the sale of oil

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Paul Volcker

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US Federal Reserve Chairman; is credited with ending the United States' inflation crisis of the early 1980s by constricting the money supply through a sharp increase in interest rates

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“Hollow Corporations”

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example would be Nike, which designed and marked athletic shoes made be low-income workers in developing countries (pg 209); had no production base and relied instead on dynamic networks to take advantage of the cheapest foreign labor and best technology

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Maastricht Treaty (1991)

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which was renamed the European Economic Community the European Union, these nations agreed to adopt a common currency (the Euro), by 1999, and proceed towards full monetary unification (pg 225)

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Jeffrey Sachs

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Harvard economist; was shock therapist; built reputation advising Latin American nations like Bolivia to reduce inflation and Eastern European countries how to restructure and privatize

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Intellectual Property Rights

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stregnthen IP during 1970s, losing a lot of money due to pirate copies of movies, etc. mainly in Taiwan, Mexico, South Korea, Brazil, China, Canada, and India (pg 212) [IP means legal entitlement generally enables its holder to exercise exclusive rights of use in relation to the subject matter of the IP, reflects the idea that this subject matter is the product of the mind or the intellect, and that IP rights may be protected at law in the same way as any other form of property ~ examples: copyrights, pantents, etc.)

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North American Free Trade Agreement (NAFTA)

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[links Canada, the United States, and Mexico in a free trade sphere] (pg 232); feared that low-skilled manufacturing jobs in US and Canada would migrate to Mexico

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World Trade Organization (WTO)

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created to replace GATT; agreed to cut tariffs on manufactures by an avg of 38%; established mandatory dispute settlement mechanism

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Purchashing Power Parity (PPP)

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world income measurement

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Margaret Thatcher

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former British Primie minister; thought up an acronym for pro-globalization solgan-There is no alternative (TINA); wanted to restructure govt in Britain; argues inequlity does not matter, so long as poverty remains low, “It is our job to glory in inequality and see that talents and abilities are given vent and expression for the benefit of us all” (notes)

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Gini Coefficient

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coefficient for measuring inequality; [used to measure inequality, the Gini coefficient is a number between 0 and 1, where 0 corresponds with perfect equality (where everyone has the same income) and 1 corresponds with perfect inequality (where one person has all the income, and everyone else has zero income)] Concept 1 (unwieghted) takes county as unity (assumes everyone has same income); comparasion of units by GDPs per capita, disregarding population Concpet 2 (weighted) takes country as unit (still assumes same income); comparsion of units by GDPs per capita, weighted by population Concept 3 (inequality) takes individuals as units, ignoring country boundaries; much more difficult to get definitive data on this

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Nike, Inc

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example of culture ~ decentralized power to spread information; sport and shoe marketer

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Global Monoculture

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Americans transforming the world in their own image and oblierating local culture

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Rupert Murdoch

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(News Corporation): His News Corporation established a multinational empire based on satellites, wireless communications, television, and prominent newspapers; he understood jingoism sold newspapers and attracted television viewers (pg 241)

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Lori Wallach

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(Global Trade Watch): helped organize the Seattle antiglobalization protests of Dec 1999

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Seattle 1999

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site of 1999 protests against WTO