Crossword Terms. Midterm. History Of Globalization

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Reforms implemented through debt deflation

SAP's. The list of budgetary and policy changes required by the IMF and World Bank in order for a poor countries to qualify for a loan. This “conditionality” typically includes reducing barriers to trade and capital flows, tax increases, and cuts in government spending. Through SAPs, the IMF and World Bank can force poorer countries to prioritize macroeconomic stability over programs for public well-being. The IMF claims that this is important since countries cannot afford to spend as much money as they were spending. The result has been that governments have greatly cut the amount of money they spend on education, health care and other basic social services. The U.N. estimates that six million children a year die because of policies imposed by the IMF and World Bank

- Called for reduced trade barriers, greater openess to forcing investment, eliminate cap controls, lower taxes, reduce government regulation

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Structual Adjustment

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Developing country strategy of development (abbr)

is a trade and economic policy based on the premise that a country should attempt to substitute products which it imports, mostly finished goods, with locally produced substitutes.

Industrializing Latin American countries have adopted this policy

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I.S.I - Import Substitution-Industrialization

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Projection of American Power in Eastern Mediterranean (1947)

- 400M in military and economic aid to Greece and Turkey
- Procalimed U.S. intention to "contain" communism everywhere in the world
- Rhetoric of "supporting free peoples" and democracy, and anticommunism
- Underlying strategy: Easing the dollar drain from most valued U.S. trading partner (GB) and taking over as regional policman in teh Middle East

Attempted solutions to Dollar Gap
"Contain Communism"

Time Magazine

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Truman Doctrine (1947)

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Internationalist secretary of state, 1930's.

Former senator from Tennessee had supported free trade for years. In 1934, while Sec of State, had congress pass the Hull’s Reciprocal Trade Agreements Act which allowed the President to negotiate tariff reductions up to 50% with other countries

- Supporter of free trade
Negotiated tarrif reductions of up to 50%

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Cordell Hull

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Chinese farm Communes.

In a few months in 1958 they swiftly organized 99% of the farmers in huge communes.

The results were terrible. The harvest of 1958 was exceptionally good so the damage of the communes was not immediately showed, but the inefficiency of the system caused a great famine in 1960

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Great Leap foward

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Gold Standard regulatory process.

is a logical mechanism created by David Hume which dispelled the Mercantilist (1700-1776) notion that a nation can have a continuously favorable balance of trade.

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Price-Speci Flow Mechanism

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Austrian Economist/rival of John Maynard Keynes

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Von Hayek

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Currency Exchange

- Grew out of EEC

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Convertibility

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Club of richest nations.

Founded in 1961. Known as the rich world club is an international organisation helping governments tackle the economic, social and governance challenges of a globalised economy.

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Organization for Economic Coorporation and Development (OECD)

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Engineered and built the Suez Canal

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Ferdiand De Lesseps

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Income and price collapse

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Debt Deflation

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U.S. Aviator and isolationist

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Charles Lindbergh

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Intrafirm trade

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Transfer pricing

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1890 U.S. Tarriff

Protectionism. Backlash at globalism
Prices were falling

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McKinley

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Bank created at Bretton Woods (abbr) for short-term lending

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International Monetary Fund I.M.F.

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Bank created at Bretton Woods (abbr) for long-term lending

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World Bank

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Autrian Bank that failed in 1931. Opened by Rothschild

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Creditanstalt

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Developing nations U.N. Lobby

- To counter the economic influence of developed world

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Group of 77

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U.S. Strategy for rebuilding Japan

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Reverse Course

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Opium Trader

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East India Company

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German Chemical Company
- Found substitution for oil
- Won Noble prize in Chemistry

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Igfarben

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Oil earnings invested in commercial banks

In effect, oil shock resulted in a large transfer of money from U.S. consumers to oil states, oil companies, international banks, and U.S. arms merchant

Oil money

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Petrodollars

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Supply-side economics

-Cutting taxes and social spending will create investment
- took regulation beyond airline industry to savings and loan

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Reagonomics

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Nazi economic minister

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Hjalmar Schacht

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Plan for the Post WWII reconstruction of Western Europe

Economic aid. Attempted solutions to Dollar Gap
- Scaring the hell out of American people allowed Truman Administration to sell Marshall plan
- Shift Europe coal-based to oil-based energy
- 20% of Marshall plan funds used to buy oil supplied by American oil companies from the Middle East

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Marshall Plan

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Conference to establish new global financial arrangements
- IMF
- World Bank

Designed to promote exchange rate stability

Town in New Hampshire
Ended in '71 by Nixon

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Bretton Woods

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Chicago School Economist

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Milton Friedman

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Most powerful international banker of the late 19th century.

1840 – 1915
He ran the London office of the house of Rothschild. His life encompassed the golden age and he used his influence to to reinforce the three major pillars of the golden age international economy: finance, the gold standard, and free trade

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Nathan Mayer Rothschild

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Blueprint for U.S. militarization of the Cold War

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NSC-68

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Global satellite consortium

- Consisting of 19 nations
- Howard Hughes built and placed in orbit

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INTELSAT

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Treaty that created European currency union

Unification of currencies. Cooporation in things like broad foreign policy

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Maastricht

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Tarrifs on grains repealed in 1848

Movement against mercantilism

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Corn Laws

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East Texas Oilfield.

- Powered by Dad Joyner and Doc Lloyd

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Black Giant

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GATT round that created the WTO

- 3rd largest trading block in S. America
- Brazil, Argentina, Uruguay, Paraguay, Chili, Bolivia

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Uruguay

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Mastermind behind European economic unification.

A French brandy salesman was central to one of the Bretton Woods – era development: western europe’s creation of a common market.

- World traveler, and exporter's belief in economic internationalism

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Jean Monnet

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1928 agreement in Middle East oil supply

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Redline

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Isolationist and "Mr. Republican"

- Opposed increasing aid or political conflicts abroad

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Robert Taft

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Saudi Aramco oil company

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Aramco

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Congress that ended the Neopolonic Wars

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Congress of Vienna

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Chairman of the U.S Federal Reserve Bank early 1980's

________ shock - 79-82; raised interst rates 20%

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Paul Volcker

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Powerful chairman of Standard Oil of New Jersey

"The Boss"

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Walter Teagle

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United Western Europe behind a common external tarrif (abbr).

1958 – common market among countries in Europe. The stepping stone for the European Union, the Euro common currency.

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European Economic Community (EEC)

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Postulated that trade is not a zero-sum game.

Strongly against mercanilism. Importance of the market.
- The invisible hand
- Law of supply and demand
- Division of labor
- Critisism of mercanilism
- Laissez-faire

"Wealth of Nations"

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Adam Smith

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Equity shareholding innovation

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Limited Liability

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British or English economist critical of gold standard

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John Maynard Keynes

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Small social democrats of Western Europe.

______ Group was an organization of officially neutral countries. Four members later joined the Allies, as governments in exile: the Kingdom of Norway, the Kingdom of the Netherlands, the Kingdom of Belgium and the Grand Duchy of Luxembourg. The Oslo Group in western Europe was pulling for a rebuilt trading order after the war.

During depression in '32. Wanted to rebuild the trading system

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Oslo Group

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Trade Theory that explained patterns of export specialization

- A country will export goods that make intensive use of the resources it has in abundance. Countries with lots of land will export agricultural products and will import capital intensive industrial products, countries with lots of capital will export capital intensive products and import agricultural products.

A country will export goods that make intensive use of resources that has a lot of

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Heckscher-Ohlin Trade Theory

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Investment abroad with management control (abbr)

Investment by firm based in one country and actual produce capacity in another country

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Foreighn Direct Investment (FDI)

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Margaret Thatcher's epitaph for the Cold War

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TINA ("There is no alternative") to capitalism

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1994 Free Trade Agreement (abbr)

Removed barriers of

Copied Maastrict treaty in Europe

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NAFTA

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Post WWII global crisis

-Struggling europena and Japanese recovery & U.S. isolationism

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Dollar Gap

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Principle of Multilateral trade

The 1860 commercial treaty between Britain and France with MFN

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Most Favored Nation (MFN)

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U.S Agricultual loans
- U.S. provided loans to government around world and used to buy U.S. farm products

"Cargill" largest private company

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PL-480

Public Law 480

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Laid Trans-Atlantic Telegrpah cable

-Largest steamship
Cyrus Field, he laid the telegraph company

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Great Eastern

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Private Oil Cartel

Set market and froze prices

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A.S-I.S.

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Theorists of industrial protection

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Friedrich List

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U.S tarriff act, 1930

This policy further reduced trade

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Smoot-Hawley Tariff Act of 1930

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Architect of U.S. Cold War Strategy.
- Truman's under secretary of State (1946-1949)
- Secreary of State (1949-1952)

"Korea came along and saved us"

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Dean Acheson

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Self contained extractive operations.

Terms refers to colonies where the owners, the customers and the workers had no long term interest in the region and the impact on the local economy was minimal. They extracted whatever resources they could find in self contained enclaves of copper and gold mines or banana and sugar plantations.

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Enclaves

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Forum for Trade negotiations; precursor to the WTO (abbr)

Regulated Int's trade based on negotiations rules that benefited developed nations

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GATT
(General Agreement on Tarrif's and Trade)

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Articulated the theory of compartive advantage

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Ricardo

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Keynesian federal reserve chairman, 1930's.

A Utah's banker of the 1930's who argues for the governemnt to assume major fiscal tasks in a way that later became known as Keynesian.

Under Roosevelt

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Mariners Eccles

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Labor used in building Suez Canal

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Corvee

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U.S. Agricultural Loans

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PL480

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Costs of business placed on outside actors.

A cost or benefit from a business transaction to a third party

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Externalities

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Cotton Textile innovator

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Richard Arkwright

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Areas of trade protected by developed nations:

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Food and Fiber

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Indian Cloth desired in Europe

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Chintz

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Multinational corporation set up local production unit to locally manufacture their wares for local consumption allowing them to profit from a market without having to import the finished goods subject to import tariffs

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Tarriff Jumping

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East India Company Leader

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Robert Clive

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Prices for the same commodity in different markets approaching each other; a sign of economic globalization

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Commodity Price Convergene

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Secreary of State, Truman Administration (1947-1949)

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George C. Marshall

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refers to the post-Civil War and post-Reconstruction era, from the 1870s to the 1890s, which saw unprecedented economic, industrial, and population expansion. The era overlaps with Reconstruction (which ended in 1877) and includes the Panic of 1873

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Gilded Age

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The relationship between the prices of imports and exports. The trend in this century has been for cheap primary products and expensive manufactured goods, and—with the exception of oil—most raw material prices fell very sharply from the mid-1980s. This has happened because large companies from the rich, industrialized nations can dominate and structure internal markets in a way that is denied to small, unorganized Third World commodity producers. This change has acted adversely on developing countries; for example, African terms of trade deteriorated by over 30% between 1980 and 1989. It has led to policies of industrialization, aimed at import substitution, in the Third World, and to attempts to reduce production in order to increase prices

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Terms of Trade

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Name for late 19th century, coined by Mark Twain: _______ Age

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Gilded Age

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Evidence of market integration: price ________________

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Convergence