Foundations of Economic Globalization
World War Two (WWII)
This trade route, was the first international (multi-continental) trade network known by historians.
Silk Road
What does TNCs stand for?
Transnational Corporations
What theory, coined by Adam Smith, applies the allocating of resources through supply and demand.
The Invisible Hand
What does the acronym NAFTA mean?
North America Free Trade Agreement
This institution was created to issue long-term economic recovery efforts. Its goals included economic recovery through global trade and the elimination of poverty.
The World Bank
What is trade liberalization?
Removing trade barriers / regulations
Provide an example of a TNC
Answers will vary (Walmart, Coca-Cola, Pepsi, Esso, Shell, Toyota, Apple, Samsung, etc.)
This economist wrote the communist manifesto
Karl Marx
Which countries are a part of NAFTA?
Canada, USA, Mexico
This institution was created to provide short-term financial assistance and to monitor exchange rates.
International Monetary Fund (IMF)
What is a tax on imported goods or services called?
Tariff
What is it called when one company pays another company to fulfill certain tasks in production of a product or service?
Outsourcing
This economist believes in capitalism and global trade, but with heavy government regulations.
John Maynard Keynes
What was the main reason for creating NAFTA?
What was a main goal of the World Bank and IMF?
WTO (World Trade Organization)
What is deregulation?
Removing rules and regulations limiting government control
This economist believes in a truly free trade market without government regulations.
Friedrich Hayek
What is the main export of countries that are apart of OPEC?
Petroleum/Oil
What was one of the conditionalities for Heavily Indebted-Poor Nations (HIPNs) to receive money from the World Bank or IMF.
-Cut government spending
-Privatization
-Follow free market capitalism
Which wealthy group of countries control half the votes within global trade institutions, such as the World Bank, IMF, and the World Trade Organization?
G7
-Canada, USA, Britain, France, Italy, Japan, Germany
What do we call the sale of government-owned industries and services to private businesses?
privatization
This economist believes in free market capitalism with little to no government regulation, except for money supply related issues, such as interest rates.
What is the name of the economic alliance in which most European countries are members?
European Union