GEA1000 EXAM 2 - GEA1000 EXAM I GLOBALIZATION(1 Driving...

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GEA1000 EXAM I. GLOBALIZATION (1) Driving forces of globalization (general) –know the impact of these on the globalization process Eg. Cost of making international phone calls drops, so what? Technological Factors Advances in communications, advances in information handling, and advances in transportation Economic Factors Internationalization of trade and finances multinational corporations and trade associations between countries. Political Factors supranational governments Cost of international phone calls has drop substantially since 1930 from $300/ min to $0.30/ min (2) Technological factors driving globalization (make sure you know the difference between this and (1) above) Technological Factors (has a subset?) Advances in communications, advances in information handling, and advances in transportation Technology is making it cheaper to communicate through e-mail and videoconferencing, better coordination and control, and information technology on hard space is becoming cheaper. (3) International trade in relation to globalization. Take particular note of China-US trade activities and figures currently (totals) and implications of the figures in relation to imports/exports According to IMF (international monetary fund), by 2007 the world exports as a percentage of economic output was about 30% Over the year years U.S. has been importing more and more from China. By 2006 the U.S. trade balance with China had become a deficit. (4) Globalization and the economic “doctrine” of neo-liberalism…. .Adam Smith Neo-liberal policies- economic policies that require a minimal role of the government assuming the desirability of free markets as the ideal condition not only for economic organization but also for political and social. Neoliberalism promotes commercial trade as guided by free market forces through reduction of trade restrictions through multilateral agreements (NAFTA)
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Adam Smith Wealth of Nations 1776 Abolition of government intervention saying that free trade is the best way for a nation’s economy to develop. (5) Neo-liberal performance measures –for example, GDP per capita and the like GDP-Gross domestic product – all goods and services produced by a country in on year. Gross domestic product per capita- all goods, services, and income or loss generated abroad from investments, bank accounts, etc. Commercial trade growth (cash not barter) Growth of export sector (hard currency) Inflation rate- rate of increase of the average price level, usually some form of consumer price index. Currency Exchange stability Percentage of urban population Electricity consumption Unemployment rates (6) Purchasing Power Parity How much a common market basket of goods and services each currency can purchase locally, including goods and services that are not traded internationally. Eliminates differences in national price levels
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This note was uploaded on 10/22/2009 for the course GEA 1000 taught by Professor Brempong during the Spring '08 term at University of Florida.

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GEA1000 EXAM 2 - GEA1000 EXAM I GLOBALIZATION(1 Driving...

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