INTB 3351 quiz 1 - Have your timeline and glossary open and...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Have your timeline and glossary open and your study guides in front of you and you shall do fine INTB 3351 Week 1 Study Guide Wednesday, 8/24 Introduction Reading: Rodrik, The Globalization Paradox, pp. ix-xxii 1. Rodrik seeks to provide an “alternative narrative” for globalization. What are the key elements of his narrative? What was wrong with the old narrative? What is Rodrik’s purpose in establishing a new narrative? The old narrative said "markets are efficient, financial innovation transfers risks to those best able to bear it, slef-regulation works best, and government intervention is ineffective and harmful." The purpose Rodrik established this new narrative was because it created too many blindspots that made predictable crises to unpredicted. The old narrative decieved many economists and made them oblivious, including Rodrik, about the brewing financial crisis. Many were too ready to belive that purdential regulations and central bank policies had erected sufficiently strong barriers against financial panics and meltdowns in advanced economies". Rodrik's "alternative narrative" suggested that "markets and governments are complements, not substitutes" Meaning that markets and governments have to work together to be globalized. But globalization and democracy doesn't work together and this is where the Globalization Paradox comes into play. (I still can't really expand on this last idea so if any of you guys are willing to help me out and correct my mistakes feel free so the class can benefit from this) Week 2 1. How, where, when, and why did the system of modern credit originate? 1200 AD Fibonacci stated the superiority of Arabic numerals over Roman numerals which allowed for the calculation of interest. Jews were allowed to lend money to their neighbors and charge interest, unlike Christians, and sat at banques (benches). 2. How, where, when, and why did the first joint stock companies and stock market develop? 1602 Amsterdam invented the first public company by allowing citizens to invest in the Dutch East India Co. The DEIC forced owners to sell the shares of stock to other individuals in order to "cash in" their investment which created the first stock market. 3. How did John Law engineer the first stock market crash in history? What developments did this set in motion in the 18th and early 19th centuries?
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
He over inflated Frances currency with his own bank/company. Led to Revolutions. Set back financial development and set back stock market. Toppled French monarchy. Puts Napolean Bonapart. 4. How did the Rothschild family emerge as the largest bankers in the world? Helped finance Napolean Bonepart. Bond market set the family up for success. (Nathan Rothschild). By speculating on how the way would effect the bonds. Terms
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/02/2011 for the course INTB 11371 taught by Professor Tylerpriest during the Fall '11 term at University of Houston.

Page1 / 10

INTB 3351 quiz 1 - Have your timeline and glossary open and...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online