Review for Quiz/Test 3: Economics and Globalization
As usual, be able to not only understand each word, but look above and below each entry to see how that particular word matches with other topics and concepts. If you have any questions, post them and I'll answer as best I can.
Developed vs. Underdeveloped StatesRich versus Poor States: how rich versus how poor?
GNP and GNP/PC
Purchasing Power Parity (What isn’t measured in GDP?)
Industrialization vs. Basic Needs
Cycle of Underdevelopment
Dual Economy
Low Productivity
Insufficient Capital
Few Human Services
Trade
Foreign Aid
Private Investment
Technical Assistance
Lack of Social Cohesion
Insufficient Natural Resources
Explosive Population Growth
Colonial Legacy (positives and negatives)
Cash Crops
Tariff Barriers
Non-Tariff Barriers
Quota, Subsidy, Regulation
Stronger vs. Weaker Currencies (What effect does this have on trade?)
Liberal Economics
Comparative Advantage
Specialization
Free Trade
Dependency
Import Substitution
Export Driven Growth
Participatory Development
Globalization: Definitions
Globalization: Mechanisms:
Convergence
Pressure on Government/Policy (Why fewer and less regulations, taxes, etc?)
International Monetary Fund
Two Roles (formal and informal)
Benefits and Criticisms
"Golden Straightjacket"
East Asian Financial Crisis: Two explanations
Globalization: Positives and Negatives
Pros and Cons (lots here)
Effects (not just economic)
Indonesian Experience: Sovereignty, East Timor, Democracy, “Revolution from Beyond”
posted by Dr. David Hauser at 2:20 PM
20 Comments:
I do not have a lot in my notes for Developed vs. Underdeveloped or Rich vs. Poor....what do you want us to know about them?
are the 3 perspectives to overcoming poverty liberal economics dependency and participatory development . and where does alternative fall in there?
As for Developed vs. Underdeveloped (which is basically the same as Rich vs. Poor), just look at the first few pages of K&K. This was just the setup material for the section, talking about the extent of poverty in the world, looking at GDP/PC rates around the world, etc.
The three perspectives are as you say (liberal econ., dependency, and participatory development). I'm not sure what you mean by "alternative". Rephrase the question, and I'll try and answer it.
neocolonialism was not on the sheet, do we need to know about it for the test?
What exactly should be under the globalization definations? If you could help me out that would be wonderful. Thanks
Don't worry about neocolonialism (unless you want to use it as part of Dependency, which is on the test).
I don't honestly care which definition of globalization you use: the key should be that it's driven by economics (the logic of liberal econ/comparative advantage) but that it's the non-economic effects that make it important, interesting, and controversial. Any of the readings will have a specific definition, or you can use the one I gave in class.
I do not have much in my notes about the Lack of Social Cohesion...what do we need to know for that?
What do you mean by globalization mechanisms? All I can think of is convergence.
what is export driven growth? i do not have it in my notes and i can't find it in my book
Lack of Social Cohesion is defined in the K&K book. Part of the three non-economic effects on the cycle of poverty/underdevelopment.
Convergence is the main mechanism for globalization (know how it works), but we talked about the IMF as representative of several IGOs that work to push states towards convergence.
We talked about export driven growth as part of the east asian economic crisis (part of the chapter/discussion of the IMF). It's a hybrid of dependency and liberal economics: use other people's markets (and free trade) to create wealth for your country. It isn't in the books; we talked about it in class.
for the 2 roles of IMF (formal/informal)... in my notes, i have roles listed as: keep world peaceful/stable, encourage trade, step in when one country's economy (or currency) is in trouble to keep them stable....which 2 are you looking for???
Formal IMF role: step in and lend money when no other country/government/private bank will ("lender of last resort").
Informal IMF role: give report cards on how "capitalist" any developing (poor) state is. In order for the IMF to do it's formal role, it needs to have updated/recent info on poor states and be able to respond quickly. Private investors can get that info, and use those "report cards" to decide where to invest. Thus, unofficially, the IMF controls/influences where lots of money goes in the world.
What do you want us to know about "Pressure on government/Policy"?
I have a lot in my notes for criticisms of IMF but nothing really for benefits. Are you looking for specific points? Or is knowing that they get the state out of their economic crisis sufficient?
"Pressure on Government/Policy" is a reference to convergence, and the pressures globalization puts on goverments (and their policies) to adjusts to global market conditions (if you understand convergence, this will make sense).
Recognize that the criticisms of the IMF can be seen as benefits from the other side: violations of sovereignty (for example) can be seen as necessary changes to prevent bad policies from causing a further economic collapse if seen from the IMFs point of view. In this sense, they aren't negatives. However, I won't be asking for a "pros and cons of the IMF" in any question (pros and cons of globalization is another matter).
I'm heading to bed relatively soon (hey, I ran 20 miles yesterday; I'm allowed), so if you have further questions, I'll be happy to answer them. Post them and I'll likely get an answer up before you wake up.
I am so confused about exactly what currency is...is it the money a state has? I am just confused on that in general. help!
In wat book can I find convergence because i can not find anything in my notes.
Currency is the money a state uses. In the US, it's dollars; in Europe it's Euros; in Japan it's Yen. Almost every country has it's own currency (Europe is strange in that it shares the Euro; nobody else does that).
Convergence isn't in any of the books. I talked about it in class.
What should we know about the Indonesian case? Also, what do you mean by "Revolution from Beyond"? Thanks a lot.
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