Introduction to Globalization

Question 1

What is globalization?

Answer 1

Movement towards a more integrated and interdependent world economy.

Evidenced by increased mobility of:

• Goods and services
• Labor
• Technology
• Capital

Question 2

What has driven globalization?

Answer 2

• Advent of global institutions (world bank, international monetary fund, multinational corporations)
• Reductions in trade and investment barriers
• Technological advances

Question 3

What was the beginnings of globalization?

Answer 3

Bretton Woods Agreement (1944)

• Established the world bank
• Established International Monetary Fund (IMF)- Maintained order in the international monetary system by providing finds to economy in crisis
• Reduction in worldwide trend barriers organized in 1947 with General Agreement on Tariffs and Trade (GATT)

Question 4

What are the agreements in GATT?

Answer 4

• Liberalize and encourage trade by eliminating trades, subsidies, import quotas and other barriers
• harmonize related laws across nations
• Reduce transportation and other cost as a group undertaking

Question 5

What is the World Trade Organizations?

Answer 5

Coordinates GATT accomplishments

• responsible for:
• Overseeing the implementation administration and operation of covered trade agreements
• Settles intentional trade disputes