POLI 244 > week 5 > Flashcards

week 5 Flashcards

(104 cards)

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1
Q

What has been a major factor in the emergence of the global economy?

A

The growth in the value of trade, with many arguing that past economic growth in the developed world is largely explained by deep involvement in an international trading system.

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2
Q

What dominates global trade today?

A

Major multinational corporations (MNCs) and intra-firm trade.

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3
Q

How did the world economy change after the Cold War?

A

A world economy segmented by European colonies was replaced by one divided between the superpowers (USA and USSR) and their allies/client states.

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4
Q

What similarities existed between imperial systems and Cold War economic systems?

A

Dominant states provided manufactured goods, while developing countries supplied raw materials.

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5
Q

What was Import Substitution Industrialisation (ISI)?

A

A policy to reduce reliance on imported manufactured goods by producing them locally to employ local labour and reduce unemployment.

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6
Q

How did ISI policies attempt to protect local industries?

A

By imposing tariffs on imports to allow industries to develop without external competition.

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7
Q

Why did ISI ultimately fail to break reliance on imports?

A

Local industries depended on imported machine tools, spare parts, and technical knowledge.

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8
Q

What are the two key features of globalisation-related economic activity?

A
  1. Foreign Direct Investment (FDI)
  2. Global financial flows.
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9
Q

What is Foreign Direct Investment (FDI)?

A

Long-term investment where MNCs locate production and marketing facilities in other countries.

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10
Q

What concerns are raised about financial flows in globalisation?

A

They can destabilise economies due to speculative and rapid movements of capital.

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11
Q

When did world trade grow significantly post-WW2, and why?

A

In the 1950s–60s, as countries recovered from WW2 and newly independent states began trading internationally.

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12
Q

What factors boosted trade again in the 1980s–1990s?

A

The introduction of neoliberal free trade policies.

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13
Q

What does the neoliberal view of trade advocate?

A

That unimpeded trade benefits developing countries — a core idea of the Washington Consensus.

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14
Q

What are the national-level goals of neoliberal free trade policy?

A

Promoting efficient use of labour and reducing the state’s role in the economy.

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15
Q

What are the international-level goals of neoliberal free trade policy?

A

Removing barriers to trade and promoting inflow of FDI.

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16
Q

What does the Post-Washington Consensus argue about the state?

A

The state has a role in overseeing finance, education, and infrastructure to support markets.

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17
Q

What remains the primary economic role of many developing countries in global trade?

A

Providing raw materials and markets for manufactured goods.

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18
Q

What are the two major problems developing countries face as primary commodity exporters?

A
  1. Commodity prices lag behind manufactured goods.
  2. Price volatility makes revenues unpredictable.
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19
Q

What is the “new protectionism”?

A

Non-tariff barriers like quotas, safety, and environmental standards used by developed countries to protect industries while claiming to support free trade.

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20
Q

What advantage do developing countries have in attracting FDI?

A

Lower labour costs.

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21
Q

What is a key feature of FDI regarding control?

A

Production remains directed by a foreign corporation.

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22
Q

What does financial liberalisation involve?

A

Removing restrictions on currency trading and capital flows across borders.

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23
Q

How much did global trade grow between 1950–2000 compared to production?

A

World trade increased 20-fold, while production increased only sixfold.

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24
Q

What were causes of the post-WW2 boom in trade?

A

Reconstruction, independence movements, neoliberal free trade, and the rise of BRICS economies.

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25
What events caused global trade declines in the early 20th century?
1914–1945: imperial rivalries, world wars, and economic isolationism.
26
What is globalisation?
The shrinking of time and space, with new social relations and new centres of authority (economic, MNCs, multipolarity).
27
What roles does the Global South play in globalisation?
Providing raw materials, labour, and manufacturing sectors for clothing, electronics, and food.
28
How have urban centres in the Global South changed due to globalisation?
Increased migration due to industrialisation and employment opportunities.
29
What was the “dual economy” model proposed by Lewis?
Developing economies have a modern (urban, industrial) and traditional (rural, agricultural) sector.
30
How did the 1913 Native Land Act in South Africa embody the dual economy?
It divided the country into a modern, prosperous part and a traditional, poor part.
31
What was the long-term effect of colonialism on African economic structures?
Creation of institutions that inhibit economic growth rather than promote it.
32
What is the neopatrimonialism argument about Africa’s poor economic performance?
That neopatrimonial political systems create private goods and instability, leading to weak development outcomes.
33
Why are traditional International Relations (IR) perspectives problematic for studying the developing world?
Because at least four-fifths of the global population were excluded as subjects of study, and they overlook developing countries as active players in international politics.
34
What does traditional IR overlook about the international system?
The dissolution of European empires and the growing power of developing countries.
35
Why does traditional IR lack tools for understanding the developing world?
It focuses on state-centric, Western experiences and ignores non-state actors and informal structures in the Global South.
36
What has often challenged the state’s dominance in developing countries?
Powerful non-state actors such as warlords, guerilla groups, terrorist organisations, and drug cartels.
37
How was superpower rivalry played out in the developing world during the Cold War?
Through proxy wars that fuelled instability and conflict.
38
What was the Non-Aligned Movement (NAM)?
Formed in 1961 as a coalition of states rejecting both superpowers (USA and USSR) during the Cold War.
39
How did the Cold War affect the developing world?
It created pressures that forced alignment, provoked proxy wars, and contributed to political and economic instability.
40
What built-in feature of the UN shaped its early approach to world politics?
A predisposition towards decolonisation.
41
How has US foreign policy evolved since the Cold War?
The US remains militarily dominant but has seen a relative decline in economic and ideological power.
42
What mixed effects did US dominance have on developing countries?
Some benefited from stability, while others faced greater instability after the Cold War.
43
How did the collapse of the USSR change the global system?
It created a single global capitalist system, increasing the cost of defaulting from it.
44
What are the BRICS countries, and what do they represent?
Brazil, Russia, India, China, and South Africa — a bloc seen as challenging Western dominance in global institutions.
45
Which Western-dominated organisations do BRICS challenge?
The G7, WTO, IMF, and World Bank.
46
What is the NDB (New Development Bank)?
A BRICS-created institution designed to provide loans to BRICS members and other developing economies.
47
How is the NDB a response to Western financial dominance?
It offers an alternative to the IMF and World Bank by prioritising Southern-led development financing.
48
What is regional integration in the developing world?
Cooperative efforts among developing countries to increase market size and strengthen regional economies.
49
What was the main goal of early (“old”) regionalism?
To create external barriers protecting domestic production and increase the market for local manufacturers.
50
What is the main goal of “new” regionalism?
To reduce internal barriers and promote trade within regions.
51
Why did developing countries pursue regional integration?
To enhance bargaining power in international negotiations and strengthen regional trade.
52
Give an example of a regional bloc from the Caribbean.
CARICOM (Caribbean Community).
53
How does regionalism connect international politics and the global economy?
It reflects the overlap between political cooperation and economic interdependence.
54
What were the global South’s main economic functions during the Cold War and post-war eras?
Supplying raw materials and serving as markets for industrial goods.
55
What long-term problem do commodity-exporting developing countries face?
The need to export more commodities to afford the same amount of manufactured imports due to price disparities.
56
What are examples of commodity price instability?
Large price fluctuations in goods like coffee and cocoa, which make revenues unpredictable.
57
What forms does modern protectionism take in developed countries?
Non-tariff barriers such as quotas, safety standards, and environmental regulations.
58
Why is this protectionism called “new protectionism”?
Because it disguises protectionist practices under the rhetoric of liberalisation.
59
How does neoliberalism view FDI and foreign capital?
As universally beneficial, calling for no discrimination or barriers to investment.
60
What role does the state play under Post-Washington Consensus ideas?
Overseeing the financial system and supporting education and infrastructure while maintaining open markets.
61
What major tension exists in free trade ideology?
Western nations promote free trade rhetorically but practice protectionism in reality.
62
How has the BRICS grouping shifted global power dynamics?
It has created a more multipolar economic order, challenging Western-led institutions.
63
What historical trend underlies the rise of regional and Southern-led initiatives?
Dissatisfaction with the dominance of Western economic models and institutions.
64
How does the UN’s stance on decolonisation relate to the Global South’s role in international politics?
It provided legitimacy to independence movements and newly sovereign states
65
What challenges did post-colonial states face in asserting independence during the Cold War?
Pressure from superpowers, proxy conflicts, and economic dependency.
66
What key global shift occurred after the Cold War in terms of ideology?
Transition from bipolar competition to a unipolar capitalist global order.
67
What is the global economy?
All economic transactions that occur across national borders, including trade, financial flows, international aid, and FDI.
68
What major debate surrounds globalisation?
Whether increased global integration has helped or hindered the well-being of the Global South.
69
What role does the Global South play in globalisation?
It provides manufacturing sectors for clothing and technology, raw materials for production, and labour for global industries.
70
What are key raw materials supplied by the Global South?
Palm oil, coffee, cocoa, and resources for technology production.
71
What demographic trend is tied to globalisation in the Global South?
Urbanisation, as people move to cities in search of employment opportunities.
72
What time period saw significant growth in world trade before WWI?
1870–1914.
73
What caused the steep decline in trade between 1914–1945?
Imperial rivalries, global conflicts, and isolationism following the Treaty of Versailles.
74
What post-war development encouraged global interdependence?
The argument for promoting increased international cooperation after the devastation of WWII.
75
How much did world trade grow between 1950–2000 compared to production?
Trade grew 20 times, while production grew only 6 times.
76
What historical program aided post-WWII reconstruction and trade?
The Marshall Plan.
77
What factors drove trade growth after WWII?
Reconstruction, decolonisation in Africa, neoliberal free trade ideology, and the rise of the BRICS.
78
What global crisis in the 1970s disrupted trade and development?
The oil crisis.
79
How did the Global South become categorised economically in the late 20th century?
Into “emerging economies” and “least developed countries” (LDCs).
80
What institutions embody the neoliberal free trade model?
The Bretton Woods Organisations and the Washington Consensus.
81
How do Western countries contradict their free trade rhetoric?
By practicing protectionism while promoting liberalisation abroad.
82
Define Foreign Direct Investment (FDI).
Investment made outside the investor’s home country, where control over resources remains with the investor.
83
What is a defining feature of FDI?
Production is directed by a corporation based outside the territory where the investment occurs.
84
What time period saw the most rapid growth in FDI?
Between the 1980s and 2010.
85
How did the role of developing economies in FDI change between 1990 and 2010?
They moved from being marginal players to leading recipients and sources of FDI.
86
What concern surrounds FDI growth in the Global South?
That its benefits are unevenly distributed among developing countries.
87
What debate exists over FDI in the Global South?
Whether it brings economic development or reinforces dependency and exploitation.
88
What is an example of FDI conflict in the Global South?
The Cochabamba water crisis, where privatisation and foreign control led to mass protests
89
What additional influence can MNCs hold in host countries?
Lobbying power that affects domestic policy decisions.
90
What economic challenges do developing countries currently face?
Loss of export opportunities, fluctuating commodity prices, and cuts to FDI.
91
Why does China’s economy matter for the Global South?
Its economic shifts significantly impact developing world trade, investment, and commodity demand.
92
What could alter the global balance of economic power?
The rise of rival global economic institutions such as the BRICS’ NDB.
93
What key question arises in assessing today’s global economy?
Whether neo-colonialism remains a useful framework for understanding global power and economic control.
94
What does the idea of neo-colonialism suggest?
That states can be controlled economically rather than politically, through financial and trade dependence.
95
Why is trade and FDI said to be more “visible” than financial flows?
Because the movement of goods and investments is tangible, whereas financial flows are abstract and harder to trace.
96
What is meant by financial flows?
Movements of money across borders, including currency trading and investments in foreign stock markets.
97
How do the scale of financial flows compare to trade and FDI?
Financial flows are much larger and often dwarf trade and FDI combined.
98
Why are many global financial transactions considered speculative?
Because they aim to profit from short-term market fluctuations rather than productive investment.
99
What has financial liberalisation involved?
Removing restrictions on currency exchange and capital movement.
100
What effect did financial liberalisation have on national economies?
It allowed markets to dictate currency values and increased exposure to global financial volatility.
101
What is one major concern about global financial markets?
That speculative capital flows can destabilise entire economies.
102
How has globalisation restructured centres of authority?
Economic power has shifted towards multinational corporations and multipolar governance networks.
103
What does “the ebb and flow of China’s economy” reveal about global dependence?
It shows how developing economies are deeply tied to China’s growth and consumption patterns.
104
How does the persistence of inequality question globalisation’s benefits?
Despite growth in trade and FDI, wealth remains unevenly distributed, with many Global South countries left behind.
POLI 244
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