Explore 1 and 2

Explore 1

What is contemporary globalization in comparison to historical globalization?

Economic globalization can be understood in different forms. Aspects of the Age of Globalization emerged around the eighteenth century. The contemporary era of globalization is considered to have emerged in the twentieth century.

Historical and Contemporary Globalization

Review the ideas in Module 2 that formed the foundation of historical globalization:

  • the rise of capitalism

  • industrialization

  • imperialism

  • Eurocentrism

free market economy: an economic system characterized by competition, supply, and demand

It supports the view that the consumer dictates what is produced with a response to purchase or not purchase the product or service. It promotes as limited government involvement as possible.

Review the motivations for creating the international monetary system, the World Bank, and the expansion of the free market economy at the end of the Cold War. This information can be found on the reading pages assigned in Lesson 1, pages 209 to 213 in Perspectives on Globalization.

Explore 2

Which political and economic ideas and factors have most contributed to the expansion of contemporary economic globalization?

There are diverse understandings of how contemporary economic globalization developed.

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Read

Read about people of economic influence on pages 214 to 216 in Perspectives on Globalization.

Read about the link between freer trade and economic globalization, the regulation of freer trade, and freer trade between Canada and the United States on pages 217 and 218 in Perspectives on Globalization.

Read about international agreements on pages 229 to 235 in Perspectives on Globalization.

Read about transnationals on pages 236 to 240 in Perspectives on Globalization.

 

Read about telecommunications and transportation technologies on pages 241 to 245 in Perspectives on Globalization.

Internet

View the interview with Naomi Klein, the author of No Logo: Taking Aim at the Brand Bullies. The interview can be found in the CBC Archives.

Key words:

John Maynard Keynes: a twentieth-century economist who influenced economic policies and practices

He supported a strong government role in the economy. The government was essential in increasing the ability of consumers to spend and to keep the economy out of recession or a slump in economic activities for the country. He suggested that the government would increase or decrease taxes in response to consumer spending.

Friedrich Hayek: a twentieth-century economist who supported limits on the role of government in society, especially the economy

Milton Friedman: a twentieth-century economist who promoted economic ideas that greater prosperity and political and social freedom would be achieved if there were less government control and more free market practices

Consumers would drive the economy with their spending and should adapt without government support if the economy struggles.


freer trade: refers to further expanding the ability to trade freely between countries

This is often the motive for international trade agreements. Many supporters of freer trade believe freer trade will help the global economy and will resolve issues such as global poverty.


free trade: a view supporting the removal of as many trade barriers as possible and encouraging free movement of goods and services between countries

trade agreement: a contract between two countries to trade freely between each other

transnationals: companies and/or people who have established corporate or home bases in two or more countries