Summary
Summary - Lecture 1
- Course
- Institution
This summary provides answers to the various learning goals of this lecture, structured coherently with the layout of the lecture.
[Show more]
Seller
Follow
mr360
Content preview
IF Summary – Lecture 1Learning Goals
1. Define economic (financial) globalization.
2. Describe the key trends and developments of the global economy and financial
market.
3. Review the historic narrative of the international financial architecture. Identify the
institutional features of major periods in the evolution of global economy
4. Clarify the reasons for increase in globalization
Learning Goal 1: Define economic (financial) globalization:
Globalization: development of an increasingly integrated global economy marked especially
by free trade, free flow of capital, and the tapping of cheaper foreign labor markets
- In short: Globalization is an increase in international flows of…
1. Goods & Services,
2. Capital,
3. Information/Ideas
4. People (Migration)
International Finance: Part of the general international economics discipline.
International economics is about how nations interact through trade of goods and services,
flows of money, and investment. ➔ Important because nations are more closely linked than
ever
Learning Goal 2: Describe the key trends and developments of the global economy and
financial market
Globalization was not even – it came in waves
- 1st Wave: 19th century to 1913 (up until 1st WW)
- 2nd Wave: 2nd Half of the 20th century, after WW2
- Financial globalization followed a similar long-run trends
1. Wave: Second Industrial Revolution (1850-1913)
2. Wave: Globalization: After WW2, financial globalization grew exponentially
➔ However, strong regional differences! Financial globalization mainly
happened between advanced economies.
- Globalization caused large trade imbalances: Some countries accumulated large
debts (US, Spain, UK) while others accumulated trade surpluses (Germany, China,
Russia)
- Labor is increasingly mobile
Learning Goal 3: Review the historic narrative of the international financial architecture.
Identify the institutional features of major periods in the evolution of global economy
Review the historic narrative of the international financial architecture
- Why? Tracing evolution of international financial architecture over the last 100 (or
more) years helps to understand the reasons for observed trends in globalization!
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller mr360. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $6.95. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53068 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now