International Economics and Development
Economic Globalization
Economic globalization involves the reduction of barriers limiting the free movement of business, trade, investment, and labor across international borders. Globalization is the unification or joining together of the world’s economies and its various commercial, business, and financial markets.
Reasons for Globalization
- Deregulation: Relaxation of government controls and increased reliance on market forces of demand and supply.
- Multinational Expansion: Businesses with branches
Globalization and the Washington Consensus in Mexico
The Globalization of the Washington Consensus (Romo Héctor Guillén)
John Kenneth Galbraith stated that globalization, a concept invented by Americans, was not a serious concept. It was designed to facilitate international capital movements, causing numerous problems while granting respectable entry to other countries.
Key Economic Concepts
Global Economy: The world economy taken as a whole; the world market.
World-Economy (Braudel): A portion of the planet that is economically integrated. It is defined
Read MoreSustainable Development: Responding to Environmental Crisis
Sustainable Development: A Response to Environmental Crisis
We are witnessing a paradigm shift. Awareness of resource limits and global environmental problems are challenging the traditional view of economic progress. The new environmental paradigm emphasizes:
- Environmental quality impacts economic development.
- Investing in the environment is profitable.
- Natural resource use has an environmental cost.
- Environmental protection requires citizen involvement.
- Major environmental problems are global and require
Macroeconomics and Public Sector Economics: Key Concepts
Item 5
Macroeconomics
Focusing on the study of the economic situation nationally and internationally.
Key Macroeconomic Aggregates
- Magnitude: Expresses the result of an economic activity. Aggregates are formed by the sum of the assessments of what different economic agents bring to the economy.
- National Accounts: Measuring economic activity through the registration and calculation of transactions by different operators.
- Domestic Product: All goods and services generated by companies in one country.
- GNP
Economic Activity, Business Functions, and Entrepreneurship
Economic and Business Activity
An overview of the economy:
- To produce goods
- As a result
- For those who produce
Factors of production:
- Work: physical and intellectual contributions of human beings
- The Earth: natural resources needed for production
- Capital: productive assets or capital to produce goods
Operators:
- Families: the basic units of consumption, contributing their work to companies
- Enterprises: Basic production units
- The public sector: establishes the legal framework for economic activity, provides public
Spain’s Economic Transformation (1960-1973): International Reintegration and Modernization
Item 8. International Reintegration (1960-1973)
1. Reintegration into the International Economy
Conducted through progressive liberalization, barriers to international marketing were removed sequentially. However, tariffs remained a significant brake.
While global efforts aimed for more flexible markets, tariffs hindered incoming goods. Tools used to manage this included:
- Trade schemes for imports: Articles were treated differently, progressively eliminating intervention.
In 1958, this scheme covered
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