Midterm Econ102 Essay

3956 WordsMar 28, 201516 Pages
John Arnold Econ 102 Midterm: (essays of 250-500 words per chapter; per the syllabus) Globalization Economics Chapters 1-4 Chapter 1: Globalization in General & Globalization Economics in Particular This chapter gives an over view concept of what globalization entails. The chapter gives a great description and definition of the concept: “Globalization is a holistic, or systematic, set of structures, dynamics, functions or goals, internal constraints, and external impediments”. All of this is relative to the exchange of goods, services, e-goods, information, ect. In other definition, globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by…show more content…
In other words, a country's standard unit of exchange—a pound, a dollar, or a franc, for instance—is pegged to or defined in terms of a set price for gold. Under such a system, gold is central to the monetary system of the country as the medium of exchange and the store of value. There are advantages and disadvantages for a country on a gold standard. Much depends on the economic circumstances of the particular country and the global economic environment. Generally speaking, however, a gold standard tends to hold inflation in check while curtailing government spending. The gold standard also tends to stabilize currency exchange rates between those countries on it. The major disadvantage of a gold standard is that it hampers a country's ability to make adjustments in its domestic money supply and international exchange rates when needed. The United States, at various times in its history, has been on an official gold standard, not on a gold standard, and even on a de facto gold standard. The U.S. experience with the gold standard is generally reflective of the economic history and theory of the gold standard monetary system. The U.S. gold standard was interrupted during World War I but otherwise was in effect until 1933. As a result of stock market crash of 1929, the ensuing Great Depression, and numerous bank failures, Americans

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