CHAPTER 2

• Silk Road is a trading route
• Silk Trade is a trading sytem
• Age of Exploration where european made an unprecedented levels of exploration because of the growing numbers of professional explorer and navigators. European ships travelled around the world in search for trading routes and new lands to colonize.
• Galleon Trade is a trading route that connected Manila in the Philippines and Acapulco in Mexico
• Gold Standard is a more open trade system emerged in 1867 when, following the lead of the United Kingdom, the United States and other European nations adopted at an international monetary conference in Paris.
• Bretton Woods Conference. The world leaders sought to create a global economic system that would ensure a longer-lasting global peace
• Bretton Woods System was inaugurated in 1944 during the United Nations Monetary and Financial Conference to prevent the catastrophes of the early decades of the century from reoccurring and affecting international ties
• John Maynard Keynes who believed that “economic crises occur not when a country does not have enough money, but when money is not being spent and, thereby, not moving.”
• This active role of governments in managing spending served as the anchor for what would be called a system of global Keynesianism
• Expansionary Fiscal Policy it decreases the tax and increase the spending
• World Bank a organizations that responsible for funding postwar reconstruction projects.
• Contractionary Fiscal Policy the government reduces spending and increases the taxes
• International Monterary Fund which was to be the global lender of last resort to prevent individual countries from spiraling into credit crises.
• World Trade Organizations is a opened a new forum within which a broad range of international issues would be negotiated, including not just traditional trade issues on tariff and non-tariff barriers, but also intellectual property rights, trade related investment measures, and food safety standards.
• Marshall Plan was a U.S. program provding aid to Western Europe following the devastation of World War II
• General Agreement on Tariffs and Trade main purpose was to reduce tariffs and other hindrances to free trade
• Fiscal Policies is a policy where the government uses taxes to stabilize the market
• Richard Nixon who abandoned the gold standard
• Crony capitalism is a term describing an economy in which success in business depends on close relationships between business people and government officials.
• OAPEC imposed oil embargo as a response to the decision of US in resupplying the Israeli military during the Yom Kippur War
• Stagflation defined in which a decline in economic growth and employment, and takes place alongside a sharp increase in prices.
• Neoliberalism refers to market-oriented reform policies. The policies they forwarded came to be called the Washington Consensus
• Washington Consensus required governments to implement the structural adjustments measures in order to qualify for loans. It advocates pushed for minimal government spending to reduce government debt.
• Hegemony which refers to a state's ability to "single-handedly dominate the rules and arrangements of international political and economic relations”
• Hegemonic Stability Theory indicates that the international system is more likely to remain stable when a single nation-state is the dominant world power or hegemon
• Protectionist defined as shielding a country's domestic industries rom foreign competition by taxing imports