Name: Mesiona, Giah Doreen B.

Date of submission: August 30, 2022

Setiar, Marc Dave

Section: BSMA, 3rd year, MA3 Unit 1 Lesson 2

Historical What Happened? Significance

Event
First global trade route in the history. Trading This became the first international trade.
Silk Road goods such as silk from China to Middle East and But was not global yet because there was
to Europe. no direct or indirect involvement to other
important continents.

Age of This is an economic system of British economy. This system leads to the birth of
Mercantilism The wealth of the country was determined by the monopolistic trading companies. It
accumulated gold and silver. The country exports advocates government regulation of
more than import. international trade to generate wealth.

Gold Gold was accepted to be a global medium of The exchange rate of foreign currencies
Standard exchange. A standard unit of currency is based on became comparatively stable, thus it
the value of fixed quantity of gold. creates certainty in the international
trade.

Floating A monetary system where it tends to fluctuate in This aimed in stabilizing a volatile market.
Currencies value due to the supply. Its value also was It left the monetary and fiscal authorities
determined by global demand. free to pursue internal goals.

The Great The stock market crashed, many lose their jobs as This became the worst economic
Depression many companies closed and shutdown. downturn of industrialized world. The
Unemployment drastically reaches its highest level, longest depression ever experienced.
24.9%.

Abolition of Prohibited exportation of gold and prohibited the It was abolished due to curb inflation and
Gold Treasury and financial institutions for converting prevent foreign nations from over burning
Standard currencies into gold. the system.

Fiat This is a currency that has been declared legal This was used to preserve the value of
Currencies tender by the government but has no intrinsic or gold and silver.
fixed value and is not supported by gold.

Bretton Wood This is a unified set of rules and policies that This system envisioned a global
System provided the framework for creating fixed monetary system that would maintain
international currency exchange rates. exchange rate stability, and promote
economic growth.

Neoliberalism This was used to refer to market-oriented reform It resulted in a slew of negative
policies such as "eliminating price controls, socioeconomic consequences, including
deregulating capital markets, lowering trade increased poverty and unemployment
barriers"

Financial Subprime mortgages gone bad that were packaged Between late 2007 and 2009, the stock
Crisis into risky securities, compounded by lax regulatory market crashed, wiping out nearly $8
(2008-2009) oversight, and a lack of consumer confidence, trillion in value.
constitute an economic crisis.