GE1714

Directions: Write your complete answers on the spaces provided.

Ideas Summary/Explanation
Economic globalization is unending historical process which is the result of human
What is economic
innovations and technological progress. It refers to the increasing integration of
globalization?
economies around the world, particularly through the movement of goods, services,

and capital across borders. The term sometimes also refers to the movement of

people (labor) and knowledge (technology) across international borders.

No, Economic globalization starts since the evolution of humankind, the ability to
Is economic globalization a
innovates and technological advancement progresses as time pass by. Humankind
new phenomenon?
are beginning to explore to discover the other parts of the world which also results to

economic globalization.

What are the differences and Divergence has its own structural system in terms of trading goods and service for a

similarities between specific group or organization. On the other hand, convergence is the unity of all
convergence and divergence?
nations to promote cohabitation where we are all can benefit all the available goods

and services offered to each other, we coexistence and combined to access what is

available to others. Both convergence and divergence are vital for economic

progression.

International Monetary Systems refers to a system that forms rules and standards for
What does International
facilitating international trade among the nations. It is the global network of the
Monetary Systems do?
government and financial institutions that determine the exchange rate of different

currencies for international trade. It is a governing body that sets rules and regulations

by which different nations exchange currencies with each other. International

Monetary Systems is necessary to assign a standard value of the international

currencies.

The Gold Standard functioned as a fixed exchange rate regime, with gold as the only

What is The Gold Standard? international reserve. Participating countries determined the gold content of national

currencies, which in turn defined fixed exchange rates. Also, this was a commitment

by participating countries to fix the prices of their domestic currencies in terms of a

specified amount of gold.

What are the roles of The The Bretton Woods System required a currency peg to the U.S. dollar which was in

Bretton Woods System and turn measured to the price of gold. The Bretton Woods System created a lasting
Its Dissolution? influence on international currency exchange and trade through its development of

the IMF and World Bank.

 Monetary policy involves influencing interest rates and exchange rates to benefit a
What does European
country's economy. This is done by a central bank controlling the supply of money in
Monetary Integration do?
the economy. For this reason, under EMU, monetary policy is closely coordinated,

and within the euro area it is centralized and independent.

International Trade is the exchange of goods and services between nations for
What are International Trade
economic development. Trade policies, in general, define the standards, goals, and
and Trade Policies?
rules and regulations of trade agreements between countries.

Unilateral Trade Order is a commerce treaty that a nation imposes without regard to
What is Unilateral Trade
others. It benefits that one country only. It is unilateral because other nations have no
Order?
choice in the matter. It is not open to negotiation. It occurs when one nation adopts a

trade policy that is not reciprocated. It means to accumulate surplus in the balance of

the payments by stimulating export and restricting import.

02 Worksheet 1 *Property of STI

Page 1 of 1