1. Balance of Payments (2011)

Apunte Inglés
Universidad Universidad Internacional de Cataluña (UIC)
Grado Administración y Dirección de Empresas (ADE) English Programme - 1º curso
Asignatura World Economics
Año del apunte 2011
Páginas 1
Fecha de subida 05/06/2014
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The  Balance  of  payments:     •Always  has  to  be  cero  (you  cannot  have  a  deficit  in  here)     •Current  account  +  financial  account  +  capital  account  =  0   •Current  Account:  export  or  import  of  goods  and  services     •Financial  account:  purchase  or  sale  of  financial  assets  (money,  stocks,  factories)  =  0   •Capital  account:  other  activities  resulting  in  transfers  of  wealth  between  countries.   (Mostly  from  non  market  activities)   Globalization:  the  opening  up  of  economies  to  flows  of  goods,  services,  capital,  and   businesses  from  other  nations  that  integrate  their  markets  with  those  abroad   • Greater  mobility  of  factors  of  production   • International  division  of  labor   • Deeper  market  integration   • Changing  role  of  developing  countries.     • There  are  3  waves  of  globalization.  The  3rd  Wave   (1989  -­‐2008):   o Telecommunication  costs  drop   o WTO  liberalization  and  regionalism   o Disintegration  of  supply  chain   o Immigration  tensions   o Fast  capital  mobility   o US  supremacy   o Further  liberalization  and  antiglobalization   movement’s  reaction.   • Political  Trilemma:   o Global  federalism:  we  align  the  scope  of  democratic  politics  with  the  scope  of  global   markets   o Bretton  Woods  Compromise:  capital  controls  and  limited  trade  liberalization)   § So:  we  can  downgrade  our  ambitions  with  respect  to  how  much  international   economic  integration  we  can  achieve.   o Golden  Straitjacket:  when  we  sacrifice  some  degree  of  economic  sovereignty  to   global  institutions.   § So:  if  we  maintain  a  nation  state,  we  have  to  make  it  responsive  only  to  the  needs   of  the  international  economy  (we  pursue  global  economic  integration  at  the   expense  of  other  domestic  objectives)     o Deep  economic  integration  requires  that  we  eliminate  all  transaction  costs  traders   and  financiers  face  in  their  cross-­‐border  dealings.     o Welfare  state:  A  model  in  which  the  state  assumes  primary  responsibility  for  the   welfare  of  its  citizens.   o Nation  State:  Territory,  population  and  government.     Conclusion:  if  we  want  more  globalization,  we  must  either  give  up  some  democracy  or   some  national  sovereignty:  pretending  that  we  can  have  all  three  simultaneously  leaves  us   in  an  unstable  no-­‐man’s  land.     ...