ACTIVITY1.

1
HISTORICAL TRACING ACTIVITY
(Format Sample)

Name: (alphabetical) Corpuz, Christian Jay V. Group Number: individual

Date of Submission: 9/25/2020
Module 1, Lesson 2: The Globalization of World Economics
Section: BSA 1O

Historical Event/Concept Meaning / What happened? Significance

(1-2 sentences only) (1-2 sentences only)
1. Silk Road This is the oldest known international trade route. Products such as It signaled the first international trade. Yet, it wasn’t truly global yet
silk were traded from China to Middle East and to Europe. because it had no ocean routes and did not reached densely populated
continents such as Americas.

1. Galleon Trade Manila-Acapulco Trade that occurred for nearly three centuries. It opened new possibilities for Philippines as Manila gained the moniker
Spain spread their cargoes of luxury goods, economic benefits and “the center of commerce in the East”. The first international trade as
(Manila – Acapulco Trade) cultural exchange by monopoly of ports through Mexico, Americas Mexico traded with Americas and distributed goods around the globe.
and Philippines.

2. Gold Standard The gold standard is a system where a country's has a value The tendencies are that if the country depletes its gold reserve, the money
directly linked to gold. With the gold standard, countries agreed to will not be produced. It was abandoned during WWI and thoroughly
convert paper money into a fixed amount of gold. replaced by a new System.

3. WWI Economic Crisis Countries force funding their armies. The world war 1 choked the The Europe Abandoned the gold standard and applied a floating system
economy due to depleting gold reserves and war against nations that does not rely on the gold reserves.

4. Great Depression Was the worst economic downturn in the history, lasted 10 years. Unemployment rates were higher and monetary system crashes leading
It began after the stock market crash of October 1929. Where them to abandon the gold standard causing them to recover some of the
everyone from tycoons to janitors bought stocks that underwent money to jumpstart their dead economy.
rapid expansion thus depleting them financial support.

5. WWII The first war the America waged after the great depression. The WW2 made other countries realize that the gold standard was negative
and abolished it, adapting a new system called “Fiat Currency.

6. Fiat Currency The world adapted a new system, thoroughly discarded the old The world led to adapt Bills and coins as s FIAT money and monetary
 “gold standard”. The new system does not rely on the gold but is service, giving way to a more streamlined and arranged way of financial
issued by the government as a monetary service that depends on trade that thoroughly depends on the country.
the goods that was produced by the country.

7. Global Keynesianism States that there should be a continuous flow of money, and money The idea sparked more countries upon making their financial and
should be always put to use and avoid stagnancy so that it can be monetary services to move thus helping them improve their economy
used for the betterment of the economy by infusing capital.

8. Bretton Woods System Set up a network of global financial institutions that connected the All was based on the dollar, other country’s currencies in relation to the
world by global interdependence. dollar, itself convertible into gold and was good for trade.

9. World Bank Main use was to fund the construction and rehabilitation of Helped other countries recover from the world wars by the fund given by
damages after the war. the world bank.

10. IMF Main purpose was to lend money to other countries that needs help If a country lacks the finance to jumpstart their country from problems,
from problems. they can rely on the IMF for lending purposes.

11. GATT Was an agreement between countries in 1947, whose overall The export and import industry flourished thus improving overall global
purpose was to promote international trade by reducing or trade.
eliminating trade barriers such as import and export tax.

12. High point of Global Keynesianism The government applied Keynesianism and propagated their After the world wars, each government would invest thoroughly in their
money by moving it by capital. Without considering the debt of the economies booming the employment but was later cut down to the large
country that made it suffer in later stages. debt.

13. OAPEC With the oil price getting high, the OAPEC was made and put oil It affected many countries that were reliant on oil. Which led to a
restrictions because of the resupplies brought by the Yom-Kippur phenomena called “stagflation”.
war.

14. Neoliberalism A new form of thinking that rivaled the Keynesianism, which Some of the Government controlled services was privatized. It solved the
states that Keynes was ineffective. The new system offers that the problem in which the government provides all of peoples needs thus
government should limit its money and use only if necessary. balancing the economy.

15. WTO The WTO replaced the GATT but still uses the same policies The GATT was renovated into WTO

16. Washington Consensus All the policies that were in the WTO were called the Washington All the policies were laid ahead but failed in the global financial crisis.
consensus but it weren’t went to the expectations the economists
expected.

17. Global Financial Crisis 2008-2009 The world again experienced an economic downturn by the The world again faces an economic threat that was resolved by mortgages.
attempt of free marketing and not regulating the bad investments.
18. Mortgage backed securities. A loan type deal that bundles the debt for it to be sold to an This made way for giving the people opportunities to loan while securing
investor, it is classified into two sub categories; Prime mortgage for an investment thus making use of the money and time.
and sub-prime mortgage

19. Free Trade While the US recovered from the global crisis, some countries Goods and services are sold globally and internationally with less or
opened up their economies to other countries for them to free-trade without the tax and prohibitions.
lessening the barriers between trades.

20. Trade Liberalization The removal of most restrictions in international trade of goods It promoted free trading without associated costs which made an
between nations. advantage for the small countries for opening and boosting their economy
but intensifies the inter-national competition of trading.

21. Economic Globalization Today The process today was still uneven and unequal due to certain Some countries are protectionists that limits their products to their own,
countries benefit more than others thus countering the balance and some countries have their own policies restricted maintaining the
equity. imbalance in the global economy.

22. Transnational Corporation Are the enterprises that are from foreign countries that owns Provides work to unemployed people thus lowering their labor
several assets around the globe. requirement for more employees to have a chance at work.