Answer

1. EPZ’s

Export Processing Zones (EPZs) refer to designated areas within emerging and developing countries that provide barrier-free and duty-free environment to promote industrial exports thus enhancing economic growth. These zones attract both the local investors and foreign direct investments for the export markets and are effective in supporting the realization of a country’s industrial strategy.

1. Keynesianism

The Keynesianism concept was founded by economist John Mynard Keynes to describe how total spending in a given economy, also referred to as aggregate demand affects inflation and output. Keynesianism is important since it encourages governments to consider external financing as a strategy to increasing their expenditure during economic downturn. This strategy is effective in reducing inflation since it boosts the productivity of the economy thus aiding rapid post-recession recovery.

1. The IMF

The International Monetary Fund (IMF) refers to an organization composed of 190 countries that work collectively to foster financial stability, international trade, create employment opportunities, support sustainable economic development and growth, reduce poverty, and encourage monetary cooperation. IMF plays a significant role in monitoring lending and capacity building across its member countries.

4. Bretton-Woods Agreement

This agreement refers to the collective currency exchange regime formed in mid 1940s and disbanded in the 1970s. The agreement was reached between 44 countries with the aim of promoting and regulating international trade. Its proposal that all currencies are pegged on the US dollar and price of gold helped in currency stabilization.

5. The Truman Doctrine

The Truman Doctrine refers to a foreign policy enacted by the USA with the intention of curtailing the expansion of the Soviets geopolitical influence and expansion during the Cold War. This doctrine was established by the USA to provide economic, military, and political assistance to democratic nations threatened by the internal and external authoritarian forces allied to the Soviet Union.

6. UNESCO

The United Nations Educational, Scientific, and Cultural Organization (UNESCO) refers to a specialized agency that operates as an agency of the United Nations with the primary purpose of promoting security and world peace through international cooperation in culture, education, and sciences. UNESCO plays a significant role in eradicating poverty, promoting intercultural dialogue, and building peaceful cultures through education, sciences, information, and communication.

Part 2: Essay Questions

Qn. 4 – Possibility for a more sustainable and equitable form of globalization

The term globalization refers to the increasing interdependence and convergence of world’s economies, populations, and cultures through increase cross-border movements and trade activities which then facilitates exchange of technologies, information, and flow of investments, while also enabling easier movement of people (Beumer, Figge & Elliott, 2018). Whereas the concept has been advantageous in liberalizing local markets and exposing them to intensified flow of finances, goods/ services, and cultural interactions, it has equally attracted criticisms for its role in promoting inequality and unsustainable business models. Despite the criticisms, the success of the European Union points at the possibility of promoting globalization that encourages equitable distribution of resources. Considering these views, this question argues that there is a possibility of a more sustainable and equitable form of globalization.

According to the European Central Bank, globalization can be made more sustainable by making it efficient, equitable, and enduring (ECB, 2020). In regard to efficiency, sustainable globalization can be achieved by reducing asymmetry in dissemination and access to information, reducing monopoly of power, and reducing externalities such as environmental pollution. Secondly, the term enduring means making globalization to be politically sustainable. There is need for legitimate international economic rules, and also, formulation of social and economic models that allow macroeconomic stability and fair competition (Beumer et al. 2018). These measures will enhance quality of financial flow and trade thus sustainability and equitability of economic activities. The term equitable globalization denotes the ability to achieve a distributive impact. Equitability can be achieved through the use of new technologies to enhance economic efficiency. This concept can be realized by reducing the erosion of tax bases and profit sharing. Stable tax bases ensure stability in collection of tax revenue.

The primary agents of the transformation to a more sustainable and equitable globalization include the individual countries, economic regulators, and the international agencies involved in trade and economic reforms such as the United Nations, World Bank, and the IMF. In this regard, a care-based economy is more preferable to revitalized internationalism since the former applies environmentally friendly and human centered economic approach.

Qn. 7 – Impact of COVID Pandemic on Business as Usual

The United Nations Conference on Trade and Development (UNCTAD) reports that the Covid-19 pandemic has had adverse effects on local and international businesses, the triggering strained relationships between some countries while fostering others. Goffman (2020) contributes to this discussion noting that the economic and political relations between these countries have either been developed or strained by the availability and quality of information. For instance, China, USA, and Australia have reported strained relationships mostly arising from misinformation and speculations on China’s involvement in creating the pandemic. As a result, China has opted to introduce sanctions and embargoes against Australian products. In return, Australia has also limited its trading activities with China. By adopting these measures, both Australia and China have been on the lookout for new countries to trade with.

UNCTAD explains that the spread of the pandemic has benefited from the increased interconnected among countries through globalization. The resultant global health crisis has shocked the global economic system contracting 4.3% of the global gross domestic product (GDP) (UNCTAD, 2020). The containment measures taken by national governments over the past year, have limited mobility of goods and services on international markets which has led to unemployment and a general dip in disposable income. The slowed economic activities have resulted into a flux of global shares as investors are afraid of investing. Others prefer saving their funds because of the uncertainty regarding the state of the pandemic. These disadvantages have plunged countries into economic recessions. More than 130 million people are living in extreme poverty as a result of the pandemic (Karabag, 2020). The poor populations have suffered the most from the epidemic because of the widespread unemployment and low savings. These negative consequences of the pandemic have led to hostility among some countries mostly arising from geopolitical differences and the struggle to control the limited resources vital in promoting economic growth during this period of recession.