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January 12th 2012. Governance and Globalization
We will be talking about globalization in much more detail
Term test 5 to 6 pages
Tutorials 10% of final grade
Readings Global Politics
Capitalism is undermining capitalism and the primay is in the last decade we have kind of have
been confused about money, how money is generated, what its for... etc
In the last decade, we have kind of lost or been changing the meaning of money and the way
money has being used. Money is not confused in the market place. You give money for
something that is tangible. Something that is real. We also have things we need which are
untangible. We cannot touch them but we can imagine them and we can have a paper that we
have them. Financial goods.
How do we handle debt? Someone can actual buy the debt. Does it impact you? Yes. Your
interest will go up. It has an impact on us immediately – debts.
International trade – traditional meaning of globalization. International trade has been
changing. Your parents may have pension money plans. The future of your parents depends n
the value of pension. Usually in a tradition economy we which the money because of trading.
Before money, we traded goods with goods. Then it become very difficult so to make it more
universal, they traded salt, gold, then money. First it was coin money, then we made paper
money. Then we created central banks and their sole purpose to make sure that the currency
reflect within the overall value of goods and services. The biggest economy in EU is it is about 15
trillion Euros. Most 800 trillion dollars are issued by banks. Pension plans one of the biggest
plans in the world. Why did they buy it? The banks issued pension plans. The best investment
there is the triple A - AAA to make objective analysis what is good and what is not by money.
The heart of capitalism. (investment) Bonds – I give 100 dollars I get a bond worth of 100 dollar
bond from the government and in 3 years time or so, this bond will get bigger. A morgage is a
If you want to sell a lot, then make the price lower but in the end, you need to make a profit
Visa or mastercard – you can write a deal, insurance can pay for accidents,
We invented the steam engine a long time ago to trade stuff and as time passes by, technology
we up and so did trade. Every time there was a technology globalization is increasing
Globalization is international – travelling, telecommunication, trading with other countries etc.
First we started to trade real goods then we add financial goods.
The Canadian government guarantees bonds. The government can subsidized your education.
Its safe and its good.
Money can be dangerous – when they sell financial products. Monopoly. You go to Miami with
100 dollars and play poker and the maximum bet is a thousand. You can win or loose. If you
loose the casino get money and if you win you get your money back and more money from
someone who looses. You take risks. In a casino they have monopoly money. Casino is part of